There are many types in the TV industry which funding can take place for instance. Public service broadcasting, one type of this is the BBC. The BBC make there money by the license fee, a TV license costs £145.50 per household. Syndication is another way they make money, this is where a production company or a distribution company attempts to sell a show to one station in each media market or area, in the country or around the world. They also have competitions, these are normally A, B or C answer questions that are easy to get so more people phone in having the chance of getting it right, which they make money off the phone calls. They also have merchandising.
Commercial Broadcasters for example ITV is funded by advertisement, this is where a company will pay for there advertisement to be shown inbetween breaks on a channel. They also have competitions which they make money off and merchandising.
Public service and part commercial broadcasters are funded by the license fee, advertising, selling shows to other production companies, competitions and they also sell merchandising.
Subscriber broadcasters like sky are funded through subscription which is where someone will pay for certain channels like movie channels, sporting events and more. The price of these channels are various amounts which you pay monthly. Sky also have advertisement where a company will pay for there advertisement to be shown on there channels, competitions and merchandising.
Government Grant
Government Grants are funds disturbs by one party, which is often a Government Department, corporation, foundation or trust. Often a a non profit entity, educational institute a business or a institute. In order to receive a grant an application is usually required.
Tax Schemes
Tax schemes are created which effectively sell the enhanced tax deductions to wealthy individuals who have large tax liabilities. The individual will often become the legal owner of the film. To avoid tax deductions people will put money into films.
Debt Financing
In debt financing the pre sales are when the film company will sell the script and cast in advance so they have the money to create the film. Pre sale works by the film companies purchasing well known actors so that more people will go and see it, this will almost grantee a consumer that they will get the money back in the interest.
Equity Financing
In equity financing requires the film maker to sell interest in either the film or the film company in exchange for funding.This serves to distribute the risk of the project because the investor only receives this money back if the film shows a return. If a film maker sells 50% of the corporate interest to a investor then the investor will lose his entire investment if the film is complete failure.
