Ownership and funding in

the TV and film industries

Charlotte Ford
Ownership
The television and film industry is owned in many different ways such as:
Public service
Commercial
Private
Corporate
Independent companies
Global companies
Vertical integration/ Horizontal integration
Monopolies

Public service
Public service is a public owned company funded by the general public through a
TV license fee which goes towards providing shows on channels such as BBC.
The BBCs main job is to educate, inform and entertain. They have to provide a
variety of shows to cater for many people of different age and interest.
As members of the general public we can voice what we want the BBC to show and
whether they are providing us with interesting and useful programs.
The BBC may remove programs that are not getting enough viewers as it is their job
to show programs we want to watch! If not we have the right to complain if we
think they aren't doing there job properly because we are paying for this service.

Commercial
These are out to make money! They are funded through TV advertising for
example ITV and channel 4.
Commercial broadcasting is the broadcasting of television programs
specifically to make money and is funded through TV advertising.
Examples of commercial TV programs are ITV and channel 4 as the
majority of their shows are sponsored and advertised by other companies
such as Coronation street and Hollyoaks.
Private Ownership
Private ownership is owned by an individual or a group of people, although groups
tend to be shareholders.
Robert Rodriguez is an example of private ownership, at a very young age he
showed an interest in cartooning and filmmaking and devoted all of his time
towards developing this fascination. Finally, it paid off, resulting in him in making
real movies; and just the first of them - El mariachi (1992) - made him the legend
of independent, ultra-low budget filmmaking. Since then, Robert has written,
directed, edited, and/or produced around 12 movies, including: Desperado (1995),
From Dusk Till Dawn (1996), The Faculty (1998) and Spy Kids (2001).
Corporate
Corporates are run by a company.
There is a hierarchy of directors and CEOs where within the company
people are employed and paid to run it.
As there are so many people involved in running corporate companies, only
the company name can be sued, not an individual for example the individual
being Richard Branson and the company being Virgin.
Independent companies
An independent company is simply owned by an independent person or group.
They get their funding through investment and private capital.
They can also pitch their TV programme with a TV Company in order to get
funding for example channel 4.
An example on a independent record label is Blast first and caters for alternative
music style bands who have a specific audience.
A major disadvantage with being a independent label is that not many people know
who you are and its hard to make money which you need in order to promote!
Global companies
Global companies are companies that are known and accessed worldwide.
For example the Walt Disney established itself as a leader in the American animation
industry before diversifying into live-action film production, television, and travel. In
addition, Disney has created new divisions of the company in order to market more mature
content than it typically associates with its flagship family-oriented brands.
The company is best known for the products of its film studio, the Walt Disney Studios, and
today one of the largest and best-known studios in Hollywood. Disney also owns and
operates the ABC broadcast television network; cable television networks such as Disney
Channel, ESPN, A+E Networks, and ABC Family; publishing, merchandising, and theatre
divisions; and owns and licenses 14 theme parks around the world.
Vertical integration
Vertical integration is when two companies work in partnership together to produce a product.
DNA films is an example of vertical integration because DNA produces and Fox searchlights distributes
them and does their marketing.
Another example of vertical integration is X factor. X factor is owned by Simon Cowell who owns his own
record label called syco. Syco is a subsidiary of Sony which is a major company. This gains more money for
Sony and Simon Cowell.
An advantage of vertical integration is that if something goes wrong then more and one company faces the
consequences. Another advantage is that it makes the product or company more diverse because more
people are involved.
A disadvantage is that you may not trust part of the company and therefore you may not have good
communication skills. Another disadvantage is that if one part of the company falls then every other part of
production has to stop and wait for that part of the company to get its self back on track.

