Government May Soon Relax Radio Ownership Regulations

Following speculation that TV regulators may scrap the 20% rule, introduced in 1996 to prevent Rupert Murdoch from gaining a controlling interest in UK newspapers and TV (see Government May Relax ‘Murdoch’ Ownership Regulations), the Independent reports that the Government consultation paper on media ownership, due out this month, may also pave the way for greater consolidation of the radio industry.

Currently, for example, Capital holds three London licences, the maximum it can under the current rules. It is likely that this number will increase to six under new legeslation meaning that Capital could potentially bid for other radio companies also holding London licences.

Announcing the Government’s consultation paper on media ownership last month culture secretary Tessa Jowell said the Government’s aim was to “make Britain home to the most dynamic and competitive media market in the world. So we will try to be as deregulatory as possible, and intend to allow what market consolidation we can.”