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ITV Vs BBC
- 1. LEARNING AIM B Structureof a media sector BBC vs. ITV Publically Funded vs. Commercial
- 2. Introduction ■ This PowerPointwill look at the structure of two organisations within the media sector and explain whether they are publicly or commercially funded. The two organisations I have chosen are the BBC and ITV as these are the longest established TV companies in Britain. ■ The BBC is considered a public funded company and ITV is considered a private funded company. In this PowerPoint I will compare the two organisations and highlight the similarities and differences between them.
- 3. BBC & ITV PublicallyFunded ■ The British Broadcasting Corporation (BBC) is a British public service broadcaster. ■ The BBC was first set up on 18 October 1922, 96 years ago (as British Broadcasting Company) and on the 1 January 1927 the BBC was known as the British Broadcasting Corporation. ■ It is the world's oldest national broadcasting organisation and the largest broadcaster. ■ The BBC provides services including 9 national TV channels - in addition BBC Three, the first TV channel in the world to switch online in 2016 - plus regional programming, 10 national radio stations, 40 local radio stations and an extensive website. Commercial Company • ITV (Independent Television) is a commercial public service TV network in the United Kingdom. • ITV was first launched in 1955 as Independent Television under the auspices of the Independent Television Authority to provide competition to the BBC. • ITV is also the oldest commercial network in the UK. • ITV provides service for 9 channels – these are ITV, ITV2, ITV3, ITV4, ITVBe, CITV, ITV Box Office, ITV HD, The Store. • ITV Hub is a catch-up channel which allows viewers to watch shows at any time that were shown on ITV.
- 4. The Structure ofthe BBC ■ The BBC Board is responsible for the company as a whole, for example – setting the strategic direction for the BBC – establishing the creative remit – setting the BBC’s Budget – determining the framework for assessing performance ■ The Board has a number of committees predominantly made up of non-executive directors as required by the Charter. These include an Audit and Risk Committee; a Nominations Committee, and Remuneration Committee. It has also established committees responsible for Editorial Guidelines and Standards, Fair Trading and the Nations. ■ The Executive Committee is the people that are responsible for the day-to-day running of the BBC, for example senior directors managing large operational areas.
- 5. TV BBC1 BBC2 BBC3BBC4 CBBC CBEEBIES BBC NEWS RADIO BBC RADIO1 BBC RADIO2 BBC RADIO3 BBC RADIO4 BBC RADIO5 BBC 1XTRA REGIONAL STATIONS MAGAZINES BBC WILDLIFE BBC HISTORY BBC TOP GEAR GOOD FOOD MAGAZINE ONLINE BBC SPORTS IPLAYER BBC WEATHER BBC
- 6. The Structure ofITV ■ In terms of structure, ITV has a management team where they have a group of people who are responsible for different roles in management. For example, the Director of Strategy and Direct to Consumer (a type of product sales) which is managed by Julian Ashworth. All members of the management team are responsible for different aspects of the day-to-day running of ITV. ■ ITV also has a Board of Directors which are responsible for looking at ITV as a whole and are responsible for larger decisions such as financial, budgeting, and assessing how successful they are in terms of performance.
- 7. ITV TV ITV 1 ITV 2 ITV3 ITV 4 ITV Be ITV HD CITV The Store ITV Box Office ONLINE ITV Hub MAGAZINES ITV Magazine
- 8. Public or PrivateCompany & Revenue BBC is a public company as they are funded by the public. They do not use advertisement as a form of revenue. They are funded through members of the public having a TV licence and selling their shows to other companies so they can be shown on different channels. There are also books based on certain BBC TV shows which they make money from. Finally there are audio tapes and DVDs of shows owned by the BBC which again generate revenue. ITV is a private company as they make most of their money through advertisements between shows and sponsorships. ITV also makes money by selling their shows to other companies in order for them to be shown on different channels, as well as selling DVDs of shows that are owned by ITV.
- 9. Are they partof a larger conglomerate? ■ A conglomerate is a big company that owns other smaller companies. For example, Walt Disney owns Disney Pictures, ABC News, Hulu and ESPN. ■ The BBC could not be part of a conglomerate because they are government run and they are not private, they are public. ■ However, although ITV are not currently part of a conglomerate they could be due to the fact that they are private. For example, if Walt Disney were to buy ITV, Walt Disney could force them to show Disney content on ITV.
- 10. Media products theymake ■ BBC – TV ■ News (BBC News) ■ Drama (Bodyguard) ■ Documentary (Planet Earth) ■ Comedy (Fleabag) ■ Game Shows (University Challenge) ■ Reality TV (Wanted Down Under) ■ Talent Show (Strictly Come Dancing) ■ Children’s (CBBC) – Radio ■ News, Drama, Comedy, Documentary, Game Shows – Books ■ BBC personalities (Mary Berry – ‘Classic’) ■ Shows (Doctor Who) ■ ITV – TV ■ News (ITV News) ■ Drama (Victoria) ■ Documentary (The Cruise) ■ Comedy (Birds Of A Feather) ■ Game Shows (Celebrity Juice) ■ Reality TV (Love Island) ■ Talent Show (X Factor) ■ Children’s (CITV)
- 11. Profitability and Sales BBC ■The BBC make their money from the public having TV licences. The BBC also sell their shows to other companies which generates revenue. In 2017 profits were at a record high of £157.3 million worldwide, BBC Worldwide headline sales for 2016-17 gained 3 percent to £1.06 billion ($1.4 billion), with net profit up 17.6 percent to £157.3 million ($204.8 million). ITV ■ ITV makes the majority of its profits from advertising as it is the UK’s biggest commercial broadcaster. ITV also sell their shows to other companies, for example Netflix, as ITV shows can be shown on Netflix. However, profit in 2017 fell 10% to £500m, with a drop in advertising revenue partly offset by growth in its studio business. In 2017, ITV made a revenue of £3.132 billion. Their operating income was £555 million which meant that their net income was £413 million.
- 12. Competitors As TV networks,ITV and BBC share some main competitors: ■ Each other ■ CHANNEL 4 ■ CHANNEL 5 ■ VIACOM ■ SKY ■ B.T. ■ VIRGIN ■ UK TV ■ SONY PICTURES DIGITAL ITV studios and BBC Studios are production companies that produces shows. Competitors include: ■ All3Media ■ Shine Group ■ Endemol UK ■ Zodiak UK ■ IMG Sports Media
- 13. Horizontally or VerticallyIntegrated ■ Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain. When a company is horizontally integrated they expand into other areas of the industry. ■ Vertical integration is when the production company has the ownership of the means of production, distribution and exhibition of the product by the same company. Because of this they receive all of the profit. ■ ITV has expanded as a family of channels with the launch of ITV2 in 1998, ITV3 in 2004, ITV 4 in 2005 and CITV 2006. ITV is an example of vertical integration because although they own several channels they solely focus on television. They also have a production company that means in certain cases they own the content shown on the channel – this relates to vertical integration as they have not included any other company that are not part of ITV. ■ BBC are horizontally integrated because they have their content distributed across other forms of media, for example radio. The BBC is also vertically integrated as they have their own production company so in some cases own the production from beginning to end.