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Television Industries: Ownership

L/O: To explore the history of ownership in two key channels

Public Service Broadcasting (PSB)
  • Refers to broadcasting which is intended for the public benefit rather than for purely commercial concerns.
  • In the UK, the BBC is the main PSB channel.
  • Lord Reith - first Director General of the BBC (1927-38) said: "TV should not give people what they want but what they ought to here"
  • The BBC, funded by the license fee, initially had a monopoly over broadcasting in the UK.
BBC

In January 1927, the BBC was established by Royal Charter as the British Broadcasting Corporation and Sir John Reith became the first director-general. The Charter defined the BBC's objectives, powers and obligations.

When it released in the late 1940s the elements of children's TV, news and weather were introduced to schedules.

In 1953 the live broadcast of the coronation of Queen Elizabeth II saw increase in TV sales, and in 1955 the launch of commercial TV in the UK brought the BBC's first over broadcast rival.

 Commercial Institutions 
These generally have no guaranteed income (even 
ITV, C4 and C5 which have a small PBS remit) 
therefore it is essential they are profitable.  They can 
generate income by:
§ Subscription e.g. BT Vision, Sky Sports/Movies
§ Pay Per View e.g. Sky Box Office
§ Sponsorship – many programmes often contain sponsor stings or sometimes “thanks to” messages on credits.  Strands of programmes may also carry sponsorship e.g. ITV3 afternoons
§ Advertising – companies pay for advertising slots based on programme ratings. The more potential viewers, the higher the advertising slot (£250,000 for 30 seconds during Britain’s Got Talent).
§ Product Placement – since 2011 this is allowed on British TV (not during news or children’s) subject to Ofcom regulations (certain products are banned e.g. cigarettes).  Companies pay to have their products shown in programmes

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