Ownership Models There are two different types of ownership models

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BBC vs Sky

Ownership Models

There are two different types of ownership models;

Commercial – Commercial ownership is very simple to explain, it is all about making profits for the company. The whole intention of Sky is to make a profit by providing its customers with the best entertainment, sport and movies that they possibly can, which obviously attracts more customers. Sky make their money by running a subscription based service, letting their customers choose which packages they want to have, and this makes the customer feel like Sky is very customisable and can be made to suit their viewing needs. Sky is owned by investors and shareholders, and it is ran by Robert Murdoch.

Public – BBC is owned by the British public, who all pay a television licence fee annually, a sum of £145.50. It is a public service broadcaster, and all of their revenue is raised through the licence fee, and then a final fee is set by parliament.

How are the BBC and Sky funded?

Sky – Sky operates on a subscription based service, so a lot of their revenue is from their subscribers. The customer will choose what package they want (movies, sports, kids, etc.) and they can even customise what channels they wish to have. Sky also gains some revenue through investors and selling shares, but the majority of their revenue comes through their customers. Sky has many products which improve their customers viewing pleasure, such as the Digibox, Sky+, Sky+HD, High Definition viewing, NowTV, and 3D channels. All of which cost extra for their customers.

BBC – Every house in the United Kingdom that has a television must pay a licence fee of £145.50 annually, and the licence fee means the BBC is not allowed to show commercials. This is how the BBC get the majority of its revenue, as it does not take money from companies or shareholders which could mean they would have to do what they want. The BBC also sells some of its programmes to other companies to raise revenue, an example of this is that Netflix are now allowed to show seasons of Doctor Who, because the BBC allowed them to for a fee. The BBC also make DVD’s of their best television programmes, which fans of the show can buy. The BBC also make audio tapes and CD’s of its best radio programmes and sells them. The BBC also sells magazines and books about their television programmes, such as the Doctor Who magazine.

The history of BBC and Sky

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