Ownership and Funding of Media in the UK

Ownership and Funding of Media in the UK.

In 2014, the Media Reform Coalition published a report called The Elephant in the Room: New Report on UK Media Ownership. The report identifies a worrying trend where it says that there is an increasing concentration of UK media owned by fewer and fewer groups. The report sees this as a threat to democracy.

“The statistics gathered about the spread of local media are worrisome – 1/4 of all Local Government Areas (LGAs) aren’t served by a local newspaper, while 35% are covered by only a single local news outlet. Since March 2011, a total of 141 local papers have shut down, and now in 224 LGAs (55% of total) the same 4 companies have majority ownership of the local market.

The ownership of national newspapers remains concentrated in just a few large companies: 70% of the UK national market is controlled by just three companies (News UK, Daily Mail and General Trust, and Trinity Mirror), with Rupert Murdoch’s News UK fully holding a third of the entire market share” (Media Reform Coalition, 2014).

The BBC

On October 18, (1922) John Reith had created The BBC where they would inform, educate and entertain the public. The BBC gets funded through license fee as well. As the BBC has got the Royal Charter they are not allowed to advertise on their TV channel. The Royal Charter allows the BBC to have a right to be independent (Public sector). In the year 1955 a TV channel called ITV was set up where the Government wanted them to do local news, arts, TV programs in return they would have a right to Broadcast. The Government created Channel 4 which is state owned TV channel, Channel 4 was also in the public sector as well. Later on Channel 4 was restructured due to Broadcasting Act in 1990.” (

Broadcasting Act in 1990

The Broadcasting Act was created on 1990 by the UK Parliament. The Act is a legal framework for TV channels in the UK. The Act also provides regulationsby Independent TV Authority to independent TV Channels has to obey the rules as well as radio stations.

TV and Radio Act

Whenever this Act was created, it allowed Channel 5 have a right to be a TV Channel as well as Satellite TV. The BBC is only allowed to have at least 25% from other TV channels. This Act also allows independent radio stations have a right to be existed.

Funding.

Most media organisations and news papers are funded through direct sales and advertising. The one exception to this is the BBC which is funded through the License Fee.

License fee

When someone in the UK buys a TV and you watch live TV or record programmes; you are required by law to pay for license fee. All of the funds goes to the BBC which it is owned the people and the Government. A coloured TV license fee costs £145.50 in the UK. In total, they earn £5.1 billion from License fee, some of money was spend on TV, Radio and online. As the BBC gets their money from Licence Fees, they do not have any ads on their channel because of it. They also make money by selling DVDS and products as well. Whereas in the South of Ireland, fee costs Euro 160.00 and the funds go to RTE.

As the BBC has radio stations all over the world.If The BBC has a radio station in India. Their main goal is to provide information and entertainment to relevant audiences who live there because there are different types of cultures all over the world. They also have a news website (BBC news) where people can see what’s happing in the world such as in Russia, China, North Korea etc.

Pay per view/ streaming media online

An example of pay per view is ITunes in some TVs they have a feature where you can go to an ITunes app and you can choose what movie or TV shows you want to watch and pay for. You will often find ITunes cards in shops as well. Other companies have an online streaming service such as Netflix. You can also buy movies and TV shows on PlayStation service as well.

Subscription

This means whenever someone signs up with Netflix where they would pay a fee (£5.99, per month) to watch movies and TV shows in return. Amazon Prime has also got subscription service where they would offer the same. As Netflix and Amazon are after profit they would be in the Private sector.

Global Companies

As people all over the world can watch Netflix on the Internet, such as in UK, USA, Russia etc. Where people can watch TV shows and movies on their website. Also Amazon has also got service called Amazon prime where they would offer TV shows and films to their viewers.

Financial aid

A website called Good Pitch where they would help fund documenter filmmakers and other projects, there also no profit organisation as well. They work with channel 4, Ford Foundation and Sundance Institute Documentary Film Program. They also had worked with US organisations as well. There are also other organisations in the UK will help fund your films such as BFI.

