Ownership and funding

Ownership


Public service broadcasting 

PSB is a form of media that's focused entirely on the public, they are often funded by government. The biggest UK PSB outlets are the BBC and Channel 4. The UK also has roughly 230 ofcom funded radio stations, these are mostly local radios that appeal mostly to the people from that specific area.

Commercial Broadcasting 

This is more common in America, unlike the UK PSB model. These companies are privately owned and play adverts in order to gain a profit.

Corporate and Private ownership

Some media outlets are owned entirely by a single person or company. These companies such as NBC, CBS, ABC and Disney(to name but a few) own a vast array of other outlets, for example ABC has, 4 smaller genre-specific channels that operate under ABC. When one person or company owns an entire TV network they have final say on what they want to play/advertise, it's all, of course, about maximizing profit and gaining absurd amounts of control over as much of the media as they can.

Global companies

These are multi-national conglomerates that operate on a global scale and are often works billions. HSBC is a good example of this.

Vertical integration 

This is a fancy name for a buy-out. If a company pays another business to create their product or give them the component parts(and if said company is particularly wealthy) it may buy-out the other company and absorb it, cutting down on costs and increasing profits.

Horizontal integration 

Instead of looking for companies they already work with a company will look across the chain to see if they can buy-out and absorb one if not more of their competitors. Often this is the case if two companies ship very similar products, one will eventually get bought-out and absorb into the other, creating one massive entity that controls that area of the market, this is known as Monopolizing the Market.

Funding types 

The licence fee 

This us what all people who own a TV or some sort of device that can be used to watch TV on has to pay in order to use such services.

Subscriptions

Companies such as Netflix require a subscription to access their services, this is usually a moderate monthly fee that then allows free roam of the services the company offers.

One-Off 

A one-off is exactly what it says on the tin. The customer pays a one-off price and then gets the services for as long as they wish, services/ companies such as FreeSat & NowTV use these kinds of payments.

Pay-Per view

You only pay for what you watch.

Sponsorship

This is when a company gives money to a network in exchange for raised awareness and advertising.

Adverts

This is when a station will air a certain amount of adverts between it's shows and charge the companies for them, the more people that are likely to see it the more expensive it is.

Product placement 

This is when a company, such as Apple, pay for there products to be put in a piece of media that will be seen by a lot of people, it's often a kind of subliminal marketing tactic. For example, in Skyfall Bond is sitting on a bed drinking a bottle of Budweiser, which has the label clearly facing forward and unobstructed by his hand. This is an obvious product placement on behalf of Budweiser.

Private capital 

This is when private investors put their own money into the company often for a share in the company and by extension the profits.

Crowd funding

Site such as Kickstarter allow people to ask for a certain amount of money from the general public to fund a project. such as a film or video game.