Kate Bulkley, Media Analyst.

Media Money: Can SMG make it as a regional broadcaster?

By Kate Bulkley

Broadcast News

For Broadcast August 06, 2008

The nationalist government in Scotland has been in place for about a year and as far as SMG boss Rob Woodward is concerned, Scotland will become increasingly devolved, creating an opportunity for SMG to become a sort of super Scottish media company.

He wants to focus it on Scottish programming, including more Scottish national and local Scottish news, a Scottish online portal and, if all goes according to plan, a new Scottish archive channel.

When Woodward took the helm at SMG 16 months ago, he took a big broom to the business, disposing of marginal business (such as Virgin Radio) and cutting staff numbers. Phase two is now about expansion in broadcasting, programme-making and online, and to make it Woodward is asking for support and concessions from government.

He wants public money to underwrite Scottish news programmes and a further £15m of public cash for a new Scottish Gold channel, featuring the best of STV and BBC Scottish archive programming. And he wants government to give the channel a DTT frequency.

He also wants SMG (soon to be renamed STV) to be given independent producer status outside Scotland, making it easier to pitch to the BBC. Such a change could add 30% to SMG's content-making business, according to Woodward, and make the company less dependent on broadcasting and, specifically, less dependent on ITV.

That last bit is the most interesting subtext of all this. SMG runs the Scottish ITV franchise, but Woodward wants to emphasise its separate identity and broaden its business. I see conflicts ahead, namely over SMG's online portal (stv.tv) which could appeal to Scotland's 4.5 million TV viewers more than itv.com.

There may be friction ahead for Woodward's plan, but like Scottish devolution itself, a more separate, more Scottish and more diversified SMG looks all but inevitable.

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