ENGLISH AND RUSSIAN 31
The Development of BBC
Hu Binxin
2131003001
The Development of BBC
English and Russian 31
Hu Binxin
2131003001
【Abstract】Focused on “communication’'--the great objective of
human being．The practitioners of journalism take different paths
according to the different social context and sources they possess．In
terms of mass communication，there is a wide range of systematic
design and historic practice such as “public choice” ,“market place”,
and “individual choice”．All these composed of rich media cultural
spectacles. Among them，BBC, the British Broadcasting Cooperation，
is regarded as the typical representative of public choice．Thus
analysis the development of the BBC is of great theoretical and
practical significance．
【Key Words】BBC, development, media
1. Introduction
The British Broadcasting Corporation (BBC) is a UK-based
international public-service broadcaster headquartered at
Broadcasting House in London. It is the world's oldest national
broadcasting organization and the largest broadcaster in the world by
number of employees, with about 23,000 staff.
1
The BBC is established under a Royal Charter and operates
under its Agreement with the Secretary of State for Culture, Media
and Sport. Its work is funded principally by an annual television
license fee, which is charged to all British households, companies,
and organizations using any type of equipment to receive live
television broadcasts. The fee is set by the British Government,
agreed by Parliament, and used to fund the BBC's extensive radio,
TV, and online services covering the nations and regions of the UK.
From 1 April 2014 it also funds the BBC World Service, which
provides comprehensive TV, radio, and online services in Arabic,
and Persian, and broadcasts in 28 languages. Around a quarter of
BBC revenues come from its commercial arm BBC Worldwide Ltd.
which sells BBC programs and services internationally and also
distributes the BBC's international 24-hour English language news
services BBC World News and BBC.com, provided by BBC Global
News Ltd.
2. The BBC’s role in the market place
This section takes market place as an example to analysis and
briefly summarises the activities undertaken by the BBC and its
competitors. Some areas are reliably documented; in others our
information is less complete.
2.1. Broadcasting
Broadcasting in the UK is principally provided by vertically
integrated organizations operating in markets with significant
barriers to entry. These structures have been created through public
policy and regulation.
Transmission of programs to the final consumption market is
constrained by restricted access to each of four main transmission
infrastructures: analogue terrestrial, digital terrestrial, cable, and
satellite. Of these, analogue terrestrial and satellite services
(non-digital) potentially reach almost all UK homes. Cable, because
2
of the high cost of extending service to remote communities, is not
likely to approach the levels of availability of analogue terrestrial
and satellite services. The coverage of digital terrestrial is largely a
policy variable.
Analogue terrestrial radio and television services are received
in almost all UK homes. Satellite services potentially have an
equivalent reach, but only 24% of UK TV homes have acquired
reception equipment. Only 12.5m of UK homes are passed by cable
(and of these 3.5m,or 14% of TV homes subscribe; of these 2m or 8%
have access to digital services via cable),and only 5% of UK TV
homes have access to digital terrestrial television. Overall, 41% of
UK TV homes have access to digital television using different
infrastructures as follows: satellite (28%), cable (8%), DTT (5%).
2.2. Upstream activities
Other possible relevant markets include those for program and
for other factors of production. Program supply was (partly)
liberalized as a consequence of the ‘‘independent production quota’’
(for ITV, Channel 4,Channel 5,the BBC) of 25% of qualifying
programs prescribed in the 1990 Broadcasting Act.24 Channel 4,for
historical reasons, screens a much higher proportion of independent
productions, which accounted in 2001 for 61% of transmissions.
According to Merrill Lynch (2002) data, the BBC accounted for
about 50% of television program expenditure by free to air
broadcasters in 2001.
PACT, the Producers’ Alliance for Cinema and Television, the
trade association of independent producers, claims that the quota is a
ceiling rather than a floor. It is claimed that the BBC and ITV
(Channel 3) networks treat the 75% of the program market that is, in
theory, open both to in-house and independent producers, as a
guaranteed market for in-house production from which independent
producers are effectively excluded. PACT argues that BBC’s
Commercial Policy Guidelines do not cover program supply and its
trading arrangements differ from those which obtain with the ITV
3
network where program acquisition and network scheduling is
decoupled from the direct influence of the program producing ITV
companies. The ITC’s Review of the UK program supply market
bears out this analysis and identifies, inter alia, ‘‘The opportunity for
the BBC in particularly to lever market power in the primary rights
market, into the distribution market’’ (ITC,2002, para 168).
