Showing posts with label Commercial Radio Deregulation. Show all posts
Showing posts with label Commercial Radio Deregulation. Show all posts

Monday, 28 October 2024

Bauer moves on new localness rules

The next phase of commercial radio deregulation is in full swing with the DCMS making commencement regulations for Part 5 of the Media Act 2024 just over a week ago, immediately removing requirements from analogue commercial licences relating to music formats and locally-made programming.

It means operators are now free to drastically change any commercial FM station's music policy without the need to seek permission from Ofcom, and these licences can network 24/7 if they so wish (assuming existing local news provision requirements are upheld).

Bauer was quick to announce it is axing regional afternoon programming across the Greatest Hits Radio network from early next month, as well as on Hits Radio Bristol and Hits Radio South Coast.

Contrary to popular belief, lobbying for deregulation was never driven by a blanket desire to do the bare minimum - it was about giving private operators the freedom to take a fully market-led approach with programming decisions and compete with lesser-regulated media.

Presenters, producers and other colleagues affected by changes across the country were given opportunities for a reason, and at least nothing can take away those transferrable skills.

Every job loss represents a human being and I send my best wishes to them all.

As with previous phases of deregulation, groups will be weighing up the return on investment in local / regional programming with the ability to make savings, streamline their businesses and invest in bigger talent. These will be considered decisions.

You wouldn't go for the bare minimum if the risk of losing audience and advertisers outweighs the benefits.

Part 5 also includes a consultation on new local news and information requirements for analogue licences (while retaining current requirements in the meantime) and ending the need for DAB mux operators to seek Ofcom's permission before adding or removing services.

Of all the topics I have written about over the years, commercial radio deregulation has warranted the most articles - so I have put them all in a specific category here!

Friday, 6 October 2023

50 years of UK commercial radio

At just before 6am on 8 October 1973, LBC hit the London airwaves becoming the UK's first licenced Independent Local Radio station to launch. It was followed by Capital Radio a week later.

The gradual rollout of ILR followed years of political opposition from all sides which believed only the BBC should be entrusted with the privilege of providing radio services.

In the 70s & 80s, broadcasting really was a privilege because radio & TV were the only form of instant entertainment media and spectrum was so limited with generally one commercial station per city or county (except London).

Because of this, the early years of ILR were driven by a need to serve everyone and stations were providing a very eclectic music and content mix including anything from pop to classical music, news to religious programming and radio plays.

With little to no competition, it didn’t matter what crap you put out - listeners and advertisers were always going to lap it up because they had nowhere else to spend their time and money… if only it were that simple today!

The late 80s/early 90s brought about a seismic shift in the commercial radio landscape as the IBA (forerunner to The Radio Authority and now Ofcom) allowed licencees simulcasting on FM & AM to split and create two separate services.

County Sound became the first to do so in June 1988 with the launch of County Sound Gold on 1476 - a classic hits format that would later be replicated on medium-wave in most areas.

In the early 90s, more licences started to be awarded in areas already served by at least one other ILR station in a bid to increase listener choice. These tended to be different formats or in smaller communities / bigger regions than the existing service.

Three national commercial radio licences were eventually advertised in 1992 - one of which had to be a non-pop music station, another predominantly speech and another open to all formats. Each would be awarded to the highest bidder.

These ended up as Talk Radio UK (now talkSPORT), Virgin 1215 (now Absolute but no longer MW) and Classic FM (after plans for a musical theatre station fell through as it didn’t have sufficient financial backing).

DAB

The arrival of DAB in the late 90s/early 00s, thanks largely to Quentin Howard and GWR, was met with scepticism from much of the industry - even once the initial hurdle of ridiculously expensive receivers had been cleared.

The expansion of DAB faced many challenges over the following years with numerous operators threatening to withdraw their support or pulling out of the platform altogether at various points.

Fast-forward two decades and DAB, together with enhanced DAB+ technology, is now home to more than 500 radio stations on either one of two national commercial, one of many regional or one of a rapidly increasing number of small-scale multiplexes across the UK. 

DAB also enjoys the greatest market share of any listening device and has enabled a whole host of new radio formats that may otherwise struggle to gain momentum and be financially viable as online-only projects.

The UK is undoubtedly the world’s most successful DAB market - something we owe to a thriving and innovating commercial sector and the power of working together over many years.

Deregulation

Much of the regulatory burden on commercial radio dates back to the aforementioned early days with barely any rivals and stations were guaranteed to benefit purely from holding a scarcely available licence to broadcast in their respective communities.

Nowadays, not only is there more radio you're up against, digital media and online advertising is available at our fingertips so continuing to tie one platform down to rules that stem from those established some forty years ago despite so much lesser regulated competition would be a death wish.

The first wave of deregulation came after the Digital Economy Act 2010 when Ofcom allowed co-location and content sharing (effectively stations merging) within approved areas as well as a reduction in the minimum number of locally-produced weekday hours from 10 to 7 in return for more local news in daytime.

