Media Ownership of Funding

Ownership:

Public Service Broadcasting (PSB) -

PSB is a non commercial and non government funding. It is a system of broadcasting which tries to educate and inform its audience, not just for advertising and selling products. An example of this is BBC, which is a pure public service and is known as being the first public broadcaster in the UK. The BBC is also funded by a license fee, also providing the audience with no adverts. Some other channels, including ITV, also have public service broadcasting regulations but are not a pure example, like BBC. These regulations are set by OFCOM, through the law.

Commercial Broadcasting -

Commercial broadcasting exists to make a profit which sells its audience to advertising, which first existed in 1954. Also, some commercial broadcasting's make money from subscriptions, such as SKY. An example of a commercial broadcasting is ITV, which are funded from the revenue of adverts. 

Corporate and Private Ownership - 

Corporate is usually listed as a public company, whereas a private ownership is a company which is owned by an individual and not by the government. An example of a corporate company in the media is Microsoft Corporation. An example of a private ownership in the media is Dell.

Global Companies -

A global company is a multinational company which provides their products in various countries. This type of company has advantages, such as exploiting tax differences and marketing products to larger audiences. However it may take a business several years to make a profit. An example of a global company in the media industry could be anything from Disney, to Twenty First Century Fox.

Concentration of Ownership -

Concentration of ownership is a process which consists of using fewer individual's or organizations control, increasing shares of the media. Also, 6 companies own 90% of world media, which is called oligopoly. Another example of this is monopolisation, where competition is cut out. Synergy is also an example of concentration of ownership, which is also known as the promotion and sale of a product. 

Vertical Integration -

This is known as expanding a business by owning products in different sectors. An advantage of vertical integration is the way in which it can improve efficiency in companies which is done by a decrease in transport costs. An example of this is in Harry Potter, specifically Harry Potter and the Deathly Hallows: Part 2. This is produced by Warner Bros. which is owned by Time Warner.

Horizontal Integration/Monopolisation -

This simply means buying rival companies which are in the same sector. An example of this is Disney, which now has many different sectors such as merging with Pixar.

Sources of Funding:

The Licence Fee - 

A licence fee is paying a fee to be given the permission to legally watch television. An example of a licence fee is BBC, which allows you watch all BBC programmes, radio and online services. 

Subscription - 

A subscription is paying a fee in advanced to receive a service. An example of a subscription is SKY, where customers have to pay a certain amount of money a month. Those that use subscriptions such as SKY, also have the ability to choose their package deal so they're not paying the full price for packages which they do not use, such as Sky Movies.

One-off Payment to Own Product - 

This is paying the demanding price to officially own a product. This could be a DVD, or even services such as free-view boxes.

Pay Per View -

An example of paying for something per view could be wrestling, where your paying a demanding price to watch a product once. Pay per view is a great and easy way to watch new movies, where there are no hassles to return the product.

Sponsorship - 

Sponsorship is a way in which a business can bring their brand or products to the attention of the public/audience, by sponsoring a television show etc.. An example of this is X Factor, which is sponsored by Talk Talk.

Advertising -

Advertising is very like sponsorship, due to a business bringing their brand/product/service to the attention of the public. The amount of money which a business would have to pay advertise will depend on the type of audience which it is aimed at. For example, if the audience is richer, it will cost the company more to advertise. An example of advertising is ITV, where "65% of viewers believe ITV is the right channel to show live advertising." (Live and Reactive Ads, 2014)

Product Placement - 

This type of funding is paying a company a fee for placing a product inside a film to advertise the product. An example of this is productions such as I, Robot where this film uses the brand of converse as a product placement due to the celebrity endorsement of Will Smith wearing this brand.

Private Capital -

This source of funding involves private capital lenders to help companies start-up with the use of financing. An example of a company funded by private capital in the media industry is ABS Capital Partners, located in the US, which targets companies in Media, Technology industries and in the Business Services.

Crowd-funding -

Crowd-funding is known as a kick starter for beginners or individuals which have gathered a good concept/idea, however cannot afford the fund to create the product. The film "The Square" is an example of a successful product which was produced through crowd-funding and was also nominated for Best Documentary at the Oscars. 

Development Funds -

This method of funding is simply a fund which supports a majority of a production created by existing and emerging film-makers, however cannot fully finance the whole costs of a production. An example of this is BFI Funding of Lottery. 

References:
Live and Reactive Ads, (2014) [online] available at: http://www.itvmedia.co.uk/opportunities/tv-advertising/live-advertising [date accessed: 22/05/14