Media Institution Ownership

Aim: To understand the differences between public service and commercial institutions

- The BBC are not allowed to advertise any products on their television shows - which is why, in cookery shows for example, Marmite is referred to as 'yeast extract', and the labels are removed.

Public Service Broadcasting (PSB)

- PSB means that programmes are made for the public. There are no advertisements.

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

- PSB also strive to entertain their viewers

Golden rules:

1. Reflect the diversity of the UK

2. Programmes must inform viewers

3. Programmes must be distinctive (original)

- The BBC is a good example of a PSB

- Remit = the responsibility/promise of a programme 

- BBC Remit - to enrich people's lives with programmes and services that inform, educate and entertain.

- 'To reflect the UK, its culture and value to the world'.

Funding

- 75% of the BBC's funding comes from the licence free (currently costs £157 for a colour and £49.50 for a black and white TV licence.

- The remaining income comes for commercial actives such as: Worldwide sales of its programmes Publications such as Radio Times, Good Food etc.

Structure of the BBC

- The BBC is a cross-media organisation - 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 (pre, prod, post), distribution and exchange (consumption/exhibition) of a product.

Horizontal Integration = In which a media company has a number of subsidiary companies that are used to support the marketing of its products.

Synergy

- 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.

    - So, Doctor Who can be advertised across a range of different media via horizontal integration (Online & social media, Print media, TV Channels & Merchandising)

Remit of ITV

- Launched in 1955, it is the oldest commercial network in the UK.

- It was established in order to provide competition to BBC Television (established 1932)

Commercial Television

- The aim of commercial station (ITV, 5 and SKY) is to provide popular shows that attract an audience - therefore leading to higher prices when advertising is sold.

- All commercial terrestrial stations (ITV, 5) are funded by advertising.