Jeremy Hunt believes British TV is too centralised Culture Secretary Jeremy Hunt is set to call for a new “landscape of local TV services” in towns and villages around the UK.
In a speech to the Royal Television Society, he will set out his vision of stations “broadcasting for as little as one hour a day”.
But a government-commissioned report says advertising revenue alone will not be enough to support the new companies.
It said a multimillion-pound corporate sponsorship deal might be the answer.
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 in London later on Tuesday, Mr Hunt is expected to set out his vision of 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.
He will say an expansion of superfast broadband and the removal of cross-media rules preventing companies controlling newspapers, television and radio stations will help encourage a new wave of multimedia enterprises.
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.”
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