Public service broadcasters, like the BBC, are funded through license fees paid by television owners. Commercial broadcasters, such as ITV, generate most of their income from advertising and merchandise sales. Subscription channels receive all of their funding from viewers who pay specifically for those channels, such as with Sky subscriptions. Each method has advantages, like reliable funding through license fees or viewers only paying for desired content, and disadvantages, such as compulsory fees or income uncertainty without advertisements.

1. Unit 8- Assignment 1C
Ms. Ogunlabi

2. The difference between the following
3 types of broadcasters.
• Public Service Broadcasters.
-A Public broadcasting includes radio, television and other
electronic media outlets whose primary mission is
public service.
• Commercial Broadcasters.
-A commercial broadcasting includes radio, television and
other electronic media outlets which gets the majority
of their income from commercials.
• Subscription Channels.
-subscription channels get all their income from people
who pay specifically to get those channels.

3. Examples of a PSB and a CB.
• One example, of a PSB is BBC. We know it is a
Public Service Broadcaster, because They get
no money from advertising/commercials.
• Where as, one example of a CB is ITV. We
know it’s a Commercial Broadcaster, because
the majority of it’s income comes from
commercials and selling merchandise.

4. Comparing how PSB, CB and SC make
their income.
Public Service Broadcasters
PSB get their income and funding from people
buying TV licenses.
Commercial Broadcasters.
CB get their income from advertising. This means they will have
different companies paying money for 30 second slots. They also
sometimes will sell merchandise to do with their TV programs.
Subscription Channels.
People Chose to pay and view for these channels. For example, If you
buy Sky you chose what channels you would wish to pay for.
Otherwise you would

5. Advertising:
Commercial Broadcasting channels use advertising as
their main income.
Companies like McDonalds produce adverts and then
pay channels such as Itv to show then in between
shows. Prices can very on how much companies have
to pay to advertise their products, depending on time
and what show it’s during. For example, at 1am prices
would be lower since there is less of an audience
watching Tv at this time rather than 6pm.
This funds the channel, which means they can make
more original productions.
Sponsorship:
Some companies ‘sponsor’ a particular program. This
means that whenever the programme is shown on
Tv before and after every part of it has a small
(normally 30second) clip advertising their products.
This funds the program and sometimes as well as
money the sponsors give the program some of their
products to use for their show.
Subscription:
Subscription is when the
costumer picks what channels
they want to pay for and are
able to watch those specific
How TV Companies Are Funded
ones. At the end of the month
they will get a bill for the
service.
License fee:
This is how Public Service
Broadcasting companies are
funded. For example, the BBC.
People pay their license fee yearly
which is put toward paying for
original productions.
Pay per View:
People can pick exactly what they want to watch
and don’t have to pay for anything unwanted.
This means that every time someone wants to
watch a certain movie they pay for either one
viewing or for a certain amount of days or
weeks.

6. Advantages
Disadvantages
License fee
-This income is very reliable. This is because,
everyone who owns a Tv is legally obliged to pay
the license fee
-Everyone has to pay the same amount, so it’s fair
for the audience.
-Also helps to keep track of when people haven’t
paid, the they know how much people owe very
easily.
-It’s compulsory, so doesn’t give the audience a
choice.
-if a channel makes their income via license fee,
they are restricted in what they can show on that
channel.
Pay per View
-People can pick exactly what they want to watch
and don’t have to pay for anything unwanted.
-Have very new releases.
-People have control over what they watch.
-It doesn’t always provide income, as sometimes
people will not watch it at all.
-Hard to provide films for lots of different
audiences.
Sponsorship
-Give the program funding rather than the channel.
This is good because, it can produce a better quality
program.
-This income is very reliable as people cannot avoid
sponsored adverts.
-Using the same company and products can get
very dull and boring for the audience.
-The adverts are targeted to the same target
market as the program. So the adverts are more
than likely to be suited to that particular viewer.
Subscription
-The costumer get the choice of what channels they
want to pay for. This means the costumer is unlikely
to waste any money, meaning more people will sign
up for it.
-Compared to a license fee, subscriptions funding
is a lot less reliable. This is because, everyone who
owns a Tv is legally oblidged to pay the license fee.
Advertising
-Can show lots of different adverts in the small adbreak.
-The adverts are targeted to the same target market
as the program. So the adverts are more than likely
to be suited to that particular viewer.
-This income is very reliable as people cannot avoid
advertising.
-Can get irritating for the audience.
-Possibly make the viewer ‘channel flip’ and get
bored easily.