Creative England

Creative England helps fund films and TV shows.They also help the film makers create their movie they also help the filmmakers to create their script as well. CE (Creative England) will also make sure that the film has great potential to the audiences. Creative England also helps filmmakers who want to do a short film as well. CE will give the filmmaker moneythat will help them to decided where the money is going to go such as sound maker, actors, editor etc.

Creative Scotland

There is also an organisation called Creative Scotland where they would help filmmakers to create a movie in Scotland.

Northern Ireland Screen

There is also an organisation called Northern Ireland Screen where they would help fund the filmmaker.

Development funds

A game company wants to create a new game but they do not have a lot of money to pay for the game they could a website called Kickstarter. Where they would upload a video where they would show the studio, artwork and scenes from the game and they talk about the game as well. Then it will be up to the viewer to give them funding for their game. In total 638, people had back their game where they hot £17,225 from people. People can fund other work such as Food, movies, design, Music, art etc.

Sponsorship

A company such as Sony could fund a TV Programme or even fund a broadcast channel such as channel 5. Where they will help pay for airtime for that show through sponsorship. In return, the broadcaster would advertise their game on commercials breaks. Coca-Cola would often sponsor major events around the world and organizations. Coke had sponsored American Idol where they helped fund them for 10 seasons. They also funded NASCAR (National Association of Stock Car Auto Racing) Coca-Cola had been Sponsoring them for 50 years and they are going to fund them for the 2017 season. They also help fund the Olympics 2012 as well.

Independent organisations

If a company is independent is where they are free to do want, they want without any control from another organisation. They have the ability to change terms of the products that would benefit the customers and them. If they are a small business, they have a lot more control with their financial costs. There is an independent organisation called “the Independent”. Where they a verity of different news reports that is happing around the world such as EU, US, UK etc.

Video sales

Whenever the studio has released the movie to the cinemas and people have seen it. The studio would get income from the people who have seen it. A movie called The Martian whenever their movie is stores and people buy it. The Studio will get income from how many people buy their movie as well. As studios are after the profit, and that is fine, the problem is The Region codes. The US DVDS will not work in the UK because USA is region code 1 and UK is region code 2. Some of the movies from America have come to here where we can watch them. As there is a lot of demand on movies, I feel they need to stop this and let everyone around the world watch forging movies and games.

Program sales

According to Mail Online, UK studios would sell their shows to other countries around the world. The UK studio has given Downtown Abbey and Midsummer Murders to US and else where. As they have been selling their TV shows they have earned £1.22 billion last year.

Product placement

Sometimes companies would use the Product placement technique. This means the product manufactures and the media company will have an agreement where they would have their product in the movie. An example if a new car is coming out; the manufacture could have the car in the movie where the actor will drive it. So when people watch the movie they might want to buy the car because what they saw it in the movie.

Some of the studios will often put some of their products in their movies. As Sony made The Amazing Spiderman 2 they put some of their products in the movie. Whenever ET was being made and they asked the company who makes Mars bars and M&Ms to allow the studio to use their products in the movie and they said no to the request. However, a company who makes Resses Pieces wanted their product in the movie and their sales went up (65%) A TV Show called House MD will often have Apple products in their show as well.

Regulation in the UK Broadcasting industry.

Ofcom

The Communication Act 2003 created Ofcom, where they are oversee every UK commercial TV shows. They make sure that people who are watching TV get the best out of the service. They set out a set of rules where broadcasters have to obey by. Such as Misleading, Harm, offence, religion, fairness etc. One of their rules is Watershed, which Ill explains later. If a broadcaster broke one of their rules, then Ofcom may sanction them from their employers. Ofcom gives viewers an opportunity to complain about a TV show that they are not happy with. In the year 2008, whenever Big Brother was on, 505 complaints had come from viewers, it was mostly about Bullying incident, which happen in the house. 44,500 complaints came from viewers about racist that happen in the show. They also did an invested into The Britain's Got Talent show where they mislead the public as well.

Watershed

Before 9pm whenever children is watching TV this system called watershed protects children from adult contact and only show shows that are stubble for children. After 9pm broadcasters are allowed to have adult’s shows on TV because children will be in bed. Ofcom got 165 complaints from the public where ITV broke the watershed rule. ITV put on a TV program called Jekyll and Hyde, which it is an adult show on before 9pm that could have frightened children. Ofcom felt that ITV did break the watershed rule.

