Local TV services run by newspaper publishing groups could be established in up to 12 of the UK’s biggest cities, according to a report published today.
Banker Nicholas Shott has issued his final report into the viability of Culture Secretary Jeremy Hunt’s plans for what he orginally hoped would be a network up to 60 local TV stations.
Mr Shott, who had earlier cast doubt on the viability of local TV as a business model, said local TV would not be financially viable in rural or sparsely populated areas.
But he recommends the establishment of 10-12 local TV services in the biggest conurbations, although his report does not identify any particular locations.
In his report, Mr Shott said the channels would be mainly funded by national advertising and would provide up to two hours of local content each day.
Other content would be provided by what the report calls a “national backbone” broadcaster, which would be 51pc owned by the local providers.
According to the report, the services would initially be delivered on digital TV to allow them to grow market share, but in the longer term could be delivered via the internet.
Mr Hunt has asked Ofcom to remove all cross-media ownership rules at local level, paving the way for regional newspaper groups to own the new services.
Mr Hunt said: “I am incredibly grateful for the energy and rigour that Nicholas Shott and his steering group have put into the local TV review.
“I am considering his report carefully, which gives us a solid foundation to take forward the necessary steps to bring about local TV in the UK. I will publish a plan early in the new year setting out those steps.”
Mr Shott said in his report: “As stated in the interim report, local TV will not be financially viable in sparsely populated rural areas. It may however be possible to sustain 10-12 local TV services around major conurbations.”
He estimated that the combined costs of the stations would be around £25m, of which £15m would be met by national advertising, around £5m by local advertising and £5m by the BBC acquiring some of its content.
He said: “Local advertising revenues could exceed £5m per annum, especially if local services were helped in this endeavour by the involvement of local media operators.”
“Alignment of existing local media operators is likely to help reduce costs through shared resources, for example journalists, and facilitate access to local revenue sources.”
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It’s been tried before of course….remember the Liverpool Echo’s service jointly owned (if memory serves) with DMGT? Channel 1, I think it was called. Just a huge money pit, I reckon.
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Yaaaawwwnnn … It will all be done to the back drop of a ‘busy newsroom’ and by under-trained and under-talented staff. I despise the BBC gravy train, but at least they do things properly. My old North East (ish) paper used to run bulletins every day, fronted by some keen but clueless youngster. On the net of course. Eventually everyon got so fed up it fizzled out. What an utter farce of a proposal that, sadly, will probably be embraced by the kind of person in regional papers that thinks trying is good enough, despite the inherent problems with an idea. Let’s hope this never sees the light of day or else savvy punters will see it as another reason to avoid the increasingly bad and irrelevant regional press.
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In Manchester, city tv was a complete failure – even with the weight of the MEN behind it. Neither advertisers or viewers took to it. Forget it…..put the money into properly staffing struggling local newspapers instead!
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Northernhack is right – don’t forget this has already been tried in Manchester. What’s going to be the difference that’s going to make it a success?
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A banker giving advice. Come off it.It works in america. I worked for the CBS affiliate in Miami. It could work here, if thought out properly. London should be the first port of call. the Government must not price it out of the market by charging for the rights etc.
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