Funding, Governance and Regulation

Rachel HeyesLecturer

The Manchester College

FundingWhere does the money come from?Choose two of the creative media industries and identify which of the following

methods of income generation apply to each?• Retail sales• Downloads• Advertisers• Sponsorship• BBC Licence Fee• Commissions from Clients• Cinema Box Office• CD & DVD Sales• DVD Rental• Television Subscriptions• Merchandise• Licencing: images of characters in films, use of ‘intellectual property’

Funding• Small Company Productions – earn money working for

clients• Broadcast TV & Radio – BBC has the License Fee &

Commercial Broadcasters are funded by advertising• Major Creative Productions (Film, Games & Sound

Recording) – At least one large company will put up funding (multi-million pounds)

• Indies and the Internet (Film makers, Musicians & Radio) – Self funded

• Franchises and Formats – Can allow other companies to use their ‘intellectual property’ ie. TV Programmes sold worldwide (Big Brother)

Governance

Decisions that define expectations, grant power, or verify performance i.e.

• Laws• Regulations• Research Bodies• Award Bodies• Ownership (firms, boards, executives,

directors, auditors, control, management)

Governance

Example:Time Warner in 2004 agreed to pay $510 million in

fines to settle charges of securities fraud involving accounting irregularities in AOL

Task:Can you find any instances where the governance

of a media company has made headlines?Tip: Search Newspaper websites for specific media

companies

Regulation

Considering the rights and interests of producers and consumers

Issues• Ownership and Control (Monopoly)• Protection and Censorship (Taste and Decency)• Intellectual Property• Fair payment and recognition• Consumer Choice• Protecting under-18s

RegulationQuestions1. What is a monopoly?2. Why is it important to ensure that no single media

producer in the UK has a monopoly?3. Why is consumer choice important?4. What is censorship?5. Why do some people think there is a fine line between

censorship and protecting the public interest?6. Why should under 18s be subject to particular

consideration by regulators?

RegulationA large number of statutory and industry organisations

regulate the creative media industries• Advertising Standards Authority (ASA)• British Board of Film Classifications (BBFC)• Office of Communications (Ofcom)• Press Complaints Commission (PCC)• Independent Television Commission (ITC)• Radio Authority (RA)• BBC – Producers Guidelines & Programme Complaints

Unit• Broadcasting Standards Commission (BSC)

Task

Choose which creative media company about which you are going to write your newspaper report

1.Where does the funding for the company come from?

2.How is the company governed?3.Who regulates the company?

Homework

Start writing your newspaper report:1.Describe the organisation’s vision, mission and

values2.Describe the organisation’s funding,

governance and regulation

Deadline: Bring this to your next session with Rachel on Wednesday 29th September