Public service broadcasters receive funding from TV license fees paid by the public as well as government funds. Commercial broadcasters earn profits primarily from television advertisements. Subscription channels generate income from monthly or annual subscription fees paid by viewers to access additional channels. In the UK, the BBC and Channel 4 are examples of public service broadcasters, while ITV and Channel 5 are commercial broadcasters. Public service broadcasters rely on license fees, commercial broadcasters use advertising revenues, and subscription channels employ a subscription-based model of generating funds from viewers.

1. a)
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What is the difference between the following 3 types of broadcasters
Public service broadcasters
Commercial broadcasters
Subscription channels
Public service broadcasters:
Public service broadcasting is when a television broadcaster which in this case is funded by TV license fees as
well as public financing provides a large amount of funds, this usually consists of funds from television
channels, radio and different types of media outlets as well as the government providing them the TV license
funds.
Commercial broadcasters:
Commercial broadcasters is when broadcasting of television shows and radio programs are owned privately as
corporate media. This occurs when the broadcaster earns from funding primarily by airing the television
advertisements, by doing this they can gain profit.
http://en.wikipedia.org/wiki/Commercial_broadcasting
Subscription channels:
Subscription channels is when someone has to pay a certain fee to gain more channels with there main
subscription box. This is usually advertised on TV, magazines etc. An example of this is ‘Sky’ which is a well
known subscription channel in the UK. It provides you with a range of channels that the public can choose
from. When you have a certain amount of channels, you have to start paying for any extra channels that you
would like to watch.
http://www.sky.com/shop/tv/
The difference between all three types of broadcasters is the way each type of broadcaster is funded, an example
of this is public service broadcasters gain their funds from TV license fees which is provided from the
government as well as income by independent contributors. Where as commercial broadcasters gain there
funding from the range of adverts they include whilst the program is on. And lastly subscription channels gain
there income from the individuals who join there subscription and pay for the amount that needs to be paid
monthly or yearly in order to keep there subscription running.

2. b) Identify the broadcasting companies in this country who are Public service broadcasters and commercial
broadcasters – explain how you know.
In the UK there a small amount of public service broadcasters such as the BBC, Channel 4, ITV, Channel 5 and lastly S4C.
However the main public service broadcasters are the BBC and Channel 4. Both of these channels are the main
channels viewed in the UK, the reason being is due to the programs that are aired on each channel. On the BBC
the programs that are aired consist of competition shows such as The X factor, TV soaps such as Eastenders etc.
Most of these programs are aired mainly for the viewers entertainment in addition to this the BBC has more of a
wider range of audience as different programs are aimed at more of a variety of an audience where as Channel 4
are more specific with the audience they are aiming at for example different documentaries such as Educating
Essex is usually more suitable for an audience range older than 15, in addition the TV program is Embarrassing
Bodies is aimed at a more older age group. This is why BBC is known to be a more controversial channel as it is
aimed at more people.
However commercial broadcasters in the UK would consist of Channel 5 as well as ITV. These channels consist of TV
programs purely for the audiences entertainment. Both of these channels are more of private media outlets, the
reason for this is they are mainly entertainment channels which might not amuse everyone in the public. Unlike
the BBC, Channel 5 and ITV gain most of there funding by the advertisements they include in there channels.
http://en.wikipedia.org/wiki/Public_broadcasting#United_Kingdom
c) Compare how public service broadcasters, commercial broadcasters and subscription channels make money from
audiences
Each of the types of broadcasters have different methods and ways in which they gain there funding. Public service
broadcasters gain there funding from the public as they gain the TV license fee that is being paid to the government
monthly which is then given to the service. Commercial broadcasters gain there funds from the amount of adverts they
include during there program is on, the advert that is being advertised provides the money to the commercial
broadcasters to help them gain money as well as have more advertisements viewed to the viewers to attract the
audience. And lastly Subscription channels gain there income by joining members of the public, this then consist of the
public paining monthly or yearly fee to the company.

