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Media Industries

Commercial funding: advertising, subscription and freemium models

  • 3 things to know
  • Components 01 and 02

Overview

Recall questions on advertising and subscription funding, the audience as product, freemium models and microtransactions, mixed advertising and subscription tiers, paywalls, product placement and sponsorship.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Process

How does an advertising-funded model work?

Key term

What is meant by saying that in advertising-funded media the audience is the product?

Key term

Define subscription funding.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define commercial funding.

    Model answer

    Commercial funding pays for media through the market, by advertising, subscription, sales or sponsorship, with the aim of returning a profit to owners.

  2. 2

    How does an advertising-funded model work?

    Model answer

    The content is given away or sold cheaply, and the real customer is the advertiser, who pays for access to the audience that the content assembles.

  3. 3

    What is meant by saying that in advertising-funded media the audience is the product?

    Model answer

    The organisation's saleable asset is audience attention and data, which it packages by demographic and sells to advertisers.

  4. 4

    Define subscription funding.

    Model answer

    Subscription funding charges the user a recurring fee for continuing access to a service, publication or catalogue.

  5. 5

    How does subscription funding change the kind of content commissioned?

    Model answer

    With no advertising breaks and a need to retain members, services commission distinctive, bingeable series for loyal niches rather than chasing the largest instant audience.

  6. 6

    What is a freemium model?

    Model answer

    Freemium gives basic access free of charge and charges for premium features, extra content or the removal of advertising.

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Contexts of Media
Media Language
Media Representations
Media Industries

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The Video Recordings Act .
198419741994

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AAudiences inside the country judge it against lived knowledge.
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The Big Issue was founded in 1991.
TrueFalse

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