Ownership and Funding

Ownership;

PSB: 
"Public service Broadcasting is designed to benefit the public rather than purely benefit companies' commercial interests". For example, there are no adverts during a show shown on the BBC, where as there are 3 commercial breaks throughout shows on channels such as Sky.

Commercial Broadcasting:
CB, also known as private broadcasting, is a format of television and radio broadcasting that is owned by a corporate  media studio, meaning that they have more adverts on the channel as they get more money from doing so. By advertising, these companies are able to generate income.

Corporate and Private Ownership:

• Corporate ownership is the creation of a legal identity that is not linked to those of its owners. While an individual could control all of the shares in a corporation, this individual would not be personally responsible for it. These companies are most often owned by the government/council and the profit does not go only to themselves. The BBC is a good example of this..
• Private ownership is when a organisation/company that has either only one owner, or a small group of CEO's. The profit goes to the CEO[s] and/or shareholders,for example ITV.

Global Companies:
"Global Companies" are organisations that distribute their content and / or have businesses all across the globe. These companies own a high percentage of the Film industry. Examples of these company are 20th Century Fox, Disney and Warner Bros. Some global companies, like film companies only make minor changes to distribute products worldwide such as dubbing / adding subtitles but some companies change their products entirely to suit a different audience.

Vertical Integration:
Vertical integration is when one company owns business in several districts of there industry. For example, an organisation has its own production company, they then buy / create their own distribution company so that they keep more of their profits. they could go a step further and then buy a cinema, keeping even more of a profit.

Horizontal Integration:
Horizontal integration is the when a company takes over other companies in the same district/sector to increase their profits. For example, Organisation 1 had more money that organisation 2, and wanted to increase the amount of money they get, so they would negotiate/buy out organisation 2. Horizontal integration can lead to monopolies and this leads to a lack of competition and then potential price rises if only one company offers a product.

Funding;

Licence Fee:
A Licence that you must pay for to legal watch television programmes on your television/other devices. The Licence Fee was set up inn 1946 to avoid being accused of commercialism and propaganda. The BBC is fully funded by the license fee and does not show adverts to generate money.

Subscription:
Subscription services such as amazon prime and Netflix allow the audience to pay a monthly fee to get access to all of their content. Some services, for example Netflix, offer different packages for children and adults at different prices.

One-off payment:
Where you pay once and get access for the product you buy. For example, DVDs and Video Games.

Pay-per View:
Where you pay each time you want to view content (Cinema's/Sky Store). Usually PPV shows are only available for a limited amount of time, such as major boxing events.

Sponsorship:
Often used on television when a programme has be sponsored by another company. For example, NCIS is sponsored by Davidoff Cool Water and the adverts for the fragrance are shown at the start and end of each advert break.

Advertising:

On channels such as Sky 1 or ITV there are "Commercial Breaks" where companies can pay to advertise their product in a 30 second slot. A 30 second slot for sky could cost anywhere between £150 - £250 during the day time, or anywhere between £650 - £1150. These adverts could vary from a washing powder advertisement, or a window company, to a trailer for film or a announcement trailer for a game.

Product Placement:

When a company sponsors/funds a programme/video as long as their product is featured in the programme/video. For example, Microsoft in ARROW.

Private Capital:
When a individual funds a production for themselves or others, For example Megan Ellison who funded "Zero Dark Thirty".

Crowd Funding:
A method of funding a production by appealing to an audience through a video proposition.

Developing Funds:
When charities/organisations such as the Lottery help fund films. Lotto funding is distributed by the BFI. A recent film that received lottery funding was Under the Skin.