Rupert Murdoch has launched into a long speech about the "disruptive" influence of the internet on the newspaper industry.
In 20 years, he says, "newspapers will have very small circulations."
"One day we won't be able to afford trucks and presses and we will be purely electronic."
"The News of the World was an aberration and it's my fault," says Rupert Murdoch.
Rupert Murdoch says he wishes he had examined Clive Goodman 'one-on-one'.
"If I'd thrown out the damn lawyers and cross-examined Goodman myself I would have turned the place apart and we wouldn't be here today."
One of the crucial claims from Rupert Murdoch's evidence to Leveson this morning is that some people in his company were responsible for a cover up of the extent of phone hacking.
He is painting a picture of himself as a victim of the cover up.
Whether you agree is up to you and clearly the people he is referring to would reject the allegation.
But this is what he said:
"I do blame one or two people for that who, perhaps I shouldn't name, for all I know they may be arrested."
"There's no question in my mind... Someone took charge of a cover up which we were victim to and I regret."
So the boss says his company did mislead people without his knowledge. The implications could be serious, because those potentially misled may include the police and shareholders.
I have spent hundreds of millions of dollars as a result of hacking," says Rupert Murdoch.
"We are now a new company, we have new laws."
Murdoch says he promised to go in and clear up his newspapers, "and I did."
"Generally, I don't believe in privacy law," said Rupert Murdoch.
"Privacy laws are always proposed for the protection of the great and the good and not for the mass people that make up our democracy," he said.
Why did you close the News of the World rather than tough it out?
"When the Milly Dowler situation was first given huge publicity...it made people all over the country aware of it," replied Rupert Murdoch.
"You could feel the blast coming through the window.
"I panicked, but I'm glad I did.
"I'm sorry I didn't close it years before and put a Sun on Sunday in."
"I'm under strict instructions from my lawyers not to say this," said Rupert Murdoch, before launching into a scathing criticism of Daily Mail editor Paul Dacre.
"I was really shocked by the statement from Mr Dacre the other day that his editorial policy is driven by commercial interests.
"I think that is about the most unethical thing I have read for a long time, and what's more from the most surprising source, as I have great respect for his abilities."
Rupert Murdoch says the phone hacking scandal and the subsequent inquiry has cost his business "hundreds of millions."
The inquiry has now moved on to hacking, and has clearly caused some concern among the News International legal team.
During questioning a lawyer for News International walked up to its counsel, clearly worried.
He was angrily told to sit down by LordJustice Leveson.
News International's concern seems to be that the inquiry has asked to see a legal document that so far has not been released by News International.
The document is a 2007 report by the legal firm Burton and Copeland (London) on phone hacking.
We don't know what it said, but if News International executives learnt from that report that hacking was more widespread than 'one rogue reporter' then that would be very serious indeed.
It would mean they had evidence that hacking was more widespread whilst they were claiming it was not. Perhaps misleading the police and shareholders.
But all this is speculation; we don't know what was in the report or - yet - whether News International will agree to release it to the inquiry.