Ownership and Funding

Ownership Concepts:

• Public Service Broadcasting (PSB)

Public service broadcasting is a type of broadcasting that is not intended to make money out of the public who watch. This means that there is little commercial advertising shown between shows, if any. Public broadcasting  occurs on radio, television.. The BBC's television and radio is an example of a company that do this.

• Commercial Broadcasting

Commercial broadcasting is the opposite of PSB, it is privately owned by corporate media. In order to make a profit and funding they use advertisements, unlike PSB.

• Corporate and Private Ownership

Corporate companies are not owned by one individual. These companies can be either commercial or PSB. These companies are owned by the state, an example of this is the BBC.

Private ownership is a company that is owned by a small group individuals. The profit goes to the owners or shareholders, an example of this is ITV.

• Global Companies

These companies are situated across the world. These global companies own a high percentage of the media industry. Some top examples of these companies are Alphabet, (which owns Google and has the highest media revenue in the world) and Disney.

• Vertical Integration 

This is when production companies buy distributors and cinemas, increasing their own profit and preventing other companies from making profit from those sectors.

• Horizontal Integration / Monoploisation

"Horizontal integration is the process of a company increasing production" in the same sector, possibly by buying other companies, or by forcing other companies out of business so they gain an increase of profit.
[Copied from Wikipedia]

Funding Types:

• The Licence Fee

A TV Licence is what people need in order to watch TV, on any kind of device, legally. It was originaly set up to avoid commercialism, which was frowned upon. It also was there to stop the accusations that they show propaganda, which would occur if they were government funded.

• Subscription

Subscription services, such as Netflix, allows users to make a monthly payment for unlimited access to a select number of films and TV shows that they have to offer. Netlix currently has three subscription plans; the cheapest costs £5.99 per month and allows you to watch standard definition on one device; the most expensive is £8.99 a month giving you the possibility of  Ultra HD and four devices to watch on. Many other subscription services will offer different subscriptions options.

• One-off payment to own product

One off payments to own products include things such as DVDs and merchandise.

• Pay per View

This service allows audiences to make a one off payment to watch a specific show or event. This is most commonly used for sports, such as boxing. this method of viewing allows the viewer to not hold a costly subscription but they need to be prepared in advance so they can watch the show.

• Sponsorship

Sponsorship occurs before and after popular television shows. A well known example of this is Aunt Bessie at the end of I'm a Celebrity.

• Advertising

This type of funding can only occur on commercial broadcasting, as PSB does not show advertisements. Advertising presents a product in a positive light and people pay for it to be shown during peak times, for example during the Superbowl in America, so as many people as possible will see the product.

• Product Placement 

Product placement is the practice in which manufacturers of goods or providers of a service gain exposure by paying for their products to be feature in television and films.

• Private Capital

Private capital is when someone with a lot of money uses it to fund themselves or others. An example of this would be Megan Ellison who helped fund films such as Terminator 5.

• Crowd-funding

Crowdfunding websites, for example gofundme, allow movies such as Wish I Was Here by Zach Braff to be created.

• Development Funds

Development funds, such as charities or the lottery, help fund some films such as St Trinians.