Methods of Income

In the Media industry, there are lots of different ways which each sector gets income. Some of the most common ones are;

Downloads

• Such as buying songs, films, apps and games from iTunes, which then gives a percentage to the creators. Before downloads were abou tpeople used to buy full albums from a shop, but now downloads have increase the sales of lots of things, including music, massivily. This is because people dont have to buy the whole album but the songs that they like. Also because they are sold for very cheep, more people are buying.

Advertisers

• Such as putting branded things in places where they are likely to be notices; like on a television show or on the radio, or even in films.  Films such as the Twiligh saga, because when twilight was first release, the producors thought it was not going to be very popular and was only a low budget movie, they did not think that tbey would were going to get 5 movies nad a huge fan-base! They got that because of the amount of advertising that happened after the releases and the buzz that it caused. Advertisers also used everyday items and put the faces of Twilight with them, and thats another way that they made it so big.

Sponsorship

• A company or business that gives money to something else, in exchange to advertise there products or business.
• Talk Talk sponsors X-factor, and before and after each advert, there is a talk talk advert, which makes views of the X-factor more aware of Talk Talk, which will attract more costumers. 

Product placement

• Such as putting branded things in places where they are likely to be notices; like on a television show.
•  eg. On Coronation Street, there is a Nation Wide cash machine in the shop, and to let please know that the show is advertising, a small 'P' is shown at the start of the show.

BBC Licence fee

• Everyone pays TV licence and this then plays for the BBC, as it is ran by the public and not one person or one company. This means that there are no adverts in between shows, or on the radio.
• A colour TV Licence costs £145.50 and a black and white TV Licence costs £49.00.

Cinema box office

• People go to the cinema, and pay for tickets to go and see a newly released movies, then all of the that people have spent paying for tickets gets added together, and a large amount of it then goes back to the producers and film owners.

Franchises, formats

• Company owners expand there business to different areas, so may be regional, some may be national, or even global. Franchises such as the Twilight Saga and Harry Potter

CD and DVD sales

• People by music and films, and the money that they pay for with, a large amount goes back to either the artist, the productions, or the actors.

DVD rental

• Some places such as netflix lets customers rent films for a certain period of time, before it has to be returned or is not longer able to be watched. Then it is rented on to someone else, and so on. So because it gets reused by lots of people, and they have to pay for the rental, then the money soon adds up.

Television subscriptions

• Some companies such as Sky are Virgin Media, have a lot more channels and things on offer and these are usually not available anywhere. This makes people subscribe to them, so that they are able to view more, with a monthly fee. These money is then distributed through-out the company.

Merchandise

• Companies such a movie producers create merchandise to see to fans and audiences. Not only does this bring in an income, but it is also a way of advertising, whatever is on the merchandise.
• Merchandise is to do with a certain artist, actor, movie, television show and things like that.

Licensing; ‘intellectual property’

• This is to prevent copyright, so than if someone is wanting to use a brand or anything like that, then people will have to pay for the rights to use, whatever it is that they are wanting to.