Radio Groups Beam At Prospect Of Further Consolidation
Commercial radio groups have warmly welcomed the Government’s decision to allow greater consolidation within the industry, through the further liberalisation of the radio ownership regulations.
The move to allow minimum of 2 radio operators, as well as the BBC, to operate in a specific local area was announced yesterday by Culture Secretary, Tessa Jowell (see Government Confirms Relaxation Of Radio Ownership Rules). The new ownership system will become reality when the Communications Bill comes into force next year and will open the flood gates to a range of possible merger and acquisitions.
Two of the UK’s largest radio groups, Capital and GWR, have welcomed the move as “cogent and well researched” saying that the new ownership criterion will allow radio companies to offer greater diversity of programming and more effective local output.
David Mansfield, chief executive of Capital Radio, said: “We are impressed with the manner in which the Government has conducted its review. The [new ownership system] is good new for Capital as it gives us greater scope for growth.”
Ralph Bernard, chief executive of GWR, added: “Balancing the opportunities for growth in local markets with the use of competition law on a UK-wide basis, the new regulations offer us the prospect of building stronger local stations to meet the challenges of the economic situation and the need to invest in making digital radio a success.”
The Radio Authority, which will soon be merged into the new communications super-regulator, Ofcom, has also sounded its support for the relaxed regulations. The regulator’s chief executive, Tony Stoller, said: “The provision of local news, local information and access to airwaves for local people are all important elements in a plural society, which market forces alone cannot be relied upon to deliver.”
However, the Authority also expressed its disappointment that the Government has not accepted the formula it proposed to regulate in-area concentration of local commercial radio ownership.
Earlier this week the Government confirmed that the Communications Bill will be introduced in this Parliamentary session (see Government To Press On With Communications Bill) and Tessa Jowell is widely expected to unveil the details of the Bill next week.
Capital Radio: 020 7766 6000 www.capitalradiogroup.co.uk DCMS: 020 7211 6200 www.dcms.gov.uk GWR Group: 020 7284 3000 www.gwrgroup.com Radio Authority: 020 7430 2724 www.radioauthority.org.uk
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