End Of Year News Round-Up: Radio
January
Commercial radio began the year positively, with figures from the Advertising Association showing that the sector recorded its highest ever share of the display advertising market during the last quarter of 2001 (see Brands Turned On By Radio Advertising). However, RAJAR listening figures for the same period showed that BBC Radio retained a slightly larger share of listening than commercial radio (see RAJAR Results Q4 2001-
Overall Summary). Meanwhile, the Radio Advertising Bureau launched the third wave of its campaign to promote the effectiveness of commercial radio and Virgin Radio claimed to be the world’s most listened to internet radio station (see Virgin Claims Number One Spot). Scottish Radio Holdings reported a slight drop in like for like advertising revenues for the first three months of the new financial year and GWR released a trading update showing that annual revenues fell by 8.4% in the 3 months to December 2001.
February
Annual RAB figures for 2001 showed that advertising revenue including sponsorship and promotions for UK commercial radio fell 7.5% year on year to £550m (see 2001 Radio Revenue Sees 7.5% Year On Year Fall). Advertising revenue at Chrysalis Radio also slipped by 11.8% from September to December 2001 reflecting the prevailing difficult economic conditions for the advertising market. Meanwhile, Capital Radio and UBC Media Group announced the formation of a joint venture to develop digital radio data services in the UK (see Capital Radio And UBC Team Up To Push Digital Radio) and the Radio Authority invited applications for a digital multiplex licence, which could reach an adult population of around 4.25 million in the Yorkshire region. The Guardian Media Group applied for an analogue radio licence in the East Midlands with the aim of launching an advertising-free commercial radio station (see GMG Plans Advertising-Free Radio Station) and the latest VIPer research found that Classic FM listeners are quick to embrace new technology but value longer shopping hours over mobile phones and the internet.
March
The Wireless Group completed the first UK trial of an electronic wristwatch system of audience measurement and reiterated its lack of faith in the RAJAR diary system (see TWG Uses Trial Results To Challenge RAJAR). This prompted RAJAR to publish more details of its own testing of electronic audience measurement systems. The Commercial Radio Companies Association published a report in the hope of stimulating debate on the shape and duties of Ofcom, which suggested substantive changes in cross-media ownership rules and that the BBC should fall completely within the remit of the new super-regulator (see CRCA Publishes Report On Role Of OFCOM). Elsewhere, Jazz FM reported a 9% rise in radio revenues for the six month period ending December 2001 and GWR released a trading update showing that like for like revenues for the UK were down by 10.8% year on year for the quarter to 31 December 2001 (see GWR Sees ‘Some Improvement’ In UK Radio Market).
April
The industry received a boost with research from the RAB suggesting that over a third of UK football fans would turn to the radio to follow the World Cup (see World Cup Radio May Attract 30% Of Fans). The Wireless Group launched what it claimed to be the first parallel study in the UK, comparing a diary method of recording radio listening with an electronic wrist watch device (see MacKenzie Launches More Electronic Measurement Tests). Meanwhile, Virgin Radio and Jazz FM were ranked the two most listened to internet radio stations by radio audience measurement service Measurecast and SMG released its end of year results showing that pre-tax profits had fallen by 39%. Virgin Radio had its Greater London FM licence renewed by the Radio Authority for a further 8 years (see Virgin London Licence Renewed By Radio Authority) and the Digital Radio Development Bureau unveiled a new brand identity and logo, in an attempt to create consistency across the industry (see DRDB Unveils New DAB Identity).
May
RAJAR figures for the first quarter of the year showed that whilst the BBC enjoyed a slight lead in terms of share, commercial and non-commercial radio were neck and neck in terms of reach (see RAJAR Results Q1 2002- Overall Summary). However, commercial radio showed signs of recovery with total advertising revenue for the first three months of 2002 rising by 0.5% year on year to £136 million (see Commercial Radio Sees End To Revenue Decline). Meanwhile, radio revenues at Capital Radio fell by 7% to £59.6 million for the six months ending 31 March 2002 and GWR announced plans to sell overseas radio interests in order to maintain its “leading role in UK radio”. Total group revenues at Scottish Radio Holdings fell by 1% during the first half of the year and Emap announced that radio advertising conditions remained tough. Elsewhere, UKbetting announced plans to acquire TEAMtalk Media, which owns national speech-based radio station TEAMtalk 252, for approximately £13.7m (see
June
Jazz FM and Guardian Media Group reached an agreement following a revised takeover offer from GMG for the radio station (see Jazz FM Agrees To £44.5m Takeover By GMG), while Capital Radio and Nokia announced plans to launch an interactive radio service for mobile phone users, called CapitalM8 (see Capital Unveils Interactive Radio Service). The Little Guys Radio Association was formed by five radio stations including talkSPORT to fight for electronic measurement of radio audiences (see “Little Guy” Radio Stations Form Trade Body) and digital radio consortium, MXR, released research showing that listeners prefer DAB Digital radio to traditional analogue radio (see Research Shows Digital Radio Is The Preferred Choice).
