Funding in TV and Film Definitions

License Funding (BBC) Rather than getting funding from advertisements, the BBC gets it’s funding from license payers tax. “In the United Kingdom and the Crown Dependencies, any household watching or recording live television transmissions as they are being broadcast (terrestrial, satellite, cable, or internet) is required to hold a television licence. Businesses, hospitals, schools and a range of other organisations are also required to hold television licences to watch and record live TV broadcasts. Since 1 April 2010 the annual licence fee has been £ for colour and £49.00 for black and white. Income from the licence is primarily used to fund the television, radio and online services of the BBC. The total income from licence fees was £ billion in 2013–14 of which million or 16.3% was provided by the Government through concessions for those over the age of 75. Thus, the licence fee made up the bulk of the BBC's total income of £5.066 billion in 2013–2014.”

Subscription Subscription is where a customer pays a price every month/year. “The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites.” Netflix is an example of a company that uses subscription.

Pay-per-view Pay-per-view is where you pay to view a live event aired over TV. Pay-per-view is a type of pay television service by which a subscriber of a television service provider can purchase events to view via private telecast. The broadcaster shows the event at the same time to everyone ordering it. Events can be purchased using an on-screen guide, an automated telephone system, or through a live customer service representative. Events often include feature films, sporting events and other entertainment programs. Sky Sports is an example of a pay-per-view service.

Sponsorship Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property, according to IEG. While the sponsoree (property being sponsored) may be nonprofit, unlike philanthropy, sponsorship is done with the expectation of a commercial return. While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different from advertising. Unlike advertising, sponsorship can not communicate specific product attributes. Nor can it stand alone, as sponsorship requires support elements.

Advertising You can get funding from people paying to advertise on your production. Advertising is a form of marketing communication used to persuade an audience to take or continue some action, usually with respect to a commercial offering, or political or ideological support. You must write a definition of each term and how they relate to the TV and Film industry. Expand by using company names, shows, brands ęć t

Product Placement Product placement is where a company pays to have their product used by actors/characters in the program to encourage viewers to consume it. Product placement is, according to the European Union "any form of audiovisual commercial communication consisting of the inclusion of or reference to a product, a service or the trade mark thereof so that it is featured within a programme".

Private Capital In finance, private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. Each of these categories of investor has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.

Development Funds Market development funds or MDF are used in an indirect sales channel where funds are made available by a manufacturer or brand to help affiliates, channel partners, resellers, VARs, or distributors, etc. sell its products and create local awareness about the national brand. Co-op Funds is a synonym for Market Development Funds. There are approximately 4500 Co-op programs in the US made up of 50 product classifications on which some 50 billion dollars is spent each year. Slightly over half of that 50 billion dollars offered to partners each year by Brands goes unused because of uninformed partners implementation issues.