Media institution ownership

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

BBC 

  • Public service broadcaster (PSB)
  • 75% TV license
  • 25% sales and publication
  • programmes have to be informative, distinctive and reflect the British diversity (have actors of different ethnicity and backgrounds
  • BBC not allowed to have product placement
  • 0 Ads
  • programmes are made for public
  • aims to improve society by informing viewers
  • BBC remit is To enrich peoples lives with programmes and services that inform, educate and entertain. "to reflect the UK, its culture and values to the world"

ITV/ SKY/ Channel 4
  • Commercial
  • make money through Ads, sponsorship and product placement

Remit = institution(TV channel) promise to their viewers

BBC remit is To enrich peoples lives with programmes and services that inform, educate and entertain. "to reflect the UK, its culture and values to the world"

TV license is £157 per year for colour and £49.50 per year for black and white TV.


Explain how a public service company operates differently to a commercial company. use an example to support your answer. (4)

one way a PSB operates differently to a commercial company is that the PSB generates all of its income through TV licenses compared to a commercial company generating income through adverts, sponsorship and product placement. Another way a PSB and a commercial company operate differently is that the PSB aims to improve society by informing viewers of certain facts and opinions. this compares to a commercial company because a channel like ITV shows content which is for pure entertainment rather than influencing the viewer.


BBC is a cross media organisation- 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)

examples: Production, distribution, consumption

Advantages
ownership 
all profits go to you

Disadvantages
if product is not successful, you won't get any revenue or profits back
a lot of content is same theme so not much diversity

horizontal integration- In which a media company has a number of subsidiary companies that are used to support the marketing of its products. 

Advantages
more exposure
more promotion
can go over more media outlets

Disadvantages
ownership
control
shared profits

Examples: Social media, online, print media and print ads, distribution, tv channels, merchandising

Doctor Who case study


this falls into the horizontal model because it is a different way for the customer to engage with the product.

Merchandise- Wallpaper, action figures 
TV- BBC 1, Iplayer
Distribution- 
Print media- Magazines
online- all episodes available online, clips available on social media


Synergy- companied that are both vertically and horizontally integrated are able to create sinergy across their output.

this means they are ables 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 through a range of different media via horizontal integration. 

online and social media services that they use- Tik Tok, snap, twitter, Facebook

print media and print ads- through Radio times magazine

distribution- use multiple channels to promote brand and shows

TV channels- use multiple channels they own to promote their own brand and shows

merchandising- range of doctor who merchandise is available to buy



ITV case study

Commercial company

launched in 1955, oldest commercial network in uk.

established to compete with BBC.

has 47% of UK advertisement market, 21% share of viewing for the ITV family in 2017, registered users of the ITV hub.

aim of commercial stations (ITV, 5 and sky) provide popular shows that attract an audience therefore leading to higher prices when selling advert spaces.

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






















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