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The improvement and advancement in broadcasting has made the world like a globe. People communicate to each other across the world. News gets received from one country across the world, and all people can know what happens in a particular country. A lot of broadcasting stations has been established and they compete. The competition makes or stations to find ways of improving their services. The stations need funds in order to operate smoothly. There many funding models established to ensure that the broadcasting station operates effectively. The British Broadcasting Corporation among others has been in operation for many years. The funding model for BBC changes from time to time.
Thesis statement: There exists change of funding models in media industry.
A substantial change has been evidenced from time to time in funding models of broadcasting media across the world. Many stations fund for their services while others use government revenue.
British Broadcasting Corporation
This broadcasting station operates from London and headquartered at Broadcasting Houses in Westminster, London. It is a British public service station and it deals with public and commercial issues. BBC gets the fund from tax collected annually called television license fee. The collection gets done by government officials, and they collect from all British house hold. The fee to pay got a determination from the government and the approval form the parliament must occur for the collection to take place. BBC acted as a public station but changed with time and started broadcasting service from private sectors like advertisement (BBC, 45).
History of BBC funding model
The United Kingdom established BBC to channel all the public issue to reach the citizens. This got established since the government wanted to reach all the people and make them updated with the current government affairs. As a result the government got forced to make the individuals to pay for the services provided by the station. The government introduced television license fee for all people with houses to pay a certain fee annually. The government of UK in December 1932 made the broadcasting station becomes BBC worldwide and this made the station to require much financial which could not get raised through television license fee only. The BBB World wide gets funded by British government through domestic license fee (BBC, 11).
Currently due to the emergence of many private broadcasting stations BBC had to improve and find other means of funding the service. BBC worldwide limited provides a wide range of market covering a wide geographical area and provides commercial services to the private sector and private commercial business. It advertises new products and sell of new products in which they charge a fee in doing those services. There many branch which have come up as a result of BBC, and they fund their operations and assist in funding the BBC. The affiliates include studio and post production limited, BBC worldwide limited, and they acquire their funds from their business revenue. The branches come up due to demand of advanced technology and emergency of many broadcasting stations (Lewis, 87).
The funding models have changed from time to time and this made since the start of the station. This shows that for an advertising media to advance it need to change the strategies of operation. BBC has grown and funding models have changed significantly. First, it used television license fee funding model, and when it advanced the government funded from the funds acquired from domestic license fee. Many media over the world changes from time to time even in America the broadcasting media changes their funding models (BBC, 9).
Causes of effecting the models
British Broadcasting Company got establishment in 1922 October by the government. It got established by British general post office, and it grew up to January 1927, when it changed to British Broad Casting Corporation. The channels from the media got fully established in 1932 when advanced electronic appliances got created to facilitate the operations of British Broadcasting Corporation. During this time the government had to fund for BBC in order to channel all matters concerning the government. The government passed a bill to collect a television license fee in which all British houses with television were supposes to pay for their television. This happened because the government could not get other source of finance to facilitate the running of BBC. The government collected the revenue annually to avoid confusion and failure of paying by the same individual (Martin, 89).
As time advanced BBC advanced they changed the operation strategies, and this made the government fund in full. The government used the domestic license fee to fund for BBC when it advanced. The revenue was collected from the British citizens from all houses with access to the BBC. Those who could not afford got force to pay for their dues in order to run the broadcasting media. The government wanted all people to contribute if they have access to BBC. The government officials demanded to collect the revenue from the citizens, since they did not want the government to use the funds budgeted in other industries (BBC, 10).
In 1980s, BBC got a formidable challenge from other UK televisions which emerged, and they operated privately. They challenged BBC because it used government funds and it could not move with the speed the directors and managers required. They got defeat from private television, and this made the managers find ways of improving the programs. They formed other branches of BBC which used fund from the business. The managers decided to change the funding model because the procedure to get the funds from license fee took a lot of time and this made effecting of strategies take a long time (BBC, 7).
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Many countries established the collection of television license fee but currently they have abandoned. This has occurred because many private televisions have emerged and they promote their services with efficiency, hence they out way the televisions funded by the government. Once the government funds for a television, it makes sure that the television broadcast what they want. There some challenges which can not be channeled in the government funded television and this make the television get challenge from the private televisions which broadcast all the programs (Stephen, 100).
Change of funding model.
The competition which has been occurring in the television industry has made much television in America to change their funding models in order to cope with the market. Funding by the government has made the television have slow growth and many televisions currently in America have started funding for their operation through the funds acquired from advertisement and other programs from private sectors and individuals. The private televisions brought significant impact to BBC. It made BBC to loose half of their client, and this made BBC start managing the operations and dairy activities (Welch, 67).
