BBC Licence Fee Attacked By Commercial Radio
The BBC’s licence fee settlement could pose a real threat to thousands of jobs in commercial radio, with a new report claiming that as many as 9,000 jobs may be at risk.
According to a major new study commissioned by the Commercial Radio Companies Association (CRCA), as much as £1.1 billion could be lost to the economy as many commercial stations stop broadcasting over the next 10 to 15 years.
The research states that the BBC could waste millions of pounds when there is no need for additional publicly funded radio stations.
The study, A licence to kill? The impact of the BBC’s licence fee settlement on commercial radio, projects that the BBC licence fee could exceed £200 by 2010, with over half of households feeling that they are not getting value for money from the BBC, raising the spectre of widespread avoidance of payment.
The report’s authors propose that the licence fee settlement caps BBC spending on radio services so that the BBC is restricted to markets where it is increasing rather than reducing diversity.
The authors display similar concerns for the likely impact on local commercial radio of ultra-local BBC TV services, which are currently being trialled, and the proposed launch of five new local BBC radio stations.
Commenting on the research findings, David Elstein, chairman of the CRCA, said: “Uncapped BBC spending on radio will ultimately cost not just the commercial radio industry but also, through a reduction in choice of valuable public services, listeners and the communities in which they live. Moreover, the BBC’s plans for radio could lead to the loss of thousands of jobs and stymie the training and development of the next Chris Moyles or Huw Edwards.”
Responding to the allegations earlier today, the BBC said: “The BBC absolutely refutes the idea that it imitates formats and that commercial radio alone has been at the forefront of innovation. The CRCA is well aware that the five new local radio services referred to in the document will all be subject to a Market Impact test before they are allowed to go ahead.”
The Corporation added: “Listeners tune in to the BBC’s services because they provide innovative and distinctive content and provide the widest possible audience with services that the market alone would not provide.”
Earlier this month, the Commercial Radio industry announced plans to create a single industry body, aimed at supporting advertisers and working towards a common vision for the Commercial Radio sector (see Commercial Radio Creates Single Body To Strengthen Industry).
As well as taking on CRCA and RAB responsibilities, the new body will incorporate the activities of the RACC, JICRIT and HIT40UK, benefiting from shared central services including public relations, finance, technology and external affairs.
BBC: 020 8743 8000 www.bbc.co.uk
CRCA: 0207 306 2603 www.crca.co.uk