The second wave came following a consultation in 2017 whereby Ofcom scrapped the need for local breakfast shows, slashed the number and increased the size of approved areas (essentially mirroring TV regions) and further reduced the minimum amount of programming that had to be produced from within them from 7 to 3, again, in return for hourly local news bulletins throughout the day and at peak times on weekends.

Theresa May's government intended to go further in its response to the 2017 consulation with a plan to abolish all localness requirements and music formats set out in commercial radio licences.

Successive Tory governments have reaffirmed their commitment to these proposals with last year's Broadcasting White Paper stating it would happen "as soon as parliamentary time allows". (I appreciate they've been a bit busy down there at Westminister - especially when you factor in the long holidays and party conferences).

Of all the subjects I've covered in my blog and debated with passionate anoraks, the loss of local brands and programming is the ultimate greatest hit (no pun intended).

On a personal level, I have fond memories of listening to Kestrel and Eagle in North Hampshire (the latter being an inspired example of traditional proud local radio). My earliest days in a radio studio were at Power and Ocean in Segensworth and I was involved in small local commercial radio from a young age. Words cannot express how much I miss it.

It is a harsh truth that commercial radio was only historically local because of a regulatory framework that said it had to be.

In order to lessen the BBC's initial national pop radio monopoly, before DAB had gained the strength to deliver viable audiences, consolidation of FM transmitters was essential. The result was radio, finally, being viewed as a serious and credible advertising medium on a national scale embraced by major agencies.

We could produce a list of the stations that did "the local thing" really well and the presenters who truly embraced walking down the same High Street, eating in the same cafes and knowing the same shortcuts as the people who chose to be in their company each day. Or a list of unconvential ways to deliver more cost-effective but equally powerful local radio that could have been more widely adopted.

Local still matters, of course, which is what makes the BBC's ill-judged regionalisation strategy so devastating - I won't ramble on about that here, but it's an important point… where the market has decided to leave a gap (which, in a free market economy, it should be allowed to do - hence deregulation) is where a public service broadcaster with a guaranteed budget of £117m should really step up.

Today and the future

I truly believe the structure of our radio industry is far healthier now than ever.

We have such a wide variety of well-resourced national BBC and commercial multi-platform powerhouse brands peppered with community (and a few commercial) stations, many of which are not-for-profit with minimal running costs, and small enough to be genuinely close to their listeners.

While I’d like to see an even more united radio industry, the continuous work of Radiocentre and Radioplayer for example, backed by the main players to speak with one voice, has been crucial and is something to cherish.

Commercial radio may not be predominantly delivered locally anymore, but this never guaranteed outstanding quality in itself. Good radio is good radio, regardless of where it is made or the platform it's on. Localness might be something that makes it particularly good but, then again, it might not in which case something relevant from further afield is better. Whether a football match is any good has nothing to do with where the ball was made.

I, for one, am delighted that radio continues to reach 88% of the UK population in 2023 - a figure that has remained virtually static since the surveys began - despite constant predictions of its demise.

Commercial radio alone now reaches 70%, represents more than half of all listening and, just in the last year, reported a record £740m in revenues.

Let's keep reinventing ourselves while continuing to do what radio will always do best with friendly humans who make people smile and laugh or stop and think.

Happy 50th birthday commercial radio - and to all, both at a local and a national level, who have contributed enormously to its success over the last five decades. Long may it continue!

Tuesday, 11 April 2023

Global bucks the trend in Scotland

Four years after rolling out UK-wide breakfast shows on Capital and Heart, Global has announced the two brands will not only reintroduce their own breakfast shows in Scotland but get a fresh daytime lineup broadcasting live from the company's state-of-the-art Glasgow broadcast centre.

It means Heart and Capital listeners will hear Scottish presenters seven days a week - on Heart weekdays 6:30am-7pm and weekends 12pm-4pm and on Capital weekdays 6am-7pm and weekends 9am-12pm.

Lobbying for deregulation was never about a blanket desire to do the bare minimum which, actually, groups have always exceeded.

For example, regional FM licences don't have to provide any programming from within the approved areas if the brand they carry is also available on national DAB - yet Global's regionals still do, despite not being bound by the same requirements as local licences.

Furthermore, Capital Cymru has some Welsh language requirements but is pretty much a standalone station with mostly local programming, despite only needing a three-hour weekday show of its own.

Deregulation was about the market being free to decide - and it has.

At a time when competitors have, or are at least thinking about, reducing the amount of programming from Scotland - and political tensions over the border increase somewhat - embracing this USP seems a good move for Global.

Thursday, 28 April 2022

The Broadcasting White Paper

The government has published its Broadcasting white paper which sets out plans to privatise Channel 4, regulate streaming services and protect public service TV with a right to appear on certain platforms.

