[comtv-l] Local TV plans will require more funds

[CMA-L]

Source: http://www.bbc.co.uk/news/uk-scotland-11421632

UK government-backed plans to set up local TV stations without subsidy
will be "technically and financially challenging", according to a
report.

The study said advertising revenue might be insufficient and some
areas might require more transmitters.

Culture Secretary Jeremy Hunt is expected to outline plans to overcome
some of the obstacles to local TV.

It is understood he will remove rules preventing the same company
running newspapers, TV and radio stations.

Scotland has already seen failed attempts to establish local TV
services, such as Lanarkshire Television a decade ago.

The outgoing Labour government had wanted to use public money to
maintain regional news on STV and ITV1, but this scheme has since been
scrapped.

Nicholas Shott, of investment bankers Lazard, who was charged by the
culture secretary to investigate the new proposals, said a
multi-million pound corporate sponsorship deal could be one way to
make it work.

In a letter to Mr Hunt, he said the 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.

Mr Hunt is expected to welcome the report during a speech to the Royal
Television Society at the Barbican Centre in London.

He is expected to say: "My vision is of a landscape of local TV
services broadcasting for as little as one hour a day.

"Free to affiliate to one another - formally or informally - in a way
that brings down costs.

"Free to offer nationwide deals to national advertisers."

He will add that they should be able to piggyback existing national
networks and able to exploit the potential of new platform
technologies.

Source: http://www.bbc.co.uk/news/uk-scotland-11421632

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