Investment banker Nicholas Shott, asked by the Government to investigate the viability of local TV, has recommended that between 10 and 12 state-supported local TV pilot stations are set up.
In addition to the £25m start-up costs being provided by the BBC, plus £5m a year, Shott suggested that the government will need to underwrite a contract with a national public service broadcaster to sell £15m a year of national advertising in to the service.
Shott identifies a number of major hurdles for local TV and admits that it will not be viable if it is dependant on local advertising alone.
