The first initiatives in British radio after World War I were taken by commercial firms that regarded broadcasting primarily as point-to-point communications. The British Broadcasting Company, Ltd., was established in 1922 as a private corporation, in which only British manufacturers were permitted to hold shares. In 1925, upon recommendation of a parliamentary committee, the company was liquidated and replaced in 1927 by a public corporation, the British Broadcasting Corporation. Although ultimately answerable to Parliament, the BBC has virtually complete independence in the conduct of its activities. The British monarch appoints the members of the BBC Trust, an independent 12-member panel, governed by a chairman, that oversees day-to-day operations.

The original charter gave the BBC a monopoly covering all phases of broadcasting in Britain. A key figure in the early history of the corporation was John Reith (later Lord Reith) (Reith, John Charles Walsham Reith, 1st Baron), general manager from 1922 and director general from 1927 to 1938. He developed radio broadcasting throughout the British Isles, inaugurated the empire shortwave broadcasting service, and directed the development of the world's first regular television service in 1936. His concept of public service broadcasting prevailed in Great Britain and influenced broadcasting in many other countries.

British television service was interrupted during World War II but resumed in 1946. The BBC established its second channel in 1964, and it introduced the first regular colour television service in Europe in 1967. It retained its monopoly of television service in Britain until the passage of the Television Act of 1954 and the subsequent creation of a commercial channel operated by the Independent Television Authority (later the Office of Communications 【Ofcom】) in 1955. A second commercial channel commenced broadcasting in 1982. The BBC's radio monopoly ended with the government's decision to permit local commercial broadcasts starting in the early 1970s.

BBC World Service radio broadcasts began in 1932 as the Empire Service. By the early 21st century the service broadcast in more than 40 languages to roughly 120 million people worldwide. World Service Television began broadcasting in 1991 and unveiled a 24-hour news channel, BBC News 24, in 1997. The BBC also has been successful with the overseas syndication of its television programming. In the United States, series such as All Creatures Great and Small, Doctor Who, Mr. Bean, and Upstairs, Downstairs have been featured on the Public Broadcasting Service.

The BBC is financed by annual license fees paid by owners of television and radio sets. It offers five radio networks in Britain, ranging from popular music to news and information services, as well as national television channels. Under its charter the BBC may not advertise or broadcast sponsored programs. It is required to refrain from broadcasting any opinion of its own on current affairs and matters of public policy and to be impartial in its treatment of controversy.