Elstein Sets Out Optimistic Vision For Commercial Radio
Former Five and Sky executive David Elstein has set out an optimistic vision for the future of commercial radio in his delivery of the Guardian Media Group lecture at the annual Radio Academy Radio Festival in Birmingham.
Covering a wide range of topics in his keynote speech last night the veteran broadcast chief described his views as the new chairman of the Commercial Radio Companies Association.
He said: “Keynote speakers are meant to say this is a key time for radio. Having left the radio industry nearly 40 years ago, and having rejoined just three months ago I feel a little under-qualified to opine so firmly. But this is certainly a very interesting time.”
He added: “Given the number of opinionated loudmouths already at work in the radio industry I am cautious about sounding off on too many issues.”
However, Elstein addressed a myriad of issues, starting with Ofcom’s proposals for community radio stations. He said: “We welcome the creation of community radio as long as there is protection for even the smallest profitable commercial stations. Very small stations have concerns.”
Discussion of community radio and its effects on established broadcasters is sure to grow in the coming months as many commercial broadcasters fear it will cannibalise their already meagre advertising revenues (see Community Radio Edges Closer Despite Opposition).
Elstein also used his platform to spell out the CRCA’s objection to the BBC’s claims of commercial radio consolidation, stating that: “Apparently our industry is going through a process of consolidation where local advertising masks formats and programmes relying on narrow playlists syndicated across different parts of the UK”, quoting the BBC’s response to charter review documents.
The CRCA chairman, issuing his defence to the Corporation’s claims, stated that since the creation of the Communications Act only 11 of the 35 radio stations which had changed hands had been transferred to existing radio companies, thereby qualifying them as a consolidation. Elstein also stated that, in his experience, consolidation was a force for good and not a signal of downward progress.
However, criticism of the BBC was not a theme of Elstein’s lecture, as the media heavyweight gave his support to the continued funding of the Corporation’s radio division. He said: “BBC Radio has the support of most commercial radio broadcasters. We may not support everything that it does or the way it is regulated, but we applaud the lions share of its output and we are glad it exists.”
Outlining the current shape of commercial radio and its challenges for the future, Elstein was upbeat. He said: “We are fundamentally in good shape. We look forward to developing a mature relationship acknowledging the value of national and local radio in its many forms.”
Calling for an increased focus on older listeners, he added: “We pride ourselves on appealing in the main to the young. We must expand the demographic range of the audience to whom we appeal. Even Classic FM has tried to drive its audience younger. But if we start on the 45 to 65 age group now we will develop formats and clients that will allow the industry to make the most of an increasingly lucrative market.”
Elstein hit headlines earlier this month with increased speculation of his return to the television market. The media mogul is understood to be in talks to buy the Hallmark Channel, giving him control of both its UK and worldwide operations (see Former Five Boss Enters Bidding War For Hallmark Channel).
Elstein’s address marks the beginning of a three-day radio summit, which will hear from several high-profile industry figures. NewsLine’s live coverage will bring the highlights of this year’s Radio Festival as they happen up until its close on Wednesday.
Radio Academy: 020 7255 2010 www.radioacademy.org
Stories from last year’s Radio Festival include: Ofcom Chairman Welcomes Puttnam’s Plurality Test Dyke Warns Against Regulatory Free For All Capital Radio Chief Moves To Quash Clear Channel Takeover
Subscribers can access ten years of media news and analysis in the Archive