Different sources of Income

Downloads

Music, film, TV and apps can all be downloaded off the internet or iTunes directly to your computer files or even your mobile phone. There are several different services you can download these from such as iTunes, iPlayer, Amazon and Netflix you can also download and stream straight from a TV subscription provider’s box that they provide you with such as Sky, Virgin and Talk Talk.

Advertisers

Advertising is everywhere; on billboards, TV, Games, the cinema and in magazines. Advertising is no doubt the biggest source of income for the media industry. Advertising is everywhere in games, in movies, TV and also music. One form of adverting is called product placement this is where they place a product of some sort into a film or TV show and also this can be done in games and music, such as on some games there are different products on billboards around the game also it can be used in music by adding the word of the product into the lyrics.

Sponsorship

Sponsorship can be found on things such as TV programmes before they start such as The Simpsons a few years ago used to be sponsored by Domino’s Pizza. There are many different types of sponsorships it is not just food and restaurants it can be any type of company such as Talk Talk sponsors The X factor. They mainly put sponsorships on the successful TV shows as this will help the company get the most business for the product.

Product Placement

Product Placement can be found in almost any TV sitcom or movie. This helps the movie make more money or this will give the movie company more money to make there movie with just by adding in a company’s product. It is mainly phones that you can see it in within the movie. As you may see a lot of the actors with iPhones and also it can be seen in cars. There are many products that can be used in product placement such as clothing, computers, phones and cars. http://www.youtube.com/watch?v=gtOV7bp-gys Robbie Williams Music Video Candy can be seen to have a lot of product placement, the first one I noticed was his shoes as he is wearing Nike blazers and the other product placement I noticed was both of the main characters have Samsung Galaxy S3's in the hands.

BBC Licence Fee (TV Licence)

Every year you have to pay for your TV license if you own a TV and are over the age of 18. This goes straight to the BBC and is spared out amongst the different sectors that the BBC owns. A TV license costs £145.50 for a colour TV and if you are under 74. It is £49.00 for a black and white TV. If you are over the age of 74 you can apply for a free TV license but you might not be accepted until you are of the age 75. Finally if you are registered blind or severely sight impaired you can get a TV license for £72.75 for colour and £24.50 for black and white. If you do not pay for your TV license you can be fined up to £1,000 and have your TV took from you. When you pay for your TV license the money is split into 4 different BBC services. £95.52 goes onto TV, £25.32 goes onto Radio, £7.92 goes into online and £16.80 goes onto other services like paying jobs etc.

 Cinema Box Office

When films are made, they are put into the cinema so that members of the public can go see them. When the public go and see the movie, the money that they spend to go to the cinema goes back to the cinema for showing the movie and some of the money goes to the company and director that made the movie. Where it say box office that is how much the film made within the first few weeks of it being out.

· Franchisers, Formats

Franchises, Formats is where someone buys the rights to part of a company to either have something to do with that company. If they buy the rights to a shop they can open one of them shops in a space they own. The company they have bought rights from can give them all the equipment to start the company off. Such as the product that they sell or some pens and cups with the company’s brand on. This can help make more money for the company as well as the people who wanted to independently start the business.

 

 CD and DVD sales

When CD's and DVD's are sold some of the money goes to where it has been sold from and some of the money goes to the company or director who made the movie or piece of music. This is the same when you buy the movies or music from iTunes or Amazon. The money is also split between the company selling and the artist of the music or movie. When the DVD's and CD's are sold in the shops almost all of the money will go to the shop as they would of bought a number of boxes of the product to sell to the public off the company that has produced the DVD or CD.

DVD rental

This is very similar to CD and DVD sales as when you rent a DVD from a shop some of the money goes to the shop and some of the money will also go to the company or director that has made the DVD. Also there are not just games rented out there are also games that people can rent out. Some times with some of the rental stores they buy the rights to the DVD's that they will be renting out so that the shop will get all of the money made from renting it out to the public.

Television subscriptions

There are lots of different services out there for Television subscription such as Sky, Virgin Media and Talk Talk. These TV subscriptions can get you more channels that you need to pay for to keep them running. When you pay for TV subscriptions you can also get HD channels and you can also get different programmes on demand.

· Merchandise

Merchandise can be bought for almost anything such as Games, TV, Films and music. They can be bought online from the company’s whose make the products. It can also can be sold be shops if they buy the rights to that product to sell. Merchandise can also be used for advertising like when a peace of merchandise is used in a film or TV programme. This is called product placement. The merchandise is also advertised on the TV so that members of the public can buy it.

 Premium Telephone lines

Premium Telephone lines are mainly used in radio when people can call in and talk to the presenter whether it is to request a song or to enter a quiz. Premium Telephone lines are also used on TV such as X factor where people have to ring in or text in to keep their favourite contestant in the show. These normally cost over £1 to ring and to vote and if you are on the radio it normally costs about 50p a minute and then also your standard network rate.

 Licensing; 'intellectual property'

Licensing is where you can buy a product to own it yourself, so if you bought an editing software e.g. Adobe Photoshop, you would buy the product first and that would come with the license, but if you lost the license you would have to purchase another license to be able to continue using the software. There are many different licenses in the media industry such as a TV license and broadcasting licence. If they bought a broadcasting licence they would be able to make money from broadcasting TV programmes and movies.