Government Confirms Relaxation Of Radio Ownership Rules
The Government has confirmed plans to further relax the radio ownership regulations, in a move that clears the way for further consolidation within the sector.
Culture Secretary, Tessa Jowell, will announce later today that the local radio ownership rules would be revised to ensure that there are at least two commercial radio operators, in addition to the BBC, in each local area.
Following lobbying from commercial radio groups and extensive consultation, the Government has amended the proposal set out in the draft Communications Bill (see Draft Communications Bill Relaxes Cross Media Rules), which would have ensured that there were at least three commercial stations, plus the BBC in a specific area.
It is expected that the move will deliver substantial liberalisation, allowing growth and investment in local radio, whilst fulfilling the Government’s objective of local plurality and diversity.
Announcing the revised proposal, Jowell said: “We will allow consolidation, but will protect the local character of local radio.”
The scheme will be based on a points system, which will in practice prevent local radio operators controlling more than 55% of a market. There will also be stricter limits on the ownership of local radio by regional TV and newspaper companies, to ensure that there are at least 3 local media owners in any area with 3 or more stations.
The Government confirmed yesterday that the Communications Bill will be introduced in this Parliamentary session (see Government To Press On With Communications Bill) and Jowell is expected to confirm the contents of the Bill at the Westminster Media Forum later today.
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