Ownership and Funding

Public Service Broadcasting refers to programs that are shown simply to appeal top audiences rather than to make a profit. This can include art programs, religious broadcasts and local news. This can also refer to the BBC, as it does not make money from other companies due to it not having advertisements.

Commercial Broadcasting is the opposite of this. It is the broadcasting of television programs and radio programming by privately owned corporate media, intended to gain profit for the company. It can also be called private broadcasting. The channel ITV falls into this category as it makes money from the companies broadcasting their shows and from the adverts shown during breaks.

Corporate ownership is when a company is owned by a larger company and Private ownership means that something is owned by an individual, there are advantages and disadvantages to both.
Private ownership means that the company is a lot more flexible as it does not have to fit the rules of people higher up, but it is reliant on one person. If this person is unable to run the company it is likely that it will fail, whereas Corporate owned businesses have many people in charge of different areas. An example of this is Newsworld International, which was owned by the Canadian Broadcasting Association.  The channel was purchased by former U.S. Vice President Al Gore in 2005 and changed it's name, therefore coming under private ownership.

Global companies market their products by using the same coordinated image/brand in all markets. There is usually one corporate office that is responsible for all production. Their focus is efficiency and management. An example of this is Disney, which makes a large range of medias and encompasses many smaller companies such as Marvel and Star Wars, yet these franchises still have Disney logos and branding on them to show they are part of the company.

Vertical Integration is when one firm combines two or more stages of production, rather than having both sections be operated by state firms. An example is Warner Brothers, which not only produces films but makes, distributes and shows them. This means that they don't have to pay other companies.

Horizontal integration is when one section of a company increases production of their service or product. This may be to due to an expansion of the company. The process can lead to a ‘monopoly’ if the company conquers a large amount of the market for the product. An example is Odeon cinemas whose key goal is to show films as it does not make or produce them. The company works to be the biggest in the area to make the most money.

Licensing Fee is when you pay money to a company in order to watch a certain channel. A channel that uses this is BBC, as they do not show advertisements for products, this is how they make money.

A subscription is when you pay a sum of money towards a company that covers a particular amount of time, so that you can immediately have media without having to pay every time. An example is Sky, you can pay for a subscription that allows you to watch hundreds of TV channels without having to rely on paying every time.

Pay per view is when you only pay for the episode you watch, this is seen in sports where someone will pay a small amount of money to watch one match without having to pay for using the channel. Boxing often uses this.

Sponsorship is when a product company pays money towards a media product in exchange for advertisement of their product. This means that the product can get publicity for adverts and the media company can gain more money to improve their work. For example, Game of Thrones is sponsored by Volvo

Advertising is a way of a company showing their products to the public. These can be clips shown in between tv shows, trailers shown before films or prints in magazines and newspapers. 

Product placement is when a product is clearly seen in a film or TV show but not explicitly talked about. This could be as simple as a character holding a can of drink. But it allows the company to show off their products while not being overly obvious. An example of this is the frequent use of Sony products in recent James Bond films.

                                  

Private Capital is money that is provided as a loan by private individuals or groups who have made investments. They are not regulated by the government.

Crowd Funding is when someone posts a prospective idea on a website such as Kickstarter or Indigogo that people can donate to. The project backers often receive rewards such as posters, based on how much they donate. The most successful Kickstarter campaign was the film 'Lazer Team' that was released earlier this year. Started on Indiegogo it was aiming to raise $650,000. In the end it gained over $2000,000, nearly 400% of their original target. this just shows how much using this platform can pay off.

Development Funds are used in an indirect sales channel. It means that funds are made available by the company ro give to affiliates and distributors to sell its products and allow for greater awareness and sales of it's products. An example of this is the UK film council which gives funding to film pitches to allow them to be made.