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<ul><li> 1. A new future for Local TV in the UK?<br />Kate Stross, Ofcom Director of Content<br />Lokalrundfunktage 2010, July 7th 2010<br /></li></ul> <p> 2. A new vision for local television<br />I have long believed that the lack of high quality local TV is one of the biggest gaps in British broadcasting.<br />Jeremy Hunt MP, Secretary of State for Culture Media and Sport<br />8 June 2010<br />1<br /> 3. The starting point<br />2<br />2<br /> 4. The existing channels<br />Wholly commercial channel owned by Guardian Media Group. Now on digital terrestrial, cable and satellite. But programme plans significantly scaled back in 2010<br />Community model supported by grants from regional and educational bodies. Mix of professional (mainly freelance) labour and volunteers. Emphasis on training <br />Privately owned channel aimed mainly at ethnic Asian community in Leicester. Strong links with broadcasters in India to source content<br />Small scale service run on semi-amateur basis. Contains local news and sport.<br />3<br />3<br /> 5. Why has local TV not developed further in the UK?<br />No public subsidies available for local TV <br />Thriving local media sector dominated by newspapers and local radio<br />Scarcity of suitable analogue spectrum for local TV and low level of take-up for cable alternatives<br /> Restrictions on local TV licences - short terms and low-power transmissions<br />4<br /> 6. UK has well-developed system of regional TV<br />Map of ITV TV regions<br />Map of BBC TV regions<br />5<br /> 7. High quality regional TV supported by PSB compact for commercial licensees<br />Near monopoly in TV advertising made ITV regional franchises a licence to print money (attrib. Lord Thomson of Fleet 1958)<br />Broadcasters competed to win licences by making significant public service commitments including regional programming<br />But resulting public expectation of high quality TV programming may have harmed prospects for low-budget alternatives<br />6<br /> 8. Digital TV and the internet have changed the economics for ITV<br />Millions<br />Ranges between higher and lower values based on current best estimates<br />Cost Benefit of PSB status for the Channel 3 network<br />Source: Ofcom<br />7<br /> 9. Consumers value local and regional content especially news<br />% sayinglocal and regional contentis very important - weekly users<br />Scores based on respondents importance rating 9/10 on a scale of 1-10.Source, Ofcom research PSB Review2008/9<br />8<br /> 10. The emerging ambition<br />By 2015, credible city-based local network of stations established and broadcasting news and other content on television and online<br />Content produced and broadcast on a commercially sustainable basis<br />News and content relevant for local audiences contributing to plurality and democratic purposes<br />Community engagement and contribution to media skills and training<br />9<br />9<br /> 11. The economics for fully commercial local TV are challenging<br />Only London and Manchester could support stand-alone commercial stations in UK advertising conditions (based on achieving a 1.5% audience share)<br />Cumulative loss for all 15 cities is (2.8m)<br />Source: Oliver &amp; Ohlbaum study for Ofcom<br />10<br /> 12. Local TV could develop in the UK in a number of ways<br />Usingcapacity on an existing or new DTT multiplex<br /></p> <ul><li>Digital capacity could be reserved by Government for a UK-wide local TV network 13. Localservices could be inserted into a nationwide channel</li></ul> <p>Usingnew spectrum made available by digital switchover<br /></p> <ul><li>Broadcasters could obtain their own local broadcast spectrum either by auction or by reservation 14. Opportunity to develop local multiplexes carrying a number of services</li></ul> <p>11<br /> 15. Television regulation measures that might improve prospects for Local TV <br />12<br /> 16. Other factors which could help <br />13<br /> 17. Next steps..........<br />Over the next 12 months Government will examine the economic, technical and regulatory measures, costs and consequences of the various options<br />Government has already appointed an independent advisor to build the economic case for Local TV <br />Ofcom will provide specific technical and regulatory advice, including in relation to:-<br />Spectrum issues/DTT capacity issues<br />Content regulation<br />Licensing<br />14<br /> 18. Kate Stross, <br />Ofcom Director of Content<br />15<br /></p>