Radiocentre has released a statement calling for DCMS to ensure that prominence rules are promptly legislated after it failed to guarantee the same protections for radio operators on smart-speakers.

The white paper also outlines further deregulation of commercial radio:

We will - as soon as parliamentary time allows - introduce measures to remove outdated character of service requirements such as music formats and reform the current rules on where local radio programmes are produced, while at the same time strengthening requirements for its vital local news and local information services, including measures which allow for the protection of local news on digital platforms.

While it’s a view that’d ruffle a few feathers on radio forums, and networks have some fine regional presenters, I don’t see how three hours just for the South of England - stretching from Kent down to Dorset - benefits anyone (unless the local revenue it generates outweighs the cost of making it).

Regions of this nature are a "media bubble" concept that ordinary people wouldn’t call home.

In Scotland and Wales, for example, I can see how these shows may have genuine cultural value - but operators should be free to make a decision themselves citing their own research.

How can it be right that local FM is bound by rules that stem from those first imposed fifty years ago when, today, they face an unprecedented level of unregulated/less regulated competition?

Oh, and get rid of those ridiculously petty ownership rules whereby Global & Communicorp or Nation & Bauer etc can’t just share a single regional programme even within approved areas - what purpose do they serve?!

I support the protection of quality, balanced, multi-platform local journalism, especially in this age of social media misinformation.

While newsgathering and production is best left to dedicated individuals on the ground, based within the licence area (no need for premises), on-air bulletins themselves are able to be presented centrally.

For the community sector, there’s a proposed rethink of current restrictions:

While we want to maintain community radio’s model of delivery through community based, not-for-profit companies or charities, we want to look again at the restrictions on advertising revenue that prevent some community radio stations from fully monetising their content. We also want to ensure that there is a much wider availability of community radio services, such as through Ofcom’s digital licensing process, as part of the Government’s broader levelling up agenda.

At the moment, CR ad revenues are either capped at £15k (if there’s overlap with a small locally-based commercial station - now few and far between) or, in most cases, anything more than that amount has to be balanced with income from other sources.

Perhaps good news for well-formatted outlets with a clear proposition and USP.

Saturday, 12 September 2020

How can local win in today’s radio landscape?

I’d like to wish everyone affected by the latest changes in commercial radio the best of luck for the future.

Some had been broadcasting in their respective areas for decades and remained stupendous, as ever, right to the last link.

Building strong national brands to compete most effectively for audience and revenues, with more stations as well as today's vast digital media landscape, is vital for radio's continued relevance.

Furthermore, agencies in London demand simple national ad campaigns so they can buy networks that will deliver the greatest number of impacts (based on the cost-per-thousand people that hear a spot).

It is due to an historic local and regional structure of FM licencing that consolidation has had to happen at the expense of local stations and their hardworking staff.

Global, one of the two main players in UK commercial radio, has enjoyed tremendous success in building Heart and Capital in this way.

As per the regulations, dedicated local journalists will continue to provide a high quality service on Greatest Hits Radio with hourly 2-minute peak-time bulletins (an extension for some), half-hourly headlines at breakfast and "drive" (which we need a new name for!) and online articles - not to mention travel, free airtime for local charities, jobspot and what’s on info.

With journalists who can effectively cover each TSA, they’re reasonably equipped to deal with a major local incident if necessary (assuming contingencies are in-place allowing a single TX to opt-out efficiently for more than just hourly bulletins).

Responding to these events in the right way swiftly shows strength and commands the trust and respect of listeners. Being there for your audience when the unexpected, serious and/or tragic occurs never goes unnoticed.

Of course, there was more to many of these local stations (and others) than just trusted information - outside broadcasts, much-loved entertaining presenters who know their patch referencing local places and sharing stories, local guests, locally-focused competitions etc. This relevant content will be missed.

There’s the potential for this gap to be filled by community radio - but only well-run stations that have a clear target demographic/a consistent sound, unique local content and engaging output (presenters, shows and/or features), which has the interests of the listener at heart.

Simply saying "we’re local" and "play the best music variety" won’t cut it.

There’s more choice now than ever before and radio listening habits, generally, aren’t so loyal to a single outlet these days - but you still choose a station because of how it makes you feel. Because it speaks to you.

Your decision to listen is probably based on a range of factors: music, content, information etc - but it always comes down to relevance.

I want to listen to a presenter who’s serving their audience, not just serving their own will to be on the radio. Someone who knows what I’d like to hear, not what they’d like me to hear.

Would I rather allow Greg James, Liza Tarbuck, Pat Sharp or Andy Crane to put a smile on my face - or listen to DJ Anorak hitting (or maybe even crashing) every vocal in his record collection and playing crowd SFX for personal satisfaction?

Last month, I helped launch Shine Radio in the Hampshire market town of Petersfield which has a relatively small population and a well-connected, proud community.

