Public service broadcasting

Public service broadcasting uses TV license to fund the BBC, which allows

them to have less advertisements. The payment is enforced by the

government, this is done annually and accumulates billions a year. Channels such as BBC are reliant on this type of

funding due to the fact they only broadcast BBC related adverts.

Commercial broadcasting

Commercial broadcasting allows channels to be self funded due to the money made from other companies paying them to display their advert during the break in the channel. this differentiates from public service broadcasting by being a self sufficient, with more advertisement. So examples of this are channels like channel 4 and channel 5, which are purely funded by advertising.

Subscription channels

Subscription channels require you to pay to be able to access them, which is how they are funded. They are relatively similar to public service broadcasters because you have to directly pay to view the channels, but with the public service broadcasters you have to pay to view any channels, whereas with the subscription channels you pay to view individual channels.

Identifying broadcasters

The BBC is a ran by public service broadcasters, I know this because the BBC is funded by a percentage of TV licensing.

Channel 4, ITV and channel 5 all use commercial broadcasting as the main way of funding their channel, this means they don’t have to charge people to view their channel. The get companies to pay for their advert to be broadcasted on air for a few seconds.

Comparisons Public service broadcasters make their money from TV license, this is

when all TV audiences are taxed for watching TV. Commercial broadcasters make their money purely from advertising, which means companies will pay a channel to broadcast their advertisement for a few second during a break. Subscription channels make their money from their audience paying for specific channels such as Sky, so that they can view more channels. These methods can all be seen as effective because the public service channels don’t have a lot of advertisement, which will be more appealing to some people because they don’t have to wait five minutes to continue what they were watching. Commercial broadcasting doesn’t require you to make any payments to view the channel, but they are filled with breaks and advertisements which the audience may find irritating. Subscription channels are more exclusive channels that broadcast things that specialize in certain areas, but they allow you to use special features such as record and pause, whereas the other channels don’t have these features.

Types of funding

License feeFor companies that use license fee to fund their channel it means that they rely on people paying for TV license. This allows the channel to have the opportunity to not have loads of advertisements during programs, which means that they reduce the risk of irritating their audiences. An example of a company that uses license fee to fund their company is BBC.

Pay per ViewFor companies that use pay per view as their way to fund their channel it means they need to get their audience involved in their shows so they pay (via calls and texts) to determine the outcome of the show. This makes them reliant on their viewers to vote or enter contests so they can continue funding their channel. An example of a channel that uses pay per view to fund their channel is channel 5.

SponsorshipFor companies that use sponsorship to fund their channel it means that on the start of every break it will specify that the channel is sponsored by a specific company or a program is sponsored by a specific company. This means other companies will pay the owners of the channel to be able to sponsor them. An example of this is E4, they broadcast the big bang theory, which is sponsored by giffgaff.

SubscriptionFor companies that use subscription as their way to fund their channel it means they rely on people to pay to view their specific programs and to use their special features. This means they don’t have to create breaks to show advertisements. An example of a channel that uses subscription to fund their channel is Sky.

AdvertisingFor companies to use advertising as their way to fund their channel it means they have to have short breaks before, after and during their programs being broadcasted. This allows another company to pay for their product to be broadcasted on television at any time they choose to pay for. An example of a channel that uses advertising to fund their channel is channel 4.

Advantages and DisadvantagesLicense feeAdvantages:-No need for adverts.-People have to pay TV license to be able to watch any channels.Disadvantages: -People might not want to watch channel funded by licensing fees, but they would still have to pay.-They don’t receive all the money made from TV licensing.Pay per ViewAdvantages:-People get to interact with the shows, and have they power to decide.-Prizes are available for the audience to try win.Disadvantages:-Viewers can watch for free without interacting.SubscriptionAdvantages:-They keep all the money that they earn.-Require their audience to pay more frequently.-Adverts aren't 100% neededDisadvantages:-Less viewers.AdvertisingAdvantages:-Doesn’t require any additional money to view.-Allows people to have breaks.Disadvantages:-The advertisements could frustrate the audience.SponsorshipAdvantages:-Don’t have to pay an additional fee to view the program.-They receive all the money from the sponsorship.Disadvantages:Require advertisements.