On the 11th Jan 2012 TV2 in Denmark became a pay TV channel. The aim being to avoid cyclicality and uncertainty of advertising revenues when doing long term planning, although advertising will remain a substantial part of revenues.

The emerging view that broadband enabled TV sets will accelerate the shift from linear TV to true on demand TV, leading to the demise of TV channels and an atomisation of schedules is misleading. While there will be some shift from linear TV schedules to on demand play lists, current evidence from homes that have access to on demand content suggests linear channel based TV still has a lot of life left in it. Furthermore, by focusing upon on demand TV programmes’ total share of viewing people, the industry may have missed the most important implication of connected TV – the changed nature of the engagement with audiences and advertisers.

The interim report from the Shott Review, set up by Secretary of State Jeremy Hunt, has come to conclusions similar to those of Ofcom – the economics of local TV in the UK, even in the largest urban areas, look precarious at best.
However at O&O we believe that despite challenging economics, truly local TV can start to develop in the UK without the need for direct government support if we drop preconceived notions of what it might look like, how it might be delivered and who might end up providing it.