Editing Television (section)

===Funding===
[[File:TV users.svg|thumb|upright=1.6|Television sets per 1000 people of the world
{| style="width: 250px;"
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| {{legend|#10547C|1000+}} || {{legend|#70BEED|100–200}}
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| {{legend|#1674AB|500–1000}} || {{legend|#9DD2F2|50–100}}
|-
| {{legend|#1B8BCF|300–500}} || {{legend|#CCE8F9|0–50}}
|-
| {{legend|#3CA6E6|200–300}} || {{legend|Grey|No data}}
|}
]]

Around the world, broadcast television is financed by government, advertising, licensing (a form of tax), subscription, or any combination of these. To protect revenues, subscription television channels are usually encrypted to ensure that only subscribers receive the decryption codes to see the signal. Unencrypted channels are known as free-to-air or FTA. In 2009, the global TV market represented 1,217.2&nbsp;million TV households with at least one TV and total revenues of 268.9&nbsp;billion EUR (declining 1.2% compared to 2008).<ref>[http://www.international-television.org/tv_market_data/world-tv-market-2010.html Global TV 2010 – Markets, Trends Facts & Figures (2008–2013)] International Television Expert Group</ref> North America had the biggest TV revenue market share with 39% followed by Europe (31%), Asia-Pacific (21%), Latin America (8%), and Africa and the Middle East (2%).<ref>[http://www.international-television.org/tv_market_data/global-tv-revenues-2008-2009.html Global TV Revenues (2008–09)] International Television Expert Group</ref> Globally, the different TV revenue sources are divided into 45–50% TV advertising revenues, 40–45% subscription fees, and 10% public funding.<ref>[http://www.international-television.org/tv_market_data/world-tv-market-2010.html iDate's Global TV Revenue Market Shares] International Television Expert Group</ref><ref>[http://www.international-television.org/tv_market_data/international_television_market_report_2009.html OFCOM's Global TV Market Report 2009] International Television Expert Group</ref>

====Advertising====
{{main|Television advertisement}}

Television's broad reach makes it a powerful and attractive medium for advertisers. Many television networks and stations sell blocks of broadcast time to advertisers ("sponsors") to fund their programming.<ref name="Hornick">[http://www.americanheritage.com/articles/magazine/ah/2006/5/2006_5_50.shtml Karen Hornick] {{webarchive|url=https://web.archive.org/web/20100917000611/http://www.americanheritage.com/articles/magazine/ah/2006/5/2006_5_50.shtml |date=17 September 2010 }} "That Was the Year That Was" ''American Heritage'', Oct. 2006.</ref> Television advertisements (variously called a television commercial, commercial, or ad in [[American English]], and known in [[British English]] as an advert) is a span of television programming produced and paid for by an organization, which conveys a message, typically to market a product or service. Advertising revenue provides a significant portion of the funding for most privately owned television networks. The vast majority of television advertisements today consist of brief advertising spots, ranging in length from a few seconds to several minutes (as well as program-length [[infomercial]]s). Advertisements of this sort have been used to promote a wide variety of goods, services, and ideas since the beginning of television.

[[File:Radio News Sep 1928 Cover.jpg|thumb|right|Television was still in its experimental phase in 1928, but the medium's potential to sell goods was already predicted.]]

The effects of television advertising upon the viewing public (and the effects of mass media in general) have been the subject of discourse by philosophers, including [[Marshall McLuhan]]. The viewership of television programming, as measured by companies such as [[Nielsen Media Research]], is often used as a metric for television advertisement placement and, consequently, for the rates charged to advertisers to air within a given network, television program, or time of day (called a "daypart"). In many countries, including the United States, television [[Campaign advertising|campaign advertisements]] is considered indispensable for a [[political campaign]]. In other countries, such as France, political advertising on television is heavily restricted,<ref>Fritz Plasser, ''Global Political Campaigning'', p226</ref> while some countries, such as [[Norway]], completely ban political advertisements.

The first official, paid television advertisement was broadcast in the United States on 1 July 1941, over New York station WNBT (now [[WNBC]]) before a baseball game between the [[Brooklyn Dodgers]] and [[Philadelphia Phillies]]. The announcement for [[Bulova]] watches, for which the company paid anywhere from $4.00 to $9.00 (reports vary), displayed a WNBT test pattern modified to look like a clock with the hands showing the time. The Bulova logo, with the phrase "Bulova Watch Time," was shown in the lower right-hand quadrant of the test pattern while the second hand swept around the dial for one minute.<ref>Stewart, R.W., "Imagery For Profit", ''The New York Times'', 6 July 1941.</ref><ref>{{Cite web|url=http://www.earlytelevision.org/images/rca_bulova_ad-1.jpg|title=WNBT/Bulova test pattern}}</ref> The first TV ad broadcast in the U.K. was on [[ITV (TV network)|ITV]] on 22 September 1955, advertising [[Gibbs SR]] toothpaste. The first TV ad broadcast in Asia was on [[Nippon Television]] in Tokyo on 28 August 1953, advertising [[Seikosha]] (now [[Seiko]]), which also displayed a clock with the current time.<ref>[[:ja:コマーシャルメッセージ|コマーシャルメッセージ (Commercial message)]]. Retrieved 24 November 2013{{Circular reference|date=September 2015}}</ref>

