Television Funding

TV channels make their money through different types of funding, depending on the type of broadcasting. There are 3 types of broadcasting which are Public Service, Commercial and Subscriber. An exmaple of a Public Service Broadcaster is the BBC. Its television service makes it's money by the government through the liscence fee, syndication, competitions and merchandising. The liscence fee is £145.50 a year, which works out as £12.13 a month and 66% of this value goes to the BBC. They make more of their money through syndication by selling the rights of shows and programmes to other networks so they can broadcast them too. Eastenders is an exmaple of a syndicated program through the BBC. The rest of their funding is made through merchandising and competitions. The BBC merchandises many things and it has its own website and shop so customers can purchase these items. the rest of their moeny is made through competetions. The BBC hosts competitions, which persuades epople to phone up and vote. Its the cost of the voting which contributes tot he funding of BBC television.


On the other hand, Commercial Broadcasters such as ITV and Channel 5 make their money by advertising, aswell as sponsership, syndication, competitions and merchandising. ITV was the country's first commercial television provider. Advertisements are the main source of income for ITV so they try to have as many as they can throughout programmes. ITV aim to build and bring brands to life by sound, vision, motion, emotion and impact. Commercial Boradcasters as well as Public Service Boradcasters make their money through syndication. An example of a syndicated program is Coronation Street, as it is shown on +1 networks. A significant number of Channel 5 programmes are syndicated too, for example Home and Away and Big Brother. Syndication starts off in the country in which the program is first issued then it can expand to international usage. Like the BBC, ITV and Channel 5 host a lot of competitions. For example, the X Factor makes millions of pounds through its voting on the acts. This is also a popular show therefore advertising revenue can be higher. Live phone-ins and text messages that are voting for something is what makes the company's a bit of money. Both of these TV companies also use merchandising to gain money. On their websites they have links to their merchandisning sites where consumers can buy stuff that has been shown on programs.


Channel 4 is part Public Service and part Commerical Broadcaster. It is not publicly funded but it is independent on the Government. They are predominantly funded by sponsorship and advertising.and governed by a unitary board made up of executive and non-executive directors, who are responsible for ensuring that Channel 4 fulfils its remit and delivers its financial responsibilities. Channel 4 also has sponsorships. These sponsorships can give a brand instant fame and make them stand-out. It's great for raising awareness and Channel 4 offer a creative process with acareand insight, so they can deliver the best return on investment. Like the BBC, ITV and Channel 5, Channel 4 also make money through syndication and competitions. Channel 4 syndicates programmes such as Hollyoaks and The Big Bang Theory.


The last one are Subscriber Boradcasters. These are Sky and Virgin Media and are different from the others because customers subscribe to their network and pay for the packages that they offer. The packages contain direct broadcast satellite, television, broadband and telephone services. Sky and Virgin both make money through advertising too, aswell as syndication, competitions and merchandising. 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 wouldnt 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.