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The change occurred with time. As time changed the funding model changed and finally it stated using commercial money like other televisions and media in UK. The business went to collapse because few clients and people supported BBC. This occurred because people did not like the aspect of collection of fee to support the television, and when other televisions come up without demand of any money from the citizen all people opted for them. The challenge made them find means of improvement and as a result they changed the means of funding. They stated advertising the new products in the market in return of money and channeled new programs in the market (BBC, 5).
Other television in UK and across the world used commercial money to fund for their operation because they got management by the owners, and they could decide on how much money to allocate for the operation and what profit to make. This could not get evidenced in BBC because the programs got developed by government and funds from government followed a certain procedure in order for them to get allocation. The government officials in charge of the revenue were corrupt, and they did not allocate the whole money as required instead they gave out a small portion and disturbed the person requesting for money in order for him to stop making demands (Stephen, 76).
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The government controlled the revenue from the television hence leaving the management without enough money to motivate the workers. The works could not perform any more because they did not get motivation when they did an excellent job, when the private television emergent, many workers went to work in the private sector. The private sector motivated the workers, because they enquired their finances from commercial money. They compensated their workers with bonus after doing a perfect job. The private sector liked workers from the government sector, because they had enough experience and training. BBC lost most of their workers to the private sector, and this made the managers decide on what to do to improve the operation. The options included change of the funding model in order to start motivating their employees (Martin, 56).
Benefit and drawbacks of the current model
The current models used by BBC includes commercial money license fee among others. The BBC applies this model in acquiring the finances to run the daily business. There benefit of application of commercial money. They use the money acquired from advertisement and other services provided to private individuals. The television becomes able to budget the finances and allocate the finance for each department of the company. They get enough money, and they plan on how to spend in order to make a profit at the end of the day. The television at times makes more income which it could not have made with the application of license fee (Stephen, 67).
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The employee gets motivation from their work. The people in sales and marketing department get commission for what they sell, because they return their sales to the television. The finances get managed in the company, and this makes the managers have the same money for motivation of the employees who performs their duties well. This makes the television maintain the works. The television offers better salaries to employees and this improves the living standards for the workers and they rise up better families. The improvement of the living conditions of employees promotes the lives of their family members, and this in return improves the economy of the country (Welch, 67).
There still side effects of application of the current models. When the television gets the funds from the commercial mean any time the clients of television can decide not to bring their services with the television. This will make the television collapse or overwhelm the saving and get zero profit. The competitors can buy the client by lowering the charge fee, and this can make all clients divert their service to the new televisions offering low charges. If the income get low then the works can go without their pay or get little than what they expected (Stephen, 46).
The application of commercial money can attempt the people in the finance department to misuse the funds. The money can get lost in the process if passed through dishonest employees. This can make the whole company collapse and get no help from the government revenue. Other means include charity money, which is contributed by certain organizations, and they can decide not to give out the money any time. The other models include getting loans. The loans from the bank and other financial institute have high interest rates. The loans get paid with high interest rates and this amounts to a loss. Sometimes the television may not raise enough money to repay the loan, and the financial institution can take the properties for compensation of the loan (Welch, 25).
There is BBC radio which broadcast the programs which get channeled through the radio. The radio gets management of the television. Those who manages BBC television they still have the mandate to check on the running of BBC radio. They channel news worldwide. The news channeled through this media resembles of other media like CBC a CNN. The radio is managed with the same models like that of the television. The difference between the television and radio is only the programs which get broadcasted. The other business operates under the same management using the same strategies (BBC, 3).
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Comparison with US models.
The models applied in the American television are similar but some time there some differences found. The television in America gets funded by commercial money and charity. There many television in US, and they belong to private companies or individuals who get financial support from donor. BBC models resample those in America because BBC has worked towards improving the performance and expanding worldwide. The same case gets evidenced in America because most of the American television has grown worldwide and they channel their programs all over the world. They apply use of donor money and commercial money. Few televisions from America get license fee to run their programs (Martin, 102).
Effects of the models
The models applied affected people economically socially and physically. The license fee collected from individuals makes them have little money saved for their families due to payment of many taxes, some people do not have money to pay for the license fee, and they get prosecuted in court and get high charges. This makes people grow poorer and get frustrations, because they can not afford for the fee. The prosecuted individuals become more hearted and this reduces their work performance. The families of the affected individuals get psychological problems, and they in turn require guidance and counseling session from psychiatrist. This needs extra money which leads to more poor families (Lewis, 34).
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Studies have been done suggesting the appropriate models to get used to media and television. The models applied in turn bring some complication to the performance of the television. All models have benefits and side effects and no one can be recommended for application. Televisions should apply all models or stick in what ever they think it will improve their performance because all have benefits and side effects (Stephen, 100).
BBC have improved and changed the models from time to time. The broadcasting media should apply the models which can improve the performance and fit the television in a competitive market. The managers of the media should have excellent management skills to determine which model to adopt in order to make up a better business.