Media ownership and funding

Ownership Concepts:

Public Service Broadcastung (PSB)

Public Service Broadcasting (PSB) - A system of broadcasting which tries to educate + inform its audience, not just to sell stuff to them. Public service broadcasting programmes are broadcast for the public benefit rather than for purely commercial purposes (local news, children, arts and religious programmes).

'The British Broadcasting Company' (BBC) was founded in 1922 by by various private firms. John Reith was the first Director General of the BBC. Nowadays its funding is primarily through government-set television license fees. Nowadays the BBC is failing in its public service-broadcasting. It frequently fails to be accurate, impartial and objective in its reporting of news and politics.

Other channels that have some public service: ITV, Channel 4 and Channel 5

Commercial Broadcasting

Commercial Broadcasting exists to make money. It sells its audience to advertisers - ITV, MTV, etc. Some commercial broadcasters also make money from subscription.
The commercial broadcaster has to make a profit in order to satisfy the shareholders.

Corporate and Private Ownership

Corporate and Private media ownership has both positive and negative points. On the one hand, Corporate and Private media ownership can result in better quality products due to competition.
On the other hand, corporate and private ownership can lead to media firms placing profit above public interest.

Global Companies

The existence of hundreds of TV channels may lead the viewer to the idea that there is a true diversity and variety in today's television. However, it is just illusion.Six large companies control what we see every day. These companies own 90% of the world's media.

Let's take a look at who owns what on television.
Here are the TV channels owned by 6 largest companies in media:
1. VIACOM 

2. NEWS CORPORATION

3. TIME WARNER

4. WALT DISNEY

5. CBS

6. GENERAL ELECTRIC

Concentration of Ownership

-Cuts out competition (monopolisation)
-Synergy -crossplatform
Six companies own 90% of the world's media.

Vertical Integration (owning stuff in different sectors)

Some media companies have focused on increasing economic control over all aspects of the production process in order to maximise profits. For example, film corporations not only make movies (production), but distribute them to their own cinema chains( distribution and exhibition). This is referred to as vertical integration. For example, the WARNER VILLAGE CINEMAS, a chain of cinemas operated by Warner Bros. in the United Kingdom.

Horizontal Integration/monopolisation

Some media companies are characterised by horizontal integration or cross media ownership – this refers to the fact that global media corporations often cross media boundaries and invest in a wide range of media products. NewsCorporation, for example, owns newspapers, magazines, book publishers, television channels and film studios in several countries.

Funding Types:

The Licence Fee - BBC work is funded by an annual television licence fee, which is £145.50 a year per viewing household under the age of 75 using any type of equipment to receive live television broadcasts. The fee is set annually by the British Government and agreed by Parliament.
Subscription - Sky (Sky sports, Sky movies) - customers must pay to have the broadcast.

One-off payment to own product - Freeview Boxes - allow the users to experience a small number of channels through the one off purchase of the box.







Pay per View - customers must pay to have the broadcast decrypted for viewing, but usually only entail a one-time payment for a single or time-limited viewing. Programs offered via pay-per-view are most often movies or sporting events, but may also include other events, such as concerts. Sky also use a Pay Per View system.
Sponsorship - Broadcast sponsorship on Channel 5-

Advertising - way of funding (ITV, Channel 4). An example: Minute to Win It with Cadbury Spots vs. Stripes on ITV2
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and Annabel’s Kitchen with Fairy Liquid on CITV.
Product Placement - funding from product placement in TV programmes. Advertisers pay money for placement of their products on TV shows. For example, a fashion company might pay for a presenter to wear its clothes during a programme.  Since 2011 when Ofcom allowed Product Placement in the UK, ITV has been leading the way.
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Private Capital - funding from individual investors or private capital groups. Using private capital usually requires written agreements to secure the funds. Very often it is like a form of loan. Private capital investors may desire to receive their financial return.
Crowd-funding - when the funds are collected through asking for it from the public.
Development Funds - for example, the ''BFI Lottery''

• Support the distribution launch of films that have the potential to reach beyond their core market.
• They champion fresh approaches in distribution and marketing films that will help films find new audiences, both in cinemas and additional platforms.
• The annual budget of distribution fund has an anual fund of £4 million.
• It has 4 distribution funding strands, each speacificially designed to show different types of film

http://www.nea2fguide.co.uk/funds/bfi-film-fund/