Petersfield has long been underserved - 101.8 has long been networked without opt-outs meaning very little local information, Radio Sussex & Surrey and other commercial stations don’t cover here and Radio Solent are too big to show much of an interest.

There’d never been a long-term local radio station exclusively for the town and surrounding villages, so we seized the opportunity provided by lockdown and responded to demand for one more quickly than expected.

Initially, we'd planned to wait for small-scale DAB (which is still the endgame). Online-only will, of course, be a bigger challenge but the last few months have shown we can rise to it.

Our USP is that we’re all about Petersfield and a hub of the community with local voices, local stories and a trusted source of local information including daily local news & travel bulletins.

The volunteers live and work here. They couldn’t have a better understanding of the patch, and their reason for being involved is a commitment to public service rather than merely a love of radio.

Who else would run a 5-minute interview with Petersfield Lions about charity fundraising? Cover a wedding at the community hospital? Put listener questions to the owner of the town’s leisure centre? Regularly engage with local schools and parish councils?

This content, and more, makes us different from every other station - and gives folk a good reason to listen.

Running costs are minimal because we don’t have premises. Our PCs are based at a serviced office in town (which advertises with us in return) and host a remote VT server for presenters to record their shows from home with a quality mic and good acoustics.

While no presenter is ever physically live, we're just as reactive and have at least one person on standby to react in a timely manner were major local news to break.

Volunteers spent lockdown doing everything from home (shoutout to In:Quality’s ipDTL for making it so efficient), but since restrictions were eased we’ve been back out and about recording with guests on-location.

Fast-forward a month and Shine Radio is heard in homes and workplaces across “the Petersphere”.

We’re also providing companionship and entertainment for residents as linear radio has traditionally done better than any other medium.

Our daily round-up of news/information, which began at the start of the COVID-19 lockdown in March, continues - this and all our best speech content (shows/interviews) are also available as podcasts given the popularity of on-demand listening.

Personally, backed up by my involvement in the Petersfield project, I firmly believe that hyperlocal has to be the way forward for what has become known as local radio.

Thursday, 16 July 2020

What’s happening to my local radio station?

There came a time when it was necessary for the good old-fashioned British High Street to look beyond the butcher, the baker and the candlestick maker - and what’s happening in commercial radio, to some extent, mirrors the trajectory of other consumer-focused industries.

As retail chains offering lower prices began to grow and people became enticed by the slick styling of larger organisations, it became harder for independent outlets to compete - just as both broadcast radio (via DAB/online) and new digital media are offering more choice nationally than ever before, putting pressure on local stations.

In recent years, certainly in the last few months due to COVID, online shopping has been on the rise. High Street chains are feeling the impact and consequently cut costs by closing stores and making employees redundant - in the same way content delivery in commercial radio is moving further away from the listener’s location to ensure it survives in a digital world.

Of course, many people still value local and want to support the local economy - but there are now more ways to reach potential customers than just the traditional shop.

Petersfield Community Radio has been producing a daily podcast throughout lockdown delivering important information together with the voices and stories of our community to keep residents in-touch with local life.

It’s been hugely popular - and no antenna required, which wouldn’t have been possible 30 years ago.

It proves that locally-focused audio content is still highly valued by many - and a transmitter is no longer necessary to deliver it. It’s far more cost-effective without.

Hyperlocal is the best way to proceed. I say this not only due to success in Petersfield (or Shaftesbury), but because the strongest and best-performing local radio stations in all sectors cover small patches. The content is more likely to be relevant to me and less likely to be available elsewhere.

That’s not to say a linear community station on FM/DAB/online can’t be successful. If you’re providing a relevant service and don’t exist purely as an anorak trainset and/or to recreate a bygone era of radio. A service with what I like to call the three C’s:

  • Consistency: you cannot appeal to "everyone" - know your target listener, understand their lifestyle and ensure your music policy, speech content and overall offering is tailored to their needs at all times.
  • Community: embrace your point of difference with interesting, engaging content relevant to a hyperlocal audience - and involve them.
  • Companionship: friendly voices (presenters and/or guests) who know the patch and can make someone smile and laugh or stop and think.

In my view, legal/compliance training should be compulsory for anyone broadcasting on an Ofcom-licensed station (and a priority for online-only organisations). In Petersfield, all volunteers are required to partake in an annual session led by radio consultant and media law expert Paul Chantler.

Your station doesn’t have to be live. It doesn’t even need premises (as COVID-19 has shown). Ensuring the output is interesting and/or entertaining is the single most important thing.

You can create an enjoyable experience for the listener while saving a fortune in running costs. As James Cridland says, real and relevant is far more important than live and local.

I’m a firm believer that interactive live broadcasting, where the fact it’s happening right now makes the programme what it is, is unique and irreplaceable - a phone-in, quiz, special event etc or a social media live stream won’t be going out of fashion anytime soon, but, at times, liveness doesn’t actually add anything.

