Competitive Strategies Case Study

BBC’s Challenge

OR

Abstract:

In 2006, the £4 billion- British Broadcasting Corporation (BBC), a dominant broadcaster in the United Kingdom, operates several public TV channels, a 24-hour cable news channel, digital channels, national and digital radio networks, and an online news service. In 2004, the broadcaster is facing more scrutiny than at any other time in its history - and is under pressure from all quarters to justify its existence and the license fee which primarily funds the corporation. The BBC's charter is coming up for renewal in 2006 and its future, its funding and its role in general, is up for discussion and debate. People are questioning the need for a license fee which funds services they either cannot receive or do not watch. The BBC is also under pressure from the UK government because of the 2003 highly public row with the government and also from the media – including its commercial rivals.

Its commercial rivals are concerned that the BBC is encroaching into their territory. The rapid growth of the BBC's online services together with the launch of digital radio and television stations has elicited protests. Industry observers opine that the charter’s review process has to find an answer to the ‘catch 22’ situation. The charter renewal is expected to be a battle over how to maintain the benefits of the public service broadcaster in a much more competitive environment. The BBC has been criticised for making programmes that are not popular but are worthy, and it has also been criticised if it has made programmes which reach millions of people. Aware that the renewal of the charter will increase the spotlight, the BBC has decided to prepare itself for remaining relevant in the digital age. Will the outcome of its digital strategy justify the public funding of the BBC?

Pedagogical Objectives:

• The case outlines BBC’s Royal Charter and traces BBC’s growth over the years
• It also discusses the challenges being faced by BBC including its splintered audience
• The case discusses BBC’s strategy to remain relevant in the digital age.

Keywords : BBC; BBC's charter; digital strategy; BBC's license fee; audience profile; on screen marketing; broadcaster; public sector companies; debate; channel 4; Competitive Strategies Case Study;ITV

Contents : 
The Debate
The License Fee
The Splintered Audience
Preparing For the Digital Age
The three dimensional model
Audience Profile
Television licenses around the world