This was a recurring theme of Culture Secretary Jeremy Hunt‘s speeches while in opposition, and this week he announced that Nicholas Shott, Head of UK Investment Banking at Lazard, will “look at the potential for commercially viable local television stations within the local media landscape right across the nations and regions of the UK.”
Roger Parry – credited with much of the thinking behind Hunt’s proposals – backed the plan, seeing it as being more about local multimedia than local TV. He expected around 80 local TV stations to be made available on Freeview with a consumer-focused mix of programming (gardening, DIY, etc.) and sponsorship rather than spot advertising.
But Clare Enders (Enders Analysis) and Will Perrin (Talk About Local) were hugely sceptical of the commercial basis for a local TV market in the UK.
Enders pointed out that while local newspaper advertising was worth £2.6bn this year, £1bn of that came from classifieds – a form that doesn’t translate to TV (ITV’s previous experiments with ‘video classifieds’ was, she said, a “disaster”).
She also highlighted the vast differences between the US local TV market – where national networks support state affiliates and states have their own “separateness” – and that in the UK where, she predicted, impending budget cuts “will kill some local economies – not inspire ad growth. It will get worse.”
“[Local TV] hasn’t panned out and my goodness has it been looked at in the past couple of decades.”