[comtv-l] Shott Review of economics of local television – why not use the web?

CMA-L cma-l at commedia.org.uk
Tue Aug 10 13:37:36 BST 2010


Source: http://talkaboutlocal.org.uk/shott-review/

August 9th, 2010  |  Published by william perrin in Blog

The Secretary of State has asked Nicholas Shott a media financier to
review the economics of local TV for him. I am seeing Mr Shott today
at his request (Monday 9 August 2010).  I presume I have been asked as
an exponent of the local web as a source of news, information and
entertainment (although I have a wider background in broadcast
regulation declared at the end of this post).  This rather hurried
post (now tidied up a bit) has been submitted to the Shott team as
written evidence.

For me the overarching question is why do local video programming on
TV rather than the internet? The internet does almost everything that
small audience local TV can do but far cheaper and more flexibly.

I am grateful to Nick Booth a former regional BBC TV producer and now
leading light of the grass roots internet in Birmingham for talking
this through – his constant repetition of ‘why not the internet?’ was
most helpful.

The amount of information about the secretary of states thinking is
limited to a couple of speeches. So I have made some working
assumptions about his views and the state of the market – these are
all open to challenge of course:

    * The audiences for a new local TV channel with limited marketing
resources will be small.
    * Democratic accountability in a big society with power devolved
to neighbourhoods is a public good the Secretary of State seeks to
acquire, but no others
    * There is a willingness to look at all fundamentals of regulation
– eg news, content, technical standards
      Regulatory concessions to increase revenue are limited in scope
and impact (eg DTTV EPG positioning)
    * The Parry vision of ‘multimedia’ stations is secondary to the
desire to do ‘television’ – i.e. electromagnetic transmission of
moving pictures for simultaneous reception in multiple dwelling places
    * Media ownership laws will be changed to allow local newspapers
or radio companies to own local TV stations
    * Approximately 80 transmitters covering about 90% of the
population are in play for local TV, not the thousands of small
repeaters.

In summary form against this background here is a list of issues,
questions and observations:

Why use television as a medium of transmission at all? What does using
television as a medium of transmission add that the internet can’t do
at a fraction of the cost? The normal pro-TV argument of mass
simultaneous audiences reaching millions of eyeballs doesn’t wash for
these tiny local stations. Audiences will be small, easily manageable
in YouYube or Vimeo without an expensive playout facility. Although up
to one third of the population isn’t online it is hard to make a case
that these predominately elderly, poor C2DEs sadly of little interest
to advertisers will form the backbone of a successful commercial
television enterprise. Nor that new local TV stations will suddenly
make content to appeal to them.

TV is not local – an MP for instance would never consider a citizen’s
business to be local if it was in another MPs constituency – yet even
the smallest transmitter area will cover many constituencies. TV is
national, regional or slightly sub regional.

For small audience local TV there is no need to regulate news in the
traditional way. The local internet and local papers can drive
plurality. The TV audiences will be so small the old ‘regulate the
powerful news oligopolies argument’ fall away. Most hyperlocal
websites in the UK are studiously balanced and demonstrate marvellous
public service without regulation and importantly without a profit
motive – they are mainly volunteer run. Sadly the commentariat rarely
looks beyond the ranting political blogs and newspaper discussion
forums.

The footprint for any of the 80-odd transmitters is orders of
magnitude too large for a real big society impact. I have a long track
record of grass roots campaigning and activism, using the web to drive
more effective traditional campaigns and spread news and information.
London’s local TV has been of no use to me in this – the area covered
is too big, it’s too time consuming for a volunteer to engage with the
palaver of TV and their understanding of neighbourhood issues is weak.
 The big society is mainly about grass roots activism in a
neighbourhood e.g. my square mile – some communities such as a valley
or hilly area might theoretically benefit from access to their local
repeater for broadcast. But it would be far cheaper for them to do
video on the internet (say a $50 Vimeo Plus account or YouTube for
free and a £130 Kodak HD flip style camera, £20 mic) or, more
practically use a simple free website in wordpress.com.

