1. The TV Industry
Public service broadcasting is television that is free and does not use commercials. They
make there money by either government funding through TV licensing, selling
merchandise or formats.
Commercial broadcasting is television that uses advertising and commercials to fund their
channel along side premium rate voting, competitions and TV show sponsorships.
Subscription channels are channels that you have to pay for before you watch a single
programme they may also use commercials but often once the subscription has been paid
for its advertising free.

2. The BBC are a public service broadcasting company in the UK and have been from
when the company started. I know this because the BBC is funded by TV licensing and
they show no advertising on any of there channels.
ITV are a commercial service broadcasting company in the UK. I know this because ITV
use advertising on all of their channels and also use premium rate voting, competitions
and sponsorships on many of their TV shows.

3. How broadcasters make money from their audiences
Public service broadcasting make money through their audiences by making them pay for
TV licensing which they will use to fund their company. Another way public service
broadcasters make money off their audiences is through merchandise as audiences will
watch their TV shows and then buy related products or DVDs produced by the same
company as the channel the programme was on.
Commercial service broadcasters make money through their audiences primarily through
advertising on their channels. Another way they make money off their audiences is
premium rate voting, this is whenthe broadcaster produces TV showswhere the audience
is allowed to pay money to vote for their favourite candidates or for changes to be made
in the programme, for example Big Brother and I'm A Celebrity Get Me Out Of Here.
Another way commercial service broadcasters make money is through competitions
where the audience will be allowed to pay to take part in a competition and have the
chance to win a prize. Another way commercial service broadcasters make money is
through TV show sponsorships, this is when an advert will come on directly before a show
is on and it will say this show is sponsored by whatever the sponsors name is.
Subscription channels is probably the most obvious one in terms of how they make
money of their audiences. Subscription channels will make the audience pay for whatever
it is their watching so they wont need to make any more money and they will consider
this as a benefit as they don’t need to include any other forms of funding their company.

4. Sky Box Office
ITV
Pay per View – paying every
time you watch something
The Only Way Is Essex
Sponsorship – making sponsors
pay for sponsorship rights
Advertising – showing
commercials before and
in-between TV shows
How TV Companies are funded
License fee – making the
audience pay for the channel
so there is no advertising
The BBC
Subscription – making
the audience pay for the
channels they watch
Netflix

5. License fee – the advantages of using licensing fees are that you don’t need to use many other
forms of funding as licensing fees are such a direct, clear payment so as long as the company
asks for enough money and gets enough viewers they wont need to find any other forms of
funding. The disadvantages of using licensing fees is that as the audience pay for the channel
directly that channel often wont be allowed to use advertising or other forms of funding as the
audience wouldn't pay for a company which is also trying to sell them advertisements.
Pay per View – the advantage of pay per view is that as soon as the audience decide to watch
the show they have already paid the company money. The disadvantage of this is that this show
may not get nearly as many viewers as a show that you don’t have to pay for up front.
Sponsorship – the advantage of sponsorships is that the company get large sums of money off
other companies for their shows and the audience will not have to pay anything. The
disadvantage of this is some people don’t like advertising and also the sponsorship may have a
small control other what happens in the show so for example if the show did something the
sponsorship didn’t agree with they might drop out of the sponsorship deal.
Subscription – the advantage of subscription channels is that the company gets money directly
of their audiences monthly. The main disadvantage for subscription channels is a lot of people
will not pay for them meaning they will not get as many viewers as free channels.
Advertising – the advantage of advertising is companies will get money off other companies just
to show their adverts in-between the channels shows. The main disadvantage of advertising is
that many people don’t enjoy watching advertising and during advert breaks the channel could
loss viewers.