[cma-l] Channel 6 keen to run local TV services

[CMA-L]

Mark Sweney, Wednesday 2 February 2011 10.42 GMT
Source: http://www.guardian.co.uk/media/2011/feb/02/channel-6-bid-local-television/

Channel 6, the company run by former Trinity Mirror chief executive
Richard Horwood, will bid to run the proposed new national TV network
that will form the "spine" for culture secretary Jeremy Hunt's plan to
deliver local news services.

Horwood, who since December has indicated that Channel 6 was likely to
submit a bid, has been one of the few voices offering unqualified
support for Hunt's local TV plans.

Last month Hunt unveiled proposals for a new national TV network that
will initially launch on digital terrestrial TV and called for
expressions of interest to run the service by 1 March.

Channel 6 said that under its plan a network of about nine local
affiliates will launch off the back of the national Freeview network –
as well as on cable and satellite, if Hunt can hammer out an agreement
with Sky and Virgin Media – by 2013.

Horwood said that the plan, which has been "fully costed by industry
experts", will see the network of local TV stations reach 39 by 2017.

He said that Channel 6 believed that it is possible to deliver
services to areas that have more than 200,000 homes with levels of
local programming of "maybe two hours a day in the largest cities down
to around 15 minutes in less populated areas".

"Channel 6 will be entirely funded by advertising, with the initial
investment from our national and local partners – we are not asking
the government for a penny of subsidy," Horwood said. "The support of
a dedicated national network to share costs, maximise advertising
revenues, and deliver an attractive schedule outside local service
opt-outs is the only way proven to achieve this."

Hunt has said he will investigate whether "must carry" obligations on
BSkyB and Virgin Media are an "appropriate" measure to ensure the
widest reach possible for the new channel. Hunt intends to use
legislation to ensure that the new Freeview channel secures a slot
high up on digital TV electronic programme guides.

In a report to Hunt from a group chaired by Lazard, investment banker
Nicholas Shott forecast that a network of 10 local TV services would
have a combined annual cost base of around £25m. About £5m in revenue
would come from local advertising and a further £15m from national
advertising.

In the BBC's licence fee settlement the corporation committed to
providing start-up capital costs of up to £25m in 2013-14 for up to 20
local TV services and up to £5m a year for ongoing funding for three
years to acquire local TV content.

Mark Sweney, Wednesday 2 February 2011 10.42 GMT
Source: http://www.guardian.co.uk/media/2011/feb/02/channel-6-bid-local-television/

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