The document discusses the different ways that TV industry in the UK is funded, including public service broadcasting (BBC funded by license fees), commercial broadcasting (ITV funded by advertisements), and subscription channels (Sky funded by subscriber fees). It explains that public broadcasters like the BBC receive funding from license fees paid by households as well as commercial revenues. Commercial broadcasters receive funding primarily from television and radio advertisements. Subscription channels receive funding from subscribers paying monthly fees to access content on platforms like Sky, Virgin Media, and BT Vision. The document also covers some of the advantages and disadvantages of different funding models like license fees, pay-per-view, subscriptions, sponsorships, and advertisements.

1. How the TV industry is funded.

2. The difference between the following 3 types of
broadcasters
 Public service broadcasting
 Commercial broadcasting
 Subscription channels.

3. Public Service
Broadcasting
 The UK term for "public service broadcasting" refers
to broadcasting which is intended for the public and
will benefit without any commercial concerns. The
communications regulator Ofcom requires that
certain television and radio broadcasters fulfill
certain requirements as part of their license to
broadcast. All of the BBC's television and radio
stations have a public service remit, including those
that broadcast digitally.

4. Commercial Broadcasting
 Commercial broadcasting (also known as private
broadcasting) is the broadcasting of television
programs and radio programming by privately
owned corporate media, as opposed to state
sponsorship. ITV is an example of Commercial
broadcasting.

5. Pay Television
 Pay television, premium television, or premium channels
refer to subscription-based television services, usually
provided by both analogue and digital cable and satellite
television, but also increasingly via digital terrestrial and
internet television. Subscription television began in the
multi-channel transition and transitioned into the postnetwork era. Some parts of the world, notably in France
and the United States, have also offered encrypted
analog terrestrial signals, available for subscription, a UK
example of this is subscription programmers such as Sky,
Virgin Media and BT Vision.

6. How Public Broadcasters
receive their funding
.£3,656.2 million in license fees collected from
householders
.£1,101.2 million from the BBC's Commercial Businesses
.£269.7 million from government grants, of which 264.7
million is from the Foreign and Commonwealth Office for
the BBC World Service
.£75.2 million from other income, such as rental collections
and royalties from overseas broadcasts of programming.

7. How Commercial Broadcasters
get their funding
 Commercial broadcasters such as ITV primarily is
primarily based on the practice of airing radio
advertisements and television advertisements for
profit. This is in contrast to public broadcasting, such
as BBC which receives government subsidies and
eschews most (or all) paid advertising.

8. How Subscription
Channels get their funding
 Subscription channels such as Sky, Virgin Media and BT Vision
receive their funding in various ways.
For instance, Sky have the revenue of £6.791 billion which is
mainly profited by subscription buyers. Sky also make profit
from their own channels such as Sky Sports and Sky Movies,
as to get this channel subscribers must pay an extra fee.
 For instance, Sky is the largest pay-TV broadcaster in the UK
and Ireland with over 10 million subscribers.
 Therefore this how Sky makes notably more money than both
BBC of £5.086 billion and £1.6bn of ITV

9. License fee
A broadcast
license is a type
of spectrum
Pay per View
license granting Provides a service by which
a television audience can
the licensee
permission to purchase events to view via
private telecast. The
use their
broadcaster shows the event
channels
at the same time to everyone
How TV Companies
get their funding
Sponsorship
A sponsorship is when
a company pays a
particular show to
feature their product
just before the show is
ordering it (as opposed to
aired. For instance
video-on-demand systems,
which allow viewers to see The Big Bang Theory is
recorded broadcasts at any sponsored by Gifgaf
time).
Subscription
Subscription based
or pay television
has resulted in a
change in what type
of content is
broadcast by these
networks
Advertising
A commercial
advertisement on
television (usually
abbreviated to TV
commercial, ad, adfilm, and known in
UK as advert. Where a
company pays a TV
Channel in exchange
for airtime to promote
their product

10. License fee Advantages and
Disadvantages
 There are actually more advantages with TV Licence
than disadvantages. Either way you need a licence
fee to watch/listen to any LIVE programming
regardless of the network. We would all have to pay
the fee even if the BBC didn't exist.
The principles behind the funding of the BBC are
exactly the same as those for the NHS and the rest
of the public services. It is about making essential
services needed by all, affordable for all.

11. Pay Per View/Subscription
Advantages and Disadvantages
 Pay Per View provides a service by which a television
audience can purchase events to view via private
telecast. The broadcaster shows the event at the same
time to everyone ordering it (as opposed to video-ondemand systems, which allow viewers to see recorded
broadcasts at any time). However with some companies
you’re unable to actually pay for what you want to watch
there's normally a package deal you have to select. Also
some companies such as Sky do package deals to draw
in new costumers to pay nothing or a small sum for a
duration of time until the price is raised to the original
price. This is a disadvantage for existing consumers who
already have to pay full price as they don’t get to have
the advantages as new Sky costumers.

12. Sponsorship Advantages and
Disadvantages
 With sponsorship there are many advantages as
well as disadvantages. For instance as the product
is only aired just before a the show they have
sponsored starts. Therefore only the viewers who
watch that sponsored show will see the product so
there would be less awareness than a normal advert
which is shown more frequently.

13. Advertising Advantages
and Disadvantages
 Each type of advertising has specific advantages and
disadvantages. For example, it is often hard to target
radio and television advertising to your specific
demographics in local markets. Online advertising can be
targeted more closely but is often expensive, time
consuming, and frustrating to do correctly. One of the
major disadvantages of online advertising is the
possibility that a firm you've hired to handle your
advertising needs will use underhanded, shady or even
outright illegal methods. However TV advertising is a
good way to get recognition for a product. Also the TV
channel who is airing the advert receive a fund I exchange
for airtime

14.  By Canel Osman 12ACL