====United States====
Since inception in the US in 1941,<ref>{{cite web |title=1940–1949 C.E.: Media History Project: U of M |url=http://www.mediahistory.umn.edu/timeline/1940-1949.html |url-status=dead |publisher=Mediahistory.umn.edu |date=18 May 2012 |access-date=2 November 2012 |archive-url=https://web.archive.org/web/20121025200852/http://www.mediahistory.umn.edu/timeline/1940-1949.html |archive-date=25 October 2012}}</ref> television commercials have become one of the most effective, persuasive, and popular methods of selling products of many sorts, especially consumer goods. During the 1940s and into the 1950s, programs were hosted by single advertisers. This, in turn, gave great creative control to the [[advertiser]]s over the content of the show. Perhaps due to the [[quiz show scandals]] in the 1950s,<ref>{{cite web|url=https://www.pbs.org/wgbh/amex/quizshow/peopleevents/pande07.html |title=The American Experience &#124; People & Events &#124; The Aftermath of the Quiz Show Scandal |publisher=PBS |access-date=2 November 2012}}</ref> networks shifted to the magazine concept, introducing advertising breaks with other advertisers.

U.S. advertising rates are determined primarily by [[Nielsen ratings]]. The time of the day and popularity of the channel determine how much a TV commercial can cost. For example, it can cost approximately $750,000 for a 30-second block of commercial time during the highly popular singing competition ''[[American Idol]]'', while the same amount of time for the [[Super Bowl]] can cost several million dollars. Conversely, lesser-viewed [[time slot]]s, such as early mornings and weekday afternoons, are often sold in bulk to producers of [[infomercial]]s at far lower rates. In recent years, paid programs or infomercials have become common, usually in lengths of 30 minutes or one hour. Some [[Pharmaceutical company|drug companies]] and other businesses have even created "news" items for broadcast, known in the industry as [[video news release]]s, paying [[program director]]s to use them.<ref>[[Jon Stewart]] of ''[[The Daily Show]]'' was mock-outraged at this, saying, "That's what we do!" and calling it a new form of television, "infoganda."</ref>

Some television programs also deliberately place products into their shows as advertisements, a practice started in feature films<ref>{{cite book |last=Segrave |first=Kerry |title=Product Placement in Hollywood Films |year=1994 |publisher=McFarland |isbn= 978-0-7864-1904-3}}</ref> and known as [[product placement]]. For example, a character could be drinking a certain kind of soda, going to a particular [[Restaurant chain|chain restaurant]], or driving a certain make of car. (This is sometimes very subtle, with shows having vehicles provided by manufacturers for low cost in exchange as a [[product placement]]). Sometimes, a specific brand or [[Trademark|trade mark]], or music from a certain artist or group, is used. (This excludes guest appearances by artists who perform on the show.)

====United Kingdom====
The TV regulator oversees TV advertising in the United Kingdom. Its restrictions have applied since the early days of commercially funded TV. Despite this, an early TV mogul, [[Roy Thomson, 1st Baron Thomson of Fleet|Roy Thomson]], likened the broadcasting license as being a "license to print money".<ref>{{cite web |url=http://www.pressgazette.co.uk/story.asp?storyCode=34783&sectioncode=1 |archive-url=https://web.archive.org/web/20110616115610/http://www.pressgazette.co.uk/story.asp?storyCode=34783&sectioncode=1 |archive-date=16 June 2011 |title=Kenneth Roy Thomson |work=Press Gazette |date=7 July 2006 |access-date=24 April 2010}}</ref> Restrictions mean that the big three national commercial TV channels: [[ITV (TV channel)|ITV]], [[Channel 4]], and [[Channel 5 (UK)|Channel 5]] can show an average of only seven minutes of advertising per hour (eight minutes in the peak period). Other broadcasters must average no more than nine minutes (twelve in the peak). This means that many imported TV shows from the U.S. have unnatural pauses where the British company does not use the narrative breaks intended for more frequent U.S. advertising. Advertisements must not be inserted in the course of certain specific proscribed types of programs that last less than half an hour in scheduled duration; this list includes any news or current affairs programs, documentaries, and programs for children; additionally, advertisements may not be carried in a program designed and broadcast for reception in schools or in any [[religious broadcasting]] service or other devotional program or during a formal Royal ceremony or occasion. There also must be clear demarcations in time between the programs and the advertisements. The [[BBC]], being strictly non-commercial, is not allowed to show adverts on television in the U.K., though it has advertising-funded channels abroad. The majority of its budget comes from [[television license]] fees (see below) and [[broadcast syndication]], the sale of content to other broadcasters.<ref>{{Cite web|url=https://www.birminghammail.co.uk/news/uk-news/bbc-licence-fee-introduced-what-22775309|title=The government is planning to scrap the BBC's licence fee|first=Tom|last=Blackburn|date=17 January 2022|website=Birmingham Live}}</ref><ref>{{Cite web|url=https://fullfact.org/news/bbc-income/|title=How the BBC makes money|date=10 May 2021|website=Full Fact}}</ref>

