Funding/ Finance of TV

TV

TV channels such as the BBC(public service broadcaster) and Channel 4(part public/ part commercial) gain money through the licence fee. The licence fee is now £145.50 and £7.90 of this is given to the BBC from each person in the UK. The BBC gains money through merchandising, The licence Fee, syndication and competitions. The BBC does not advertise other products so this means The BBC won't earn money that way. ITV and Chanel 5 are commercial TV stations. They earn most of their money through advertisements, merchandising and sponsoring. As well as other channels they also syndicate programs, which earns them a lot of money.  Channel 4 earns a small amount from the licence fee. They also advertise and syndicate. Sky and Virgin are subscriber broadcaster this means they do not earn money through the licence fee. The BBC does not worry about the number of viewers as they receive money from the public even if they do not watch the channel. The money that is earned goes towards making the program better, so that more money is earned. Their only concern is that their programs are worth watching. Channels such as ITV depend on competitions and phone ins to gain money.
Product placement is where TV channels are paid to put certain products in their programs, this is very similar to advertisements. More and more Channels use this to earn money.

Advertising on TV channels becomes more expensive when placed between featured films. Channels buy films so that the people who want advertise, have to pay more.

Syndication is where Channels sell their original programs to other channels for high prices. E4 is a well known channel that shows programs that were once owned by another channel.