Structure
The BBC supposedly has several operational areas that manage the ‘day-to-day workings’ of the corporation. These Include:
The Director-General’s Office and Executive
Radio
BBC North
Finance and Business
Digital and Strategy
News Group and Television
They also have three commercial Subsidiaries: BBC Worldwide, BBC Studios and Post Production, and BBC Global News.
The Royal Charter
The BBC has six public purposes, which are set out by the Royal Charter and Agreement. They perform the values of their mission, which is to inform, educate and entertain. These six public purposes are:
Delivering to the public the benefit of emerging communications technologies and services - Assisting UK residents to get the best out of emerging media technologies now and in the future.
BBC Trust
‘Getting the best out of the BBC for license fee payers’
The BBC Trust is the governing body of the BBC and it delivers the mission to inform, educate and entertain. The trust is also the ‘guardian’ of the licence fee revenue. They set the framework for the Executive board, which they are separate from, to operate the delivery of BBC services.
“We set the strategic objectives for the BBC. We have challenged the BBC to:”
Television Licence Fee
The BBC is mainly funded through a TV licence fee that every person with a TV, that watch, or record, live television as it is being broadcast must pay an annual licence fee of £145for colour TV and £49 for black and white. The money is taken by the government and is given to the British Broadcasting Corporation.
The total revenue of the licence fee from 2014-2015 is £3.735 billion of which £613.4 million or the Government through concessions provided 16.4% for those over the age of 75. The fee makes up the bulk of the BBC’s total income of £4.805 billion.
And 2013-2014 £5.066 billion divided as:
Competitive
It would be unfair to say the BBC was competitive given the way its been funded. Other networks like Channel 4 and ITV run on ads like every other network BBC is the only exception in UK television and is compulsory. The BBC provides many different types of information and entertainment for consumers whereas other networks are more limited.
It would be fair to say they are not really in competition in terms of popularity or making revenue because of the way they get their income and their popularity is the greatest in the nation in terms of news and entertainment.
The BBC Trust still goes out of their way to make the market free considering the circumstances by having an obligation to minimise any negative competitive impacts on the wider market by applying Competitive Impact Principle (CIP).
The BBC’s Trust’s Fair Trading Policies and Framework set the CIP in more detail, which explains that the BBC Executive boards must try to achieve this goal, of avoiding negative impact, by giving their attention to size and scale relative to the market and the industry that could be affected.
The BBC is still competitive in popularity in specific shows in terms of viewership of different TV programming. In that way other networks can compete with BBC programming with their own series in the same genre or theme. Though revenue is unaffected by a series popularity.
Public Service Broadcaster in today’s Digital Era
The UK and some few other countries have the TV licence fee whereas many other countries public broadcasting have different ways of getting income. Some can be receiving straight from government, which would be taxpayer money, as well as individual contributions and even commercial sources.
There have been many criticisms of whether people need these services where both Canada and Australia are cutting back on their public broadcasting funding as government no longer think it serves a purpose that the people of their nation need; Although public opinion may be different.
The BBC comes under fire because mainly have the TV licence. People don’t like the necessity of paying a TV licence to own a TV and believe the BBC should find other means of funding their service. They currently do not run ads and only get their main income from this source. People also complain about the annual fee being 145.50 that this may be considered too much for the service they seldom use and should only be voluntary for those that want to use the service like Netflix and Amazon Prime.
Commercial competitors cannot compete with the BBC either and they can change and mould the market because of their funding as no commercial investor can match the BBC funding.
Not only does BBC have Public Service obligations but also other networks such as Channel 4 and ITV have those same obligations. Both attempt to decrease this need to have public service broadcasting and so Ofcom consult on what direction the should become in the future.
The BBC supposedly has several operational areas that manage the ‘day-to-day workings’ of the corporation. These Include:
The Director-General’s Office and Executive
Radio
BBC North
Finance and Business
Digital and Strategy
News Group and Television
They also have three commercial Subsidiaries: BBC Worldwide, BBC Studios and Post Production, and BBC Global News.
The Royal Charter
The BBC has six public purposes, which are set out by the Royal Charter and Agreement. They perform the values of their mission, which is to inform, educate and entertain. These six public purposes are:
- Sustaining citizenship and civil society – to provide high-quality news current affairs and factual programming to engage viewers, listeners and users in important current and political issues.
