Greg Dyke, director general of the BBC, has warned that the relaxation of the media ownership regulations could lead to the market being flooded with radio stations that are simply in the business of ”selling products” for advertisers.
Speaking at this year’s annual Radio Festival in Birmingham, Dyke criticised the Government’s plans to allow just two commercial radio groups to operate alongside the BBC in any local area, saying: ”I believe that if we go down the road of excessive deregulation, there must be a danger that we’re going to slide into a country with a homogenised media.”
He called on commercial broadcasters not to rush headlong down the road taken by Clear Channel, the commercial success story of American deregulation, claiming that the networkÂ’s high levels of syndicated programming act as a warning to the dangers of too much consolidation.
He said: ”I fear that we will end up with radio stations which are simply in the business of selling products for advertisers, where profit is the only motive.”
However, Dyke emphasised he is not arguing for more restrictive legislation and said there is a strong case for fewer rules on both ownership and output. However, he said: ”There is a need to get the balance right. Pinning our hopes for this industry on a regulatory free-for-all would be folly.”
He welcomed the GovernmentÂ’s decision to accept Lord PuttnamÂ’s plurality test amendment to the Communications Bill (see City News), as a sign that ministers have modified their approach to further deregulation.
He said: ”The proposed public interest plurality test and commitment to preserving the character of local radio are important safeguards. They must be used to protect the interests of listeners and will, I believe, strengthen, rather than weaken the industry.”
Dyke went on to outline his vision for the future of BBC radio and in a move likely to outrage rival commercial broadcasters, announced that the Corporation would use its funding to become more ”ambitious” over the next few years.
He acknowledged that ambition ”generally has a lot to do with making money and stuffing the competition”, but insisted that the BBC would not target the commercial sector. He said: ”On the contrary, it’s about becoming more distinctive and doing more things which would make no sense in the commercial world.”
He pointed to the recent success of Radio 4 and Radio Five Live and defended criticism that Radio 1 and Radio 2 have little public service value. He said: ”Our radio services for the whole of the UK can do more. When I look across our radio networks I believe we’re just starting to see what they’re really capable of.”
