Difference between Funding Models in The Broadcasting Business in Britain - Assignment Example

What are the main differences between the funding models for the BBC and commercial television? How are these models considered to impact on the typeof output of each service? Draw on at least three relevant academic references in your answer.  The broadcasting business in Britain is rooted in the tenet of public service. When taking into account the public and the private sector of broadcasting it is useful to draw on distinct definitions of both types. The crucial difference between these two different broadcasting systems rests on the methods of funding. A public broadcasting system is usually wholly funded by the public – that is to say that it either gets funded through a proportion set aside by the state collected from public taxes; or voluntary organizations or individuals who support public broadcasting; or special taxation, for instance a television licence fee. Public broadcasting is seen as being mostly non-commercial in nature. Public broadcasters are mainly charged with the task of making news, radio, internet and television available for public service. On the other hand, a private broadcasting system operates for commercial basis. It is individually funded and its biggest concern is with attracting large audiences which would in turn attract new sponsors leading to an increase in revenue for the broadcasters. A private broadcasting system can be seen as equivalent to the forces of market economy. It won’t be wrong to conclude that commercial or private broadcasters function on money – this is why most of the program, content is more concerned with the tastes of the audience rather than whether the program serves to be of any public service. BBC, British Broadcasting Corporation is undoubtedly the biggest broadcasting establishment on a global level. Functioning under the Royal Charter, BBC gets most of its funding by a yearly licence fee, charged to the residents of United Kingdom. Since the BBC is a public broadcasting system its funds have to be generated by the public. A specific amount is set by the British government in synchronization with the Parliament regarding the annual licence fee. Every household and organisation that subscribes to live television is charged that set amount of money. Recently there has been much hue and cry over the system of funding for BBC. The television licence fee is the main resource of funding for the BBC and if there are changes made into this system then the BBC funds will have to be allocated accordingly. Critics believe it to be unjust to charge every household in order to fund the BBC. (Hopkins, 2007) The licence fee is seen as being an unjust tax that people are forcibly asked to pay, regardless of their interest in BBC and the programs that it broadcasts. Public broadcasting comes with certain merits and demerits. Since the BBC is a public broadcasting system, and it is funded by state and the public, its main priority is to air programs that are for the betterment of the public, such as public service messages etc. In this vein, BBC can afford to broadcast programs that are not highly popular with the mass market – such programs are inclusive of, but not restricted to, historical and geographical documentaries, news programs, political talk shows and educationally based programs. (Wieten, 2000) Due to the nature of their funding BBC can thus disregard ratings when deciding what programs to air at what specific times. This can be taken as both a merit and a demerit to public broadcasting system. Especially with reference to the BBC, its critics are of the opinion that it is “anti-competitive” as well as heedless of the demands of its viewers. (Snoddy, 2004) In the spirit of competition, private broadcasters would be more aware of rapid changes in the media industry and would try their level best to remain ahead of each other. For public broadcasters, this serves to be a minor issue, because they do not need to compete with anyone the size of their organisation. Public broadcasters are not essentially worried about how they will be funded from one month to the next, their ratings do not matter since the ratings do not affect the broadcasting any show unless there is severe criticism against a show from many angles and in a meeting the board of Directors decide to stop airing that program. A criticism on the funding method for BBC by its competitors led to a backlash in the parliament as well as by the public. Critics believe BBC to be incompetent and undeserved of being called the biggest broadcasting organisation in England. The power enjoyed by BBC, critics hold, has turned the current administration at the broadcasting station corrupt. BBC, on the other hand tried its best to hold on to the current funding system, since any change in the current funding would have resulted in BBC cutting back on its expenses and focusing only on premier programs and channels. (Patrick, 2009) With regard to behavioural changes as brought about different sorts of funding, the private broadcasting system has to rely on its audience. In UK, the government has more stringent checks on private broadcasters than public broadcasters. Still to this day, the government does not have a direct control over the public broadcasting channels (BBC functions autonomously). (Whannel, 2001) Past researches by Holtz-Bacha and Norris believe that instead of replacing public broadcasters with private broadcasters, private broadcasting system should be introduced as an appendage to the public broadcasting system. (Holtz-Bacha, 2000) Such a means would be best to cater to the needs of audiences across the country. At present the BBC is broadcasting a range of programs through its flagships BBC One and BBC Two in the United Kingdom. It has also started airing programs for subscribers of digital television; in this perspective the BBC seems to be on the knowhow of what people expect and what to provide its audience. Moreover, with regard to various programs aired through BBC – there is an assortment of programs, and usually caters to the needs of most people. However, certain critics believe that the value of BBC’s programming has been on the downfall for quite a while now. Many critics are of the opinion that BBC fails to cater to the minorities that form a part of the United Kingdom – this criticism has sprung up especially in relation to sitcoms and