Thursday, 12 May 2016

Ownership and Funding Post

Ownership Concepts:

Public Service Broadcasting (PSB) is the act of broadcasting a channel for public interest rather than profitable interest. Channel 4 and the BBC both operate under this label. Channel 4 was founded by the government but later Channel 4 was to become self-funded. The BBC is funded by the public through a licensing fee and this has been noticed as "the most extensive and best funded Public Service Broadcaster in the world." (Quote from http://stakeholders.ofcom.org.uk/binaries/consultations/psb/responses/mceihil_annex.pdf PAGE 1 PARAGRAPH 2)


The BBC logo (http://www.bfxfestival.com/wp-content/uploads/2015/08/BBC-Logo.jpg)

Commercial Broadcasting is the idea of showing adverts to the public audience, and the adverts appear in-between TV shows and usually during, too. The BBC does not show adverts since the BBC is funded by the general public and thus don't need commercial broadcasting as an income, however, other TV channels use this method as an income, channels such as ITV, Channel 4 and more.

Corporate and Private Ownership are two different kinds of ownerships where one is owned by a larger company and the other is owned by a single person or entity. Looking at a list of UK TV broadcasting channels, we can see that the BBC is publicly owned, SKY is corporately owned by 21st Century Fox and The Guardian is independently owned the Guardian Media Group which is owned by Scott Trust Limited.

https://en.wikipedia.org/wiki/List_of_television_stations_in_the_United_Kingdom
http://www.itvplc.com/
https://en.wikipedia.org/wiki/Sky_(United_Kingdom)

Global Companies are companies that operate across the globe. The BBC is one of these companies, but another example is Disney. Both the BBC and Disney operate in most/all countries in many different languages. 

Vertical Integration (owning stuff in different sectors) is when one company controls the multiple sectors of, in this case, production. One example of this was Hollywood Studio System, where Hollywood owned the studios, distribution, and production. 

Horizontal Integration / monopolisation is when a company owns a lot of things under it's name across many different platforms. Disney, for example, own resorts like Disneyland Paris and Florida, Marvel and their studios, Lucasfilms Ltd., TV channels and their own clothing/merchandise. 

Funding Types:

The Licence Fee is a type of tax that, for this example, the British public pays for. This fee then goes towards a funding pot for the BBC which then they can use that money to create content in order to please the general public. A license fee costs £145 per year, per household for a colour TV. This is split among a monthly payment and includes all forms of media from the BBC, including TV, Radio and Online. (http://www.bbc.co.uk/corporate2/insidethebbc/whoweare/licencefee)

Subscription is a monthly basis payment where the customer pays a certain amount each month to keep using the service. Netflix is one of the most popular subscription services. Their standard plan costs £5.99 per month which allows unlimited HD video streaming, although the other plans allow for some perks like more than 1 screen at a time and much higher quality streaming. (https://uk.newonnetflix.info/stepbystep)


Netflix and Crunchyroll logos. Both are subscription based services.
http://www.intechtoday.com/wp-content/uploads/2014/10/netflix-logo-white.png
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhspT0FS1x3kcjwpkN_xoCFys2tJs7gU0RvCAGaBWuKfKe5WYziUJVVa-xSasyVVOz8iUmhSndgN-pzH-Zo8FeR4Zc3Hb-uUDV93s1ayEjGoYNacuqhhqjxFU4jK-ASg9PUHFou2bcyAj6B/s1600/OYX_6HYT.png


One-off payment to own product can come in the form of online or instore products. This means that when the consumer purchases the product, the product is theirs indefinitely and they can rewatch it as much as the consumer likes. iTunes, HMV and GAME are perfect examples of one-off payments to use the product.

Pay per View is a service where the consumer has to pay a fee to watch a certain episode or programme. For certain cable/digital customers, they are able to purchase an episode from WWE or Boxing for a price and then the consumer are able to watch it only once, after that, the product expires until another fee is paid to rewatch. £14.95 is a price for one event of WWE (https://my.sky.com/orderboxoffice/).

Sponsorship is an act where a company of a product goes to a TV programme production company and asks to be part of a sponsor. This is particularly popular with programmes such as Coronation Street or Emmerdale. Comparethemarket.com sponsors Coronation Street, which means their product gets the lime-light just before the programme starts, during the break and then after the programme ends.

Advertising

Product Placement is a lot like sponsorship, but instead of having the product advertised before and after the programme, the product is usually placed into the TV programme. Like sponsorship, this can be another source of income to go towards production budget. In the UK, OFCOM regulations tell production companies to display the Product Placement P in the title card of the programme.


The Product Placement P (http://www.advanced-television.com/wp-content/uploads/2011/02/Product_placement.jpg)

Private Capital is a private person or company separate from the government who can fund productions independently. One example of this would be Megan Ellison. She funds films for the smaller production companies so that they can create what they want to create. 

Crowd-funding is the act of going to the general public, pitching your idea and then have people donate or pledge towards the production fund. A few examples of this is Kickstarter, indiegogo and Patreon. Kickstarter and indiegogo operate on a similar basis where there is a set goal and amount of time but Patreon differs. Patreon offers a 'pledge per month' or a 'pledge per project'. Patreon is for more of the intermediate companies who already have a huge and trustworthy past which helps when people are looking to pledge money, but with the per project pledge system, the creators don't get their money until they create their product.

The BFI (British Film Institute) Film Fund is “the largest public film fund in the UK”. Every year, BFI invest over £26m of Lottery funds to support film development and production. According to their back project search page, Over 1600 projects have been backed by the BFI, including £92,500 given to the upcoming Glasgow Film Festival in 2016. The BFI allows newcomers and professionals to create films by funding their projects, large or small.

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