Commercial TV

Summary of differences – ownership, control and funding

Commercial TV

BBC

Ownership – owned by private companies. Accountable to shareholders, advertisers. Centralisation of ownership is an issue – merger of Carlton and Granada.

Can break down into 14 licence holders + GMTV + Ch4/Ch5, satellite, cable + digital

Role of conglomerates – News Corp (Murdoch)

Ownership – ultimately owned by the public (funded through public funds, licence fee).

Run by the government on our behalf – Board of Governors.

Control – control of individual companies through their shareholders.

Regulation of content, technical standards, complaints, advertising through the ITC (Independent Television Commission) and Advertising Standards Agency.

Control – run by the Governors, who are appointed by the Crown/Government. Overseen by the Director General, Gavyn Davies.

Accountable to Parliament (ultimately accountable to the public – we elect the government)

Funding – funded through advertising, sponsorship and subscriptions, as well as a small amount from sale of goods, phone-ins etc.

Split between all the commercial channels – ITV get by far the biggest share. Overall, get more revenue than the BBC.

Funding – funded through compulsory licence fee (anyone using a television has to pay).

Small amounts of additional revenue from sale of goods. Do carry advertising on overseas channels.

Also raise revenue through syndication (selling on programmes to overseas channels)

Pros and cons of advertising versus the licence fee

Licence fee – no adverts
Not beholden to advertisers – free to take risks, guaranteed income
Can afford to make quality programmes, use new writers, produce educational or minority programmes

Brings in much greater revenue without cost to the consumer
Cater to a mass audience – this can mean more popular programmes (Pop Idol) or it be negative – not catering to minority audience, always the ‘lowest common denominator’ – everyone will watch it, but it doesn’t appeal to anyone in particular. Not challenging.
Advertising means consumer choice – can watch TV for free, don’t need to pay licence fee or for satellite etc.
Licence fee is a regressive tax, seen as unfair.