Ofcom unveils plans to change local ownership rules

Ofcom has launched a consultation on its plans to relax cross-media ownership and local radio rules.

The media regulator wants to change the rules to allow local commercial radio stations in one area to be owned by the same company and media companies to be able to own a combination of TV, radio and newspaper assets in particular regions.

Ofcom has also launched a second consultation focusing on reforming the rules around commercial radio content, which may see companies sharing programming to cut costs.

Both consultations follow on from Lord Carter’s Digital Britain recommendations, which encouraged the regulator to review local media ownership rules to ensure the future of regional media in light of the ongoing economic downturn.

Ofcom’s review suggests completely removing regulations that restrict local radio companies from owning all the stations in one area, however, the regulator recommends keeping some tabs on local cross-media ownership.

The consultation proposes keeping a restriction on companies owning more than 50% of local newspapers in a region, plus a local radio station and the ITV licence for the area.

A spokesperson said: “If adopted, the recommendations could help maintain local content while protecting a choice of services and viewpoints at a local level. They would also reduce the regulatory burden on the local media sector and the radio industry in particular.”

The second consultation, meanwhile, suggests letting some local commercial radio stations share all of their content on the basis that they agree to provide a version of the service for the DAB digital multiplex.

Ofcom said this would “in effect enable the creation of new national stations with significant scale and reach”.

“Commercial radio has been particularly hard hit by falling advertising revenues and yet audiences continue to value local commercial stations for their local programming,” the regulator said. “The central challenge for regulation is to secure the delivery of local radio content, while at the same time ensuring a viable commercial sector, able to adapt to the digital world.”

Ofcom will consult on the proposals until September 17 before presenting its final recommendations to the government in November.