UC_EBAD7002 - Business Model Analysis of BBC News Channel in CCI

This report provides an in-depth analysis of the BBC News Channel's business model within the context of global creative industries. It examines various aspects including the business model canvas, economic and social value of creative and cultural industries (CCI), public and private support, crowdfunding, the creative labor market, entrepreneurship, art market networking, internationalization, creative economy, innovation, digital disruption, and business model innovation. The report concludes that the creative industries, particularly the entertainment sector, contribute significantly to national income through innovation and profitability, highlighting the importance of understanding and adapting business models within this dynamic environment. The analysis references academic sources and journals to support its findings, offering a comprehensive overview of the BBC News Channel's strategic positioning and operational practices within the global creative landscape.

BBC News Channel

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
BUSINESS MODEL and its canvas.......................................................................................1
Economic and social value of CCI.........................................................................................2
Public and private support for arts and culture.......................................................................2
Crowdfunding.........................................................................................................................3
Creative labour market and entrepreneurship.........................................................................3
Art market networking and internationalisation.....................................................................3
Creative economy and innovation..........................................................................................4
Digital disruption in CCI........................................................................................................4
Business model innovation.....................................................................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................5

INTRODUCTION
Global creative industries can be defined as the industries which gains attention of policy
makers, academics, activist, artists and development specialist across the world. Examples of this
industry are advertising and architecture, arts and crafts, design and fashion, films and videos,
photography and music, performing arts and publishing, software and computer games,
electronic publishing and television or radio (Frey, 2019). Case study chosen on the organization,
BBC News Channel, it is one of the leading international television channel established in 1997
and headquartered in United Kingdom. The following discussion is based on the BUSINESS
MODEL and its canvas. Discussion is also made on economic and social value of CCI, public
and private support for arts and culture. Crowdfunding and creative labour market,
entrepreneurship are also discussed. Discussion on art market networking and
internationalisation, creative economy and innovation are also made. Digital disruption in CCI
and business model innovation are also covered.
MAIN BODY
BUSINESS MODEL and its canvas
Key partners
Record labels,
radio stations,
Music channels,
Social media
networks, Past
winners and
nominees.
Key activities
Music poll to
gather the votes
of other music
critics and which
are related to the
specific industry.
Interviewing
winners and
nominees.
Utilising the radio
stations.
Value
propositions
Exploring for new
upcoming artist
and also exposure
for current artist
as well. Company
is having the poll
with an outcome
which includes
the winner
receiving awards.
Good
combination of
nominees with a
Customer
relationships
Radio stations
and taste makers.
Customer
segments
Mainstream and
underground new
artist along with
the music critics.
Tabloids and
radio stations &
listeners. Record
labels and
collaborators
which includes
the sharing of
opportunities and
experience with
Key resources
Funds, music
Channels
Social media and
1

critics and
another industry
which relates to
the big part of the
specific industry.
wider range of it. radio stations
along with the
television which
includes
interviews and
documentaries.
the artists.
Costs
Website hosting and self-advertising
on different websites along with the
social networks.
Revenue streams
Radio and online along with the television streaming and
promotions (Carter and Carter, 2020).
Economic and social value of CCI
Economic value of BBC News Channel relates with certain factors. Such as employment
rate has a positive impact on BBC as well as on the economy of the nation due to the experts are
pursuing studies for CCI. Government spending is an another factor which has boost the sales of
the company in the recent years. Financial market structure and availability of capital at
reasonable rates have created the value for economy on BBC. Social value of BBC also relates
with some specific factors. Such as power structure in society is associated with the disposal
income of the people which has a positive impact on the company. Immigration is related to the
Brexit situation but BBC has the capabilities to grow and develop in this type of environment as
well. Moreover, it is also creating the value with the factors like attitude towards leisure and
savings. Demographic trend and attitude towards health and safety are also associates with the
social value of CCI (Serpentine Galleries, 2020).
Public and private support for arts and culture
Public sector supports the BBC news channel in the form of funding and licensing. In
terms of funding, the public sector provides the initial funds to the organisations along with the
operating capital for better economic growth. In terms of licensing, the government has strict
rules and checklists all the norms related with the organisation and then issues the official licence
to the organisation. Private sector also supports the BBC news channel in the form of marketing
strategies and stakeholders. Marketing strategies and stakeholders are integrated with each other
2

because of the help of brainstorming methodology. Internal as well as external stakeholders
guide the organisation in its development with the help of various approaches and strategies of
operation of the company (Lee, Fillis and Lehman 2018)
Crowdfunding
Crowdfunding is a technique where an organization uses together the initial and operating
capital for the company. This involves the website where the organization has to place the idea
so that the investors can invest in the organization. In the context of the BBC news channel, BBC
has used this methodology to gather the funds in the operation of the organization. Company has
placed its innovative idea on the crowd funding website and soon started receiving the funds as
per the investors. This has helped the company in smooth functioning of the organization.
Company have used this technique once in a lifetime when they have faced the shortage of funds
for operations (Lazzaro and Noonan, 2020)
Creative labour market and entrepreneurship
BBC news channel has investigated the labor market and type of entrepreneurship they can
use in the operation of their organization. Initially when BBC news started its functioning,
employees hired by them were not specialists and neither had expertise. But the organization has
grown quickly when they have started hiring the people who have good experience and
knowledge about the industries. People who have good exploring power in order to gather the
news to represent in its news channel. Entrepreneurship has one of its important parts that is to
research the creative labor market. BBC news channel is highly involved in this sector (Lazzaro
and Noonan, 2021)
Art market networking and internationalisation
BBC news channel is involved in the art market networking which means that networking
in the market domain is one of the major activities of the company. This has helped the
organization to become involved in internationalization. Networking is an important activity to
perform the marketing function in the organization because it increases the international working
of the company. Moreover, it is easy for the BBC news channel because they are operating the
television channel which makes them more comfortable to market on a large basis. This results
in the global networking of the company (Lazzaro and Moureau, 2021)
3

