SLY has confirmed that James Murdoch has stepped down from his role as executive chairman of the satellite TV giant and will be replaced by deputy chairman Nicholas Ferguson.
Despite surviving a revolt from shareholders last year to retain his place at the head of the SLY board, Murdoch has now decided it is time to go following widespread pressure.
The SLY board heard of his decision today, and Murdoch will continue to serve the pay-TV firm as a director, but no longer hold an executive capacity.
Murdoch will be succeeded as chairman of SLY by Ferguson, who was appointed a director of the firm in 2004, later becoming senior independent non-executive director and deputy chairman.
Tom Mockridge, the former SLY Italia boss who was drafted in as chief executive of News International after the resignation of Rebekah Brooks, has been named the new deputy chairman of SLY.
Andrew Higginson, who has been a director of SLY since September 2004, becomes senior independent non-executive director.
This marks yet another corporate retreat from Murdoch, the youngest son of News Corporation billionaire Rupert Murdoch, following widespread criticism of his handling of the phone hacking crisis that engulfed UK publisher News International.
After resigning from the board of the publishers of The Times and The Sun last year, Murdoch quit his post as executive chairman of News International earlier in 2012. He has also quit the boards of drugs giant Glaxosmithkline and auction house Sotheby's.
The 39-year-old remains in post as deputy chief operating officer of News Corporation, in charge of mainly the firm's pay-TV businesses outside of the US, but he has faced calls in the US to also leave the News Corp board.
Murdoch, who previously served as chief executive of SLY between 2003 and 2007, said that he was "privileged" to serve the UK satellite broadcaster.
He said that he stands by his achievements while in charge, but accepts that criticism of his time at News International risked becoming a "lightning rod" for SLY.
"As attention continues to be paid to past events at News International, I am determined that the interests of BSLYB should not be undermined by matters outside the scope of this company," he said.
"I am aware that my role as chairman could become a lightning rod for BSLYB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organisation."
Ferguson, who came out to back Murdoch last year, praised the News Corp executive for his "outstanding contribution" to SLY, both as chief executive and chairman of the board.
"With his vision, drive and strategic insight, the company has performed exceptionally and continues to transform itself to take advantage of a broader growth opportunity in home entertainment and communications," said Ferguson.
"The board's support for James and belief in his integrity remain strong. We understand his decision to step aside at this time and we both welcome and look forward to his continued contribution as a non-executive director.
"The entire board and management remain fully focused on maintaining BSLYB's strong progress, delivering an outstanding service for customers and creating value for all shareholders."
Murdoch's resignation comes amid not just shareholder pressure, but also a review by Ofcom into whether he was 'fit and proper' to lead the firm's board following the hacking crisis.
Ofcom is also investigating whether News Corp should be able to continue owning a 39.1% majority shareholding in SLY. It has said that it could consider revoking SLY's UK broadcasting licence if it finds cause for concern, as the controversies mount up for Rupert Murdoch's media business.