Horizontal integration
Horizontal integration is when a company owns and produces its products by itself.
An example of a horizontal integration is EMI as they own their record producers and
music publishing companies. It is the world largest independent music company.
Another example of this is Apple who build all their own stuff from the hardware to the
iPhone, iMac, iPod, iPad. They also own all the programmes which you find on these items
such as iTunes. An advantage with Apple is that they gain all the profit due to the fact they
dont need to pay any other company. Another advantage is that they also have more control
over everything thats being done with no communication lost.
A disadvantage of horizontal integration is that if something goes wrong within Apple with
part of there software then thats Apples fault and they have to pay out due to the fact there
the only company involved.

Monopolies
A monopoly is a company that own other companies and many different media
businesses. An example is Disney which is an American diversified multinational
mass media corporation and the largest media conglomerate in the world in terms
of revenue.
The company is best known for the products of its film studio, the Walt Disney
Studios, one of the largest and best-known studios in Hollywood. Disney also owns
and operates the ABC broadcast television network; cable television networks such
as Disney Channel, ESPN, A+E Networks, and ABC Family; publishing,
merchandising, and theatre divisions; and owns and licenses 14 theme parks around
the world.

Funding
The television and film industry is funded in many different ways such as:
Licence fee
Subscription
Pay per view
Sponsorship
Advertising
Product placement
Private capital
Financial aid
Development funds
Licence fee
A television licence is an official record of payment required in many
countries for the reception of television broadcasts, or the possession of a
television set. The licence is sometimes also required to own a radio or
receive radio broadcasts.
A TV licence is therefore a tax for the purpose of funding public
broadcasting, allowing public broadcasters to transmit television
programmes, it also funds TV channels for example the BBC.
Subscription
This is where you pay a monthly fee to watch extra channels for example Sky.
Disadvantages are that the minimum Sky Digital contract is 12 months,
which makes it not suitable if you are only going to be staying in the location
for less than a year. There are no pay as you go options for people who are
only living in an area short term.
Pay per view
With Pay-Per-View, you have the ability to enjoy first-run movies and special
events such as love film and sky sports at a time that is convenient for you
with a one off payment!
Also, unlike renting a movie from a video store, there is no movie to return
and you pay no late fees!
Sponsorship
Sponsorship usually means any kind of support from any private source. This will mostly be
with a profit making company in return for benefits (usually marketing related). Sponsorship
is a two way process and in return for money or sponsorship in kind (services, goods or
expertise) a company will expect some benefits. Typical benefits to the company can be:
inclusion of the company logo on publicity material (branding),
the opportunity for the sponsor to make direct contact with a particular audience and
enhanced reputation, profile raising and press contact for the business, especially in the case
of high profile events or projects.
For example TV programmes that are sponsored are shows such as Hollyoaks and
Coronation street.



Advertising
These are regular TV adverts that are shown in between TV programmes to
advertise and sell products.
Maintaining advertising on TV is important to ensure that broadcasters have
sufficient funding available to sustain their investment in the UK television
industry.
Product placement
When products appear in shows, the company that owns the product have
paid to have them used and appear in TV shows and films.
For example Volvo paid the Twilight films to use their Volvo cars in the film
to boost car sells and in the Volvo TV adverts there are video clips of the
Twilight film featured in it.
Private capital
A private capital investment will generally be made by a firm or investor who
has its own set of goals, preferences and investment strategies.
They provide working capital to expand a company, introduce new-product
development, or restructure the companys operations, management, or
ownership.
Investors will invest in TV and film companies and provide the company
with everything they need and then take a share of the profit.


Financial aid
This is government help for example TV tax relief- for scripted television
projects with a minimum core expenditure of 1 million per broadcast hour,
you can claim a rebate of up to 25% of qualifying UK expenditure!
TV Tax Relief is available for British qualifying scripted television. TV
projects must either pass the Cultural Test or qualify as an official co-
production and TV projects must be intended for broadcast (including
internet).
Development funds
This is where you give money to independent companies to fund shows and
films.
The biggest public funder of films in the UK is the BFI (British film
institute) which invests Lottery funds across a diverse mix of projects. The
production and development fund offers financial assistance to established
filmmakers, emerging talent, and every level in-between.