====Ireland====
Broadcast advertising is regulated by the [[Broadcasting Authority of Ireland]].<ref>[http://www.bai.ie/wordpress/wp-content/uploads/General-Commercial-Communications-Code.pdf General Commercial Communications Code] ({{webarchive |url=https://web.archive.org/web/20120617110756/http://www.bai.ie/wordpress/wp-content/uploads/General-Commercial-Communications-Code.pdf |date=17 June 2012 }}) and [http://www.bai.ie/wordpress/wp-content/uploads/Childrens-Commercial-Communications-Code.pdf Children's Commercial Communications Code], referenced in: {{cite web|url=http://www.bai.ie/index.php/2010/05/bai-launches-revised-broadcasting-codes/|title=BAI launches Revised Broadcasting Codes|date=May 2010|publisher=Broadcasting Authority of Ireland|access-date=1 May 2016}};</ref>

====Subscription====
Some TV channels are partly funded from [[subscription]]s; therefore, the signals are encrypted during the broadcast to ensure that only the paying subscribers have access to the decryption codes to watch [[pay television]] or [[specialty channel]]s. Most subscription services are also funded by advertising.

====Taxation or license====
Television services in some countries may be funded by a [[television licence]] or a form of taxation, which means that advertising plays a lesser role or no role at all. For example, some channels may carry no advertising at all and some very little, including:
* Australia ([[Australian Broadcasting Corporation|ABC Television]])
* [[Belgium]] ([[VRT (broadcaster)|VRT]] for [[Flanders]] and [[RTBF]] for [[Wallonia]])
* [[Denmark]] ([[Danmarks Radio|DR]])
* Ireland ([[RTÉ]])
* Japan ([[NHK]])
* [[Norway]] ([[NRK]])
* Sweden ([[Sveriges Television|SVT]])
* [[Switzerland]] ([[Swiss Broadcasting Corporation|SRG SSR]])
* [[Taiwan|Republic of China (Taiwan)]] ([[Public Television Service|PTS]])
* United Kingdom ([[BBC Television]])
* United States ([[PBS]])

The [[British Broadcasting Corporation]]'s TV service carries no [[television advertising]] on its UK channels and is funded by an annual television license paid by the occupiers of premises receiving live telecasts. {{as of|2012}} it was estimated that approximately 26.8&nbsp;million UK private domestic households owned televisions, with approximately 25 million TV licences in all premises in force as of 2010.<ref>{{cite web|url=http://www.tvlicensing.co.uk/about/foi-licences-facts-and-figures-AB18/|title=TV Licensing-FOI: Licences facts and figures |publisher=tvlicensing.co.uk |access-date=10 December 2012}}</ref> This television license fee is set by the government, but the BBC is not answerable to or controlled by the government.{{citation needed|date=June 2021}} {{as of|2009}} two main BBC TV channels were watched by almost 90% of the population each week and overall had 27% share of total viewing,<ref>{{cite web|url=http://www.barb.co.uk/viewingsummary/weekreports.cfm?report=multichannel&requesttimeout=500&flag=viewingsummary |title=viewing statistics in UK |publisher=Barb.co.uk |access-date=17 April 2009 |url-status=dead |archive-url=https://web.archive.org/web/20081005045049/http://www.barb.co.uk/viewingsummary/weekreports.cfm?report=multichannel&requesttimeout=500&flag=viewingsummary |archive-date=5 October 2008 }}</ref> despite the fact that 85% of homes were multi-channel, with 42% of these having access to 200 free-to-air channels via satellite and another 43% having access to 30 or more channels via [[Freeview (UK)|Freeview]].<ref>{{cite web|url=http://www.ofcom.org.uk/research/tv/reports/dtv/dtv_2007_q3/dtvq307.pdf |title=The Communications Market: Digital Progress Report – Digital TV, Q3 2007 |access-date=18 June 2010 |archive-url = https://web.archive.org/web/20080625013029/http://www.ofcom.org.uk/research/tv/reports/dtv/dtv_2007_q3/dtvq307.pdf |archive-date = 25 June 2008}}</ref> {{as of|June 2021}} the licence that funds the advertising-free BBC TV channels cost £159 for a colour TV Licence and £53.50 for a black and white TV Licence (free or reduced for some groups).<ref>{{cite web | title=TV Licence types and costs | website=TV Licensing | url=https://www.tvlicensing.co.uk/check-if-you-need-one/topics/tv-licence-types-and-costs-top2 | access-date=15 June 2021| url-status= live|archive-url= https://web.archive.org/web/20210502005124/https://www.tvlicensing.co.uk/check-if-you-need-one/topics/tv-licence-types-and-costs-top2 | archive-date= 2 May 2021}}</ref>

