
At a Sky event to launch the David Attenborough film Flying Monsters, Darroch said he thought there were some good proposals in the Shott report, which suggested .
Darroch said he believed internet-enabled TV was a better route for local TV as it would allow consumers to access the service on demand, rather than rely on audience for a local news bulletin.
However, Darroch added it was "less relevant" for Sky because it is pay-TV broadcaster, the plans will have a wider impact on the public service broadcasters, ITV, Channel 4 and Channel 5.
When questioned about the ongoing attempt by Rupert Murdoch and his News Corporation to buy the 60.9% of Sky it does not already own Darroch said: "We should know by Christmas."
The European Commission has until 22 December to rule on whether to take the merger to a phase two investigation. Ofcom is also carrying out a separate investigation for business secretary Vince Cable.
The Shott report suggested public service broadcasters could promote local TV services via on screen red-button prompts, which have been referred to as the "yellow button".
Shott predicted the scheme would cost £25m a year, £5m of which could come from local advertising, £5m would come from the BBC and a further £15m national ad contract, underwritten by existing broadcasters.
Local TV groups have welcomed the Government’s plans. Former BBC director general Greg Dyke, who was appointed chairman of the Local TV Network Committee in October, said it was the "right way forward".
Dyke said: "We want to ensure that models are developed to enable local TV to provide a real boost to local economies and local democracy across the UK. There’s still a lot of detail to be worked through but the time is coming in 2011 to stop just talking about local TV and start making it happen."