Capital gains six new FM transmitters from Monday as the brand replaces Touch FM, Banbury Sound and Rugby FM.
It comes after Quidem, which had been operating at a financial loss, entered a brand licencing agreement with Global in September and its format change requests were approved by Ofcom.
The usual suspects will bemoan the "death" of local radio through consolidation into national networks when, in fact, this move safeguards the future of these stations.
What's the alternative? The company winding up and handing back the licences to Ofcom would be in no-one's interests leading to:
- a reduction in choice (at least in the short term)
- a reduction in local journalism at a time when it's never been more important
- a lengthy process whereby the licences are re-advertised likely leading to another small operator coming in and having a go shortly before also declaring itself unprofitable
A takeover of Quidem by Global could've been subject to a CMA investigation with a "hold separate" order to prevent integration - as we're seeing with Bauer's acquisitions earlier this year - and given the financial pressures in this case that could be detrimental to its operations.
The current ownership structure means Quidem will have to provide its own three-hour regional show despite being in the same approved area as Global-owned Capital Birmingham.
No comments:
Post a Comment