Few seem to be enjoying the management meltdown at the venerable BBC more than Rupert Murdoch, the News Corp. chief whose rival British newspapers have been caught up in their own lengthy, embarrassing and expensive phone-hacking scandal. But the troubles for both media organizations highlight that the news industry in Britain is at rock-bottom in public esteem, and could face increased restrictions from the government of Prime Minister David Cameron, which appears convinced it has been unable to police itself. The British Broadcasting Corp. has moved into full-bore damage control since it retracted mistaken allegations by its marquee news program...