OWNERSHIP CONCEPTS
Public Service Broadcasting
Commercial Broadcasting
Commercial Broadcasting is
where privately owned media companies broadcast TV and radio shows and
show advertisements to create a profit. For instance, ITV are one of
the biggest commercial broadcasting companies in the UK. ITV own a variety of
channels including ITV, ITV2, and CITV and are all very popular, bringing
thousands of people watch daily that show many shows such
as Coronation Street and X Factor. ITV also have a on-demand
streaming website, ITV Player, that allows viewers to watch shows whenever
and wherever they want to.
Corporate and Private Ownership
Corporate and private ownership is where a TV
channel or program is souly funded by advertising and profit. The companies are
often more concered in making a profit and fulfilling the needs of the studio
than the viewers. An example of this is MTV
as its owned by Viacom Media Network. Private companies run on
funds from advertising that they get from other companies paying for
their products to be advertised in or around the schedule of popular shows
and channels.
Global Companies
Global companies are ones that are based in one country or location but trade their products worldwide with many other businesses. Companies such as Disney are under this category as they buy many different popular franchises such as Marvel or Star Wars to make a profit from the films and merchandise. Disney trades with over 40 countries although it is based in America. When trading their products, global companies will slightly change their products depending on the country they are dealing with in order to suit their culture and countries. This includes getting rid of any ethically or culturally offensive content as well as providing a translation if needed. Other companies like Walmart and Shell are also global companies but are not in the media industry.Vertical Integration
Vertical integration is when a company owns the production, distribution and exhibition of a product. An example of vertical integration would be Warner Bros as they produce and distribute many films such as Harry Potter and The Deathly Hallows Part 2, which are sometimes aided by other companies, such as Heyday Films, in a small way but are very successful. When the film was ready to be exhibited, Warner Bros used their cinema chain and also gave HBO the rights to show the film on their services. Horizontal Integration
Horizontal integration is
when a production company buys help from another, that specialises in a certain
part of production, to increase productivity. For example, the
James Bond film 'Casino Royale' was a production where this happened. Sony
produced the film along with other Sony related companies such as Columbia
Pictures. Despite this, other companies helped make the film, such as Eon
Productions whom are known for their role in making previous James Bond films in the
past.
FUNDING TYPES
The Licence Fee
The money gained from the licence fee is put towards the BBC's services such as TV, websites and radio. Between April 2013 and March 2014, the price of this licence was £145.50 per year- around 40p a day. The BBC spends £8.00 a month, per household, on TV and has a total of £2,276m. They spend £2.30 each month, per household and spend a total of £650m and for their online services they spend 61p per month, per household with a total of £174m being spent. Other unrelated things cost the BBC £1.82 per month, per household with a total of £357m being spent.
Anyone in the UK that watches or records a show at the time that they are broadcasted on TV is required to have a TV licence, This also covers PCs, smartphones, game consoles and digital boxes. The UK Government puts the licence fee in place when needed. In early 2007 was agreed to be enforced for 6 years, but Parliament was obligated to approve this fee every year. At the end of this, in 2010, the price of the licence was put at a fixed price that will stand until 2017.Subscription
Subscription is a service that many companies offer, such as Netlifx. They offer their services from £5.99 a month with more expensive subscriptions giving more benefits such as HD quality and the ability to have more than one person watching a film at one time on different devices. With Netlflix, customers have a huge library of movies and TV shows to choose from each month. With subscriptions, most companies allow a quick, easy cancellation if you change your mind about the content. YouTube Red is another subscription based content provider. YouTube Red sprouted from its original free counter-part, YouTube, and now offers a paid service that is a monthly subscription that has several benefits compared to the free version such as getting rid of YouTube ads as well as providing YouTube Red exclusive mini-series such as 'Scare PewDiePie'. One-Off Payment
One off payments often allow the customer to have complete ownership to the item in question. Online services such as PSN (PlayStation Network) allow their buyers to purchase a movie or game and then have that content forever with no additional fees. Despite this, some companies, like YouTube, give the ability to rent a movie instead of buying it, for a specific amount of time, therefore the buyer does not permanently own the product. With this service, variations of quality are available for varied prices; standard definition is cheaper than renting the HD version of the film. If you were to rent the film 'Pulp Fiction' from YouTube, it would cost £2.49 in standard definition, but £3.49 in HD.Pay Per View
Pay per view is a service in which customers can buy access to an event that is privately broadcast to their home. These events can be purchased through the TV menu or over the phone to their service provider. Pay per view gives customers an opportunity to watch feature films or live sporting events such as boxing. The American company 'HBO' are very large in the pay per view industry, as they allow people to buy access to live boxing events. From 1988, pay per view boxing matches buy rates increased dramatically. Numbers of sales of the matches very rarely dropped below 300,000 and recently reached over 4m in 2015.
Sponsorship
Sponsorship is when a company pays a show, movie or any other kind of media content to show their product in an advert before, during and after the media content. Companies like Loot Crate, Hungry House and Audible, are all sponsors of a variety of media content. Audible and Loot Crate usually sponsor people that are on YouTube, such as PewDiePie or VannossGaming. This is because they have large audiences in the age range that their products are aimed at. Hungry House sponsors shows on TV such as The Big Bang Theory because a huge amount of people watch that show daily, therefore the exposure their advert gets is very large.
Advertising
Advertising is the exposure a product or company gets in order to promote themselves. Every company advertises themselves or their products, such as YouTube. The company YouTube allows content creators to monetise their videos and split the revenue between themselves and the company. The rate at which these creators get paid is based on how many people watch their videos and therefore see the advertisement that is usually placed before or during a video. The ad revenue they gain from this is usually put towards making more videos or upgrading their equipment. Companies such as Volkswagen or McMillan Cancer are very commonly seen in the adverts on YouTube. TV broadcasters such as ITV also use advertisements to fund their company. Many companies pay ITV to show their adverts before, during or after their shows such as X-Factor because it gains a lot of viewership and gets their product seen by thousands. Product Placement
Product placement is a type of advertisement that companies do by integrating their products or company into media such as films or TV. This advertising technique is used to subtly promote a company and get the audience to cognitively think about buying or taking more interest in said company. In 2014, its estimated that over $10 billion were spent on product placement buy companies around the world. Most TV shows or films contain product placement and it benefits them as they can use popular products such as Iphones or Coca Cola in order to give the world inside the media some realism. Companies such as Sony often make product placement deals- an example would be in the film Skyfall in which James Bond is seen drinking a Heineken for which he turns down his signature drink which was made the placement pretty obvious to fans of the series. Its reported that Heineken paid $45 million to have their product used in this way within the movie.
Private Capital
Private equity is the way that companies are funded through private investors. These investments can be used to help fund equipment needs and working expenses for media production. Film investment networks such as Venture Giant allow a variety of private investors put money into many different types of work including film and TV. A good private investor is Megan Ellison who has helped fund many films such as Zero Dark Thirty.
Crowd Funding
Crowd funding is where a director or production company asks for donations and support from the public in order to fund their production. Sites such as Patreon, CrowdFunding or Kickstarter give this option to people and it is a good way to build a community around a project and get people excited for the creation. The film 'Wish I Was Here' that was directed by Zach Braff was funded through kickstarter and was a a success when released.Development Funds
Development funding is the term given to the financial support that to a director or company receives when creating a media piece. This type of funding can either be given in the form of a loan or as a grant to spend on the production and doesn't have to be repaid. The BFI does this in Britain and has helped develop films such as 'High Rise' which was well recieved by audiences.https://en.wikipedia.org/wiki/Public_Service_Broadcasting_(band)
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