Another point - should you pursue the traditional ad-funded model? It’s not easy to make a success of. Could you partner with local organisations to maximise resources? If you can prove you’re serving a genuine need, why not apply for grants and/or crowdfund?

Podcasts and other digital media are new competition for commercial radio, making it increasingly more challenging for a standalone local station to be economically viable.

What’s more, we’ve never had so many national DAB/online choices and consumer habits are generally more varied and less loyal to a single outlet than ever before.

Not to mention that COVID-19 has caused additional problems for advertising revenue across the board with smaller stations/groups being hit hardest - hence Bauer’s plan to integrate their recent purchases into networks being put into practice pretty sharpish.

Consolidation with today’s tech means each licence can retain local content, such as news (compulsory with predominantly networked programming), travel and what’s on info, while ensuring the station is sustainable and able to thrive longer term in an increasingly competitive marketplace.

Hopefully Bauer’s strong commitment to local news will mean journalists are retained in each TSA to provide the highest quality, most efficient hyperlocal coverage - and, again, station premises aren’t required to allow for this.

I think Greatest Hits Radio has real potential against the younger brands available elsewhere on the dial, given that traditional local radio typically attracts predominantly middle-aged/older adults.

That said, it’s always incredibly sad to see some top people leave the industry not by their own choice and every job represents a livelihood.

The good news is talent can use radio as a platform to build a following before going on to achieve bigger and better things with that established audience (e.g. podcasting/digital live streaming).

People always say they love the local radio station but will also claim to support the independent coffee shop in town before delightedly venturing out to Starbucks for a Frappuccino.

In the future, who’s to say local radio won’t see increased demand from consumers - like the local butcher and baker? (Maybe not the candlestick maker...)

Wednesday, 27 May 2020

Bauer's plans for their new acquisitions

Just over a month after the CMA lifted the hold separate for Lincs FM Group, Celador, UKRD and Wireless assets acquired by Bauer Media last year, the company have today announced the integration of these stations into the Hits Radio Brand Network with 48 licences becoming Greatest Hits Radio, 4 taking the Hits Radio format and 3 retaining their local identities.

GHR will be rolled out to all the ex-UKRD and ex-Lincs FM Group licences except their flagships, Pirate FM and Lincs FM respectively, which will remain standalone local stations.

The same goes for all Bauer-owned ex-Breeze/SAM licences apart from SAM Bristol (due to it only being re-awarded by Ofcom 18 months ago) and all ex-Wireless apart from Signal, Pulse and The Wave which are joining the heritage “Big City” stations in the Hits Radio Network.

In addition, as expected, the three instantly acquired by Nation Broadcasting, The Breeze South, SAM FM South and KCFM (due to overlaps with Wave 105 and Viking FM respectively), will enter brand licencing agreements - as Communicorp UK/Quidem have with Global.

SAM and KCFM will join the GHR network and The Breeze will become the first Hits Radio-branded local station outside Manchester.

Bauer will also sell national and regional advertising for all stations formally represented by First Radio Sales, of which it acquired the remaining 50% from Wireless at the beginning of this month having already purchased half as part of the UKRD deal.

Of course, we’ve been here many times before (one of which being just one year ago) and, again, my immediate thoughts are with the many great people part of teams that’ve made strong, proud and successful local radio for many years. What will this mean for them and their families?

This round of consolidation couldn’t come at a bleaker time for us all, both socially and economically. But while it’s a dark patch for all of us affected by COVID-19 and those about to lose a job they love, there’ll be light at the end of the tunnel - even if we can’t see it just yet.

What hasn’t helped is a year of uncertainty caused by the Competition and Markets Authority merger inquiry. First, they said Bauer couldn’t own two Wolverhampton licences and dominate the town’s local radio ad market - then, just a couple of months later, said the overlap was significantly less than it'd considered to be the case initially. What was the CMA looking at before then?

Even so, the refusal to acknowledge digital media as competition shows a distinct lack of understanding of the very market it claims to be protecting. Our great medium is no longer battling itself alone.

Similarly, when Bauer offered to provide national sales representation as First Radio Sales, honouring the terms of deals in-place with clients, it was rejected. Last month, the CMA lifted the "Hold Separate" on the condition that - yes, you guessed it - Bauer will represent all FRS members for the next 10 years on their current terms.

The company has since acquired the remaining 50% from Wireless, now owning it outright. What a waste of time.

I commend FRS - the industry has benefitted hugely from them, and will continue to thrive thanks to the scale of Bauer and Global (both of which have a history of representing stations other than their own).

Turning to strategy, GHR seems a smart move for traditional FM audiences - spectrum is largely occupied by younger music brands (with the exception of mood-driven Classic FM and Smooth) and with these heritage local stations typically attracting older listeners.

I’ll be interested to see how Hits Radio fares outside of Manchester - that’s going to need aggressive marketing, replacing Soft AC with a feeble market share of 1.8%. Good luck, Nation.

