Television Funding

Television funding


Television companies in the UK attract their funding in a variety of different ways,there are three types of broadcasting which are public service, commercial and subscriber. Public service broadcasters (BBC) receive their funding via the licence fee,which is 145.50 a year, which works out as 12.12 pounds a month and 66% of this value goes to BBC. However BBC make more of their money through syndication. Syndication is the sale of the right to broadcast radio shows and television shows by multiple radio stations and television stations, without going through a broadcast network, but itself could be considered a network. EastEnders is an example of a syndicated programme by the BBC. 
















Commercial Broadcasters
Commercial broadcasters such as ITV and Channel 5 get their funding by advertising, sponsorship, syndication, competitions and merchandising. ITV was the country's first ever commercial TV provider. Advertisements are the main source of income for ITV so they try to fit in as many commercials as possible throughout programmes. Just like Public service broadcasters, Commercial broadcasters also make their money through syndication. An example of this by ITV is The only way is essex as it is also shown on ITV+1 and an example of it for channel 5 is Big Brother.

 Syndication starts off in the country in which the program is first issued then it can expand to international usage by being repeated on other channels. Like the BBC ITV and channel 5 host a lot of competitions, for the example the X factor that is shown on ITV makes millions of pounds by getting the public to vote for the acts they like each week. As this is a popular show advertising revenue makes it higher. Both of these television companies also use merchandising to gain money, as they have websites that have links to their merchandising sites where consumers can buy stuff that has been shown on their programmes.




Channel four is a Public Service Broadcaster and also a Commercial Broadcaster, it is not publicly funded but it relies  on the government. They are funded by sponsorship and advertising and governed by a unitary board made up of executive and none executive directors, these are they to ensure that channel 4 meets its remit and delivers its financial responsibilities. Channel four also has sponsorships this helps give a brand instant fame and makes them stand out, its also great for raising awareness. Like the BBC, ITV and Channel 5, Channel 4 also syndicates programmes such as Hollyoaks.  




Suscriber channels; these are sky and virgin media, these are different from the others because customers have to subscribe to their network and pay for the packages they offer them. These packages contain direct broadcast sattelite, television broadband and telephone services Also, the quality of the programmes shown depends on whether a person will subscribe to them, so its important for Sky and Virgin to show great programmes so they can attract the customers to subscribe to them. Otherwise they wouldn't make much money. There is a lot of competition between these 2 companies, and they are constantly bringing out different packages in hope of new customers subscribing to their networks.