Misleading

Ofcom also make sure that broadcasters don’t mislead the public, if so then they could face an investigation. While Britain’s Got Talent was on TV, in one of the acts there were dogs performing on the stage. Where the audience seen only two dogs. In the next few days it was found out that there were 3 dogs. Ofcom had to do investigation into the show. They ruled that ITV did mislead the public and that everyone who voted for this act will get their money back.

The Structure of TV and Video Industry in the UK

Media in the UK is now owned or controlled by fewer organisations that ever before. According to the Elephant in the Room Report, (2014) only three companies own almost 70% of the nations newspapers. This causes problems for democracy because it prevents different opinions being aired. Sky provides news to nearly all of the national and regional radio services across the UK. The report is concerned that this means that only one voice is controlling the news for most people.

“Concentration within some news and information markets has reached endemic levels and is undermining the quality and diversity of output on which citizens rely”.(Media Reform Coalition, 2014).

The BBC accounts for the majority of news broadcast on TV while ITV is its largest competitor in that market.

The table below shows the audience share for the top radio companies in the UK.

(Media Reform Coalition, 2014).

The table below shows the audience share for television news in a survey carried out by OFCOM in 2013. As can been seen the BBC has the largest audience share of almost 80%, leaving 20% between the rest.

(Media Reform Coalition, 2014).

Censorship

This means is when the Government feels that they need to censor connect such as harmful, sensitive, and objectionable, politically from the public. Some nations felt the need to ban movies. Germany had banned some of the movies because some of them had stories about World war 2 and the Nazis. However, some of the movies that Germany banned 70 years ago are allowed to be seen today such as The movie called Barnyard Battle. Ireland also felt the need to ban some movies this is due to dirty content and violence. However, the UK has not banned any movies. Before the public can see a movie in the cinema. UK has an organisation called The British Board of Film Classification where they would watch a movie and put an age rating on it. Someone under the age of 18 can’t watch a movie called Deadpool but they can watch movies that has an PG rating on them. Sometimes movies are not shown in cinemas instead they come out on DVDS. The British Board of Film Classification will also put an age rating on them they will also highlight what contact is going to be in the movie.

Key Issues and Debates.

The Belfast Telegraph did a report on the BBC where they found that the BBC sends out letters people who has not pay the licence fee. The Belfast Telegraph found it costs The BBC£500,000 to send out letters as well as legal costs. If the person is found guilty then they will be fined £1000. The Guardian did a news report on how many people went to courts where they have not paid the license fee. They found that almost 200,000 had went to court over the License fee. They also highlighted that people on benefits are struggling to pay the fee and Some of people went to jail as well. A website called The Drum did a news report on BBC fee where they found that 60% (1,500) of people in the UK want the BBC license fee should end instead they would like to see the BBC to get funded by advertising. If the BBC decides they would end the license fee and get funding throw advertising they could earn 4 Billion.

Issues that affect TV shows and movies

The biggest threat that is affected TV shows and movies would be Piracy. This is where someone would download a movie or TV show illegal to sell for profit. A US motion picture studio had lost $6.1 million because of piracy. According to The Guardian, they did a news report last year where a movie called Interstellar was the most (46m) pirated movie download ever last year. Fast and Furious came second place as well, where 41m copies where download. There is also other movie that was downloading in the millions. The table below shows the numbers of certain movies that have been downloaded illegally.

3. Avengers: Age of Ultron – 41,594,159

4. Jurassic World – 36,881,763

5. Mad Max: Fury Road – 36,443,244

6. American Sniper – 33,953,737

7. Fifty Shades of Grey – 32,126,827

8. The Hobbit: Battle of the Five Armies – 31,574,872

9. Terminator: Genisys – 31,001,480

10. The Secret Service – 30,922,987

11. Focus – 26,792,863

12. San Andreas – 25,883,469

13. Minions – 23,495,140

14. Inside Out – 22,734,070