TV financing

TV financing

Commercial Broadcasters

ITV and channel get there financing by things such as Advertisement, syndication, phone ins and competitons and merchandising. For example X-factor on ITV have phone ins where it is a £1 a minute to answer a simple question and because millions watch it generate lots of money, also advertising can be a much higher cost because lots more people watch the programme then any other and ITV also syndicate programs like Corrination Street.

Public Service Broadcaster

The licence fee, syndication, phone ins and comepetitions and merchandising. The licence fee is £145.50(£12.13 per month) and is split into different parts like TV, Radio, Online and other costs like investment in new technolgy. They also syndicate programs like Doctor Who to BBC America whilst channel 4 is also a part public serivice broadcaster and uses the same methods of BBC to finance but instead also use advertisement.

BBC licence fee

Subscriber Broadcasters

Sky and Virgin are funded through subscriptions, advertising, syndication, selling the rights of their licencesed programmes, competions and merchandising. You can get different types of subscriptions with Sky and Virgin like choosing what subscription like whether you want the movie channels or kids channels ect. They also sell the rights of their licenesed programmes from their channels SKY 1 and other channels.

Film Financing

Film Financing

Government Grants

A number of governments run programs to subsidise the cost of film making, the UK film council provides funding provided certain conditions are met. They are willing to provide these subsidise it will attract tourists to their territory also a film shot in a particular location can gain international advertisement for that area. Also the government expect no financial return.

Tax Schemes

A number of countries have introduced tax deduction schemes for film owners or producers. These schemes work by sell the enhanced tax deductions to wealthy individuals with large tax liabilities; individuals pay the producer a fee in order to obtain the tax deductions. The individual will often become the legal owner of the film, but the producer will in substance continue as the real owner of the economic rights to exploit the film worldwide.

Private Equity Financing

Private Equity Financing is generally tax-advantaged theatrical film and television investment which comes with little risk. The cost of producting is created by a combination of federal and state tax incentives.

Private Investors

This is one of the hardest types of film financing to obtain which is a individual looking to risk his investment in filming. Boston Financial Trust has become a catalyst for many of these type of investors and is one of the strongest film financiars in the northeast.

Pixar

Pixar

Pixar was first founded as the graphics group, one third of the Computer Division of Lucasfilm that was launched in 1979. The team began working on film sequences produced by Lucasfilm or worked collectively with Industrial light and magic on special effects. The group was then purchased by Steve Jobs shortly after he left Apple Computers and paid $5 million to George Lucas and put $5 million as capital into the company.

At first Pixar was a high-end computer hardware company whose core product was the Pixar Image Computer, a system primarily sold to government agencies and the medical community. One of the buyers of Pixar Image Computers was Disney Studios.

Pixar had a $26 million deal to produce 3 animated films one of which was toy story, Jobs almost sold Pixar to Microsoft it was only until Toy Story would be released in the summer holidays of 1995 did he decide not too which went on to gross more than $350 million.

Pixar and Disney then had their disagreements but in 2006 Disney announced the acquisition of Pixar for $7.6 billion.

Financing

Pixar gets its financing from different companies to make and produce the films and at first had a deal with Disney to produce 3 animated films and split the profits 50/50 but when Disney bought Pixar in 2006 they now both work together to finance and produce the films and have grossed $2.5 billion over the years.

Some of the films Pixar have produced and how much they grossed

Pixar logo

Sky

Sky

Sky is one of the largest subscriber broadcasters in the world. They are a subsidiary company owned 40% by News Cooperation recently News Cooperation wanted to buy the other 60%  to have total control of Sky but due to the phone hacking scandal government and public pressure forced them to back down there offer. In 1990 British Sky Broadcasting was formed by the equal merger of Sky Television and British Satellite Broadcasting. The merger of both companies saved Sky financially because in the beginning, Sky Television had very few major advertisers, acquiring British Satellite Broadcasting's healthier advertising contracts and equipment solved the companies' problems.

Financing

Sky has partnerships with Comedy Central (UK), DTV service LTD and NGC Network International LLC and NGC Network Latin America LLC.

Subsidiaries

British Sky Broadcasting Ltd Operating company for the Sky pay-television service.

Sky Subscriber Services Ltd The original Sky Television plc, now a holding company

Sports Internet Group Ltd Sports content and online betting services.

British Interactive Broadcasting Holdings Ltd Interactive television services, formerly an alliance of BSkyB, BT Group, HSBC and Matsushita.

Mykindaplace.com Being both an agency and a media owner run many successful sites. – Now defunct

Aura Sports Ltd Media Sales Agency, sells advertising on the majority of premiership football club websites, as well as other major sports. Living TV Group A British television content arm, operating a number of channels They also get income through syndication which is selling other TV shows to be shown abroad and merchandising.