It's doomed.
'Everybody' says they want local TV, but nobody knows what to put in it. This is the equivalent of the free paper that contains three pages of editorial and sixty pages of adverts, and perhaps the local school sports day results, whose natural life cycle is from letterbox direct to recycle bin, unopened.
The 'quality' metric is laughable - there simply isn't the money around either direct or from advertising to produce much more than a newsreader to camera for ten minutes, or an hour of quiz shows with idiot-grade 'test of skill and judgement' phone-ins.
To be honest, slice it all back to the four main terrestrial channels, with maybe sky for those who like paying twice to watch the adverts, and get rid of the trash TV, the ITV three-and-seven-eighths, the endless American (and UK) repeats, the low-IQ drivel that passes for entertainment. Then we might start to see some quality. But at the moment, there simply isn't the talent to create it or the money to pay for it.