Birmingham UK v Birmingham Alabama is often used as an example.
Birmingham UK has a superb set of local, volunteer run grass roots
internet media covering news, entertainment, events and culture.
Excellent stimulus of this scene by Screen West Midlands has played an
important role. This web scene surpasses anything local TV has ever
produced in the UK. Against the background of the excellent local new
media scene the Birmingham proposals for CityTV look tired and dated.
If you start with the internet, instead of TV low cost public service
models are apparent.  The internet is a better alternative to local tv
for local public service content. Working with Aquila TV, Paul Hadley
Stoke news site PitsnPots and others, talk about local conceived a
grass roots, low cost public service model, featuring video that could
work in a city like Birmingham, particularly if attached to an
existing media company such as a newspaper.  Lacking resources we have
sketched it out as follows:

    * Create a small not for profit – either a CIC or a trading arm of
a civic charity. Appoint a Controller – someone with a broad social
media background – to run a website, monitor news feeds and commission
simple news coverage 9-5 and run a team of volunteers. The Controller
would be the only full time employee.
    * Create a simple robust framework website using say wordpress or
drupal with some cheap hosting – it will only need to cope with
several thousand uniques per day, the costs should be trivial.
    * Create a simple public service charter like the Dogme
Manifesto/vow of chastity – a set of principles not detailed rules
that content on the site has to abide by.
    * Public service video mainly has to be paid for – it is too time
consuming and fiddly for people to create themselves for nothing.
Start to ‘commission’ video from local practitioners on a daily basis,
using an approach based on content farming:

    ‘Cllr Miggins has said/done something controversial £100 for the
first video interview up in YouTube of either Cllr Miggins or someone
affected putting their point of view.’

    * The video is then embedded in the site – the number of videos
commissioned per day would obviously be determined by the budget
    * In Birmingham at least there is plenty of public service content
being produced for free – there already is a rich online subculture
that can be tapped into. The controller scours the local internet for
text and images about things happening in the City, builds
relationships with the authors and embed them in the site and in
general curate local content. If the relationship is handled right and
the project is generally non commercial people value the recognition
and the shop window effect. The Guardian local websites in Cardiff,
Edinburgh and Leeds are similar to this approach but without paying
for video contributions.

Of the hundreds of good local websites in the UK very few regularly
use video to tell stories. The weak track record of video in local
newspapers also illustrates that in a constrained cost environment you
don’t always need video to tell a story and hold people to account.
Indeed one only rarely absolutely requires it – unless of course you
run a TV station in which case you are locked into a high cost method
of telling story.

Britain has vast regional film and video archive resources that can be
deployed if archivists charge a realistic price as a public service
(ie the marginal cost of digitisation which should be close a zero)
and digitisation is done in an economic way – see Swindon Viewpoint’s
superb home brewed online local TV archive.

There is a tension between sinking money into a few hours a day of
video in a metropolitan area and using the same or smaller resource to
provide or curate a full suite of content – video, audio, images, text
on the internet. The local and national interests would be better
served by the latter.

People don’t turn to TV for the sort of information they need locally
–and haven’t done since the heady days of teletext. They turn to
newspapers and the web.

Public service news done in the traditional British broadcast way is
too expensive for local TV, as GMG Manchester experiment demonstrated.
The IFNC process also showed that traditional British broadcast public
service news providers are incapable of thinking outside of the
regulatory box. New-ish entrants such as Ten Alps, PA, UTV and
Tinoplis were by far the most promising. Alex Connock’s article on the
similarities between commercial radio and local tv remains the best
insight do far. It’s notable that ITN did not win any of the packages.
The further one gets away from London the better the thinking gets.

Newspapers have not been able to demonstrate that they can
consistently make useful video news that adds value or that people
want to watch. Newspapers made a strategic mistake in ‘seeing-off’ the
BBC in local news they now have little good video content they can
run. The BBC is now uncharacteristically cowed in this space. However,
the BBC does not do local news – it does regional news, as its flawed
proposals for video showed. The sadly neglected BBC local radio
provides a better model for local public service TV.

Technical quality can be reduced to save money. Engineering-led
arguments about video production ‘quality’ are spurious – if technical
quality were important to viewers no one would be watching YouTube.
The Evolution of Dance has been watched over 300million times – yet
the clips ‘production values’ are awful to the extent it is hard to
see what is going on. The Dogme movement in film showed the huge
potential of getting back to basics in filming and production.

Declarations: Elsewhere I have been involved in TV regulation on and
off over the years – i was one of the authors of the 2000
Communications White Paper and the 1996 Broadcasting Bill and one of
Tony Blair’s media policy advisors from 2001-2004. I appointed by the
last government to the IFNC panel.  I now run talk about local, a
business that trains people in deprived communities to produce local
websites as a public service funded by Channel4 through 4IP and Screen
West Midlands.  I have a long history of local activism in London’s
Kings Cross set up Kings Cross TV as a joke/experiment one afternoon
in 2008.

Source: http://talkaboutlocal.org.uk/shott-review/


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