ENGESKI JEZIK 4

Ways of financing television

DRAEN DOMINKOVI

Five new words

bumper
pay TV
compulsory
couch potato
teleprompter

Funding of television
...television is very expensive toy that spends
a lot of money'
3 ways of financing:

Government
funding

Television
licence fee

Commercial
sources

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Commercial TV Vs. Public TV

Commercial televison
More viewers - more advertisers
the program adjust to audiences who are interested
advertisers

Public television
Public service
Television for all citizens - special legal obligations
children's, educational, scientific, documentary and
cultural program

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Television licence fee

official record of payment for the reception of television
program
paid by all owners of the receiver

relatively great freedom in compiling the program

two-thirds of the countries in Europe ( first country- UK)

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Television advertisement
for most privately owned television networks - only
source of income
almost all public TV part of the income
restrictions

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Task fastes response

Can you recognize the brand?!

Men vs. Women
5 commercials scoring:
Correct product type 1 point
Correct brand- 3 points
Wrong answer- minus 2 points

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

PAY TV
the audience was saturated with a large
number of commercials
television program without commercials ->
regular monthly fee
The first subscription cable channel HBO(
Home Box Office)
directly depends on the judgment of the
audience

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Government funding
negative side- servants of the government
Belgium-government funding + licence fee
Estonian public television - ETV
government funding

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Other sources of income

Sales programs (BBC)

Publishing (weekly)
New media (electronic media)
Copyright (characters)
Selling advertising blocks
Sponsorship (USA)

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

United States of America

Television took over a radio
commercial model
The first official, paid television
advertisement - NBC (NBT)- on July 1,
1941
Bulowa watches ($9.00)

PBS (Public) no ads, sponsorship

allowed
WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

The fundamental principles of

television advertising
Communications Act- 1934 - advertising must be
clearly separated from program
In the 1960s a typical hour-long American show -51
minutes excluding advertisements ; today - 42
minutes long
In 1971 - prohibited advertising of cigarettes and
tobacco products

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

The Most Expensive 30 Seconds on TV

the most effective mass-market advertising format
Investing huge money in advertising 1983rd - $
15 billion
30-second TV spot during Super Bowl - US$4
million
(seen by 100 million viewers)

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Top 10 most expensive commercials

ever made
10. Apple '1984' (Ridley Scott) $ 1.5 million
9. Go Daddy - $2.4 million
8. Ferrari/Shell - $4.5 million
7. Honda - $6 million
6. Pepsi (Britney Spears) - $8.1 million
5. Carlton Draught
4. Chrysler (Eminem) - $12 million
3. Aviva (Bruce Willis, Ringo Starr, Alice Cooper) - $13 million
2. Guiness - $16 million
1. Chanel (Nicole Kidman) - $33 million

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

The influence of sponsors: censorship

Chevrolet- TV show Gunsmoke banned
phrase - fording a stream (cross the river) associated with a rival company Ford
American Oil and Gas Traders- movie Judgment
at Nuremberg- banned phrase -the gas
chamber - puts gas in a negative context
The $ 64,000 Question - sponsors supplied the
answers

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Europe: financing of public television

no ads:
BBC,Belgian (state budget + licence fee) ,Finland (25% of
commercial) ,Norway, Sweden, Estonian (ETV - only the state
budget)

financing exclusively from commercials:

Monaco, Spain, Portugal

mixed (all others)

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

European Regulations on Advertising

Advertising at 15% of total daily broadcast program
EU Guidelines for Public Television-minimum produce 55% of
domestic programs, and 10% ordered from local independent
producers
Commercial TV-15% of own production, 55% of programs in
the local language

forbidden to advertise - cigarettes and tobacco, prescription

drugs

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Licence fee in Europe

per annum
per annum

385
323

215,76
113,5
5,81

46

131

170

137

65

REKLAME I NAINI FINANCIRANJA TELEVIZIJA

TIPOLOGIJA MEDIJA

Croatia
HRT - Croatian Radiotelevision Act
a percentage of the average net salary in the
previous year, currently equal to 1.5%
all owners of equipment capable of receiving TV and radio
program (about 137 per year per household)

70% licence fee / 30% marketing

advertising limited by law to 9% per hour

Commercial TV : RTL, Nova TV ...

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Questions
How is TV funded?
What was the first advertisement on commercial
television and when was it shown?
How much does it cost to advertise during the
Super Bowl?
Which European country has the most expensive
TV subscription(licence fee)?
What is Pay TV?

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

More questions
Can commercial breaks during the film spoil the
artistic impression of the film?
Is licence fee for HRT too expensive, and what
do you think of the quality of television program
in Croatia?

Should alcohol or tobacco companies be

allowed to advertise? Why or why not?

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Conclusion
Television needs a lot of money
commercials- an important factor in the
survival of all commercial, but also many public
television
they offer many dangers, but there are
numerous laws and codes that must be
respected

WAYS OF FINANCING TELEVISION

ENGLESKI JEZIK 4

Literature
http://www.clicktop10.com/2013/09/top-10-mostexpensive-commercials/
http://www.nielsen.com/us/en/newswire/2013/thesuper-bowl-the-most-expensive-30-seconds-on-tv.html
http://www.hrt.hr/pristojba/sto-je-javna-televizija-izasto-se-placa-pristojba
Damir Matkovi, Televizija igraka naeg stoljea, AGM ,
Zagreb, 1995.

REKLAME I NAINI FINANCIRANJA TELEVIZIJA

TIPOLOGIJA MEDIJA

THANKYOU