Ownership

Public Service Broadcasting

Public service broadcasting in the UK, refers to the non commercial broadcasting to the public. public service broadcasting differs to commercial broadcasting as its intentions are to simply provide non profitable broadcasting to the UK's public. The BBC became the first public service broadcasting service in the early 1920's. The BBC is a funded by an annual licence fee and not by commercial advertising income. The BBC's first director general John Rieth published a statement of views on broadcasting to the government committee which had been set up to establish guidelines for the future of broadcasting. His views on broadcasting have created the basis for public service broadcasting and influences the regulations of terrestrial broadcasting today.

The main points in his "memo" suggest that broadcasting should fundamentally: Educate, inform and entertain. Its interesting to note that he ranks the three fundamentals in order of importance, education being the most important and entertainment being the least. He ranks entertainment as the least important fundamental yet entertaining programme generally create the largest audiences.

He also states his views on the BBC's role in the world, he says that the BBC should act as a cultural, moral and educative force and present the best of human knowledge, endeavor and achievement. He also states his views on the way in which the BBC should address its audience with "a high moral tone, avoiding the vulgar and the hurtful." He ends his memo on stating that the BBC should refrain free from commercial and government pressures.

Commercial Broadcasting

Commercial broad casting refers to the broadcasting of television and radio programmes by privately owned corporate companies. It has a very different relationship to its audience, compared to PSB. Whereas PSB exists to serve the public audience, commercial broadcasting actually sells the audience to advertisers. The audience is a product to be sold. Commercial broadcasting was first introduced in the early 1920's in the US. This type of broadcasting contrasts to the public service broadcasting introduced in the UK. The first commercial channel was ITV in 1954. Modern commercial broadcasting companies include channel 4 and Sky. Commercial broadcasting is funded through a different system than to the public service broadcasting system. Consumers pay subscription based packages to the broadcasting companies on a monthly/annually basis. Commercial broadcasting companies also make their profits from selling advertising spaces between programmes. All types of companies from Tesco's to Nike will advertise their products for fee depending on the time of the advertisement being broadcasted and which channel. Advertisement slots vary in price depending on the time and channel; the super bowl is one of the most watched sporting events in America. The cost to advertise during the super bowls breaks, shall cost for more than for instance advertising during a day time chat show.

Corporate Ownership

Corporate ownership differs from other types of business ownership in several key ways. While other types of businesses disappear when the owner or owners die, a corporate ownership structure allows the business to last indefinitely. Corporate ownership also protects owners' liability; if someone files a lawsuit against the business, the owners aren't personally responsible and their personal assets are protected. Corporate ownership allows a business to set itself up for selling stock in the future. Corporate ownership can involve any number of owners but it turns the business into a corporation, which is a distinct legal entity. The business gets a name and takes on many of the rights and responsibilities that private individuals enjoy.
Private Ownership

Privately owned companies are owned by non-government organisations and privately owned stakeholders. Privately owned companies are different to corporate ownership as the public cannot buy shares of the company. Instead the company operates by offering or privately selling shares of the business. Privately owned companies tend to be smaller in revenue and size.

Global Companies

A GC or multi-national company is a company that operates in more than one country all over the world. An example of a Global company in the media industry would be canon who supply film crews with their state of the art 3D cameras. Canon operate in a number of countries and intake roughly 20% of their income from selling in countries other than Japan. The top six global companies on terms of revenue are as follows:

. General Electric- CBS
. News-corp- FOX
. Disney- ESPN, Pixar
. Viacom- MTV
. Time Warner- HBO, TNM
. CBS- Showtime

Vertical Integration

Vertical integration is a method of management control within a company. A company such as Time Warner who Warner Brothers and new line cinema will fund the film (Time Warner), then produce the film (Warner Brothers) and then the film is distributed by another company owned by Time Warner. This process of management in its most simplistic state allows Time Warner to keep their money inside the collective company. This allows them to work at their own rates,time schedules and ultimately allows them to compete better with other media companies.

Horizontal Integration

Horizontal integration describes the management and purchasing of companies but a competitor working in the same sector of business. A primarily media based company will purchase a business that allow to expand their own media format without making drastic changes to the companies own business formats. Owning a range of media outlets is seen as being very productive as it allows the company as a collective to branch out in other media formats with very few changes being needed to make.

Monopoly

Is like horizontal integration but instead owns all of the media outlets. The monopoly rule is in place to stop full integration.