Media Industries

Sky vs. BBC

By Megan Mc Clean

Sky vs. BBC

Sky - sky is a commercial broadcasting company owned by shareholders
and investors. SKY makes their revenue through a subscription-based
service, of which the subscriber can customize their own package and the
channels they want to have.

BBC A public service broadcaster owned by the British public. The BBC
makes their revenue through an annual TV licensing fee, which is charged
to all British households, the British Government sets the fee and it is
agreed by Parliament.

History
Sky- was originally known as Satellite Television Ltd. (SATV) [1] in 1980.
By 1982 the broadcasting company were known as Super Station Europe
[2]. In 1983 when the company was struggling, Rupert Murdoch bought
the station and by 1984 had renamed the station Sky Channel [3]. By
1987 Murdoch had brought the channel to cable networks around the UK
and Republic of Ireland. Sky Television was a public limited company
which operated a four-channel satellite television service [4] - this was
launched by Murdochs news international [5] in 1989. After Sky
television plc suffered a large financial loss [6] the British Sky
broadcasting (BSkyB) merged in 1990. By 1993 BskyB had launched Sky
Multichannel, which was a subscription package that has access not only
to Skys own channels but also those of third party broadcasters [7].
BskyB became the UKs largest digital subscription company [8] and
continued until the closure of BskyBs analogue service in 2001, due to the
launch an expansion of Sky Digital platform. By mid-1994 BskyB reached
3.5 million households in Britain [9]. Sky has grown into an empire, as by
2010 it had 10 million subscribers and was installed in 30% of UK and
Irish households [10]. Moving with technology Sky has made various apps
for androids, smart phones and consoles; making it easier for customers
to access their programmes.

BBC- is the worlds oldest national broadcasting organisation and the

largest broadcaster in the world by the number of employees [11] that
they have. The BBC were established by Royal Charter and operates
under its Agreement with the Secretary of State for Culture, Media and
Sport [12]. In 1920 the first live public broadcast from the Marconi
factory in Chelmsford took place [12]. The broadcast caught the
imagination of the people and marked a turning point in the British

Media Industries

Sky vs. BBC

By Megan Mc Clean

publics attitude to radio [13]. The company broadcasting became

wireless in 1922 under the management of John Reith- from this the
company would go on to be known as the British Broadcasting Company
Ltd. John Reith [14]. By 1955 the BBC gained competition as a new
commercial and independently operated television network named ITV
was formed. As a result of the Pikington Committee report in 1962, the
BBC was praised for its quality and range of its output and ITV were
heavily criticised for not providing enough quality programming [15]. As a
result of this the BBC were rewarded another channel, later to be known
as BBC2 and the original s BBC1. From July 1967 BBC 1 and BBC2 were
broadcasted in colour. Since the deregulation of the UK television market
in the 1980s, the BBC has faced an increase in competition [16], such as
ITV and channel 4. By 1994 the BBC had launched BBC News 24 on digital
television. Throughout the time that he BBC has been broadcasting, they
have created various channels and radio stations. Alongside these, they
have also created apps for androids, smart phones and gaming consoles
to broadcast their media and for their audiences to access their
programmes.

Key Players
Rupert Murdoch- Is the Chairman and CEO
of News Corporation (1979-2013), Executive
Chairman of News Corp (2013-present), Chairman
and CEO of 21st Century FOX (2013-present) and
founder of Sky in 1990 [17]. Murdoch built the
Sky empire from scratch since 1990 and pushed it
to become one of the most popular subscription
services in the UK and is considered to be the
33rd richest person in America [18]. In 2011 Sky
suffered a 15% fall in profits [19], with only
40,000 signing up in 3 months [20] which was
its lowest in five years [21]; this was due to the
phone hacking scandal that Murdoch had been
reportedly involved in. Despite all of this
happening Sky still managed to have a great year, with the help from
shows such as Game of Thrones. Despite Murdochs faults he has become
very successful in his career and continues to bring his company forward
with full power.

