The BBC (British Broadcasting corporation) is a public service broadcaster located in the UK in Westminster, London, the company owns three main sectors which are T.V, radio and news. The BBC is owned by us the UK as it is a public corporation, the government funds the BBC by charging all UK television viewers a license fee also known as a t.v license. The BBC is vertical integrated, Vertical integration refers to the merger of companies at different stages of production and/or distribution in the same industry and includes backward and forward integration. Backward integration means the merger with input suppliers, forward integration means integration with firms in the output distribution chain. But the problem with using vertical integration is that if one industry goes down the whole company will go down with it as all the industries within the company rely on each other to survive. Most companies are moving to the horizontal integration, Horizontal integration means the merger of firms at the same stage of production (in the value chain) in the same or different industries. This strategy aims to control competitors at the same level of production. For example the company virgin, they have so many variety of industries like virgin rail, virgin mobile, virgin media and etc, if virgin mobile goes down for any reason it will not affect the other industries within that whole company.
I’m going to talk about the differences between the BBC and Virgin. First of all the BBC is PBC (public broadcaster) and virgin is a CBC (commercial broadcaster). PBC is non-commercial and CBC is commercial. The BBC industries only entertain the public they don’t use any other industries in the company to sell products or offer transport etc. Virgin however uses a bug range of industries to sell different kinds of products and offers etc this way the company can get a whole lot of money from different areas of each industry and its more stable.
The Trust unit – over see’s everything content, budget & strategy.
Content – All media products, future media technology, internet, journalism, news, audio & music, radio, vision, T.V.
Commercial Groups (make money) – BBC worldwide, BBC resources LTD
Professional services Deal with day to day business activities – Finance, Training & development, BBC workplace, Marketing, BBC people and strategy.
Comparing the BBC to Disney, Disney owns a whole bunch of TV networks in the USA,