Global had clear ambition right from the offset but Bauer always seemed more cautious and keen to retain its stations’ sense of belonging to each metropolitan market while still creating a simple network to sell agencies.

They cite research suggesting a 50/50 split among listeners who want national big-name entertainment and those who particularly value the local aspect. The rollout of Hits Radio felt like a serious possibility pre-pandemic - but, with revenues falling, now is not the time for profitable businesses to take risks.

As for these newly-acquired smaller licences, in addition to the recurring arguments about the pressures of increased digital competition, local ad spend has tanked in the last couple of months and sales teams are furloughed. Sadly, consolidation is in their best interests - now more than ever.

Friday, 16 August 2019

The changing face of UK commercial radio - how does it look from the eyes of a young person?

It's been one of the most significant years in living memory for UK commercial radio.

Local shows are no more on licences that once broadcast from their area 24/7 with more of the same likely in the coming months.

Last October, Ofcom updated their localness guidelines to allow networked breakfast shows with the minimum amount of locally-produced daytime output reduced from seven hours to three weekdays, on the condition that hourly local news bulletins are provided, and none required at weekends, if hourly peak-time local news bulletins are provided.

Smaller approved areas were merged into 12 regions that mirror those of ITV.

What followed was Global's decision in February to launch national breakfast shows on their three FM networks resulting in over a hundred redundancies, the closure of buildings and the merger of local stations to create a smaller number of drivetime shows for each of the enlarged areas.

Around the same time, four commercial radio groups (Celador, Lincs FM Group, Wireless Local and UKRD) were acquired within the space of a few weeks by Bauer Media. At this stage, they are still being run as separate businesses while the Competition & Markets Authority investigates the takeovers.

All industries must adapt and evolve in accordance with changing consumer habits if they are to survive. Commercial radio regulations stem from an analogue-only world with limited choice.

In many industries, the rise of artificial intelligence will save businesses a fortune and the robots that replace, even the most efficient and reliable, humans will be more efficient and reliable.

Consequently, this will impact workers and capitalism overall.

It's devastating when a talented person loses their job. As X Factor’s Ariel once said:

I’m not a number, I’m a human being.
Every position going represents someone’s livelihood, and my heart goes out to you if you're affected.

And how does this all feel to someone looking for a career in radio? Is there any point in trying to get your foot in the door? Are there any opportunities left?

The answer: yes! Thanks to the growth of DAB/DAB+, there’ve never been more commercial stations - plus new digital roles in social media and podcasting.

For aspiring presenters, while the days of, quite literally, knocking on the local station waving a demo tape are becoming a thing of the past, radio still needs a talent pipeline. A new generation of stars to lead us into the future.

But we’re just one platform in a multi-media world and, today, a successful on-air personality has to be a successful off-air personality - in other words, not just a "jock" but a gifted communicator whose relationship with their audience is enhanced through social media.

They get to know you better and you get to know them.

Mastering this craft is essential, hence influencers with established followings being attractive to youth stations.

A brief history lesson

Let me take you back to 2007. Ashley Tabor-King, a man who was very gracious to me personally a few years ago, together with his father, founded Global.

The company bought four established commercial radio brands from Chrysalis: Heart, Galaxy, LBC and The Arrow.

A year later, it acquired GCap (formed by the merger of GWR & Capital Radio Group earlier in the decade) and welcomed The One Network (many local/regional stations across the country), Classic FM, XFM (now Radio X), Choice FM (now Capital XTRA), Gold and Chill (now Smooth Chill) into its portfolio.

Ocean FM (now Heart) and Power FM (now Capital) were part of this deal - two local stations on the South Coast of England where many of the first radio people I met worked.

Some networking had already been introduced prior to the formation of Global but I was too young to understand it. However, I saw the impact of redundancies in 2009 and could tell it wasn’t pretty.

Fast-forward 10 years: I'm still young, I’ve been lucky enough to get on-air and off-air experience as well as present my own show which I've put my heart and soul into for the last 8 years and had an absolute blast.

My Hampshire Hit Radio journey comes to an end in a couple of weeks and I’m proud of all the things our team achieved. I’m ready for the next chapter and can confirm that I'll be presenting a new show somewhere else come autumn.

Deregulation has long been on the horizon. Radiocentre lobbied for years so that stations could gain the freedom to make their own business decisions in accordance with changing market conditions.

By clicking on a petition, I admire your passion, but you’ll achieve nothing.

How can it be right that local FM licences are so heavily regulated with competition from DAB and big tech virtually set free by comparison?

The rules stem from a bygone era.

Take Heart South Wales and Heart North Wales still having to provide a separate local show from each other, despite being in the same approved area, because they have different owners. Listeners don't know, or care, about this.

See also: "full service" licences with speech quotas and other outdated format requirements such as music genres (removal of these was proposed by the government two years ago but is yet to be legislated).

