Learning Aim B:

Structure of a Media
Sector.
 Introduction:
This PowerPoint will discuss the structure of two companies in the media
industry, their similarities and differences especially if they are public or private
funded. These companies are BBC and Sky which are both mass and well-known
organisations. The BBC is considered a publicly funded organisation while Sky is a
privately funded organisation.
The British Broadcasting Channel (BBC) is a British Sky News is a British telecommunications which
public service broadcaster. It was founded at 1922 serves the UK. It was founded at March 1994 four
and is the world’s oldest broadcaster. It employs years after the merger of Sky Television and British
over 22,000 people staff in total and more than Satellite Broadcasting. It became the UK's largest
16,000 people in the broadcasting sector. The BBC digital subscription television company, having over
is established under a Royal Charter and operates 31,000 employees working in broadcasting as of
under its Agreement with the Secretary of state 2019. It provides television and broadband Internet
for Digital, Culture, Media and Sport by the services, fixed line and mobile telephone services to
Government The work is funded principally by an
consumers and businesses in the United Kingdom to
annual TV licence fee which is charged to all
It is the UK's largest pay-tv broadcaster with 12.5
British households, companies, and organisations.
million customers as of 2018.
Around a quarter of BBC's revenue comes from its
Being primarily involved in satellite television which
commercial subsidiary BBC Studios, which sells
makes the largest portion of  income is through
BBC programmes and services internationally and
subscription-based payments.
also distributes the BBC's international 24-hour
English-language news services BBC World News
and from BBC website, provided by BBC Global
News Ltd. 
 The Structure of the BBC.
The BBC Board are on the top of the hierarchy . They set up the
BBC’s budget, the strategic direction of the BBC, establish an
creative remit for the audience and framework for assessing
performance. It has many committees made up of non execute
directors required by the Charter. This management team have
roles such as an Audit and Risk Committee, an Nominations
Committee and Remuneration Committee and established
committees that deal with Fair Trading and Editorial Guidelines
and Standards. The Executive Committee manages the daily
running of the BBC.
 TV Radio

BBC Radio BBC Radio BBC Radio BBC Radio BBC Radio BBC Radio
BBC One BBC Two BBC Three BBC Four BBC News CBBC 1 Xtra 1 2 3 4 5

Cbeebies

Online
BBC Magazines

BBC Wildlife BBC Sports BBC Top Gear BBC Science Focus
BBC News BBC Weather BBC iPlayer
 The Structure of Sky.
The Sky Board are on the top of the hierarchy . They have a
management team which have assigned roles dealing in each
aspect of the company. The head of finance is Paul Wedlock.
Their directors also manage budget, the strategic direction,
creative remit and framework for assessing performance.
 TV Radio

Sky One HD Sky 2 Sky 5 Sky Witness HD Sky Atlantic Sky Arts Sky 90’s Radio Sky Sports Radio Sky News

Sky News Sky Kids

Sky.
Magazines Online

Sky Magazine Sky Sports

Public Funding is funding that comes from the
Private funding is funding that comes other sources like
government, often through taxes. However BBC under a
viewers, equity investors and advertising.
Royal Charter is funded most by an annual television
Sky is privately funded which means that it is mostly
licence fee which is charged to all British households,
funded by subscription based payments and some on
companies, and organisations. They also generate
advertising. They also exports their shows to foreign
revenue by exporting their channels to other foreign
companies so it can be seen on different channels and
companies so it can be seen on different channels and
have CD,DVD and audio tapes.
have CD,DVD and audio tapes that they own.
 Conglomerate.
 A Conglomerate is a big company that owns multiple smaller companies.

 The BBC is not part of a conglomerate as it is public funded by the British

Government.

 Sky is part of a conglomerate as it is owned by Comcast who also owns many

US news and media business including NBC and Universal Studios. As it is
privately funded.
 Media Products.
BBC. Sky.
TV TV
News- BBC News News- Sky News
Documentary- Attenborough and Documentary- Tiger Woods The
the Giant Elephant Comeback
Drama- Keeping Faith Drama- Britannia
Action-Robin Hood Action- Bulletproof
Sc-fi- The War of The Worlds Sc-fi- Intergalactic
Comedy- Live at The Apollo Comedy-Hitmen
Game Show- Pointless Game Show- Gamezville
Talent Show- The Greatest Dancer Talent Show- Must be The Music
Children- Arthur Children- Where’s Wally
Radio Radio
News, Comedy, Documentary News, Comedy, Documentary
Literature Literature.
Doctor Who, Being Human Sky Magazine
 Revenue and Sales.
BBC. Sky.
The BBC makes revenue from the public’s Sky makes revenue from advertisements and
television licenses, it also sells it’s shows for the subscriptions. It also sells it’s shows for companies
companies use as well. In 2017-18, BBC Studios to use. In 2018,Sky were at a peak with an revenue
reports display sales of £432.0m and BBC of 1.17b,this was a rise in revenue from 2006 at
Worldwide showing an increase in EBITDA to up 5.2b to 13b in 2018. Most of the income comes
to 42% to £118.3m. The total income for license from the subscriptions based payments.
fees was 3.83b while £655.3 million(17.1) was
provided by the government through
concessions for over 75 and over. As the BBC’s
total income was £5.0627b as those fees made
the bulk of the revenue.
 Competitors.
As massive networks, BBC and Sky share BBC and Sky also have competitors in the
competitors in the telecommunications production sector.
• Each other • Sony Pictures Television
• ITV • Mammoth Screen
• Channel 4 • Fremantle
• Channel 5 • Nine Lives Media
• Vodafone • Neal Pictures Productions
• Virgin • Maverick Television
• Sony Pictures Digital Horizontally/Vertically Integrated.

 A horizontal integration is the process by which a company expands into other areas of the industry by
increasing goods or services of the same value chain.
 A vertical integration is the process by which the production company has control over the production,
distribution and exhibition. Allowing them to receive all of the profits.
 BBC is horisontally integrated as it has it’s content disturbed over a variety of forms like online. It is also
vertically integrated as they have their own production company so they sometimes are in control of
each stages.
 Sky is horisontally integrated as as it also has it content disturbed over a variety of forms like magazines.
It is also vertically integrated as they have their own production company.
Horizontally and Vertically Integrated.
 A horizontal integration is the process by which a company expands into other areas of the industry by
increasing goods or services of the same value chain.
 A vertical integration is the process by which the production company has control over the production,
distribution and exhibition. Allowing them to receive all of the profits.
 BBC is horisontally integrated as it has it’s content disturbed over a variety of forms like online. It is also
vertically integrated as they have their own production company so they sometimes are in control of
each stages.
 Sky is horisontally integrated as as it also has it content disturbed over a variety of forms like magazines.
It is also vertically integrated as they have their own production company.