Local TV in the UK

Oli Bird Head of Licensing Policy, Ofcom, UK Lokalrundfunktage, Nürnberg, 8 July 2014

Recent local TV developments in the UK

Up to 2010 Restricted Service Licences

2010-2011 New Government initiative

2011 Final policy and new legislation

2012 Ofcom given new powers 2012 onwards Ofcom awards the local TV licences

Current status 28 local licences awarded plus mux licence; five services launched so far

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Up to 2010… ‘The old Local TV’

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• Local TV in the analogue era

• Restricted Service Licences and spectrum licences – Limited geography

• Up to c.20 channels operating at some point – But none for long periods, or with great success

• General scepticism. National or regional scale seen as necessary for successful TV broadcasting

2010

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Birmingham Alabama 8, Birmingham UK 0

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Is it really 8 stations?

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US local TV advertising market is 12x larger per capita...

2010-11: How to create local TV?

• Platform

• Industry structure

• Capital costs

• Discoverability

• On-going revenues

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2010-11: How to create local TV?

• Platform – DTT (most popular platform, free-to-access) – Opportunity to use ‘interleaved’ spectrum (squeezed in

between national TV multiplexes)

• Industry structure – Three options:

• National ‘spine’ channel with local opt-outs – (not local enough)

• Completely independent local broadcasters – (not co-ordinated enough)

• So: single multiplex plus local channels 8

2010-11: How to create local TV?

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• Capital costs – BBC funding agreed in Government settlement

• Up to £25m to build-out the network

• Discoverability – EPG prominence for local channels (like PSBs)

• On-going revenues – BBC funding agreed (purchasing news content) – Benefit from EPG prominence – Regulatory relaxation to permit more advertising – For multiplex: capacity for two commercial services

2012: Implementation Ofcom’s role:

• Licensing authority: awarding multiplex and local

licences;

• Regulator, e.g. local content;

• Continuing policy work and programme management

2012: Implementation How are local licences awarded? Beauty contest based on:

• Meeting needs of the local area;

• Broadening range;

• Increase range of programmes about the local area;

• Ability to maintain service

Content regulation

• Local regulation through ‘Programming Commitments’:

• Drafted by applicants, written into licence

• 250 word summary of service • Hours of local programmes

• Advertising regulation: no limits on minutage where the

service is available only within the UK

• Otherwise, usual TV broadcasting regulation applies

Current status

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• 28 services licensed

• Five launched – Grimsby – Norwich – London – Nottingham – Glasgow

• More to come!