Ownership and Funding

Public Service Broadcasting (PSB)


This is a system of broadcasting which tries to educate and inform its audience no just sell items to the. A relevant example of a PSB is the British Broadcasting Corporation, otherwise known as the BBC. The BBC began broadcasting in 1924 via the radio. The technology was available for televisions however the military felt that it would be wiser to hold out on the release of televisions as they believed the people could focus on sound and speeches rather that the importance of people moving around on a screen. When it comes to the use of advertising, America was the first country to advertise via the radio. They then used it to fund their radio service. Opposing this was Britain, who did not want to use advertising to fund the radio and also didn't want to be funded by the government in case they were thought to be spreading propaganda. First director general of the BBC Lord Reith is quoted saying "Public service, not public exploitation". Eventually they then came up with a midway solution; TV licensing.

Commercial Broadcasting
This is a channel which sells their audience to advertising, therefore existing to make a profit. Commercial broadcasting began in 1954 giving the BBC almost 20 years being the only television channel. A good example of a commercial broadcasting channel is ITV which was established in 1954. Another is Channel 4 who began as an indie television company who intended and partially still does, broadcast shows which are innovative and non-mainstream. Furthermore, there are television services that also provide subscriptions such as SKY.

Corporate and Private Ownership
A corporate ownership is where the corporation is a public one therefore meaning that it is owned by a number of people and shares can be invested in by the general public. For example Cadburys PLC and Orange PLC

Global Companies
Going multi-national can offer a number of advantages. In some instances, expanding globally can become a necessity rather than a choice due to the competitive economy we are currently in. Some of the advantages that becoming global can have is the chance of having lower costs. The company can set up a operations in a region which has cheaper labour and resources therefore saving on money. Another advantage can be new customers/markets. Again, the business can set up operations in a foreign region where there is high demand for the product/service

Concentration of Ownership

When it comes to the control of the worlds media, there are six conglomerates; Time Warner, News Corporation, Disney, Viacom, GE and CBS. In 2010 the total revenue of the six huge corporations came to $279.5 billion. The link below has plenty of details on percentages owned by each business. Overall it is estimated that just over 90% of the worlds media is owned by these six conglomerates. For these businesses, the small amount of other media companies the better as it cuts their competition (monopolisation). A method which is used within the conglomerates is synergy. This is when they support or advertise a different branch/product of their brand. For example The Sun newspaper may hold a competition for tickets to the premiere of a film made by Fox, this is because both media outlets are owned by News Corporation.

http://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6


Vertical Integration (owning stuff in different sectors)
This is when a business expands and owns other companies in all of the different sectors in a media industry. For example for a business like Paramount studios, they aren't receiving that much capital due to them being paid a settled sum by the distributor, and at that point the distributor then sells the rights of the film to cinemas etc. So therefore, Paramount could buy out the distributor and be receiving even more money. Then they can go even further and purchase a chain of cinemas so they are then making all of the money. Therefore, the company benefits from buying other companies in all of the sectors so overall, they are receiving more money.

Horizontal Integration/monopolisation
This also is when a business expands however its in a different way. Whereas in vertical integration you expand vertically, with horizontal you expand horizontally. the business buys another studio, and then another. Businesses do not have to expand in any order but it is common of a business to expand vertically then horizontally.

The License Fee
As I previously mentioned, the BBC introduced the idea of TV licences. The current price of a TV licence is £145.50.

Subscription
Again, as I previously mentioned, certain subscriptions can be made by customers for certain channels. Sky is a popular and relevant example. This allows customers access to channels such as Sky Sports and Sky Movies. 'Netflix' is another service which you can subscribe to, this allows online streaming of thousands of films and television shows. There is also 'LOVEFiLM' which is very similar to Netflix but has its differences in film choices, however, the service is no longer' LOVEFiLM', but now part of Amazon's online streaming service 'Instant Video'.

One-off payment to own product
This can relate to free-view boxes or films (DVDs, blu-rays). This is due to the fact that once the product is purchased you no longer have to make further payments, a lot different to subscriptions.

Pay per View
This is a type of service by which the subscriber of a television service provider can purchase certain events to watch for example UFC, boxing or wrestling.

Sponsorship
When a company sponsors an event, person or media product, they are supporting it financially or through a service. In return they are having their brand displayed to potential customers, For example Talk Talk sponsor The X-Factor, and Barclay's Bank sponsor the Premier league.

Advertising
A method used by television channels, companies etc to promote their product or business to potential customers. BBC1 is a channel which does not advertise and buy their audience whereas ITV1 does advertise and buy the audience. Advertising also depends on the amount of viewers the channel or show is getting, for example one of the most expensive advertising slots is during the ad break of Coronation Street as the show receives a significant amount of viewers therefore being a higher price.

Product Placement
This is when a company chooses to place their product within a film or television show, it is solely done for promotional values. A recent example of this is Zack Snyder's recent 'Man of Steel' which features an astonishing $160 million worth of product placement

Private Capital
This method is used by raising your own money to start your own business and not using external funding. For example you may have savings or an inheritance which could be used instead of a bank loan or an investor. Richard Branson and Alan Sugar are good examples of the use private capital, using their own money for their businesses.

Crowd funding
This is the collection of money via backers or 'the crowd'. This method is usually undertaken for non-profit or charitable campaigns. Crowd funding can be known to kick-start campaigns or businesses. An example of crowd funding is 'Comic Relief', raising money for people who are less fortunate abroad.

Development funds
Financial aid given to some countries for certain film productions. The British Film institute otherwise known as BFI are currently attempting to fund film ideas and productions around the UK.

Banks
Banks are common use of finance for a lot of people however due to interest rates, it is wiser to find other possible sources before choosing this one. Also, film productions can cost a large amount of money and there is no guarantee of there being a profit therefore it may be hard to receive a bank loan. Some examples of some banks are, Halifax, Satander and Barclays.