Sponsorships
Sponsorships
are where one company advertises something, in exchange for the other company
to do the same. Some companies will have to pay the other company, for example
talk talk to x factor, as x factor is seen by millions of people. Through x
factor displaying talk talk before each of their shows, it raises the brand
awareness of talk talk which has lead to good sales growth. Tristia Clarke, commercial director at
TalkTalk Group, said “The deal is about two things. It is about driving ongoing
growth. But it is also about retention as much as acquisition. X Factor is such
a brand in its own right that this is a full year annual sponsorship." This
case has proved to be successful as talk talk revealed that for 3 months of the
company being shown, they had 42,000 new customers. The link below displays a
video of one of their recent advertisements shown every time before Xfactor.
Pay-Per-View
Pay-Per-View
is simply in the name. It is a system used by some broadcasters where the
members of the public can pay for what they want to watch. This is usually used
for films available to buy on virgin media for example, or one off sport events.
Pay-Per-View can be highly lucrative for some high profile events, it also
means that people pay only for what they want. Obviously if this service was
just on its own, it wouldn’t be that successful, this is why it is usually a
link to a subscription, so people are therefore paying on top of their
subscription price.
Advertising
This is
the key and most common way in which media broadcasters make their money. Commercial
television and the radio have been funded by adverts since the start of ITV in
1955. The adverts produced by various company’s advertising their product or
what they specialise in, fund the media broadcasters to play their adverts. Broadcasters
make immense amounts of revenue through the funding from advertisements.
Subscription
It is optional for the members of the public to get a
subscription with a variety of broadcasting services. This done on either a
payment or a periodical fee. Viewers subscribe either directly with the broadcaster, or the
services are included as part of a package included in Sky subscriptions etc.
This is handy for the broadcasting services as they can see who their target
audience are to their services so they could therefore target their programming
more specifically to their audience.
License Fee
Everyone who lives in the UK and owns a TV are entitled to
pay a license fee. The money paid, goes towards the BBC’s broadcastings of TV, radio, and online
services. The annual cost has previously risen every year ever so slightly by a
couple of pounds, however the government have decided to freeze the cost of the
licence fee of £145.50 from 2010, up until 2016. The chart below displays how
the money paid by the members of the public is split.


