CANNES, France–Media conglomerates need to be able to compete on a global scale while remaining creative and inventive, a balance that can be difficult to strike when concerns about the economy flare, James Murdoch, News Corp.’s international chief, said Friday.

Firms can struggle to come up with the best creative solutions in times of economic difficulty, resorting to safe practices, Murdoch said at the Cannes ad festival. Murdoch, News Corp.’s deputy operating chief and chairman and CEO, international, made the comments while speaking on a panel with WPP PLC CEO Sir Martin Sorrell and DreamWorks Animation SKG. Inc. boss Jeffrey Katzenberg.

“When the creative process shifts toward safety in an environment of real pressure … it takes a while to get out of that,” Murdoch said. He added that it is crucial to continue taking risks when times are tough, saying, “We must guard against fear.”

Murdoch acknowledged that “the mood has shifted” over the past few weeks as people in the industry worry about the macroeconomic environment because of situations like that in Greece. Still, he said his outlook hadn’t changed.

“We feel pretty healthy about the business,” Murdoch said. “Nervous about the environment.”

Murdoch said News Corp. must find its place over the next decade in a shifting competitive landscape. He cited the roles of “monolithic” technology and telecommunications companies, such as Google Inc. , Verizon Communications Inc. and Apple Inc. , as presenting challenges.

“The real challenge for us going forward is how can we compete at scale globally with these new players and still be creative and risk-taking,” Murdoch said.

News Corp. owns Dow Jones & Co., publisher of this newswire, and The Wall Street Journal.

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