Media ownership and funding

PUBLIC SERVICE BROADCASTING
Public Service Broadcasting (PSB) is the mode of broadcasting that the BBC chooses to use. They came about the method in 1924-26 when they they were torn between not wanting to be commercial and not wanting to be run by the government which would make the BBC untrustable and a pumper of propaganda, SO to combat these they crete the licence fee in which people have to pay an amount each year so that they can watch the BBC on their television. Anyone who owns a television has to pay licence fee.

COMMERCIAL BROADCASTING
Commercial broadcasting is broadcasting that is laced with advertisements. Commercial broadcasting exists to make a profit, by selling audiences to advertisers. ITV is an example of commercial broadcasting.

CORPORATE AND PRIVATE OWNERSHIP
A corporate company is one that is owned by a group of members, a company that is too established to be owned by just one person, whereas private ownership is where an individual owns the company themselves. Corporate - SONY, Private - NEWS CORP (Rupert Murdoch owns it, even though it's a corporate company)

GLOBAL COMPANIES
The globalisation of a company has many positives (however selfish they are). For example, exploiting foreign tax havens so that they (corporations) don't have to pay as much tax, they can market prudcts to much larger audiences. They can cut out competition buy buying other doing-well companies, which then creates a concentration of power in the market place. 6 companies own around 90% of the world's media output. Once a company has lots of other companies under heir wing, they can effectively use 'synergy' which is basically one product helping out another product. E.g an advert in The Sun for winnable tickets to a FOX made movie (both The Sun and FOX are owned by NewsCorp) this advertises movie whilst making people want to buy the newspaper.

VERTICAL INTEGRATION
Vertical integration is where a company from a certain sector of the media industry buys another company from a different sector of the media industry. The thre main sectors are: Production (studios), Distribution (marketing) and Exhibition (cinemas). A good example of a company who has done this is Time Warner. They have a production company in 'Warner Bros.', a distribution company in 'Warner Bros. Distribution' and an exhibition company in 'Warner Village Cinemas'.

HORIZONTAL INTEGRATION/MONOPOLISATION
Like Vertical Integration, it is one comapny buying another company, but it differs from vertical integration because it is where a company in a certain sector of the media industry buys another company from the same sector. For example, 'Disney' have bought other production companys such as 'Marvel', 'LucasArts' and 'Pixar'. a Monopoly is where a company owns everthing in the market, in the UK it is illegal for a company to own everything.

THE LICENSE FEE
The license fee primarily funds the BBC, it is a system where people pay a tax to own a TV, anybody who owns a television has to pay even if they don't watch the BBC. There is a debate over whether people should pay if they don't watch the BBC, a result of this would make the BBC like a subscription channel like 'Sky'. Anybody with a colour TV has to pay £145.50 annually whereas a black and white TV is £49. The total income from licence fees was £3.6562 billion in 2012–13 (wikipedia).

PRIVATE CAPITAL

CROWD-FUNDING
Crowd funding is where a film-maker will ask their audience for help with funding a project. This is often done through the internet through site like https://www.kickstarter.com/. Crowd funding is basically donations to a media producer if they are struggling with funding themselves.

SUBSCRIPTION
Subcription programming is where the customer will buy a certain amount of time with a programming company which they can watch all of the programmes that the company has under it's wing. An example of subscription based programming is 'Sky TV', anybody who wants to watch Sky programmes has to pay to be able to watch them. Sky have 'bundle' deals in which they sell, for example, 'Sky Sports' and 'Sky Movies' in the same package.

ONE-OFF PAYMENT
An example of one-off payment programming is 'Freeview', a customer will buy a 'digibox' which has many more channel than TV without a digibox but less channel than a subsription like Sky TV. Like the name says it is a one-off payment and does not have to be renewed in anyway. Freeview has a digital signal rather than an analog signal, the UK is currently going through a 'digital switchover' which means that the analog signal will be shut off, leaving only digital.

PAY-PER-VIEW
This is a programme or channel that has to be payed for before you watch it, it is not like subscription or one-off payment as instead of being able to watch freely, you must pay each time that you watch the certain programme. WWE Wresting often has 'Pay-Per-View' shows where it is a special event that often ends a storyline of the normal programmes. Pay-per-view programmes are successful because they make the audience feel like they are getting something extra that a regular customer wold not be experiencing.

SPONSORSHIP
Often, TV programmes will be sponsored by some kind of other company or product. Before an after the sponsored prgramme, an advert for the sponsoring product will come up and say something like - 'Name of Programme', "sponsored by" 'Name of Product'. A famous example of a programme being sponsored by a product is Coronation Street being sponsored by Cadbury, which was their first sponsor in 1996.

ADVERTISING
Advertising is the 'selling' of a product to an audience, advetising is a huge part of the media industry as it funds 'commercial' TV channels. Advertisers buy an 'audience' from TV channels, with the peak times of viewing ratings being the most expensive. A 30 second advert slot in the break of Coronation Street costs around £90,000 (unsure if totally accurate find figures). Without advertising the only network would be the BBC.

PRODUCT PLACEMENT
Product placement is where a branded product is shown in a TV programme or Film. It acts as advertisement for the product. The BBC cannot have any product placement in their programmes as it would contradict the rules of their network, which have no advertising. Some famous exmaples of product placement in films are 'FedEx' in Castaway and 'Subway' in Happy Gilmore.