soaps. It is relevant to note that public broadcasters such as the BBC have more liberty to explore serious issues in greater depth and detail than private broadcasters because they are not liable to worry about what their sponsors and advertisers think. They can, in a way, present truth at shock value and highlight various, cultural, social, and ethical and moral values around the society in comparison with private broadcasters. Critics of private broadcasters - also referred to as commercial broadcasters – are of the opinion that commercial broadcasting is basically trying to cater to the demands of those who will buy their services rather than the audience on a whole. This does not hold true for public broadcasting since public broadcasters cater to a wider audience, whether they intend to view their programs or not. Public broadcasting systems have to take heed of certain “policies” with regard to media and its coverage, as set by the government. In BBC’s case, the BBC believes in making cultural diversity a permanent part of its programs aired through the network. This holds importance in the UK because immigrants form an important part of the economy of the United Kingdom. If a public broadcaster such as the BBC fails to take into account the various religious and ethnic minorities that form a part of the United Kingdom, complaints as well as dissatisfaction would be aimed at BBC. In this context, it is argued that the BBC is “Orwellian” in nature. (Wooten, 2009) Critics believe that BBC has turned into a giant due to its arguable funding policies and does not deserve to wear big boots. Other critics, however, consider commercial broadcasters to be weak and expect them to rise up and compete with public broadcasters such as the BBC. By portraying BBC as the root of all evil, such commercial broadcasters get away with being stagnant in their growth. Critics of commercial broadcasters hold the opinion that commercial broadcasting only believes in making more money. Such a free-market driven system does not allow for responsible and good programming; rather promotes consumerism, pop culture and military agendas, according to such critics. (Brown, 1996) Perhaps critics should not be so harsh on commercial broadcasters. It should be remembered that whereas public broadcasters function through special licence taxation and government subsidies, private broadcasters have to operate by selling their advertisements. Proponents of private or commercial broadcasting believe that government should not have direct control over what is to be broadcasted because the media is a powerful medium of reaching out and influencing the opinions of people – and if too much power is granted to government officials then they are at a liberty to sway the opinion of the audience/public in whatever direction they want to. Moreover, it is believed that consumers benefit more from private broadcasting than public broadcasting. (Endersby, 2001) As in the case of BBC, many consumers are indignant of the fact that they have to pay taxes to allow the BBC to operate whether they watch the programs or not. In this sense, commercial broadcasting does not function on any such taxation. Also it is argued that with the hegemony that BBC has established in the broadcasting world, commercial broadcasters find it increasingly difficult to expand their broadcasting services in foreign markets. The level of competition between a public broadcaster and a private broadcaster cannot actually be judged on equal grounds because the method of funding both broadcasters is hugely different. As discussed earlier there is some difference in the way and the content of programs aired on private and public broadcasting systems. Commercial broadcasters are more interested in getting their products to sell; this is why they usually promote pop culture. This does not mean, however, that commercial broadcasters are only concerned about promoting false and morally wrong values in the society. There are many commercial broadcasters that do air political talk shows and relevant infotainment news to appeal to the masses. To understand the essence of commercial broadcasting, one has to come to terms with the fact that commercial broadcasting can only function as long as it can sell its product. Therefore, in a way it can be argued that commercial broadcasters are more representative of the current trends in the society because they are more concerned with what the audience wants to see as opposed to public broadcasters. Similarly, to understand the crucial importance of public broadcasters, what needs to be kept in mind is that public broadcasting is not bothered about funding, unless there is an increasing slump in the economy or the government is destabilised so that it can no longer provide consistent funding for the broadcasters. The nature of the output of both broadcasting systems is different content wise; both are focused on different areas of interest. It will be wrong to assume one broadcasting system as superior to the other as both function in accordance with each other and would benefit to do so without the administration falling victim to malpractice. Bibliography Brown, A. (1996). Economics, Public Service Broadcasting, and Social Values. Journal of Media Economics , 9 (1), 3-15. Endersby, A. (2001, June 24). Public Control of Broadcasting. Retrieved March 24, 2010, from International Debate Education Association: http://www.idebate.org/debatabase/topic_details.php?topicID=129 Holtz-Bacha, C. a. (2000). To entertain, inform and educate.’ Still the Role of Public Television in the 1990s? Unpublished. Hopkins, S. (2007, April 1). Funding the BBC. Retrieved March 24, 2010, from Transdiffusion Broadcasting System: http://www.transdiffusion.org/emc/aspidistra/funding_the_bbc.php Patrick, A. O. (2009). BBC Prepares to Protect Funding. Wall Street Journal , 253 (154), 13-15. Snoddy, R. (2004, Feb 17). BBC anti-competitive. Retrieved March 24, 2010, from Times Online: http://business.timesonline.co.uk/tol/business/article1022136.ece Whannel, A. G. (2001). Understanding Television. London: Routledge. Wieten, J. (2000). Television Across Europe : A Comparative Introduction. London: Sage. Wooten, B. (2009, September 23). Why commercial tv has no more shots in the locker. Retrieved March 24, 2010, from Marketing Week: http://www.marketingweek.co.uk/why-commercial-tv-has-no-more-shots-in-the-locker/3004741.article Read More