In the United Kingdom, any household that watches or records live broadcast television transmissions is required to purchase an annual television license. The transmissions can be terrestrial, satellite, cable or internet. As of now, the cost is £145.50 for colour and £49.00 for black and white. The income from the sales of the license is primarily used to fund the television, radio and online services of the BBC.
Advertising
Advertising is when a product will be advertised during a commercial break. For example, Virgin Media will have paid a channel, such as Channel 5 to air their advert during a programme break such as Big Brother, when a lot of people will be watching. Many conglomerates are funded by this such as Channel 4 and ITV also.
Sponsorship
Sponsorship is when companies pay for their logo or a mini-advert to be played before and after a TV programme. An example of this could be that Black XS Paco Rabanne sponsors the E4 programme Skins.
Subscription
Subscription is when you agree to pay on an annual, weekly or monthly to watch TV programmes. This is found in Sky and Virgin Media.
Although extra subscriptions are often available for extra benefits such as high-definition, music channels and other premium channels.
Pay Per View
Pay per view is when a television audience member will purchase a private broadcast of an event.
An example of this could be if there was a wrestling event, you would pay a one-time fee to watch the one event live on Sky Sports.
Another example could be when someone pays to watch a movie or a TV series on their Virgin Media box.
Product Placement
This is another form of advertisement but is very effective. Sometimes found in movies, music videos and advertisements, there will be a product on-show. An example could be a character wearing a particular clothing brand or drinking a drink such as Coke. This benefits the company that produced the media as they have been extra funded but will also benefit the company that has been shown in the media too, as they will gain more publicity.
Film making is expensive and producers get their funding from distributors who buy the right to the films before the filming even begins. Also there may be some investors that invest hoping to gain a share in any profits made.
Bibliography
http://entertainment.howstuffworks.com/movie-cost.htm
http://www.channel4sales.com/advertising/sponsorship/current_sponsors
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