The BBC
The BBC
Team Originals
INTRODUCTION
With the rise of Margaret Thatcher and the Conservative Party in the General Election in 1979, it heralded an era of change. Thatcher was strongly in favor of the privatization of state-owned industries and making sweeping social changes by the reduction of taxes and non-essential social expenditures. This coupled with the expansion of Satellite and Cable television in the early 1980’s forced John Birt, to reassess the future of the BBC and instigate a rapid change in the culture of the BBC to ensure its survival (BBC, 2014).
BACKGROUND
The BBC, was founded in 1922, as the British Broadcasting Company by a group of leading wireless manufacturers. In 1927, by Royal Charter, the BBC was re-established as the British Broadcasting Corporation, with Sir John Reith as its first Director General.
The BBC plays a vital role as a political and cultural force in British society. Until 1985, the BBC was able to comfortably operate due to the financial strength built through the licensee fee collected from each radio and television user in the UK. In 1985, the UK imposed government regulations to freeze the license fees. This was a turning point for the BBC, and forced them to review and change their strategies.
Due to the income generated through the license fee, the BBC had begun to become lax when focusing on improving the profitability & the resource optimization of their core business. With the new situation, the hidden factors such as inefficiency, poor resource management & underutilization of the workforce came to light.
The rapid growth in digital technology & emergence of new market players became another threat to the sustainability of the BBC. Until 1982, there were only four major terrestrial television channels in the UK; Channel 4, ITV, BBC-1 and BBC-2. The introduction of Satellite and Cable TV channels in the early 1980’s, saw a steep decline in the BBC’s viewership.
The BBC needed to adapt and
Team Originals
INTRODUCTION
With the rise of Margaret Thatcher and the Conservative Party in the General Election in 1979, it heralded an era of change. Thatcher was strongly in favor of the privatization of state-owned industries and making sweeping social changes by the reduction of taxes and non-essential social expenditures. This coupled with the expansion of Satellite and Cable television in the early 1980’s forced John Birt, to reassess the future of the BBC and instigate a rapid change in the culture of the BBC to ensure its survival (BBC, 2014).
BACKGROUND
The BBC, was founded in 1922, as the British Broadcasting Company by a group of leading wireless manufacturers. In 1927, by Royal Charter, the BBC was re-established as the British Broadcasting Corporation, with Sir John Reith as its first Director General.
The BBC plays a vital role as a political and cultural force in British society. Until 1985, the BBC was able to comfortably operate due to the financial strength built through the licensee fee collected from each radio and television user in the UK. In 1985, the UK imposed government regulations to freeze the license fees. This was a turning point for the BBC, and forced them to review and change their strategies.
Due to the income generated through the license fee, the BBC had begun to become lax when focusing on improving the profitability & the resource optimization of their core business. With the new situation, the hidden factors such as inefficiency, poor resource management & underutilization of the workforce came to light.
The rapid growth in digital technology & emergence of new market players became another threat to the sustainability of the BBC. Until 1982, there were only four major terrestrial television channels in the UK; Channel 4, ITV, BBC-1 and BBC-2. The introduction of Satellite and Cable TV channels in the early 1980’s, saw a steep decline in the BBC’s viewership.
The BBC needed to adapt and