Finances (LO1)

Revenue: A term used within a business to refer to income (money coming into the company).

Profit: A term used within the business to refer to the money made after paying for costs.  All money exceeds the costs. 

Revenue Stream: Ways in which the company is making money.

Sponsorship – Money is paid by other organisations for their brand to be associated with final media production.  This can involve placing a brand name or logo on the final product, such as telling the viewer who a programme is sponsored by. Sponsors may also receive other benefits for their support (e.g. free access to or copies of the product).

Crowdfunding –   The product or idea is promoted via social media networks (such as Kickstarter).  It is then funded by public contributions. Contributors may be offered some benefit for their contributions (such as early access or exclusive material). It can be used for projects or ideas conceived by amateurs or professionals.

Corporate finance – Raising money from businesses willing to invest in a project.  The company must be convinced that they will receive more money back in the long run from their investment.  Investment returns are measured over long timeframes, such as ten years for films.

Advertising – Monetary payments from brands and organisations in return for the placement of promotional material on pages or during production (e.g. adverts displayed on a webpage or in a printed product).  This includes product placement (when the effects of advertising brands are placed within the media product, such as a phone brand appearing in a scene on a TV show).

Franchising - The intellectual property of the original product is licensed to other partners for commercial use, such as merchandising.  The licence is granted in return for a fee and/or a percentage of the merchandise revenue.

Staffing – Director, camera operator, editor (possibly also costume designer), min 4 actors.

Premises/Location – renting/accessing a location (not always a cost involved)

Legal fees – music etc.

Transport – getting to the location you’ll film and petrol costs.

Resources – Realistically, you’d have cameras, but looking up these costs, boom mics, and anything else you can think of is worth looking up.  

The same goes for the website; you’d have the software for this.– Director, camera operator, editor (possibly also costume designer), min 4 actors.

Premises/Location – renting/accessing a location (not always a cost involved)