Media Industries

Sky vs. BBC

By Megan Mc Clean

Tony Hall- took up the post of Director-General

on 2 April
Chief
House in
until March

2013 [22]. Previously he was

Executive of the Royal Opera
Covent Garden, London from 2001
2013,[23] and Director of News at the BBC
between 1993 and 2001 [24]. Tony Hall is
th
the
16 general director of the BBC. Before Tony
Hall there was Mark Thompson, a former
chief executive of Channel 4 and general
director of the BBC from 2004 to 2012 [25]. In 2007 it was reported that
the BBC had been involved in a number of editorial guideline breeches
[26]. On 18 July 2007 Thompson presented his report to the BBC Trust
and outlined the action that he would take to restore confidence in the
BBC [27]. After this, every member of the BBC staff including Thompson
undertook a safeguarding trust course. In 2009 it was suggested that
Thompson had taken a pro-Israeli editorial stance, this surfaced after he
supported the controversial decision by the BBC not to broadcast the DEC
Gaza appeal [28]. In 2011 Thompson also ordered that the lyrics free
Palestine be removed from a rap on BBC1 Extra [29]. After all this
trouble that Thompson had found himself wrapped up in, he resigned in
2013.
Both the Sky and BBC directors have been in a bit of trouble throughout
their time in power and this has not affected their companies to the extent
where they have to shut their companies down. It has only, by the looks of
it, made their companies grow and become more powerful to move past
what has happened.

Technologies of Production
Sky- Sky has moved forward with their technology as there are many
different ways in which you can watch sky. There are multiple platforms in
which you can watch Sky from, such as your mobile, laptop, smartphone
or television. With Sky+ viewers can re-watch their favourite shows and
films over and over again on any device they want to. Along with Sky Go
and On Demand, customers have a better opportunity to watch anything
they want and wherever they want. Sky has moved their advertising
technology online to sites such as Facebook, twitter, YouTube an
Instagram.

BBC- the BBC have also been keeping up with their technology and
competitors. They have introduced apps and different ways in which you
can watch or listen to shows that you have missed. The BBC has created
new platforms such as, BBC iplayer so that their viewers can re-watch or

Media Industries

Sky vs. BBC

By Megan Mc Clean

continue watching shows that they have missed on the go. Their viewers
and subscribers can watch on the go on their tablets, smartphones or
laptops. Unlike Sky the BBC are yet to move their advertisement forward
onto media sites. Although the BBC have a great of viewing and
advertising on their radio shows they need to move their advertising
forward.

Income Generation
Income generation is how the company makes their money. Sky makes
their money through advertisement and customers subscription fees,
whereas BBC would get their money from the licence fee. Both companies
can make a profit from other things like sales, merchandising and pay per
view programmes.

Sky- Depending on subscription Sky customers will pay from 18 - 68

per month for their Sky packages. The various things that SKY offer are:

SKY TV

SKY+

SKY Sports

SKY HD

SKY Box Office/Movies

SKY News

SKY Broadband & Line Rental

SKY On Demand

Revenue
Net Income
Employees

1.6 Billion (2011)

11.7 Million (2010)
25,356 (2014)

Skys financial statement and annual review of 2010 revealed that Sky
had made almost 1.2billion in that year [30], which had risen by 11%
from 2009 [31]. In 2010 Sky had 10.86 million subscribers [32] and with
many people switching to HD Skys profits had almost doubled in that
year [33]. Overall Sky make over 75% of their profits from subscriptions
and each customer now spends an average of over 500 per annum on
Sky [34].

Media Industries

Sky vs. BBC

By Megan Mc Clean

BBC- On average the BBC has a 46.8million viewer per week and BBC
news on average has a quarter of a billion people tuning in globally [35].
License Fee Revenue
Net License Fee
Employees

3,722 Million (2013/2014)

3,726 Million (2013/2014)
23,000 (Globally)

The TV Licensing Fee on average costs 145.50 per year. The channels
that the BBC has to offer are:
BBC UK
BBC One
BBC Two
BBC Three
BBC Four
BBC Parliament
BBC News
CBBC Channel (8+ year olds)
CBeebies (1-7 year olds)
BBC Alba
BBC Radio UK
BBC Radio 1
BBC Radio 2
BBC Radio 3
BBC Radio 4
BBC Radio 5 Live
BBC Digital Radio
BBC Radio 1Xtra
BBC 6 Music
BBC Radio 5 Live Sports Extra
BBC Radio 4 Extra
The TV Licensing Fee on average costs 145.50 per year. The channels
that the BBC has to offer are:
BBC UK

