Ownership and Funding

1. Ownership and Funding
PublicService Broadcasting: A publicservice broadcasterisa companythat producesbroadcastsfor
the public.Thiscan be to the publicbestinterestsratherthanshowingadvertisementand
commercial interests.Inorderfora
broadcasterto be a PSB theyneed
to meeta listof requirementsthat
are setand regulatedbyOfcom.
The 3 out of the 5 main channels
on anyTV service (BBC,Channel 4
as well asChannel 5) are all public
service broadcasters. The BBCis
the onlypure publicservice broadcaster.
Commercial Broadcasting: A commercial broadcasteris
a companyor co-operationthatisprivatelyowned.This
givesthemmore freedomtochoose whatthey
broadcast as longas itall followsregulationssetby
Ofcom.Anexample companythatisa commercial
broadcasterisITV.
Corporate and Private Ownership:Private ownershipreferstothe broadcasterbeingapublic
service whose bestinterestistomake profitbytreatingthe viewersasconsumers.Whilsta
Corporate service hasitsaudience seenascitizens.
Global Companies:A global companyhas buildings
across the worldwithsalesbeinginalmostevery
country.Quite often,aglobal companywill have aHQ
buildinginitshome county. NewsCorporation,owned
by Murdoch,an Australian,hasbusinessesall overthe
worldbutan HQ in NewYork.
Concentrationof Ownership: A concentrationof ownershipiswhere the leadingshareholderwithin
a companygraduallygainsmore shareswithinthe company.Betweensix companies,there are 90%
of the world’smedia’s products.

2. Vertical Integration: Thisisthe processof expandingthe
companyby increasingthe numberof productsthatare owned
across varioussectors.Thiswill oftenincrease the productivity
and efficiencyof the company,whichisdone bysavingmoneyon
transportscosts,whichcan be usedelsewhere.However,thereis
one maindisadvantage asthe bestwayfor vertical integrationis
by buyingoutcompaniesandtakingcontrol overtheirassets
howeverthe managementwillbecome alotmore hecticas well
as beingindifferentstagesof the productionprocess. An
example of acompanythat usesvertical integrationis Warner
Brothers has theirown filmstudios andeverythingforthe productionof aTV show or Film.
Horizontal Integration/Monopolization: Thisisthe same as vertical integrationwithone main
difference.Ratherthanbuyingcompaniesindifferentsectorsyou’re essentiallybuyingcompanies
withinthe same trade as youto narrow the amountof competitorswhilstincreasingyourown
productivity.
Sponsorship:Thisis where externalcompanieswillasforan advertisement
slotat the start andendof each advertisementbreakwhichshowsoff a
certainproductwitha message/voiceoversayingthatthe productsponsors
that TV show.Sometimesthe programwill have asimilar elementtothe
show.For example the TV showArrowabouta playboymillionaire who
became strandedonan islandfor5 yearsand whenhe returnstohishome
cityhe becomesavigilante whousesabow andarrow as his primary
weapon.The TombRaiderVideoGame sponsoredthisshow wherethe main
protagonisthasa similarnarrative aboutbeingonanisland.
Sources of Funding:
Subscriptions:A subscriptionispayinga
fee basedona predeterminedfrequency
(Monthly,Weekly,PerAnnum) toget
access to contentprovidedbythe
service.A well-knownsubscription
service isNetflix thatrunsona monthly
paymenthowever;itscontentvaries
betweendifferentcountriesbasedon
whoownsviewingrightstothe
production.
Licence Fee:A licence fee alsoknownasaTV licence isanannual paymenttothe BBC forrightsto
watch anytelevisionbroadcasts.The annual paymentis£147.
One OffPayment: These are oftenisolatedproductsof alimitedselectionof channelstowatchTV,
FilmsandMore. The most commonOne Off Payment sourcesare DVD’sas well asFreeviewboxes.

3. Pay Per View: This isofteninthe form of watchingsometime atacinema,rentingafilmor TV show.
Withthe rental services,youare able towatchthe productany amountof timeswithinaselected
time period(normally48 hours).
Sponsorship:A sponsorshipisanadvertdirectlyplacedateitherthe beginningorend(sometimes
both) of at advertisementbreaktoshow off the new itemwhilsttellingthe audience thatthe
companybehindthe productissponsoringthe programor film.
Advertising:Advertisingisthe same assponsorshipshoweveritcan be prettymuch anywhere.On
billboards(bothdigital andregularones),posters,onthe side of buses,inmagazines,ontelevision,
before afilmat the cinema,websites,social media.Prettymucheverywhere basically.The aimof
advertisingistoshowoff,make the viewerinterestedorwant toget the advertisedproduct.
Product Placement:Productplacementisthe deliberate showingof anobjectrightinfromof the
camera inclearview.Thiscan be for a wide of itemsfromlaptops,basketballs,airlines,cars,sweets
all of
whichare
some
typesof
itemthat
were
placedin
easyshot
inBatman
Vs
Superman:
Dawn of
Justice.
Private Capital:A private capital (akafinancial capital) ismoneythatisusedtobuyresources
requiredtohelpsetupa businessorto buyservicesfromotherbusinesses.The moneyisprovided
by businessesorentrepreneursinthe aimto make a profitonthe investment.
Crowd Funding:Crowdfundingisthe processof settingupa page on somewherelikeKickstarter,
showingoff whatyouhave fora product,whatyou
wantto do withit,listingwhatyouneedandasking
people todonate money.Youonlyeverreceivethe
moneyif yourgoal is reachedor better.Anincentive
for backersispledge rewardse.g.Donate £5 to receive
a digital copyof the final filmwhenit’sfinished.They
are hugelypopularandcanbe verysuccessful. Code 8
whichwasfundedonIndiegogowhichgotatotal of
$2,093,724 for itsfunding whichismore thantheir
860% fundinggoal.
DevelopmentFunds:Thisisa source of fundingthatisusually donatedbya national company,
lotteryorthrough applicationstoreceivesome moneyfromasetbudget.Thismoneyisusuallyonly
offeredforthe productioncostsratherthanpost-productionoradvertisementcosts.