Public service broadcasters (BBC) are funded through;
The license fee, syndication, competitions, merchandising and associated products
According to the BBC's 2009–2010 Annual Report its income can be broken down, as follows:
· £3,446.8 million in licence fees collected from householders;
· £888.3 million from BBC Commercial Businesses;
· £293 million from government grants;
· £112.9 million from other income, such as providing content to overseas broadcasters and concert ticket sales;
Commercial Broadcasters (ITV, Channel 5) are funded through;
advertising, syndication, phone ins and competitions, merchandising and associated products. Therefore the ratings of a particular program can impact on how much a station can charge for their advertising spots.
The average cost of advertising on ITV is around £5.80 per thousand adult viewers. This Cost Per Thousand (CPT) is based on running a 30 second commercial. To put this into perspective a good example would be the cost of running a 30 second commercial in daytime during This Morning. This programme attracts 1 million adult viewers, therefore the cost of a 30 second commercial without any discount would be £5,800.
The cost of advertising on ITV1 depends on which region of the country you wish to target. The advertising costs will vary depending on the size of the population and the time of year you wish to advertise.
Channel 4 is a part Public Service and part Commercial broadcaster and are funded through;
A small part of the license fee, advertising, syndication, competitions, merchandising and associated products
Subscriber broadcasters (Sky, Virgin) are funded through;
subscriptions, advertising, syndication, on selling of the rights to their licensed programmes, competitions, merchandising and associated products.
Sky have paid more than £1 Billion to have the exclusive rights to broadcast premier league football until 2013. This is one of the main reasons why people subscribe to Sky as its the only place to watch live football. If the quality of the programmes Sky broadcasts diminish then people would be unwilling to continue to pay subscription fees.
