LO 1: Ownership and funding in the television and film industries.

BTEC Level 3 Extended Diploma Creative Media Production.

Unit 8: Understanding the TV and Film Industry.

LO 1: Know about ownership and funding in the television and film industries.

In this assignment I will talk about the ownerships and funding’s of the television and film industries.

Ownership:

In the creative media industry, ownership is some that owns a company or a group of companies. The television and film industry is made up of a lot of different companies. This will involves, Independent companies, Private companies, Public Service Broadcasting, vertical and horizontal integration and Commercial ownership.

The Public Service Broadcasting Company is owned by the government. It is funded by the TV license that the public pay. The TV license for a year is £145.50. An example for Public Service Broadcasting would be ‘British Broadcasting Corporation’; they are funded by the public paying them their TV license every year.

Private companies are not owned by the non-governmental organisations or company members, it is owned by a private individual or a small group of people. For example, Aardman is a private television and film animation company.

Independent companies are not owned or controlled by any conglomerate companies, so this will mean that they won’t make any profit and then they might end up being bought by a Conglomerate company. These sorts of companies usually don’t survive in the media industry because there is a lot of competition with other conglomerate companies. For Example ‘So Television’ is an independent company and they were bought by ITV because they ran out of business.

Vertical integration are companies that produce a product from start to finish and they also make, exhibit and design the product. For example, Disney produces their product without the help of other companies. Disney does not give their product to anyone else to produce or distribute it for them.

Horizontal Integration is a company that will want to pass on their product to someone else, so that they can produce it for them. The other company will  then have to do everything about the company, for example, they make, distribute and the make the movie. Horizontal integration is when other companies help another company to make a movie.

Funding:

In the TV and film industry, funding is how a company receives its money. For example Subscription, Advertising, Product Placement and Pay Per View.

Subscription is when the viewer’s pay for a channel on their television box set that they would want. For example, is that if  Virgin customer see’s that Sky have better deals than Virgin, then they won’t be able to subscribe with Sky because they are already paying Virgin for certain time and until their contract doesn’t finish they can’t subscribe with Sky.

Advertising is when a channel might get their funding through advertising. For example channel 4 will pay for their product to be shown on TV. This will mean that their product will be on halfway during the ad breaks and it last for about 2-5 minutes.

Product placement will pay for films to be placed on the screen. If they get paid more, then it can be placed on the screen for a few more days. They will need to see if the audience likes it or not. If the audience does not like it, then they might have to take off. It is important In TV and film industry because you can advertise your product so the public will know about it and it will also be good for the company because then more people will buy their product.

Pay per view will allow the viewers to add other channels they would want would watch. To do this they will need to pay the company more money every month. For example, Now TV is a ‘new pay – as- you-go’ internet television service that some people would want to add.