Having been involved for almost a decade, I believe passionately in localness.

There’s still an appetite for content that lives where its listeners live - that understands and truly reflects communities.

In certain markets that could be a linear station, but in others on-demand might be more effective (certainly cheaper!)

I'd like to say to anyone who's lost their show or behind the scenes role not by their own choice: your talent and experience will lead to bigger and better things.

This was just the beginning and a bright future is ahead.

To anyone looking to kick-start their radio career: don't give up! While there are fewer roles at a local level, overall, there are more opportunities in audio today than ever before.

You'll achieve great things by putting the work in, showing your passion, having faith and making the right connections.

Social media has made it easier to get your name out there and make a good impression - in fact, it’s a key skill employers look for today.

Radio is now a multi-platform business and there's more to it than what comes through the speakers.

This year’s changes do not mark not "the end" or "the final nail in the coffin" - they mark the beginning of a new era.

Tuesday, 26 February 2019

ILR - why it's had to end like this

Since Ofcom published updated localness guidelines in October, it has been a case of when, not if, Global would further their ambition and introduce big-name national breakfast shows to take on the BBC.

At around 10am today, it was revealed that a company-wide meeting of Capital, Heart and Smooth staff would be held for an important announcement.

In summary, that announcement was as follows:

  • A single Capital breakfast show will replace 14 local programmes currently airing across the network in England, Scotland and Wales. The number of regional drivetime shows covering the enlarged approved areas will be reduced to 9.
  • A single Heart breakfast show will replace 22 local programmes currently airing across the network in England, Scotland and Wales. The number of regional drivetime shows covering the enlarged approved areas will be reduced from 23 to 10.
  • A single Smooth breakfast show will replace 7 local programmes currently airing across the network in England, Scotland and Wales. The number of regional drivetime shows covering the enlarged approved areas will remain unchanged.
  • Weekend local programming will end.
  • The number of Global premises across the country will be reduced from 25 to 14.
  • Hourly local news reflecting each individual licence will continue, in-line with the regulations allowing for reduced locally-produced hours.
  • Stations owned by Communicorp UK operating under a brand licence are also affected by the restructuring.

My immediate thoughts are with everybody affected, both on and off air.

I know you've faced months of uncertainty, wondering what the future holds for you, your career and livelihood.

While it's easy for others to offer encouragement by outlining opportunities in podcasting and digital media, it doesn’t stop those anxious thoughts racing as you realistically consider what is necessary to maintain an income for you and your family.

At a local level, Global and Communicorp are home to some fine talent for whom I'm sure a bright future lies ahead, whatever that may be.

And take onboard the wise words of radio's Daniel Fox:

Remember that you have an incredible wealth of skills that are not only transferable, but will likely do more good in the wider world.

Opportunities in radio might be shrinking, but this is just the beginning of many companies’ adventure in audio.

Big businesses are recruiting people like you to help craft their sound, make their podcasts, create their flash briefings and design their sound. Help them.

You are more than a radio presenter. You’re a content producer. A social media mogul. A brilliant multi-tasker. You are eminently employable in a multitude of roles in myriad industries.

Let's go back to the beginning

In the early 70s, generally, there was one ILR (Independent Local Radio) licence in each city which was tasked with serving the whole community.

In those days, stations would attract huge audiences because there was barely any competition.

As you can imagine, regulation was off the scale - from broad music and specialist shows to an ad load cap and lengthy news bulletins. Even studios had to be built to IBA (Independent Broadcasting Authority) standards.

The 90s brought about a shift, with more licences advertised (smaller local, some regional and three national) and the development of DAB.

Two of the only three INR (Independent National Radio) licences to ever be awarded were on medium wave - Virgin 1215 and Talk Radio UK - with the only FM network being Classic FM, which is why consolidation of local frequencies has been necessary to build national brands.

In addition to more radio stations came the internet and new digital media, further increasing the pressure on local revenues and a need to simplify national advertising campaigns.

The harsh reality is if commercial radio was born today, it would not be delivered locally.

Don't get me wrong - as someone with a background in local radio, I've seen first-hand how powerful and effective it can be when gifted with character, pride and the trust of its audience.

While online has revolutionised news consumption, the quality journalism provided by local radio - which is now multi-platform - will forever be essential to our democracy. Ofcom recognises this, hence the requirement for an enhanced local news service in exchange for more networked programming.

As a source of information, decline for linear radio is inevitable but it's the trust of our listeners that we hold onto. As with character and pride, trust is an emotional response. We're a familiar and helpful voice that they can rely on.

People choose a station because of how it makes them feel - from informed commentary and opinion on LBC, to the warmth of Ken Bruce or entertaining guests with Steve Wright on Radio 2.

Friendly personalities who have a deep-rooted understanding of, and fly the flag for, their patch - as well as of the lives led by their listeners locally - can connect like no other when they're interesting and good company. This is what makes local radio unique and adds enormous value.

