Public Service Broadcasting (PSB)
Public Service Broadcasting is broadcasting that is meant for public benefit as opposed to being used for commercial reasons. An example is the BBC, a British public service broadcaster. Roughly a quarter of its fees come from BBC Worldwide and its commercial use which is used to sell BBC programmes and services.
Commercial Broadcasting
Commercial Broadcasting is when television programmes and radio programmes are broadcasted by privately owned media companies and is mainly used for financial benefit. With commercial broadcasting of shows it would tend to deviate from paid advertising that would interrupt the shows. If money is needed then there will be some form of donation called pledge drives.Several examples of commercial broadcasters would be Fox, The CW and ABC.
Corporate and Private Ownership
Private ownership is when a company is owned by the core founder of the company and possibly some private investors of the company. Corporate ownership has the same rights as private ownership but can involve a larger number of employees. The BBC for example would be a public company instead of a private company as it is owned or financed through the public as opposed to being owned by a private owner or the founder of the company.
Global Companies
A global company is a company that would work on a global scale and operates in many different countries around the world. These global companies could own other big companies and would be known and used all over the world. Some of the worlds biggest companies are The Walt Disney Company, Sony and Google. Some companies such as The Walt Disney Company could own other smaller companies. For example, Disney owns both the rights to Marvel and Lucasfilms. An act that these companies would carry out would be trading with over seas.
Vertical Integration
Vertical Integration is when a company owns all of the rights to a certain product or distribution. If the company owns the rights or the company than it will receive all of the profits of the income. This can be involved when it comes to film companies or general merchandising. For example, in the case of film merchandising and rights, George Lucas when he made Star Wars owned all of the rights to the franchise. So when the film came out and made loads of money, George Lucas got all of the profit from the film and later sold the rights to Disney. Another example for merchandising would be Sony owning Blu-Ray and getting all of the profit. When it comes to film distribution, a company could own all of the means of exhibition and distribution and therefore get all of the profit.
Horizontal Integration
Horizontal Integration is when a company such as a film production company can expand into multiple companies or merge with one another, that could deal with different areas of a production but during the same stages, known as a 'Monopoly'. The merger between the two companies would cause the profits to be split between them. This could be seen in film production in which different companies would take care of multiple areas during the stages of the production. Sony owning Blue-Ray would be another example as Sony owned the company and was also in charge of the distribution of the product.
Funding Types
The Licence Fees
A licence fee is a fee that is paid for a licence or a permit. A licence fee overall is an amount of money that is charged by a certain company or government agency that will allow access to or the go ahead to carry out particular activities. A few examples would be driving a car, hunting, selling alcohol and a licence to operate a business. The most common form of licence fee in the United Kingdom is the television licence, which is a fee that is paid to pay for reception of a television broadcast.
Subscription
Many companies use subscriptions in order to fund their product. A subscription can range from a weekly, monthly or yearly payment to stay subscribed to a certain product or company. A few examples of subscriptions would be movie streaming services such as Netflix or Amazon Prime which charge around £6-7 a month which, as long as you are subscribed, gives you lists of movies and TV shows ready to be streamed. Other forms of subscription could be Spotify which charges around £12 per month for offline music, this is used because Spotify is free to use when online so in order to support funding of their service they offer monthly subscriptions to their customers. Possibly one of the most popular and common types of subscriptions would be on demand movies from Sky.
One-Off Payment to own product
A One-Off payment is essentially the opposite to a subscription payment. One-off payments are basically just a one time payment that you would need to pay and you will then on have unlimited access to that product or service. These one-off payments wouldn't be found in movie streaming services but would typically be found in music services such as iTunes, in which to buy and listen to an album or song you would only have to pay a one-time fee and will then have that album or song to listen to forever. A benefit of one-off payments would be that you wouldn't have to worry about missing payment for a subscription as you only need to focus on a one time fee.
Pay-Per View
Pay-Per View is a form of television fee that you would pay requesting the viewing of events that would commonly involve sporting events such as Boxing, UFC or wrestling but even feature films. The broadcast of the requested event would be broadcasted at the same time as all of the other paying customers but through a private brouadcast, which is what makes it different to On-Demand services; which you could use to watch whenever you want. Pay Per view first began back in the 1970's and was popular for broadcasting the boxing and other combat sports, A popular pay-per view show was the fight between Sugar Ray Leonard and Roberto Duran, which was offered to customers at $10 each, the fight was so popular that over 100,000 people paid for the fight.
Sponsorship
Sponsorship is when a big company pays certain people or show runners to advertise their service or product before and after the show has been broadcasted. Sponsorship is very popular when it comes to funding for TV shows and can be seen shown just before the show begins or just after the show ends. An example of this is when the Compare the Market advert is shown before Coronation Street saying that it sponsors the show. The owners of the company have paid the show runners to do this. This is a very effective form of funding for a show as the sponsors offer large sums of money that can be put towards the budget of the shows production.
Advertising is the biggest way to get your company, product or service known and it the most used and most effective way that the owners do this. Advertising can range from showing your product in a small section of a popular magazine to TV advertising and even advertising in local Cinemas. This gets your audience to see and identify your product as something that they can use if they are ever in need. Clearly you would have to pay to advertise your product but without advertising your product wouldn't be known very well and you would not be able to make any money in return. A popular way of advertising would be to pay TV shows or broadcasters to advertise your product or company, also known as sponsorship. Requesting that TV broadcasters advertise your product at the beginning or end of a TV show is a great way to reach out to your target audience. For example, if you owned a skateboarding company, than you would be better advertising your product in between a documentary about skateboarding or a show that is mostly watched by your target audience.
Product Placement
Product placement is when a product is placed subtly or not so subtly within the scenes of a film or TV show. This could involve a can of coke in the background of the Mise-En-Scene or have a popular film character drinking Pepsi during a close up of a scene. Product placement is a very good form of advertising and will be used to promote new products or to create a new image for an old, well known product by using an iconic character. An example of this is characters drinking Pepsi in one of the films such as 'Wayne's World' and in the film '22 Jump Street', where Sony, who were behind the whole film, had placed all of their products throughout the scene giving the characters Sony Mobile Phones and Sony laptops being used throughout the film. The company would typically pay for you to place their product into your films, The only form of product placement that wouldn't involve payment on your part is if you own the product and put it in your own film.
Private Capital
Private capital is when investors and funds are put directly into the private company or consist of buying out public companies. Unlike many public companies, these private companies are not part of any stock exchange and so are funded through things called, 'Angel Investors', which are people or companies that support business' when it comes to finance.
Crowd Funding
Crowd funding is when money is brought in from a large audience either from donations or through websites such as 'Kickstarter'. Crowd funding can be found in Film productions when the director has has a script ready and wishes to keep rights to the whole thing instead of selling it to a big production company for the money. This is exactly what Zach Braff did to fund his independent film 'Wish I Was Here', in which he started a kick-starter to raise $2 million in order to fund and keep the rights to his script and movie. The most popular form of Crowd Funding is donations from a large audience and is what is mostly used to get funding for your production.
Development Funds
Development funding is when an organisation goes through stages of fundraising in order to support a media production or company. The term 'Development Funds' refers to when a Director or Producer has been given funds for a product or project whether it is in the form of a loan of when the Director or Producers owns their own production company and has other ways of funding a project. An example of a Director/Producer with their own production company is J.J.Abrams who owns 'Bad Robot Productions' and an example of a company that loans money for a production is the BFI in Britain.
No comments:
Post a Comment