Unit
8: Understanding the television and film industries
Task
1: Ownerships and funding in the television and film industries
The Television Industry is owned by the major
broadcasters and also less known broadcasters that are involved with production
companies within the industry. In the UK television industry there are 5 well
known terrestrial broadcasters, included in the 5 are channels such as BBC,
ITV, Channel 4 and 5 etc. They are well known to day-to-day basis and us, which
are Public Serviced broadcasters. The methods some channels are financed are by
different varieties such as advertisements, private investments and license
fees. Secondly the film industry is based in the commercial institution of
filmmaking, screenwriting, and postproduction
BBC (British Broadcasting Corporation), is the
biggest and largest broadcaster in the world, they are a semi-autonomous, a
semi-autonomous is owning a large organization structure such as the public
service broadcaster that operate under a Royal Charter, which means license and
agreements that are funded by annual television license fees from the public
that watch the broad cast television programmes. ITV is an (independent
television) where it is privately based and owned by companies, the way ITV is
funded is by advertising revenue who are also owned by different companies or
businesses in the UK region. Channel 4 is owned by (Channel four television
corporation) which has a similar format of being funded by advertising
revenues, but also added with a financial input from different companies for
different programs such as within the Channel 4 industry. Lastly, Channel 5
(Five) is owned privately and not funded by advertising revenue, which shows
wealthy business people are running the Channel 5 industry. For example the purpose
for these channels is for educational children show, reality shows, documentaries
and news.
British households and other organisation are now
paying a license fee for their television broadcasts. The fee of a television license
is £145.50 for a coloured television. On the other hand a non colored TV with a
standard black and white it will cost £49.99. This has been set by the
Parliament as the British Government has announced this license for all
television householders. Another way of financing the television industry is by
competition fees, this allows costs to enter, such shows such as Big Brother
have a texting service where an eviction is taken place, and by you texting the
name of the person to stay you are giving away money to Big Brother. The
average amount varies with each network but an average cost of 30-40p is taken
away from a single text. The picture
below shows an example from big brother 2013.
The figure below shows statistics of the average
percentage increase of house holders with a colored TV or a black and white TV
in recent years;
In the television industry the commercial
broadcasting are known for advertisements on the radio or on the television.
This is all done for raising the customer’s awareness on the product that is
being advertised. Businesses invest a lot of money into a commercial and
advertisement, as it has to be perfect for the public eye to see. This
statistic below shows the percentage of increase since 2006 and 2010 on people
watching television, which proves to business owners that advertising their
products on TV is an annual way to catch the customers view on your advertised
product. The way this works is for e.g. Apple will pay ITV to advertise their
new I phone 5 on TV, which means Apple, pay ITV to advertise their product on a
commercial break, where customers are likely to see and watch the whole apples
advertisement.
This is an advertisement of Michael Jackson (This
is it Concert) on the ITV channel.
The film industry has many independent companies,
which are mostly based on entertainment. These independent companies have a
smaller budget compared to bigger film makers, for e.g. Fast and Furious 6 had
a budget of $160 million, at the box office it has made $787.9 million which is
an massive profit earning for fast and furious.
Adding
on, in the film industry they also have advertisements, for example, in the
fast and furious movie; Vin Diesel (Dominic) always has an alcoholic drink
called Corona. This is advertisement where it engages viewers, to purchase this
drink because famous people such as fast and furious actors are having it. This
is done by Corona paying Fast and Furious to advertise their alcoholic drink
(Corona) to their huge money making movie.
Product placement
Product
placement in the film and television market is increasing in the past few decades,
in the movie industry the products placement have been very successful in ways which
advertisement products have reached millions in different city and countries,
to advertised a product o TV is very expensive, but has the ability of making a
name of your product in the competing market. Products placements have hits the
publics eye, this is why so many business and organisation use television and
film industry to advertise and both sectors hit a large audience in any period
of time. In most films or television industry the product advertisement last
about 50-60 seconds, as It is a quick glimpse of the product in the right scene
and hen back to the story line. In additional marketing places, product
placements possibly make more money then TV advertisement, as TV advertisement
are assumed and judged when people come back from work or the statistics of how
many people in the United Kingdom watch TV at a certain time, where as product
placements have to ability to see which movie makes the most money in the box
office and in cinema, and then they can place their product with the consent
from the movie industry.
The
statistic below shows the percentage rate in the united kingdom of people who
watch each TV channel; this gives an example to the product placement
businesses to pick a certain channel with the most views, as their product will
hit a larger audience. This is useful; this is information that will boost
sales for your product, the more views it hits the more sales increases.
In the
picture above the statistic shows that BBC has 31.8% views a day, which proves
and shows that they have the highest percentage out of all the television
production channels, this is an disadvantage as BBC do not advertise product on
TV, which leaves ITV having 22.6% the 2nd popular channel which has
the priority to advertise products. This leaves ITV a wealthy television
industry and channel because with a lot of viewers and also advertisement with
different products and business, they have the best possible chance for big
companies to promote along side them.
Furthermore,
an example is the Sony Vaio laptop, which is advertised in the James Bond
movie, it’s a short scene where glimpse of the Vaio laptop added and scene, but
still is visible to the publics eye and easily noticeable to recognise who
manufactures the product.
Another
example of product placements and advertisement is this picture below showing
Dominic having the Corona alcoholic drink in the movie Fast and Furious.
Vertical
Integration and Horizontal Integration are two types of ownership structures in
the television and film industries. Vertical Integration has the ability to own
the whole chain of the supply control, which basically brings the movie or TV
show to be viewed by the public. A good popular example is Disney, as they are
also under the Vertical Integration because there products never leave the
Disney’s operation basis. Viacom is a very popular television industry, where
Disney have never let them go and have always staid in the process of expansion
with existing shows such as Sponge Bob that is viewed on the Nickelodeon
channel.
In the
advertisement and product placement t area of which products are needed and
have increased in the past few years have been apple, they have hit a big
market in the television and film industry with product placements, they have
made billions as they are hitting high end box office movies and television
programmes as customers reflect their ambition towards movies and television
programs to the apple product and owning one.
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