The scheme, which is currently being evaluated by the BBC Trust, has received criticism from other local media providers, who have said it will create unfair competition.
Today's RadioCentre report adds to these concerns, suggesting regional audiences are already well-served by existing media with commercial radio stations providing an average of 22 news bulletins a day.
The study also stressed the growth of commercial radio online with 93 per cent of commercial radio stations available live on the internet and 87 per cent of these containing local news on their websites.
The move by radio stations into multimedia territory through their websites was also highlighted, with blogs, video clips and live webcams becoming increasingly popular, the audit said.
"This report makes it clear that commercial radio is a vital force for good in society, but particularly in local communities where stations serve audiences with a wide range of invaluable information, as well as supporting thousands of community events and organisations, and bolstering local talent through live and local music broadcasts,” said Andrew Harrison, chief executive of RadioCentre.
“In this context, the proposed introduction of a publicly funded BBC local video service at a cost of £23 million pounds to the licence fee payer is not necessary. A state intervention of this nature would be highly damaging to local media markets which are naturally evolving to take account of changing consumer demands."