Monday 4 July 2016

Ownership and Funding

In media there are different types ownership concepts and different types of ways to get funded I will go though all of the types I can find and explain them and give examples.

The first ownership concept is public service broadcasting which is TV programming that is purely for the benefit of the public and not commercial reasons, which means there is more of the news and arts based program's. An example of this is the BBC and due to TV licences the BBC get money from that and don't need to focus on making money or advertising, so BBC is also able to have no adverts.



The next ownership concept is commercial broadcasting which is having a channel and focusing on only money and decisions based on making money. This concept is own privately by a company looking to use it as a business. An example of this is sky as they have many channels and only put on what is popular and if a program isn't being watched it will be taken off the channel. ITV is based purely on profit. The way commercial broadcasters make money is though advertisement as a company will pay for the product to be shown when the ratings are highest and companies will pay huge amounts of money which is how these broadcasters make money.    

The next ownership concept is corporate ownership which has the same goals as commercial  however corporate is a team of people are running the company instead of one person this can be good and bad as it could make worse decisions as everyone is wanting different things to happen however they cant all have what they want so arguments i will happen. it could be good as there is not one person to blame if all goes wrong. It could also be good as if someone retired or died then rather than here being a massive power space someone would be hired to fill his/her place. An example of this is Disney which has lots of people making the decisions.

The next concept is Global companies which are company that work globally rather than regionally. This is just huge companies that have enough money to reach the whole world. An example of this is Sky which reaches the whole world and is a massive company. Sky in most cases would release media(TV or Films) at the same time globally so everyone gets of experience it at the same time, however some programs are only released in one country as the target audience is aimed at that country and if it is a success than will be released in other country's an example of this is Japanese anime which will be released in japan and if everyone is a fan will with do an English dub to see if they can make more money. The more time goes on the less sky has to change programming of different country's as we are always on the internet watching what other country's have so it wouldn't matter if sky had more american TV as British people would enjoy it too. Sky would however have to change programming times as different time zones means that peek times change around the world.       




Another concept is vertical integration which is a company that owns one firm that does a certain job and then owns other firms that link to the first firm but do a completely different job. This could be something like owning a firm that sell products and owning another firm that ships a delivers products and you use both to get an efficient service. An example of this BT which has TV channels and then also has broadband to go with it. 


The last concept is Horizontal integration is where a company expands using they have made to make more money to then have the best in that certain sector. This is also called monopolisation which essentially means that you are expanding your company. An example of this is Wanner brothers in which they have there main company but expanded to buy CNN and HBO which are both big TV company's.     
The first funding type is licensing fees which is paying a TV licensing company money to use there service which is most likely to watch there TV channels. An example of this is the BBC who essentially sell he licence to use there channels. The BBC license fee is around £12 a mouth to use all of their services. The BBC use this money to fund their services such as their TV, radio and online services meaning that you are paying for their services for them to fund their services and continues in this cycle.  

The next funding type is subscription fees which is someone paying a monthly fee to use the services of a company. When you stop paying you don't receive the service and only works when you pay for the month. Most of these company's catch you when you chose to automatically every month think you ill use it and then 7 months later you do use it anymore and forget about it but you will still be paying for it. An example of this is Netflix who have i wide range of TV programs and movies to choose from and ask for a monthly payment of around £5.

The next is a one off payment which is owning the movie or TV series only paying once and being allowed to keep it. An example of this is DVD's which it a one of payment around £10 and then you own that film forever. This could be in a physical form or a digital from either having the physical DVD or having it on a device bought on a online retailer.

The next is a pay per view which i an event that is televised and sold separately to each TV set on device which is why it is call a pay per view as your pay for your view and the person running it is getting money for each view.  An example of this is the UFC's best card and put on pay per view. The example i have chosen was the Conor Mcgregor VS Nate Diaz which was the biggest event in MMA history and sold the most pay per views ever which made the UFC a huge amount of money.

The next is sponsorship which is company paying a TV program to mention them Most commonly having an advert just before the program starts and when it goes to breaks. An example of this is Game of Thrones who have the sponsor of Volvo which is featured before the program starts, when it goes to breaks and when it finishes. This help both out as Volvo are getting their name out there attaching them self to a popular show and Game of Thrones gets money for it.

The next is advertising which is all of the contents of an ad break. A company who wishes to advertise would contact and TV channel and ask to use the advert time to promote their product and pay a fee to the channel and in return get the product recognized. An example of this is the compare the meerkats averts which were very popular when first released gain massive amounts of popularity. They played of the fact that people kept spelling the website wrong and putting meerkat rather than market and made a joke using a meerkat.



The next is product placement Which is where a company pays a TV show or movie to use the product in the production and in return pay them for using it where there views can see it. Not only does it advertise it in the way that people will see the product being used like an advert but will also have the viewers seeing their favorite characters using the products making them want the product. An example of this is in Back to the future 2 when the main character finds a pair of shoes which he puts on and are a product of  Nike which Nike paid the film makers to put their products in there.

The next is private capital which is essentially a private company paying for the production to be made and they then take the money back after the production is released and has made money. This is effective as some people struggle to make he product even though it is guaranteed to make money back and more so with this a company pays for you to make it and except a certain amount of money to be given after release.

The next is crowd funding which is exactly what it sounds like. The person wanting to make the product asks the fans of his or the fans of his idea to give a little bit of money each and in return they get to see the product that they asked for or really wanted. This is great for people with great ideas but no money to pull it off and allows them to get money from the fans you know what they want and not a big business just thinking about money. An example of this is a movie called ''Wish i was here'' which was a production from an actor and TV personality Zach Braff which he asked fans of his to give some money so he could make his production. He ended up with enough money and made the movie.

The last is development funds which is a system that helps new talent to the business and funds them to get their first production done. This it amazing for the film making business as it is always allowing new talent to enter the business. An example of the people that fund it is the BFI fund which uses the national lottery fund to support new filmmakers.

References

ask.ofcom.org.uk/help/television/what_is_psb

https://en.wikipedia.org/wiki/Commercial_broadcasting

www.investopedia.com/terms/p/privately-owned.asp

https://www.reference.com/world-view/definition-global-company-d1ddb451d2832bb8


www.investopedia.com/terms/v/verticalintegration.asp

https://en.wikipedia.org/wiki/Horizontal_integration

www.investopedia.com/terms/l/licensing-fee.asp

www.merriam-webster.com/dictionary/subscription

www.dictionary.com/browse/pay-per-view

dictionary.cambridge.org/dictionary/english/sponsorship

www.dictionary.com/browse/advertising

www.investopedia.com/terms/p/privateequity.asp

https://en.wikipedia.org/wiki/Market_development_funds

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