Thursday, 14 July 2022

No, the BBC does not have a monopoly on local radio

I often take issue with claims made by right wing shock jocks but, given I'm not a political commentator, they don't warrant a blogpost.

This does though:

(The BBC) completely strangulates commercial radio in particular. (It) has got sixty four local radio stations. You cannot start a local radio station in any part of Britain because the BBC has got a monopoly and I think that's wrong.

While the BBC's large guaranteed content budgets, ability to cross-promote and not having ads is obviously a one up on commercial radio, its national footprint helped lay the foundations for today's industry - and if you think Radio 1 and Radio 2 are easily replicable in the private sector, you are misguided (just take a look at the strict conditions of their service licences: R1 / R2).

The idea that the free market is "strangulated" by the BBC - which has always existed alongside it (for 49 years) - is puzzling given there are now more commercial stations than ever before.

What held commercial radio back previously was regulation, largely around localness and public service commitments, that stemmed from its birth in the early 70s when each of the very few ILR stations faced little to no competition pre DAB and the internet.

Only a small number of local licences had been awarded before the three 90s INR (Independent National Radio) stations - Classic FM + Virgin 1215 and Talk Radio UK on medium wave.

It's the growth of new platforms - both online and DAB suddenly offering more choice for listeners - coupled with new digital media - providing immediate access to information and eating into the ad market - that has put pressure on local stations.

For many of these, consolidation was/is essential in order to properly compete for national revenues and secure their futures.

What doesn't stack up at all is the idea that the BBC has a monopoly on local radio when the total ILR (Independent Local Radio) reach has long been more than double that of Local BBC Radio - which, by the way, doesn't take advertising - so to suggest it’s the main barrier to entry is rather odd.

If you've ever listened to both, you'll know they're very different propositions from each other, with different audiences, and in many areas the BBC offering is more regional than its commercial counterpart.

Another observation is the growing number of community stations serving individual towns or smaller areas that listeners would actually call home.

While most are not-for-profit, some operate as charities and/or get access to funding that a private business wouldn't and some are of greater value than others, they are still local radio stations that co-exist with the BBC.

How's that monopoly going?

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