BBC One

BBC Two

BBC Three

BBC Four

BBC Parliament

BBC News

Media Industries

Sky vs. BBC

CBBC Channel (8+ year olds)

CBeebies (1-7 year olds)

BBC Alba

By Megan Mc Clean

BBC Radio UK

BBC Radio 1

BBC Radio 2

BBC Radio 3

BBC Radio 4

BBC Radio 5 Live

BBC Digital Radio

BBC Radio 1Xtra

BBC 6 Music

BBC Radio 5 Live Sports Extra

BBC Radio 4 Extra

Programming Platforms and Development

Channels/Flagship Programmes

Sky- have developed a mass amount since they

first started with four channels and now they have
over 900, ranging from music, movies, sports and
other various types of shows and programmes. In
my opinion Sky have a better range of channels
which gives me the opportunity to record and
demand them whenever I want- with shows like
Game of Thrones and Penny Dreadful.

Media Industries

Sky vs. BBC

By Megan Mc Clean

BBC- the BBC

have also
developed
well
throughout
the years,
as they began
with one
broadcasting
show to 16
channels and
over 15
radio stations.
The BBC
also has
multiple
flagship
programs
but the main
ones are
the likes of Eastenders or Doctor Who. Even though the BBC is very
popular, they dont have as many programmes as Sky and this is where
they fail to keep audiences.

Regulations (Self-Regulation/Statutory
Regulation/Ofcom)
Sky sky has multiple regulation and statutory committee groups, such
as:

Adult Committee

Remuneration Committee

Executive Committee

The main control group of regulations is their board. Ofcom also still
regulates and take the complaints in regards to Sky. BSkyBs watershed is
lifted at 8pm, as for sky, they have pin protected programmes so that
children cannot view adult programmes unless they know the pin.

BBC- the BBC operates under the Royal Charter, which is the
constitutional basis for the BBC. It sets out the public purposes of the
BBC, guarantees its independence, and outlines the duties of the Trust
and the Executive Board. The current Charter runs until 31 December
2016 [36]. The BBC has to keep to protocols of the royal charter so that
they arent offending the public or losing the attraction to the BBC.
Alongside the royal charter, the BBC have to keep regulations with Ofcom
also, Ofcom keep the BBC in line once again to ensure that what they are
showing is appropriate to the public and protocols.

Criticisms and Controversies

Media Industries

Sky vs. BBC

By Megan Mc Clean

Sky

On July 12th 2011 former bitish primeminister Gordon Brown claimed

tht skys majority owner new coporation attempted to effect
overnemtn policy with regards to te BBC in pursuit of their own
commercial interests.
Pressure group 38 degrees began a petition to vince cable, arguing
that ew corporation and Murdochs proposed shareholding would
stifle a free and diverse UK media and affect UK broadcasting
impartiality rules. Global cmpainging organisation, Avaaz, has also
been oppsoing the deal with hundreds an thousands of its members
signing petition targeting the UK government.
In october 2010, a group of media companies- accounting for the
third of the fleet street and the BBC- jointly wrote to Vince Cable,
the buisness secretary to lay out their reasons for the BskyBs share
bid being a breach of media plurality. The BBCs contribution to te
letter was subsequently attacked in a news international owned
times editorial.
Sky also get constant comaplints of their equipment, with angry
costumers ringing up to complain about their boxes freezing or not
letting hem play or record a show. They also have cmplaint that
their customer service operators are very rude and smug.
Sky TV (whole):
Bundling of TV packages for profit eliminates competition competition commission ruled that Sky was making excessive profits
from their movie and sports packages and that their rights to the
first view movies from the six major Hollywood studios created an
inoperable environment for competitors.
When competition from BT sport came along saying they would
undercut Sky Sports by 10 a month, Sky immediately raised their
prices by 3 per month, driving up the wholesale cost to BT and
meaning they would potentially have to operate at a loss.

