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

[Clive Glover]

I don't quite understand this. Will the BBC really be providing start up and ongoing funding for a network of advertising supported local TV stations?

Clive Glover

On 2 Feb 2011, at 11:51, CMA-L wrote:

> 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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