2.3. Commercial activities
Competition concerns may also potentially arise in connection
with other upstream activities, for example in respect of inputs to
program production. The BBC has established a wholly owned
subsidiary company, BBC Resources, to provide services such as
studio and outside broadcast facilities (in 1999 the Davies Panel had
recommended BBC Resources should bedivested).Although in
2002,the Director General of Fair Trading (DGFT) advised the
Secretary of State not to refer a proposed joint venture for supply of
studio facilities in Manchester between BBC Resources and Granada
to the Competition Commission, having found the market to be
competitive, concern about the BBC’s upstream activities has not
been wholly allayed. BBC Resources lost 13 million in 2000/1 and
d6 million in 2001/2. No separate data on profitability were
published in the accounts for 2002/3. There is room for more than
one view on the length of time such losses would be borne by
private sector companies operating under‘normal’ commercial
principles and seeking an appropriate rate of return on capital
employed.
The principal other BBC subsidiaries are BBC Worldwide
(exploiting BBC content and intellectual property (IP) in the UK and
overseas),BBC Technology (providing web and other corporate
technology services) and BBC Broadcast (providing sub titling,
creative services and channel management). The terms on which
these companies supply to the BBC are characteristically more
representative of intra-corporate transfers than of open
competition—far from all are tendered publicly and the relatively
4
few contracts awarded outside the BBC are reported to be used to
benchmark prices used for the majority of contracts which are still
largely between the BBC and its commercial subsidiaries. The
services provided by these companies include:
* program exports and international television channels;
* video and DVD sales;
* books and audio books;
* magazines;
* interactive design;
* outside broadcasts;
* media production facilities;
* media streaming and hosting;
* systems integration;
* playout, media planning and channel management;
* trails;
* access services such as audio description and sign language.
3. Experience
There are several aspects we can learn from the development of
BBC.
3.1 Strength
Firstly, it is the recognizable brand name. On the one hand, the
local market is prosperous. Across all platforms, 82％ of UK adults
came to BBC network and regional news. On the other hand, the
global market is also developing. BBC World Service-delivering is
in a wide range of language and uses multiple platforms to reach 166
million people.
Secondly, diversity in programs is also important. BBC caters
to different types of audience and offers diversity in Programs,
including TV, radio, online services.
5
3.2 Weakness
Firstly, there is imbalance development in various markets.
BBC is strong in Western Europe ,India, but weak in US, China.
Secondly, weak customer service hurts BBC’s reputation and
causes customers to flee to competitors, who are more respondent.
3.3 Opportunities
Firstly, it is the online market. The online market offers the
ability to greatly expand their business. BBC can market to a much
wider audience for relatively little expense and lead the way with
digital content.
Secondly, it is the partnership. There is a big rise in the number
and complexity of partnership across the BBC both in terms of a
maturing of established partnerships and the creation of highly
innovative new initiatives.
3.4 Threats
Politically, covering a global sensitive issue is very difficult.
Due to a diverse geo-politic environment, a report simply cannot
please everyone, even if it is a fair one. Just like the Scotland case,
BBC has emphasized its report is objective when facing to
demonstrators, but it just could not get people calmed down.
Economically, an expensive license fee could be a challenge for
holding audiences and attract new users.
Culturally, cultural diversity and language are calling for
concerns.
Technologically, it implies the BBC would confront more
international competitors, who may have cutting-edge technology.
Likewise, entering into a new market also requires BBC to improve
its technology and to be a qualified competitor.
6
【Reference】
1. Ariel,2002. BBC. Weekly Staff Journal 18th September, p. 6.
2. Born, G., & Prosser, T. (2001). Culture and consumerism:
3.Citizenship, public service broadcasting and the BBC’s fair trading
obligations. Modern Law Review, 64(5),657–687.
4. Collins, R. (2002). Digital television in the United Kingdom.
Javnost. The Public, 9(4), 5–18.
5. Collins, R. (2003). The future of public service broadcasting in the
United Kingdom.
7. Davies, G. (Chairman) (1999). Review of the Future Funding of
the BBC: Report of the Independent Review Panel.
8. Department of Trade and Industry/Department of Culture, Media
and Sport (DTI/DCMS) (2002a).
9. Elstein, D. (2002). The Politics of Digital TV in the UK. At
www.opendemocracy.net/debates/article-8-41-21.jsp.
10.Other Chinese sources：
7