Commercial radio stations generate revenue through advertising sales to pay business expenses and make a profit. They program specific formats to attract large audiences and charge higher advertising rates. In contrast, the BBC is publicly funded through television license fees and provides national and local radio stations across different genres. Not-for-profit community radio stations focus on local content and issues to serve their specific communities. Independent production companies can produce radio programs through competitive tenders or by directly pitching ideas to broadcasters like the BBC.

1. PR7: Structure, Organisation and Ownership
Commercial radio:
Commercial Radioisa radiostationthat generatesrevenue throughadvertising, sellingradio
commercials.Thisadvertisingincomeishow the stationpaysitbusinessexpensesand
makesmoney.Unlike non-commercial radio,revenuefromotheravenuesdoesnot
playa central role in the stationoperatingbudget. Commercial stationsattractfunding
by chargingadvertisersforthe estimatednumberof listeners.The largerthe audience,
the higherthe stations'rate card can be for commercial advertising.Commercial
stationsprogramthe format of the stationto gainas large a slice of the demographic
audience aspossible. Anexample of commercial radioisclassical FM;theybroadcastnationally
playingclassical musicinthe UK.Theyare ownedbyglobal radiowhoownotherbig radiostationsin
the UK suchas Heart, smooth,radiox and etc.
Public service radio:
BBC operationsworkby theirownserviceswhichprovidenationalradiostationsthe broadcastall
regionsinthe UK coveringmostmusicgenresandlocal radiostationsthat coverlocal
newsinthe area that radiostationisbroadcastingto.BBC ownand operate several
radiostationslike BBCRadio1, BBC Radio2, BBC Radio6 Music and more.Each radio
stationcoveringsomethingdifferentfortheirtargetaudience,forexample BBCRadio2
istargetedtowardsyoungadultswithmostof theirmusicbeingpopularsongtoday
rather thangreat classichits. The BBC or Royal Charter isthe constitutional basisforthe
BBC. The charter isan accompanyingAgreementrecognisesitseditorial independence andsetsout
itspublicobligationsindetail.EachCharterhasrun for tenyears. A televisionlicence isanofficial
record of paymentrequired forthe receptionof televisionbroadcasts,orthe possessionof a
televisionsetwheresome broadcastsare fundedinfull orinpartby the licence fee paid. The BBC
license fee is£12.13 a monthbetweenApril1st
2013 and 31st
march 2014.The BBC use thisincome
fromthe license feetopayoff Radio,TV,online servicesandothercoststhat theyneed
to pay. The BBC Trust isthe governingbodyof the BBC, to serve the public,andits
missionistoinform,educate andentertain. Theirjobrole istoget the bestout of the
BBC for licence fee payersbysettingoutstrategicobjectivesforthe BBC.These
objectivesincludecreative anddistinctive output; serveall audiencesandmore.When
gettinga showcommissioned bythe BBCit mustfirstbe checked bythe relevantgenre andalso
collaboration betweenthe channelsand genre.The ideawill be pitchedtothe BBC and itwill be
takento the channel controllerif theythinktisreadyto go intoproduction.The BBCwill give their
thoughtsandopinionsonthe matterand give you feedback ona secure meeting.
Not-for-profit radio:
Communityradiostationsbroadcastcontentthatispopularand alsorelevanttothe location. For
example newsupdateswill letyouknow aboutthe weatherinformingyouthe currentnewsina
certainarea inthe UK talkingaboutincidentsthathave happenliketraffic.They
can tell youwhataccidentshave happedonthe road tell youa betterrout to get
aroundthe accident.Astheyare non-profittheywillhave people talkingabout
thingshappeningtheircommunity.Hospital radiostationsare broadcastedfor
patientsandfoundtobe helpful.Alsostudentradiostationsare operatedin

2. PR7: Structure, Organisation and Ownership
collegeslikeSalfordCityRadioFMandin universities.Anditairedbythe studentsthemselvestoget
experience andtheybroadcasttothe entire school atcertaintimesdependingontheirmusicand
target audience.Communityradiostationscanbe offeredalicense toregisteredcompanieslike
Ofcomas an example;theycanprovide aradiolicense.
Independent radio programme production companies:
An independentproductionorganization isacompanythat produces,films,plays,televisionorradio
programmes.Theyprovide the physicalbasisforworksinthe realmsof the performingarts,new
mediaart,film,television,radio,andvideo. The productioncompanymaybe
directlyresponsible forfundraisingforthe productionormayaccomplishthis
througha parent company,partner,orprivate investor.Ithandlesbudgeting,
scheduling,scriptingandsuch. The BBC televisioncommissionedover20,000 hours of programmes
lastyear and investedanestimated£1.2billioninthe UKscreative industries. OnRadio1and Radio
1Xtra, the majorityof programmes,the Core Output,are long-runningstrandswhichare produced
eitherbyin-house producersorbyindependentcompanieschosenthroughcompetitivetender
whenrequired.Bothstationsalsocommissionregulardocumentariesfromin-house producersand
independentcompanies. BBCPitchisthe tool by whichUK basedtelevisionproductioncompanies
and BBC in-house productionteamscansubmitcontentproposalsforBBCnetworktelevision. The
pitchworksregisteranaccount withBBC and once successfullyregisteredwithanaccountonBBC
Pitchuserscan submitcontentproposalstoBBC Commissionersviathe Pitchdashboard.