Rupert Murdoch's clout in Britain and the United States might have diminished, but in Australia he dominates the media landscape, playing a prominent role in undermining Kevin Rudd's dream of retaining power, analysts say.

While the ruling Labor party has long trailed the Tony Abbott-led conservative opposition in opinion polls, Rudd's ousting of Julia Gillard to re-take the prime ministership in June re-ignited hopes that he could pull off an unlikely upset in the September 7 general election.

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