3. d) Create a mind map with explanations of how TV companies are funded – include the following key words with
what each one means. Provide examples of TV companies that are funded in this way.
• License fee
Subscription:
• Pay per view Advertising:
A subscription is when a company or an organization
• Sponsorship Advertising is another way in which companies can
provides people in the public TV packages. By having a
advertise there brand or products to gain more funds.
• Subscription
TV package the public pay to keep the package
This is accomplished by previewing the advert before
• Advertising and after a TV program. In order to place there advert
running, in addition to this the company is also funded
between the spaces, The companies that are
advertising have to pay the TV company in order to
allow them to have the advert there. This is beneficial
to the company owner as the show would be aiming at
a specific target audience which would also apply to the
companies target audience, they would also gain the
customers from the viewers of the show as well as
more publicity.
Sponsorship:
A sponsorship is when you support a organization,
event or a film company. A sponsorship works by
having a company or organization sponsor a film
or TV program before they begin by advertising
there brand or product. The sponsors provide the
money to the filmmakers or the TV Show directors
to include the advert before there program/film
begins. An example of this would be the beauty
line ‘Rimmel London’ which is a well known
beauty brand in the UK. This brand is in
sponsorship with the popular reality TV program
called ‘ Made In Chelsea’ . As this program is
aimed at a young target audience such as
teenagers and young adults, the brand is trying to
gain more customers from the viewers of the
show which the audience range the TV program is
set out to.
How are
TV
companies
funded?
by the packages as the public can buy more channels
for there package. Examples of companies that
provide subscriptions are ‘Sky’ and ‘Virgin’. Both of
these companies are well known in the UK.
License fee:
TV license is the fund that is given to the
government by the public who owns a TV
within there household. The benefit of
working with a broadcasting company that
gains TV license is they also provide a small
amount of funding to the actual TV program.
TV license has become law to everyone who
owns a TV or anyone who has access to
watching any TV channels.
Pay Per view:
Pay per view is when service is provided by which the television audience can purchase
events to view private telecast. In pay per view the broadcaster shows the event at the
same time to the viewers of the show. Events can be purchased, this also means the
public has permission to purchase movies and TV shows by on the screen TV guide,
automated telephone system and even through a live customer service representative.
In addition a range of events that can be purchased often include sporting events,
feature films etc. http://en.wikipedia.org/wiki/Pay-per-view

4. e) What would you say are the advantages and disadvantages of each type of funding – evaluate each type of
funding.
http://www.tvlicensing.co.uk/check-if-you-need-one/topics/what-does-your-licence-fee-pay-for• License fee
top13/
• Pay per view
• Subscription
• Sponsorship
• Advertising
License fee:
The advantages of having the license fee to make it more efficient for the public to pay for there TV license, the
license fee provides access to a wide range of TV, radio and online content, In addition to this the TV license also
provides a BBC’s UK service in remaining from any free advertisements as well as any independent shareholder
interest, this is also beneficial as the main channels the license fee covers will not consist of adverts. This consists of
any channel, radio station or online to BBC. However a disadvantage of license fee is the more people sign up for
subscriptions the less viewers and customers they have as people see as paying for the subscription box is more
efficient as you pay a small set amount for the channels you want rather than paying a set price for the channels you
don’t watch, the is also a disadvantage to the company as they will be loosing out on profit.
Pay per view:
The advantages of pay per view is it allows you to have access in watching any TV program or movie of your choice
free with a charge of only paying for the movie/TV program and always having access to it when your done watching,
you can always go back and watch it again, in addition to this there is no set time in which you have to watch the
movie/TV program in. The disadvantages of using pay per view is they don’t put up a wider range of movies, which
means most movies that are set out might not be suitable for all age ranges which can effect the viewers on actually
watching any of the movies as they can be set to a certain target audience rather than having a range of movies for all.
Subscription:
The advantages of subscription is they provide a wider range of channels which gives them a more advantage as they
can attract more customers into buying there subscription box. A disadvantage of subscription is they all have many
competitors, as there is more than one type of subscription box, in addition to this unlike the BBC where they gain TV
license from everyone, this creates a higher income for BBC, as the subscription users don’t have the compulsory
income from the public it makes it harder to join an actual subscription company.

5. Sponsorship:
An advantage of a sponsorship is they get to advertise what ever product they want, this is beneficial for broadcasters as
they get paid the amount they want from the sponsors. This is also an advantage for the sponsorship as they can gain
more customers from the viewers of the TV show. A disadvantage of this Is the broadcaster cannot advertise a similar
product, the reason for this is the original company sponsoring them first would not be happy as they would have
competition within the adverts which then means they can pull out there advert and stop sponsoring the TV program.
Advertising:
An advantage of advertising is they attract the target audience they are aiming at which is usually the same as the advert
they are advertising within a particular TV program. This is beneficial for the advert as they can also gain the audience
from the TV program. However a disadvantage of this would be a certain advert on a film/TV program that doesn't gain
much views, can lose out on the audience they are aiming at as well as have a loss on money as no one will be attracted
to the advert.