Public service broadcasting
Public service broadcasting uses TV license
to fund the BBC, which allows them to have
less advertisements. The payment is
enforced by the government, this is done
annually and accumulates billions a year.
Channels such as BBC are reliant on this
type of funding due to the fact they only
broadcast BBC related adverts.
Commercial broadcasting allows channels to
be self funded due to the money made
from other companies paying them to
display their advert during the break in the
channel. this differentiates from public
service broadcasting by being a self
sufficient, with more advertisement. So
examples of this are channels like channel
4 and channel 5, which are purely funded
Subscription channels require you to pay to
be able to access them, which is how they
are funded. They are relatively similar to
public service broadcasters because you
have to directly pay to view the
channels, but with the public service
broadcasters you have to pay to view any
channels, whereas with the subscription
channels you pay to view individual
The BBC is a ran by public service
broadcasters, I know this because the BBC is
funded by a percentage of TV licensing.
Channel 4, ITV and channel 5 all use
commercial broadcasting as the main way of
funding their channel, this means they don’t
have to charge people to view their channel.
The get companies to pay for their advert to
be broadcasted on air for a few seconds.
Public service broadcasters make their money from TV license, this is
when all TV audiences are taxed for watching TV. Commercial
broadcasters make their money purely from advertising, which
means companies will pay a channel to broadcast their
advertisement for a few second during a break. Subscription
channels make their money from their audience paying for specific
channels such as Sky, so that they can view more channels. These
methods can all be seen as effective because the public service
channels don’t have a lot of advertisement, which will be more
appealing to some people because they don’t have to wait five
minutes to continue what they were watching. Commercial
broadcasting doesn’t require you to make any payments to view the
channel, but they are filled with breaks and advertisements which
the audience may find irritating. Subscription channels are more
exclusive channels that broadcast things that specialize in certain
areas, but they allow you to use special features such as record and
pause, whereas the other channels don’t have these features.
For companies that use license fee to fund
their channel it means that they rely on
people paying for TV license. This allows
the channel to have the opportunity to not
have loads of advertisements during
programs, which means that they reduce
the risk of irritating their audiences. An
example of a company that uses license fee
to fund their company is BBC.
Pay per View
For companies that use pay per view as their way
to fund their channel it means they need to get their
audience involved in their shows so they pay (via
calls and texts) to determine the outcome of the
show. This makes them reliant on their viewers to
vote or enter contests so they can continue funding
their channel. An example of a channel that uses
pay per view to fund their channel is channel 5.
Types of funding
For companies that use sponsorship
to fund their channel it means that on
the start of every break it will specify
that the channel is sponsored by a
specific company or a program is
sponsored by a specific company.
This means other companies will pay
the owners of the channel to be able
to sponsor them. An example of this
is E4, they broadcast the big bang
theory, which is sponsored by
For companies to use advertising
as their way to fund their channel
it means they have to have short
breaks before, after and during
their programs being broadcasted.
This allows another company to
pay for their product to be
broadcasted on television at any
time they choose to pay for. An
example of a channel that uses
advertising to fund their channel is
For companies that use
subscription as their way to
fund their channel it means
they rely on people to pay to
view their specific programs
and to use their special
features. This means they
don’t have to create breaks to
show advertisements. An
example of a channel that
uses subscription to fund
their channel is Sky.
Advantages and Disadvantages
-No need for adverts.
-People have to pay TV license to be able to watch any channels.
-People might not want to watch channel funded by licensing fees, but they would still have to pay.
-They don’t receive all the money made from TV licensing.
Pay per View
-People get to interact with the shows, and have they power to decide.
-Prizes are available for the audience to try win.
-Viewers can watch for free without interacting.
-They keep all the money that they earn.
-Require their audience to pay more frequently.
-Adverts aren't 100% needed
-Doesn’t require any additional money to view.
-Allows people to have breaks.
-The advertisements could frustrate the audience.
-Don’t have to pay an additional fee to view the program.
-They receive all the money from the sponsorship.