Local TV Poses Threats and Opportunities for Existing Local Media Providers, Seminar Told

Jeremy Hunt’s plans for a local TV network could undermine existing local media companies which provide the only effective source of local journalism, speakers at a Westminster Media Forum seminar said yesterday.

Keynote speaker John Fry of Johnston Press noted the opportunities offered by local TV but warned that government subsidies to get it off the ground “might squeeze some players out of the picture and create potentially dangerous distortions.”

Geraldine Allison of Kent Messenger Group also raised concerns over increased competition in an already highly competitive environment. Adam Foley of Starcom MediaVest said there was “no incremental [advertising] revenue whatsoever” for local TV and that is would simply cannibalise the revenues that currently go to local media or national TV budgets.

Professor Roy Greenslade told the seminar: “We have local news organisations already – let’s get behind them… There is a danger this is creating a set of organisations that are likely to stretch the organisations which are already there.”

The local press employs 10,000 journalists on the ground, underpinning local democracy by holding public bodies to account.

Professor Natalie Fenton pointed to consumer research which underlined the importance of local newspapers in print. “We were taken aback by how much people wanted a local newspaper – the physical object they could pass around. It’s really important to them.”

Other speakers included Richard Horwood of Channel 6 who said local TV should partner with local media businesses and not compete with them. Claire Enders explained how the Shott panel had reached its conclusions about the commercial viability of local TV. She added that existing local media companies were “extremely active in developing their own models.”

David Reitman of KPMG said the local media industry was responding and adapting to the challenges it faced, developing communities and exploiting the internet. “To be strong, it needs to be successful. To be successful, it needs to be profitable,” he said.

• John Fry on local TV: I don’t really like public subsidies (Press Gazette)
• Westminster Rails Against Hunt’s Local TV Vision (paidcontent.co.uk)

For further information please contact Lynne Anderson on 020 7632 7421 or e-mail lynne_anderson@newspapersoc.org.uk.