In this country some TV channels need to have a television licence (or broadcast receiving licence) to give them official permission for the reception of television broadcasts. In some places you might even need them to own a TV or radio set to have permission to receive said broadcasts. Licence fees are what you must pay to uphold the licence. This form of hypothecated tax is used to fund public broadcasting, allowing public broadcasters to transmit their programmes without having to make money from advertisements.
Subscriptions have been made most famous by the likes of TV companies like Virgin or Sky. They involve the customer paying a certain amount per month for a product, for example, an adobe cloud creative suite licence, a magazine or in this instance TV broadcasting companies. In particular Sky is rapidly becoming the top dog in this field (taken form the Sky website) "Sky is the UK's market leader in satellite TV broadcasting".Sky has evolved it's subscriptions over the years and turned them into easily digestible packages for it's customers. This way by paying a certain amount a month you can get channels streamed to your TV box set and even the simplest souls can achieve it. This monthly payment system is a lot more effective than say a freeview box in which you have a certain amount of channels which is all you pay for and you only pay once. By adding channels and giving people more 'apps' on their Sky box, Sky can milk people for more money each month, and as it's monthly and not all in one go it seems a lot cheaper to consumers. Sky has also branched out vertically and since 1996 has provided a very popular pay-per-view service. Pay-per-view is for customers who do not want to pay for channels that they won't use, this service offers certain events like sports matches or new films if you pay a certain amount for each individual one. In some ways this could be cheaper but it would take away the consumers choice of channels, however this will depend on the person for preference. Though with Sky's new 'packages' pay-per-view is slowly dying out as people don't plan around certain films anymore what with Netflix and would only use this service for sports, plus the simplicity of Sky's 'packages' cannot be ignored by those wanting a more consistent payment.
Sponsorship is the financial and material support of an activity, event or organisation by an unrelated partner, which is a good way of increasing brand awareness. It is also an effective way of generating consumer preference, for example the phone company GiffGaff sponsors 'The Big Bang Theory' and a lot of the public are aware of this programme thus they will be more aware of GiffGaff as it is shown at the beginning and end of each episode. By linking yourself to an activity, event or organisation via sponsorship you will be remembered when a consumer recalls said activity, event or organisation. Advertising is the main way to gain money in the media industry, it is a good investment as well as a good way to obtain money. Films do both, the newly released 'Kick-Ass' will pay to have their posters and trailers advertised on TV channels, billboards, radio stations anything that can transmit information. 'Kick-Ass' will also get paid a lot of money in return when other films want to advertise their trailers at the beginning of the cinema release of 'Kick-Ass' as well as at the beginning of the DVD release.
Product placement is also a very common form of advertising and is built on the premise of if you see someone you admire with say a diet coke, you now want a diet coke yourself. It is also very popular in music videos; more and more artists are including their own brands in their music videos. For example, Avril Lavigne in her music video for 'What the Hell' she showed herself putting on her own brand of perfume making sure that the shot was close enough to see the name of the perfume on the bottle. In the same video she also showed herself running away from a one night stand and finding herself in a thrift shop where there was a section of 'Abbey Dawn' clothing which is also her own brand. The consumer sees their favourite artist wearing her favourite perfume and 'Abbey Dawn' clothing and the consumer feels the need to buy the same products because of the superstition of you are what you wear and the consumer wants to be a figure like Avril Lavigne.
Private capital funding is the money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy in which their operation is based, e.g. corporate, retail or investment banking. Businessmen will use development funds (clue's in the name) to develop their ideas. For example the people on 'The Apprentice' are given a certain budget and told to buy something in bulk or develop an idea (e.g. designing a restaurant and menu) and have to sell their products to consumers to gain a profit. Which is the simplest and easiest business to have; obtain money, spend that money and make more money.
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