Radiocentre has unveiled a report proposing new ways of working with Government, Ofcom and the BBC to help commercial radio continue to thrive.
Speaking at its inaugural ‘Tuning In’ conference on Wednesday, chief executive, Siobhan Kenny, said the report outlines a “progressive vision for a thriving and successful commercial radio sector.”
“There are some key commitments to carry on providing listeners with what they want, particularly local news and information,” Kenny said.
“In return, we ask for a legislative review, looking at the sometimes outdated regulation governing the sector.”
The key challenges outlined include increasing competition for people’s time; the continued growth of online advertising; the mighty market share of the BBC, which currently sits at 54%; out-dated regulation and the costs and opportunities of growing digital radio.
In order to meet these challenges, Radiocentre calls for updated legislation from Government enabling greater flexibility, beginning with a wide-ranging review to a defined timetable; future-looking regulation from Ofcom on location and format controls which are focused on the consumer and allow the sector to respond to challenges from less-regulated competitors; and more distinctive BBC radio services which are more rigorously regulated.
The industry body for commercial radio has also asked for sensible, consumer-friendly regulation for financial product advertising, and stability and security for radio operators – by enacting licence rollovers.
34 million people (63% of the UK population) listen to commercial radio each week, with stations broadcasting over 450 million hours per week.
There are 340 licenced radio stations in the UK – twice as many as there were 20 years ago – which generate more than £575 million in revenue every year.
Overall, the sector returns £7.70 for every £1 invested by advertisers.
However, radio faces increasing competition from music streaming services such as Spotify, which, according to a recent Ofcom survey, have gone from 0% to 30% of all listening for 16-24 year olds in the last decade.
With 80% of UK adults today having household internet access, the UK market is also now open to global competitors, such as Rdio and Apple’s Beats.
