Assignment 1c

How the TV industry is funded.

The difference between the following 3 types of broadcasters

Public service broadcasting

Commercial broadcasting

Subscription channels.

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. 

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.

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 post-network 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.

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.

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.

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

How TV Companies get their funding License

fee

Pay per ViewSponsorship

Subscription

Advertising

A broadcast license is a type of spectrum license granting the licensee permission to use their channels

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-on-demand systems, which allow viewers to see recorded broadcasts at any time).

A sponsorship is when a company pays a particular show to feature their product just before the show is aired. For instance The Big Bang Theory is sponsored by Gifgaf

Subscription based or pay television has resulted in a change in what type of content is broadcast by these networks

A commercial advertisement on television (usually abbreviated to TV commercial, ad, ad-film, and known in UK as advert. Where a company pays a TV Channel in exchange for airtime to promote their product

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.

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-on-demand 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.

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.

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

By Canel Osman 12ACL