The [[Australian Broadcasting Corporation]]'s television services in Australia carry no advertising by external sources; it is banned under the ''Australian Broadcasting Corporation Act 1983'', which also ensures its editorial independence. The ABC receives most of its funding from the [[Australian Government]] (some revenue is received from its [[ABC Commercial|Commercial division]]), but it has suffered progressive funding cuts under [[Liberal Party of Australia|Liberal]] governments since the 1996 [[Howard government]],<ref>{{cite web | last=Muller | first=Denis | title=Australian governments have a long history of trying to manipulate the ABC – and it's unlikely to stop now | website=[[The Conversation (website)|The Conversation]] | date=13 February 2019 | url=http://theconversation.com/australian-governments-have-a-long-history-of-trying-to-manipulate-the-abc-and-its-unlikely-to-stop-now-110712 | access-date=15 June 2021}}</ref> with particularly deep cuts in 2014 under the [[Turnbull government]],<ref>{{cite web | last=Yussuf | first=Ahmed | title=Turnbull confirms $254 million cut from ABC funding | website=ABC News | date=19 November 2014 | url=https://www.abc.net.au/news/2014-11-19/abc-funding-cuts-announced-by-malcolm-turnbull/5902774 | access-date=15 June 2021}}</ref> and an ongoing [[indexation]] freeze {{as of|lc=yes|2021}}.<ref>{{cite web | last=Duke | first=Jennifer | title=Was the ABC's funding cut? | website=[[The Sydney Morning Herald]] | date=16 August 2020 | url=https://www.smh.com.au/national/was-the-abc-s-funding-cut-20200814-p55lvr.html | access-date=15 June 2021}}</ref><ref>{{cite web | last1=Wake | first1=Alexandra | last2=Ward | first2=Michael | title=Latest $84 million cuts rip the heart out of the ABC, and our democracy | website=The Conversation | date=24 June 2020 | url=http://theconversation.com/latest-84-million-cuts-rip-the-heart-out-of-the-abc-and-our-democracy-141355 | access-date=15 June 2021}}</ref> The funds provide for the [[ABC Television (Australian TV network)|ABC's television]], [[ABC Radio (Australia)|radio]], [[ABC Online|online]], and international outputs, although [[ABC Australia (Southeast Asian TV channel)|ABC Australia]], which broadcasts throughout the Asia-Pacific region, receives additional funds through [[DFAT]] and some advertising on the channel.<ref>{{cite web | title=ABC Services in the Asia-Pacific | website=About the ABC |first= James|last= Spigelman| author-link= James Spigelman| date=8 December 2014 | url=https://about.abc.net.au/speeches/abc-services-in-the-asia-pacific/ | access-date=15 June 2021}}</ref><ref>{{cite web | last1=O’Keeffe | first1=Annmaree | last2=Greene | first2=Chris | title=International Public Broadcasting: A Missed Opportunity For Projecting Australia's Soft Power | website=[[Lowy Institute]] | date=10 December 2019 | url=https://www.lowyinstitute.org/publications/international-public-broadcasting-missed-opportunity-projecting-australia-s-soft-power | access-date=15 June 2021}}</ref>

In France, government-funded channels carry advertisements, yet those who own television sets have to pay an annual tax ("la redevance audiovisuelle").<ref>[http://www.minefi.gouv.fr/paca/minefi_relais_sociaux/impots/fiche21.html Ministry of Finance] {{webarchive |url=https://web.archive.org/web/20070501212316/http://www.minefi.gouv.fr/paca/minefi_relais_sociaux/impots/fiche21.html |date=1 May 2007 }}</ref>

In Japan, [[NHK]] is paid for by license fees (known in Japanese as {{nihongo| reception fee |受信料|Jushinryō}}). The broadcast law that governs NHK's funding stipulates that any television equipped to receive NHK is required to pay. The fee is standardized, with discounts for office workers and students who commute, as well as a general discount for residents of Okinawa prefecture.