2. Arran - How can this sector be defined
The private sector is ran by a company or a group of individuals and is not controlled whatsoever by the
state/government. This sector is mainly used as a means to make profit and it the sector that will earn
the most profit if it is done correctly. The private sector is also the sector that hold the most job
possibilities. So getting into this sector might be easy than commercial since their are more jobs going
and it would earn more profit than the commercial sector.
3. Arran - What companies are involved in the
sector I have chosen?
The main company most people from the UK would know would be BBC, It is most famously known for
being the first channel on all TV Boxes and Freeview, It is also known for being one of the only if not the
only channel to never show adverts during its TV shows. Since BBC are in the private sector that means
all of their TV channels from News to Kids shows are also in the private sector. The most famous private
sector is BBC.
4. Arran - Who owns these companies.
John Reith was the original founder of the company known as BBC he founded the company back on the
1st January 1927, a whopping 89 years ago. The number of employees in the BBC in the 2014-2015 year
was just over 20,000 people and the revenue for the BBC in the 2013-2014 year was just over
£5,000,000,000. Some companies like ITV have to have some private sector channels to include cultural
shows that would come under this sector.
5. Arran - How is it structured (BBC)
The BBC is structured in the way to follow certain guidelines for example they have to follow these 4
regulations (Royal Charter, BBC Trust, Executive and the Media Regulations) The Royal Charter came to
be in the late 2007s and is still in play now. For the media regulations most of these regulations come
from a company named Ofcom and they decide whether the BBC is following the guidelines or not and
then they set guidelines for them to follow.
6. Arran - Have their been any recent changes in
ownership
In the BBC there has not been a change of ownership ever since the company was founded in 1927 and
throughout the 89 years has always been close with the BBC and sticks with the parliament for the news
stations. There isn't much to speak about in this section since BBC is the biggest of the private sector and
there aren't really any other big companies that are well known. The only thing I can say is that there has
been no ownership changes or requests from the company.
7. Arran - How are they financed?
The way the BBC get financed is buy people paying their TV licence then that money goes to the
government then the government send money off to the BBC, The money that the BBC get from the
license pay and the government will be to pay for their employees and the equipment they need and it
would also be used to make the shows that air on their channel and then also be used to keep the
building up to date. They get given a lot of money but since they are in the private sector they have to pay
for everything that goes on in their company by themselves.
8. Arran - What is a conglomerate
Disney is a good example of this, They own lots of companies in different media sectors. For example
they have the Kids Shows then they also have the theme parks in America, France and all over the world.
They also own different companies for example Disney own the Marvel franchise so money they make
through comics and the TV shows and even the Movie Disney get a cut of the money. They are the
biggest company that come under the conglomerate category and maybe the biggest company in the
world for profit from buying other companies out and using their media sector for profit.
9. Arran - What is globalisation
Globalisation is when a company branches off into different countries or states to try to branch off their
business, Again one of the best examples of this would be Disney since they have theme parks in nearly
every major city and if they don’t own a theme park there they are having their films released in their
countries, Disney is everywhere in the world and it would be hard to find somewhere they are not. A
company like BBC is only in Britain predominantly since it stands for ‘ British broadcasting corporation’ so
it is only shown in britain and you would have to watch it online to watch their shows.
10. Louis - How can this sector be defined
The commercial sector is mainly known for being funded by advertising where the programming is
continuously funded by either public donations, government funding and from broadcast receiver
licenses. This particular sector, unlike the private sector, is mainly for profit in order to carry on creating
and improving the quality of their content. They are able to gain profit from selling the formats of their
created content, phone lines for voting, merchandise and selling the programmes themselves.
11. Louis - Who owns them?
Sky was founded by Rupert Murdoch on 2nd November 1990, which had 25,356 employees back in 2015.
In its time of being in service
12. Louis - Have there been any recent changes in ownership?
13. Louis - What is horizontal integration
This type of integration occurs when a company either merges with or absorbs another company of the
same sector and same type of company. An example of this would be a TV station buying another TV
station.
14. Louis - What is vertical integration
This type of integration occurs when
15. Josh- What companies are involved in the sector
you have chosen?
There are many companies in the commercial sector such as Sky, ITV, channel 4 and much more.
Sky is a tv company of which commercially supplies members of the public good quality tv and internet
for a price. Channel 4 is a TV channel that shows tv programmes and is usually used by Sky and Virgin.
Itv is also another TV channel that is usually used by Sky and Virgin for tv programmes.
16. Josh- What is the structure?
Channel 4 are structured in a way where they have to follow certain regulations such as ‘The Ofcom
broadcasting code’ however it does not apply to online content. Channel 4 requires online content to
adhere to good standards. Channel 4 have to notify ATVOD of any mobile content in order to get it
serviced. They also have to follow a regulation to do with age restriction on content they show because
they can’t show something explicit on one show then have a kids show on the same channel.
17. Josh - How are they financed?
These companies in the commercial sector are financed by things such as TV licenses, Merchandise,
monthly payments for TV programmes, selling formats , using mobiles for voting and much more. They
use premium lines for mobiles so they can charge however much a minute for a phone call they want or
however much they want per text so they make a lot of money off this. By selling merchandise of which
can all be sold at different prices for example a dvd for 10 pound or a teddy bear for 3 pound and so on.
These are all ways of getting money for financial reasons and tv licenses are probably one of the biggest
ways because of the government charging so much for tv licenses and then paying money to a company
like the BBC for tv channels and radio.
18. Josh - What is diversification
Diversification is where a company decides to engage in a new and different type
of business for example if Sky decided to engage in diversification they will then
become a different business and go from selling internet and TV privileges to
something entirely new that they can sell commercially. Another example would
be Sky expanding on their business and doing something more multimedia like
radio stations, online programmes and so on of which people will pay for.
19. Josh - What is cross media ownership.
Cross media ownership is where a company such as Walt Disney has gotten so
big they diversify into different types of media for example Walt Disney have near
enough every type of media going from radio channels, tv channels, merchandise
such as dvds, theme parks and so much more.
20. All - What is the impact of these.
Arran - The impact certain companies hold on the fans off the company are very drastic, Since people
could get very easily addicted to certain genres. The impact of Globalisation a company is that it can
reach a wider audience and help increase sales but these are mainly used by massive companies for
example Disney.
Josh - The impact that companies have varies based on what they do in the media and how big the
company is because some companies intend to diversify and that can impact on their sales and also can
impact on other companies and the public.
