Media Institution Ownership

UNIT ONE

Public service: BBC - funded by tv licenses, publications (radio times)
Commercial Institutions: ITV, CHANNEL 4, SKY SPORTS

Television license fee: covers the whole house
pay for black and white tv, pay extra for colour tv
£147/yr

differences between ITV and BBC:

• Itv have commercial breaks
• BBC made own content
• BBC restrictions: all content must be informative, educational, educational 
• Time shifting same content, shifted time-wise such as ITV+1

BBC prohibited to advertise on TV shows or radio 

labels are taken of, not allowed to advertise any products on their television shows 

Public Service Broadcasting (PSB)

- means that programmes are made for the public, there're no advertisements

- generally transmit programming that aims to improve society by informing viewers

- public service broadcasters also strive to entertain their viewers

-  AIMS: reflect diversity of UK, inform us, distinctive original content, different to imported content rather than stealing from USA. 

- prime example BBC

Remit- the responsibility of a programme 

e.g. BBC remit- inform, educate, entertain

Funding

75% of the BBC's funding comes from the license fee (currently costs £147 for a colour and £49.50 for a black and white TV license)

Remaining income comes from commercial activities such as: 

• Worldwide sales of its programmes
• Publications such as Radio Times, Good Food, etc.

Structure of the BBC

BBC is a cross media organisations- one of the largest in Europe

This means it is vertically and horizontally integrated

Vertical Integration- in which a media company has the ability to control the production, distribution and exchange (consumption) off a product.

advantages: all original content, complete ownership of product (no one interfering), take all profits, no creative restraints 

disadvantages: funded all by yourself (potential to make a loss), no outside influence from other companies, one political stance same influence throughout their products

Horizontal Integration- In which a media company has a member of subsidiary (much smaller) companies that are used to support the marketing of its products.

Distribution: online and social media services, print media and print advertising, tv channels, merchandising 

Examples of subsidiary companies: Berkshire Hathaway, Jefferies Financial Group, WarnerMedia, Citigroup

BBC Case Study: Doctor Who

brand identity 

• same style font
• dark mysterious colour scheme: blues, metallics
• similar clothing 
• shot types similar
• recognition of institution; BBC

Synergy- two companies or organisation that work together to produce a product that is better than if only one company had worked on it 

• Companies that are both vertically and horizontally integrated are able to create synergy across their output
• This means they are able to promote their output- for example, Doctor Who- in an efficient and profitable manner, whilst at the same time creating a recognisable brand.

Examples with Doctor Who:

Online and social media services: Through website BBC and twitter feed
Interactive websites allowing fans to watch trailers and learn more about the franchise. 

Print media and print advertising: through the radio times magazine publication
Dedicated magazine that BBC would profit from, as well as the BBC publication Radio Times that focuses on general entertainment

TV channels: show advertised across different channels BBC1-4

Merchandising: A range of Doctor Who merchandise available to buy 
Amazon store merchandise, ornaments, figurines, banners, posters, stickers 

ITV:

biggest source of revenue for these institutions during Christmas and winter time. (commercial based)

World cup 
Superbowl 

Remit of ITV:
Launched in 1955
Oldest commercial network in the UK
Established in order to provide competition to BBC Television (established 1932)
ITV have 47.6% (the largest share) of UK TV advertising market 

Commercial television - Aim to provide popular shows that attract an audience - therefore leading to higher prices when advertising is sold (ITV, 5, SKY)

All commercial terrestrial stations (ITV, 5) are guided by advertising
terrestrial - cable based TV (1,2,3,4,5,)