- Promoting educating and learning - The support of formal education in schools and colleges and informal knowledge and skills building.
- Stimulating activity and cultural excellence - Encouraging interest, engagement and participation in cultural, creative and sporting activities across the UK.
- Representing the UK, its nations, regions and communities - BBC viewers, listeners and users can rely on the BBC to reflect the many communities that exist in the UK.
- Bringing the UK to the world and the world to the UK - The BBC will build a global understanding of international issues and broaden UK audiences' experience of different cultures.
Delivering to the public the benefit of emerging communications technologies and services - Assisting UK residents to get the best out of emerging media technologies now and in the future.
BBC Trust
‘Getting the best out of the BBC for license fee payers’
The BBC Trust is the governing body of the BBC and it delivers the mission to inform, educate and entertain. The trust is also the ‘guardian’ of the licence fee revenue. They set the framework for the Executive board, which they are separate from, to operate the delivery of BBC services.
“We set the strategic objectives for the BBC. We have challenged the BBC to:”
- Make the most creative and distinctive output;
- Innovate online to create a more personal BBC;
- Serve all audiences; and
- Improve value for money through a simpler, more efficient, and more open BBC.
Television Licence Fee
The BBC is mainly funded through a TV licence fee that every person with a TV, that watch, or record, live television as it is being broadcast must pay an annual licence fee of £145for colour TV and £49 for black and white. The money is taken by the government and is given to the British Broadcasting Corporation.
The total revenue of the licence fee from 2014-2015 is £3.735 billion of which £613.4 million or the Government through concessions provided 16.4% for those over the age of 75. The fee makes up the bulk of the BBC’s total income of £4.805 billion.
And 2013-2014 £5.066 billion divided as:
- £3.726 billion in licence fees collected from householders;
- £1.023 billion from the BBC's Commercial Businesses;
- £244.6 million from government grants, of which £238.5 million is from the Foreign and Commonwealth Office for the BBC World Service;
- £72.1 million from other income, such as rental collections and royalties from overseas broadcasts of programming.
Competitive
It would be unfair to say the BBC was competitive given the way its been funded. Other networks like Channel 4 and ITV run on ads like every other network BBC is the only exception in UK television and is compulsory. The BBC provides many different types of information and entertainment for consumers whereas other networks are more limited.
It would be fair to say they are not really in competition in terms of popularity or making revenue because of the way they get their income and their popularity is the greatest in the nation in terms of news and entertainment.
The BBC Trust still goes out of their way to make the market free considering the circumstances by having an obligation to minimise any negative competitive impacts on the wider market by applying Competitive Impact Principle (CIP).
The BBC’s Trust’s Fair Trading Policies and Framework set the CIP in more detail, which explains that the BBC Executive boards must try to achieve this goal, of avoiding negative impact, by giving their attention to size and scale relative to the market and the industry that could be affected.
The BBC is still competitive in popularity in specific shows in terms of viewership of different TV programming. In that way other networks can compete with BBC programming with their own series in the same genre or theme. Though revenue is unaffected by a series popularity.
Public Service Broadcaster in today’s Digital Era
The UK and some few other countries have the TV licence fee whereas many other countries public broadcasting have different ways of getting income. Some can be receiving straight from government, which would be taxpayer money, as well as individual contributions and even commercial sources.
There have been many criticisms of whether people need these services where both Canada and Australia are cutting back on their public broadcasting funding as government no longer think it serves a purpose that the people of their nation need; Although public opinion may be different.
The BBC comes under fire because mainly have the TV licence. People don’t like the necessity of paying a TV licence to own a TV and believe the BBC should find other means of funding their service. They currently do not run ads and only get their main income from this source. People also complain about the annual fee being 145.50 that this may be considered too much for the service they seldom use and should only be voluntary for those that want to use the service like Netflix and Amazon Prime.
Commercial competitors cannot compete with the BBC either and they can change and mould the market because of their funding as no commercial investor can match the BBC funding.
Not only does BBC have Public Service obligations but also other networks such as Channel 4 and ITV have those same obligations. Both attempt to decrease this need to have public service broadcasting and so Ofcom consult on what direction the should become in the future.