Public and Private Ownership

Public Ownership

This is for companies such as the BBC, where they have everything funded for them through the public’s TV license fees. The BBC takes a little amount of what you pay out of your tv license fee. The reason for this is  because then the BBC don’t need to advertise to create a revenue, so if you’re watching a programme on BBC One, you’ll notice than in between a programme they don’t have breaks where they advertise.

Private Ownership

This is for companies such as ITV, where they money that they earn comes from advertisements and sponsorships. If you are watching a programme on ITV, you’ll notice that in between a programme they have a 5 minute ad break, this is so that they can gain a revenue to keep the company up and running as they don’t earn through the public’s TV license fee. Another way that money can be made in private ownership is through the sales of TV subscriptions. Sky is one of the companies that make money through the subscriptions.