TV- Media Institution Ownership

 TV- Media Institution Ownership

Public service broadcasting

• PSB means that programmes are made for the public, and there are no advertisements, as they want to give their viewers as much entertainment and information as possible, rather than exposing them to adverts which divert their attention. 
• Public service broadcasters generally transmit programming that aims to improve society by informing viewers.
• Public service broadcasters also strive to entertain their viewers. 

PSB rules

• Reflect the diversity of the UK
• Programmes must inform viewers
• Programmes must be distinctive- original and not clones/rebroadcasts of American TV shows.

The BBC shows are not allowed to advertise or product place any brands

• The BBC is a good example of a public service broadcaster. 
• Remit- The responsibility/promise of a programme
• BBC Remit- Inform, educate and entertain

Funding

• 75% of the BBCs funding comes from the license fee (currently costs £157 for a colour and £49.50 for a black and white TV license).
• The remaining income, 25%, comes from commercial activities such as: world wide sales of it's programmes and publications, such as Radio times, Good Food, etc. 

Structure of the BBC

• The BBC is a cross-media organisation- one of the largest in Europe
• This means it is vertically and horizontally integrated

Vertical and Horizontal integration

Vertical integration

• In which a media company has the ability to control the production (pre, prod, post), distribution and exchange (consumption/exhibition) of a product.
• An example of this is Disney and the BBC, although the BBC is also horizontally integrated.
• You can have a company that is vertically integrated through the 3 stages of production, and then horizontally integrated through the Advertising and marketing, distribution and exhibition. For example, the BBC.

Advantages

• The company makes a complete profit
• Compete creative control and ownership
• Studios and resources do not have to be shared

Disadvantages

• If the product fails, profit is lost, despite investments made.
• Your not giving smaller companies a chance
• May reach a wider audience through horizontal integration as you can attract the other companies fan base. 

Horizontal integration

In which a media company has a number of subsidiary (smaller) companies that are used to support the marketing of its products.

Advantages

• You can build a relationship with the other companies, and use their skills again for future companies
• Smaller companies have the opportunity to increase their reputation 

Disadvantages

• The profit is shared across the companies, although in some cases not equally, there will not be a company that gains the complete profit
• The ownership and control is shared  across the media product

Stages of making a media product

1. Pre-production

2. Production

3. Post production

4. Advertising and Marketing

5. Distribution- what: DVD, streaming

6. Exhibition- how: via cinema, on a phone etc.

BBC case study: Doctor Who

Synergy

• Companies that are both vertically and horizontally integrated and are able to create synergy across their output.
• This means they are able to promote their output- for example, Doctor Who- is an efficient and profitable manner, whilst at the same time creating a recognisable brand.
• So, Doctor Who can be advertised across a range of different media via horizontal integration.

Examples of synergy are:

Online and social media services

Through the BBC website and twitter feed

Print media and print advertising

Through the Radio Times magazine publication

Distribution

TV channels

The show can be advertised across the different channels (BBC1, 2 , 3, 4)

Merchandising

A range of doctor who merchandise is available to buy

Remit of ITV

• Launched in 1995, it is the oldest commercial network in the UK.
• It was established in order to provide competition to BBC television (established in 1932)
• 47.6% largest share of the UK TV advertising market
• 21.7% share of viewing for the ITV family in 2017
• 21m registered users of the ITV hub

Commercial television

• The aim of commercial stations is to provide popular shows that attract an audience- therefore leading to higher. prices when advertising is sold.
• All commercial stations are funded by advertising. Exp. ITV
• Apple TV and Disney plus are also examples of commercial TV.

April 2020- Netflix worth more than Disney after streamer's stock hits all-time high

Explain how a public service company operates differently to a commercial company. Use an example to support your answer (4)

A public service company is one that does not have any advertisements, as they do not want to divert their consumers attention by exposing them to adverts. An example of this is the BBC. Instead of gaining funding through advertisements, 75% of their fundings comes from the TV license fee.  This differs to a commercial company that operates through advertising. An example of a commercial company is the ITV, they provide popular shows that attract an audience which leads to higher prices when advertising is sold.

Marketing and Distribution

Aim: To investigate how media products are advertised to audiences

Has advertising changed over the past twenty years?

Twenty years ago, more traditional marketing was used to target audiences. Today, there has been a significant shift to digital platforms for marketing and advertising. 

Key terms

Advertising

Payments from brands in return for the placement of promotional material on pages or during production- could be in the form of commercial breaks, or via product placement. 

Example of product placement-