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March 2nd, 2011 by Nikki

Channel 6 and the tale of local TV

From The Drum: Wed 2 Mar 2011

New national TV network: Bidders confirmed so far

Nine groups have so far confirmed themselves as bidders to run Jeremy Hunt’s new national television network. Here are the runners and riders…

Local6
Headed by ex-Channel 4 chairman Luke Johnson and former BBC and ITV executive Paul Jackson. It is the latest group to throw its hat into the ring and proposes rolling out 17 local stations in London, Birmingham, Manchester, Leeds, Glasgow, Norwich, Cambridge, Bristol, Belfast, Southampton, Reading, Cardiff and Swansea.

Cube Interactive
Already holds a local digital TV licence for Cardiff and Newport and wants to launch a Welsh TV network.

City TV Broadcasting
Birmingham-based bidder led by Debra Davis, a former director of public affairs and communications at Birmingham City Council. Aims to run five local TV licences and claims it will create 60 jobs.

Channel 6
The first bidder to go public and the most vocal. Its boss Richard Horwood, a former Mirror Group chief exec, claims his network would offer the biggest boost to independent production “in 30 years”. Has partnered with Sunderland and Cardiff universities to deliver local services.

Inclusive Digital
The consultancy owned by Nigel Dacre that would like to form a bidding consortium. Dacre was involved in the News 3 consortium which would have run regional news in the Tyne Tees and Border region had the plans not been scrapped by Hunt in favour of the new TV network. 

Local TV Group
Chaired by former BBC director general Greg Dyke. Proposes a network of upto 80 stations servicing less obvious cities that might otherwise miss out.

Tinopolis
Owns Question Time production company Mentorn and was one of the bidders to run local TV services under the doomed Independently Funded News Consortia pilot.

Scottish Television Network
Is keen to run eight local stations across Central Scotland and a further six smaller stations covering the Highlands and Islands.

Element Television
Management includes Caroline Bailes who was involved in forming local Manchester TV service Channel M. Would take a digital approach to forming the network, giving smaller towns and villages the opportunity to be involved.

  

In Little Orchard’s experience…                                 

Of course, having worked for Channel M in Manchester, and as anyone who has ever worked for a commercial TV broadcaster will know, running a local or City TV station is not so much about how cheap you can make the TV programmes – but how accurate you can measure the viewing audience. All commercial TV stations get revenue from advertisers (you only have to see ITV’s executive jumping for joy over today’s news that ad revenue is up to know that). Advertisers – and importantly media buyers - reply on audience figures to work out the costs involved and whether a channel’s airtime is worth buying. 

This was the issue for Channel M. It could NOT prove its audience figures so the national and big brand advertisers stayed away. Leaving local businesses to cheep TV ads. Of course, Mr Hunt would argue that allowing small local business access to cheap TV ad production and airtime was all part of the plan. 

So which of the above runners and riders are the most likely to win the franchise and get it right this time? Watch out for those with solid commercial advertising experience. Channel 4? Channel 5? ITV? 

 
 
 

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