Johnston Press chief: Local TV network should not get public money

Johnston Press chief executive John Fry said today he is "uncomfortable" with the idea of a long-term public subsidy for the planned £25 million-a-year local TV network.

A report by investment banker Nicholas Shott last December on the viability of new local TV services advised that subsidies would be needed to get the network off the ground, using digital terrestrial television and focusing on 10-12 city areas.

But Fry told the Westminster Media Forum in London today: "Subsidy is out of tune with the music of the times. Frankly I don't like it."

Fry added: "Despite the lower cost base, the local advertising market is unlikely to provide sufficient revenues. The funds necessary to run local TV are more likely to come from national than regional advertising.

"Subsidy might facilitate one project but could squeeze out others, reducing rather than increasing innovation."

Channel 6 chief executive Richard Horwood said any subsidies should be channeled to non-commercial, public-service programming on the new channels.

"The task we have been given is to come up with a commercial model. It does not need subsidy," he said.

"Commercial free-to-air television should be funded by advertising and only non-commercial programmes should be subsidised.

"Let's not pretend that the free-to-air TV advertising model is in trouble. There's a very healthy market out there."

Secretary of state for culture, media and sport Jeremy Hunt announced the details of the new local TV network plans earlier this month.

The initial schemes will focus on 10 to 20 local TV services, with private media providers able  to register an interest in running the network channel.

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