Classic FM Gets New Licence As Radio Authority Increases Fees

Classic FM has had its licence renewed by the Radio Authority for its second analogue period. However, due to its increasing success, it will now pay up to £2.4 million a year more for its licence fee.

The Radio Authority has increased the station’s fee as part of Broadcasting Act regulations which state that payments must be based on the amount which a successful applicant for the Classic FM licence would have to bid in a competitive tendering process.

Classic FM has performed so well recently, with 6 million listeners reported in the latest RAJAR results, that its value has increased. GWR group, which owns the station, accepted the changes which forecast a rosy future ahead. Group chairman Henry Meakin commented: “Classic FM is an excellent business, well able to absorb the new fees, which are a measure of the increasing value of the Classic FM licencs. Classic FM will continue its aim of presenting classical music to an ever increasing audience and will develop its business onto new platforms – digital radio, the internet and other transmission media – as the next eight years unfolds.”

The national classical radio station licence will be renewed for a period of eight years from October 1st 1999. It has made a commitment to broadcast on digital radio as part of the Digital One Multiplex.

The rise in payment also comes as a result of rises in the commercial radio industry itself. The Advertising Association forecast a growth of 9.5% in the radio advertising market during the current year and 9.7% in the year 2000. This will mean that radio advertising accounts for 6% of all display advertising spending. A report by the Radio Advertising Bureau will for the first time provide benchmarks for measurement within the industry (see RAB To Launch First Major Radio Ad Study).

GWR Group: 0171 518 2600