[comtv-l] Culture Secretary Jeremy Hunt backs local TV stations

[CMA-L]

Source: http://www.bbc.co.uk/news/uk-politics-11424065

Culture Secretary Jeremy Hunt is set to call for a new "landscape of
local TV services" around the UK.

In a speech later, he will set out his vision of stations
"broadcasting for as little as one hour a day".

He will say an expansion of superfast broadband and the easing of
rules on owning local newspapers, radio and TV will help encourage the
enterprises.

A report says advertising alone will not be enough to support the
stations, but corporate sponsorship might work.

Nicholas Shott, of investment bankers Lazard, was commissioned by Mr
Hunt's department to investigate the local TV proposals.

His interim report suggests a multimillion-pound corporate sponsorship
deal could be one way to make them work, citing Barclays' backing of
the London bicycle scheme as an example.

In a letter to Mr Hunt, Mr Shott said the TV stations were more likely
to succeed in urban areas, but even there "the economics of a TV
business funded mainly by advertising will still be challenging" and
"additional revenue sources" would have to be explored.

He added that stations could be hosted by existing channels, and
discussions had started with senior management at the BBC which were
showing "early promise".

BBC media correspondent Torin Douglas says Mr Hunt has long believed
British TV is too centralised, lacking the local stations found in the
US and mainland Europe.

Mr Hunt has not convinced most media executives, who doubt local TV
can flourish here, particularly since the recent slump in advertising,
our correspondent said.

But the minister is said to think future generations will find the
idea that the UK cannot sustain local TV 'quaint'.

In his speech to the Royal Television Society in London, Mr Hunt is
expected to set out his vision of the local TV services, broadcasting
via digital TV or broadband, and free to link up with each other to
cut costs and appeal to national advertisers.

A BBC spokesman said: "We are exploring potential ways in which the
BBC could support the planned new local TV services, and partner with
them where this makes sense for licence fee payers and sustaining
plurality in news provision."

Source: http://www.bbc.co.uk/news/uk-politics-11424065

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