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The BBC or the British Broadcasting Corportation is a British public service broadcasting corporation. One of its main responsibilities is to provide impartial public service broadcasting to the UK, the channel islands and the Isle of Man. Even though it is headquartered in the Broadcasting House in London, the BBC own other major production centres located across the UK, some of which are in Belfast, Birmingham, Bristol, Cardiff and Glasgow. 

The BBC has the second largest budget of any other UK-based broadcaster with an operating expenditure of £808 billion in the years 2011/2012. Comparing this to other british broadcasting companies, British Sky Broadcasting took just over £5.9 billion, ITV gained £1.9 billion and £124 million for GCap Media (the largest commercial radio broadcaster). Throughout the UK, the BBC work is funded through annual license fees in which all British households are charged alongside all other companies and organisations who use any type of equipment to receive live television broadcasts. This license fee, however, began to attract a lot of criticism. It has previously been argued that in the age of multi streaming and multi channel availability, the obligation to pay a license fee was no longer necessary. The cost of this license is set by the government and enforced by the criminal law. Costing british households £145.50 a year, the price has risen by 2% since April 2010 but the government have allowed all blind citizens to have a 50% discount on their license fee. 

The BBC is owned by the Government of United Kingdom meaning it is 'Publicly Owned'. The executive board manages the BBC and it is responsible for the operational management and for the right delivery of the BBC services. The board delegates some of its responsibilities to for subcommittees including 'Audit', 'Fair Trading, 'Nominations' and 'Remuneration'. The audit is in charge of keeping track of what money is being spent on what parts of the business. They basically look after the accounts of the company, making sure that money isn't wasted on things that dont need to be paid for. A group of people get together to discuss Fair Trading, meaning that talk about whether the money in the company is being exchanged fairly, so that everyone is getting a fair amount for the work they are doing. The committee in charge of Nominations and Remunerations cover the importance that the members of the BBC are getting paid correctly for the work they are doing. Being vertically integrated, the BBC are able to keep all of the money and ideas within the company. This helps because the company doesn't have the worry of having to trust other people and the worry of wasting time trying to find different companies to help develop their ideas. 

The British Sky Broadcasting Group plc or more commonly known as BSkyB or simply Sky, is a satellite broadcasting, broadband and telephone service company headquartered in London. They have operations in both the united Kingdom and in Ireland. Formed in 1990, BSkyB is the largest pay-TV broadcaster in the UKand Ireland with over 10 million subscribers. The first CEO of BSkyB was a man called Sam Chisholm, whom was the CEO of Sky TV before the merger. After his resignation, Mark Booth took control who then handed over his role to Rupert Murdoch's son, James Murdoch. Not only does Sky own British Sky Broadcasting Ltd and Sky Broadband Ltd but they also own subsidiaries like Sky Subscriber Services Ltd, Sports Internet Group Ltd and many more. Over the past 23 years, Sky's turnover has increased a huge amount, starting in 1991 with £93 million and ending 2013 with £7,235 million. gaining a profit of £7142 million. In 2012, Sky achieved a net income of £1,100 billion and their subscribers increase a lot as the years pass. Sky is a subsidiary of 21st Centry Fox with them owning 25% of the shares coming from Sky. 

Netflix is an American provider of on-demand internet streaming media. Its the worlds leasing internet television network with more than 33 million members in 40 countries enjoying more than 1billion hours of TV shows and movies per month. Netflix has a net income of $112million in 2013. Horizontally integrated into the 'life' of a film, they are not involved in the complaint who can get the film out there into the cinemas and shown to the audience. Susquehanna International is the leading shareholder for Netflix with $5.88million shares with the valuation of $2.12 billion. They are an investing company who buy shares in different companies to make money. Another shareholder for Netfix who is a lot more popular is Barclays. They own $1.09million shores with the valuation of $335.58 million. 

The average daily reach of BBC1 and BBC2 together is about 45,822,000 whereas the average daily reach of Sky 1 and Sky 2 is about 3,785,000. This is a dramatic differences comparing the two together.

Overall, I think that is better for Hank to choose the BBC. This is because the ratings are higher, there are more channels and when you pay for a TV license, you get BBC for free, meaning you don't have to pay extra for the channels like you do for Sky. Being vertically integrated, the whole company is working towards the same goal and working to make the same profit larger. They have no help from any other sources other than companies that work for the BBC. This is also a good idea because it will easily reach a larger audience through all different channels linking to the BBC. 

References;

http://en.wikipedia.org/wiki/BBC

http://en.wikipedia.org/wiki/Netflix

http://en.wikipedia.org/wiki/BSkyB