Wannabe reckons it can broadcast local telly for free
Someone else will pay, we're sure of it
Regcast training : Hyper-V 3.0, VM high availability and disaster recovery
One of the contenders for the licence to run the transmission network for the UK's Local TV stations has publicly boasted it can do it for nothing.
Media biz Canis set up Comux to bid for the licence and will hand it over to small telly stations, once Ofcom has chosen them, enabling the business to run as a cooperative. Local TV is the coalition government's attempt to squeeze 20 small-area TV stations into the White Space gaps of unused radio spectrum in an effort to create "communities".
Without having to make a profit Comux plans to fund the whole operation though the sale of spare capacity, and believes the sale of two broadcast channels will raise enough cash to return dividends to the Local TV operators.
The BBC will stump up £25m to pay for the initial Local TV infrastructure, the contract for which will almost inevitably go to Arqiva (which has a virtual monopoly on UK broadcasting technology). The job of awarding that contract is still up for grabs – though Comux could end up competing with both Arqiva and the BBC for the privilege.
The BBC has confirmed that it's thinking about bidding, and Arqiva has put a bid together, but nothing will be official until the Monday deadline for submissions passes, which is perhaps why Comux has decided to go public ahead of time.
Arqiva will only be interested if there's money to be made: it’s a private company with investors to support. Likewise the BBC will look to turn a profit on the deal by billing the Local TV franchises for transmission, so both could be intimidated into dropping their bids by the assertion that it could all be done for free.
That assertion is based on the premise that Comux can rent out the two spare channels which will become available in each of the 21 areas covered by Local TV at launch. The Local TV operators will be selected in a beauty contest, largely based on Ofcom's faith in their commercial sustainability, which will only be enhanced by Comux's decision not to charge them for transmission.
We asked Comux who exactly is interested in filling these two additional channels, and were told that companies were "bashing down the door" for access to the airwaves. This is all the more remarkable given the BBC's insistence that its £25m not be spent transmitting pornography, psychic chat services, or anything involving premium-rate numbers, which would seem to cut out the most-profitable niche television channels.
Assuming the door bashers come up with enough cash Comux will divide the excess between Local TV companies to cover their transmission costs, which vary based on history and geography. So a Sheffield channel could get a £147,000 dividend for every £1,000,000 that goes to Leeds, which might not sit so well with the bidders. Not that they'll have a choice, if Ofcom decides that Comux is the most beautiful bidder.
Whether the BBC and/or Arqiva will stand against them we won't know until Monday, and it will be another few years before we'll be able to say if Local TV is really sustainable in the UK. ®
COMMENTS
More Hot Air....
ITV was supposed to be local/regional, but now cannot be bothered with making local content. If there was a profit to be made they would be doing it already.
Local commercial radio was supposed to be local, but again, they pretty much cannot be bothered to do anything local as there is little profit to be made. The smaller local stations that do produce local content are on a financial knife-edge and often rely on volunteers.
We had local TV experiments during the 90's in the form of RSL channels. Most went under after a year or so when the money ran out. A few clung on for 4 or 5 years but eventually they all went down the tubes.
People are not interested in local content. All they want is East EmmerStreet or whatever. Local newspapers are not exactly a roaring business either.
If anyone wants to run local content, then start a U-Tube channel on the interwobble..... It's even cheaper.
Another few years till we know if it's sustainable?
Or another few years to confirm what most already believe?
IT infrastructure monitoring strategies
Requirements Checklist for Choosing a Cloud Backup and Recovery Service Provider
Data control in the cloud
Cloud based data management
Agentless Backup is Not a Myth
