Funding and Ownership Task 2A

In the media sector is massive and to narrow it down to a few sections there is TV and Film, theses are the main sectors. Not only is there the TV and Film sectors but there is also Radio and gaming sectors. When starting up a production company you made consider if you want it to privately or publicly funded. In the UK there is only one program that is publicly funded, and that is the BBC (British Broadcasting Corporation). Being publicly funded is exactly what is sounds like, the public pay for it. When the people in the UK pay their TV license or the tax a chunk of the money goes into a pot that the BBC use to fund its channels and its programs like BBC1 and BBC2 not only is this money used for their television programs it is also used to fund there radio programs. The BBC is ran a a broad of governors that are very fell paid. Now on to how Channels like ITV and Channel 4 are funded. commercially funded. commercially funded channels make there money from showing adverts and though the sponsorship of there shows for example 'Compare The Market' sponsoring Coronation Street. Being commercially funded also means that you need to try and rise funds when you first start up your company. There are a number of different companies in the UK that will have start up production companies are that will help people find some funding. Not only are those funded by investors they are also funded by using product placement.

Product Placement is basically where you are paid to show brands. For example in Coronation Street if one of the characters is wearing a coat made by nike with a nike logo on, and this is put in the show nike will pay for you to do this. Product placement can be done by and company including technology companies like Apple. You have to be approached by a company to use product placement, if the tables are turned and it is you wanting to use a product you have to apply for the copyright to it especially with music.

If Newcastle College where to set up a Movie production company and also a TV production company they would be like Channel4. Channel4 not only have several TV channels they also own the film production company Film4. Film4 was originally a subscription channel until its relaunch in 2006. Film4 is now free to view in standard definition, but to access the HD side of the channel you must have a paid subscription for providers like Sky or Virgin Media. Film4 productions have been involved with may hit films including the Oscar nominated '12 Years a Slave'.

NCTV/MINE could benefit from vertical integration, this is were a company buys another company of a different speciality in the supply chain. For example Walt Dinsney studios owing Buena Vista, Buena Vista is a distribution company which distributes for both ABC studio and Walt Disney Studios. Owning another company that specialises in another area of the chain could save your company a hell of a lot of money. It's like Cadburys chocolate owning there own coca bean farm and producing there own beans instead of buying them from another farmer who will charge more that it would for them to produce there on products. They could also benefit from horizontal integration if MINE were to buy a company that specializes in amanation this would be horizontal integration. It's basically a company buying another company that is of the same level in the chain like a competitor of the company or ones that specializes in a different market like animation. A key example of this would be PIXAR which is now owned by Disney.

You may also qualify for financial Aid this is where people invest in your products. You can't get funding from a number of different places such as; Kickstarter, UK Film Council and Screen Yorkshire. Fumding for things like this is mostly for films. A lot of independent film makers will go to places like this to try and get funding for their films. On sites like Kickstarter you pitch you short film and ask for people to back and contribute to your film. You can also let people know how much you goal to raise is.

Pay per view channels in the UK show things such as wrestling and boxing matches and other sports. 'NowTV' was  listed as a Pay-per view service offering streaming of classic movies for just as little as 99p but now it a subscription service. LoveFilm and Netflix are also subscription services, charging you a monthly fee to enjoy the services. Sites like Netflix and love film are now becoming more popular than ever as more and more people are realising that it's cheaper to use this service than it is to pay for subscription to a service like Virgin Media or Sky.