Creative economy and innovation
BBC news channel is one of the company which comes under global creative industries.
This also includes the creative economy and innovation. This is because other industries are
giving good growth to the economy but the entertainment industry is more artistic and has good
creativity in terms of the economic condition of the nation. This also results in innovative ideas
to grow the economy of the nation. BBC news channel is highly involved in this particular sector
to bring creativity in the economy and innovative thoughts for better growth and development
(Lazzaro, 2021)
Digital disruption in CCI
BBC news channel is completely based upon the technology and its advancement to
represent its news with the help of television to their audience. Technology is highly involved in
the working of the organisation and therefore digitization is necessary for the company. It is
important to keep security and updated technical devices in the functioning of the firm.
Disruption in the digitalization of the organisation can greatly hinder the smooth functioning of
the company which can result even in the losses. For example, distraction in the information
systems and software along with the hardware and other technical devices which are directly or
indirectly linked with the news channel (Lazzaro, 2020).
Business model innovation
BBC news channel has the business model innovation through which they operate their
Organisation in an effective and efficient manner. This model includes exactly what product or
services are offered to the customers. Creation of value proposition is also involved in this model
along with the target customer and the reason behind the profitability of the company. Further it
includes three important segments such as value proposition and value chain along with the
revenue model. Therefore, it is analyzed that BBC news channels offer the recent and current
news to their customers. They create their value proposition with the help of the expertise who
are working with them. Target customers are the people who are willing to explore new things
and are interested in current and world affairs. And the reason being the profitability of the
company is that it uses the business model not only for the theoretical basis but also practical
implementation of it in a strategic manner (Landoni, Dell’era, Frattini, Petruzzelli and Manelli,
2020).
4

CONCLUSION
It is concluded that global creative industries are giving good national income to the
economy of the nation. This is because entertainment industry is considered as a fastest growing
industry in terms of innovation and profits as well. Therefore, it is important to analyse the
BUSINESS MODEL and its canvas. It is essential to examine the economic and social value of
CCI. It is necessary to determine the public and private support for arts and culture. It is
significant to gain the knowledge about crowdfunding. It is crucial to assess creative labour
market and entrepreneurship. It is vital to investigate the art market networking and
internationalisation. It is imperative to study about the creative economy and innovation. It is
required to learn the concept of digital disruption in CCI and business model innovation. Hence,
this report covers all such areas in order to better understand the conception of global creative
industries.
References:
Books and Journals
Carter, M. & C. Carter. 2020. The Creative Business Model Canvas. Social Enterprise Journal,
16(2), 141- 158. Available on: https://ur.booksc.org/book/83113214/655f5c
Frey, B. 2019. Economics of Arts and Culture. Cham: Springer.
Landoni, P., Dell’era, C., Frattini, F., Petruzzelli, A. M. & Manelli, L. 2020. Business model
innovation in cultural and creative industries: Insights from three leading mobile gaming
firms. Technovation, 92-93, 2. Available on:
https://re.public.polimi.it/retrieve/handle/11311/1115805/453089/Landoni%20et%20al.
%20%282019%2 9_T_Business%20Model%20Innovation%20in%20Cultural%20and
%20Creative%20Industries%5bRePublic %5d.pdf
Lazzaro E. & Moureau N. 2021. Contemporary artists’ promotion and internationalisation: A
fair’s perspective. In E. Lazzaro, N. Moureau & A. Turpin (Eds.), Researching Arts
Markets: Past, Present and Tools for the Future. London: Routledge (available on unit
Teams, hardcopy of the book available at the library).
Lazzaro E. 2020. Art at the crossroads between creativity, innovation, digital technology and
business, a case study. In T. Bille, A. Mignosa, R. Towse (eds.), Teaching Cultural
Economics, Teaching Economics series, pp. 238-244. Cheltenham: Edward Elgar
Publishing (available on unit Teams).
Lazzaro E. 2021. Linking the creative economy with universities' entrepreneurship in a urban
context: A spillover approach. Sustainability, 13(3), 1078. Available on:
https://www.mdpi.com/2071- 1050/13/3/1078
Lazzaro, E. & Noonan, D. 2020. A comparative analysis of US and EU regulatory frameworks of
crowdfunding for the cultural and creative industries, International Journal of Cultural
Policy (available on unit Teams).
Lazzaro, E. & Noonan, D.S. 2021. Cultural Entrepreneurship in a Supportive Ecosystem: The
Contribution of Crowdfunding Regulation. In P. Demartini, L. Marchegiani, M. Marchiori
5

& G. Schiuma (Eds.), Cultural Initiatives for Sustainable Development: Management,
Participation and Entrepreneurship in the Cultural and Creative Sector. Berlin: Springer
Lee, B., Fillis, I. & Lehman, K. 2018. Art, science and organizational interactions: exploring the
value of artist residencies on campus. Journal of Business Research,85, 444-451. Available
on https://www.sciencedirect.com/science/article/pii/S0148296317304022?
casa_token=xgHjFmcRugcAAAA
A:Qon5JYNRIYQGoMeD_BVNJ3d0VbP9dbyc4T2TKJRdojnX9EVW6gBIAyU6izJieJ8-
YSVDdrJc
Serpentine Galleries 2020. Future Art Ecosystems. London: Serpentine Galleries. Available on:
https://serpentine-uploads.s3.amazonaws.com/uploads/2020/07/Future-Art-Ecosystems-1-
Art-andAdvanced-Technologies_July_2020.pdf
6