Of course, when it comes to general entertainment, where the presenter is sat doesn't come into it.

Good radio is good radio and bad radio is bad radio, regardless of where it is made.

Global have made no secret of their ambition. To be able to network big-name breakfast presenters and grow audience with A-list guests as well as run better, simpler S&P campaigns across the country is huge. In fact, it's one of the greatest opportunities commercial radio has ever had.

Some are questioning why drivetime isn't getting the same treatment when an off-peak regional show between 10am & 4pm would also be compliant.

Any business looks at income and expenditure - if the shows generate local revenues that outweigh running costs, it makes sense to keep them (although you could just split content - e.g. presenter links or maybe while most of the network is hearing a song).

Looking to the future:

  • While there'll be fewer roles at a local level, new jobs will continue to be created as the industry reinvents itself and multi-platform operations evolve. See podcasting and social media.
  • New talent will be given opportunities to shine and drive us forward with continued relevance. The importance of presenters owning content creation in all its different forms, not just radio, will only increase as today's multi-media landscape expands at a rapid pace.
And then there's community radio assuming it can easily pick up the slack - but let's save that for tomorrow's blogpost!

Monday, 13 February 2017

Commercial radio deregulation - what's next?

The Commercial Radio Deregulation consultation has been published today:

There are a number of outdated and burdensome regulations in place for analogue radio which were put in place back in the late 1980s, while digital radio enjoys much more freedom in comparison. Following a number of recommendations made by Ofcom, this consultation outlines our proposals for how we intend to deregulate commercial radio.

As the radio market is changing with more people move towards digital and online audio services, and as Ofcom’s scope to make further changes is limited by the current regulatory framework, the Government believes it is the right time to consider the overall regulatory structure for commercial radio.

We welcome comments from individuals and organisations involved in the commercial radio sector, including members of the public who hold an interest in commercial radio.

Put simply, Ofcom will no longer have to "secure provision within the United Kingdom of a diversity of national services, each catering for tastes and interests different from those catered for by the others, and a range and diversity of local services" - as per section 85 of the Broadcasting Act 1990.

The proposals include a new duty on Ofcom to secure the provision of news and other core information such as travel and weather, including stations on DAB from the date following a future digital switchover.

All other format requirements that apply to local and regional analogue licences will be scrapped, allowing stations to play whatever music they wish, and operators will no longer need studios within the TSA, meaning locally-relevant content can be produced centrally as long as journalists are retained in each of the existing editorial areas to source stories.

None of this is unexpected and it seems mostly sensible to me.

DAB and online are delivering a wider range of formats than ever before without regulation and stations are finding their niches (not just in terms of music but the overall content and feel/mood) to attract audiences.

With today's tech, except for newsgathering, local content can be produced to an equally high standard from afar and where the microphone or playout PC is located doesn't determine the quality.

There are, however, a couple of things I would question.

The government agrees with Ofcom's assessment that without any requirements for the provision of news, and especially local news, this type of content would be underprovided by the commercial market and therefore there is a need to secure local news requirements on DAB-only stations. We have identified two broad approaches:

  • Option (a) extend the national and local news/core information requirements to DAB-only stations. This means they will have obligations to also carry either national or local news (as the case may) or core local information. For digital only stations on local multiplexes in particular, this would be a significant departure from the current position.
  • Option (b) place obligations on local multiplex operators to ensure that a proportion of stations (based broadly on current provision) carry local news services with the number set by Ofcom as part of their local news requirements.

One thing that has changed massively over the years is how well radio stations understand their audiences.

It is simply not true to suggest that stations always do the bare minimum. If research suggests something is of strong importance to listeners, why would they not provide it when doing so clearly makes business sense?

That said, if left to the market without regulation, can we honestly say that every part of the UK would enjoy a trustworthy local news service?

Sure - outside of radio, where there is consumer demand and support from organisations, online community resource hubs will emerge; but do they have the stamina and integrity to carry the torch?

Option A goes against the whole deregulation ethos and would likely be counterproductive - discouraging new services for whom news doesn't fit the format and/or would be financially unsustainable, therefore negatively impacting choice.

As for Option B, it was never intended that multiplex operators would influence programming in this way and such responsibility shouldn't be in the hands of a non-regulatory body which is merely a distributor.

As well as the issue of conflicting ownership of a number of muxes by competing radio groups, existing carriage arrangements and contractual obligations mean it is unlikely that there would be any legal basis for the imposition of news provision requirements anyway.

Is the fairest option for there to be a revenue threshold, whereby licences with bespoke local advertising have to provide relevant news/information?

It'll be interesting to see how the industry responds.

Another issue close to my heart is existing speech quotas on "full service" licences (I wonder why?!)

Presumably, if all format requirements other than key information are to be disposed of, these will be removed too?

The consultation runs until Monday 8th May at 5pm.

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