2. Introduction
■ This PowerPoint will 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
Publically Funded
■ 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 of the 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 BBC3 BBC4
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 of ITV
■ 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
ITV 3
ITV 4
ITV Be
ITV HD
CITV
The Store
ITV Box
Office
ONLINE
ITV Hub
MAGAZINES
ITV
Magazine
8. Public or Private Company & 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 part of 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 they make
■ 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 Vertically Integrated
■ 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.