Sky news:

Politcal bias Pro-Tory, Anti Labour/Lib-Dems - During political leaders

debates, Adam Boulton of Sky news generated 700 OFCOM
complaints over bias when posing questions to Nick Clegg about
already disclosed financial affairs. He was the chairman of the
debate, not supposed to pose questions and was bringing up a

Media Industries

Sky vs. BBC

By Megan Mc Clean

sensationalist headline from that days Daily Telegraph. Also during

post election interview with Alistair Campbell started to shout in his
face, physcially posturing and was supported by Sky News interview
chair.
Kay Burley - harranging 38 Degrees campaign group director David
Babbs (who was speaking out against Tory government). Asking
questions without letting interviewee answer, telling him
campaign/protest wouldn't make a difference.
Excluded SNP from leaders debates and included Nigel Farage of
UKIPm despite SNP having 6 times as many seats in parliament.

Rupert Murdoch personally:

On the board of and holds shares in Genie Energy (Oil, Gas & shale
company in Israel)
Climate change denier - "Climate change has been going on as long
as the planet is here, and there will always be a little bit of it. At the
moment the north pole is melting, but the south pole is getting
bigger."
"Things are happening, but how much are we doing with emissions
and so on? Well as far as Australia goes, nothing in the overall
picture. China perhaps."
Racially aggrivated twitter comments about Muslims & Black people
(comments about most Muslims responsible for jihadists & "Since
when were Egyptians not white?"

BBCIraq coverage 2003

Bias- of centre right politics- having a strong hold on their

audiences, this creates corruption- making the public bias with lies.

Criticized for their coverage of Iraq in 2003- seen as 'sexing up' the
case of the war.

Heavily criticized by the Hutton Inquiry- branded as a 'white wash

government'.

Lebonan war 2006

During the war, Israeli diplomatic officials boycotted the BBC News
programs- refusing interview and excluded them from briefings as they

Media Industries

Sky vs. BBC

By Megan Mc Clean

believed that the BBC was biased, stating that 'the reports we see give
the impression that the BBC is working on behalf of Hezbollah instead of
doing far journalism'.

The BBC has a thing for using the freedom of information act when
they are caught out being biased.

Racism

Seen to whitewash Islamic hate groups that demonize the British

Indian minority.

In 2001 BBC director general Greg Dyle said that the BBC was
hideously white.

March 2012- the BBC referred to the Hindu festival as a 'filthy

festival'- corrupt, full of filth, morally vicious, obscene.

They show poor light of any culture that isn't British, but when it
comes to showing the good they ignore it.

anti-Muslim, anti-Hindu bias, anti-Sich, Indophobia

Jimmy McGovern in 2007 interview called the BBC one of the most
racist institutions in England.

Homophobia

The Independent reported in March 2006of the BBC being an

'institutionally homophobic, towards lesbian and gay community. Focus
groups used in the study accused the BBC of being the worst
broadcaster in terms of gay and lesbian issues in their portrayal of
them'.

the BBC are seen as:

sexist

homophobic

biased

racist

Media Industries

Sky vs. BBC

By Megan Mc Clean

Sexual abuse

More than 150 allegations have been made against 81 BBC

employees since Saville.

25 recent allegations involving current employees have been

reported to the police, majority of which resulted in no further action
being taken. 3 resulted in no police reaction but are currently under
investigation at the BBC- 5 remain outstanding.

Jimmy Saville was the biggest case against the BBC as he was given
free rein to sexually assault young children in his time of the BBC

In conclusion I believe that both the BBC and Sky are very powerful
broadcasting stations and have moved throughout the years by trying to
keep up with modern technology and programmes. For me I would choose
Sky as I believe that they have a lot more variety throughout their
channels and I can have my programmes on demand whenever or
wherever I want. The BBC is excellent for documentaries and programmes
for young students like myself. They also have a great variety of
programmes but I believe need to expand their views and stop being a
super power British broadcasting station and bring in other cultures
without criticism. Over all for me I Sky is my choice as they have struggled
to get where they are but have pushed aside their criticisms and moved
forward to make their broadcasting channels and company bigger and
more powerful than any other.

Media Industries

Sky vs. BBC

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By Megan Mc Clean

Media Industries

Sky vs. BBC

By Megan Mc Clean

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