July
The Radio Festival in Cambridge saw the chief executive of US-owned Clear Channel Worldwide, the world’s biggest radio group, admit that he would like to take over one of the UK major commercial radio groups (see US Radio Group Could Move On UK Commercial Stations). Chairman of the BBC, Gavyn Davies, admitted that he would rather sack those responsible for breaking taste and decency codes than use licence fee payers money to pay regulatory fines (see Davies Says Sack Staff Don’t Pay Regulatory Fines) and Jenny Abramsky, director of BBC radio and music claimed that commercial radio has been less diverse than BBC radio. Meanwhile, commercial radio saw revenue increase by 2.1% year on year during the first quarter of 2002 to £139m (see Growth In Sponsorship Lifts Commercial Radio Revenue) and the market for digital radio was boosted with the launch of another sub-£100 DAB digital radio by VideoLogic Systems (see £99 “Kitchen” Digital Radio To Go On Sale).
August
RAJAR listening figures for the second quarter of 2002 showed that both all BBC and all commercial radio retained the exact same percentage share as they had in the first quarter of the year (see RAJAR Results Q2 2002- Overall Summary). Meanwhile, Emap Performance and GWR formed a joint venture company called EG Digital to launch dance music station Kiss across GWR’s local digital radio multiplex network (see Emap’s Kiss To Launch Across GWR Digital Multiplex). Elsewhere, GMG Radio and SMG announced their intention to apply for the new FM licences in the West Midlands and Glasgow and it was revealed that national speech-based sports radio station, TEAMtalk 252, was to close after less than five months on air (see TEAMtalk 252 To Close After Less Than Five Months).
September
Chrysalis Radio announced the acquisition of London News Radio from rival GWR Group for £23.5 million and agreed to sell Galaxy 101 to Vibe Radio Services for £12.5 million (see Chrysalis Strengthens London Offering With LNR Acquisition). Revenues at the group continued to outperform the market and were expected to show a 9.5% increase during the 12 month to August 2002. However, airtime revenues at GWR were forecast to be flat for the six months to 30 September, slightly behind the trading at Capital Radio, which saw a rise of 2% over the same period. Scottish Radio Holdings also announced that radio revenues were expected to drop by 2% in the year to the end of September. Meanwhile, Kelvin MacKenzie, claimed that trials of an electronic wrist-watch device prove that the current system “woefully under-estimates” radio audiences (see NewsLine), prompting Justin Sampson, managing director of the RAB, to send a letter to advertisers and agencies defending RAJAR (see RAB Defends RAJAR’s Diary System Against Criticism). The Radio Authority ruled that broadcasters will have to keep news production local (see Radio Authority Tells Broadcasters To Keep News Local) and the BBC announced the launch of BBC7, a new digital talk-radio station for adults and children.
October
RAJAR listening figures for the third quarter of 2002 showed that all BBC saw its share of listening remain unchanged, whilst all commercial radio saw a slight 0.2% points drop (see RAJAR Results Q3 2002 – Overall Summary). Meanwhile, the RAB and IPA welcomed the launch of the J-ET electronic trading system for commercial radio campaigns (see J-ET Trading System Welcomed As Ground-Breaking) and Capital Radio and UBC Media signed an agreement with Chrysalis Radio to launch what they claim is the world’s first DAB digital radio electronic programme guide (see UK Players Unite To Launch First DAB Digital Radio EPG). The Commercial Radio Companies Association confirmed that a new Network Chart Show will replace the widely syndicated Pepsi Chart from next January (see CRCA Welcomes New Network Chart Show) and chairman of Scottish Radio Holdings, Lord Gordon of Strathblane, was appointed chairman of RAJAR.
November
November was a positive month for radio, with the Government confirming plans to further relax the radio ownership regulations to clear the way for greater consolidation within the sector (see Government Confirms Relaxation Of Radio Ownership Rules). On top of this figures from the RAB for the third quarter of 2002 revealed that revenue increased by 3.2% year on year to £140 million (see Sponsorship And Promotions Boost Commercial Radio In Q3). However, Capital Radio released its financial results for the year to 30 September 2002 showing that group revenues were down by 2% to £120 million. Losses at GWR also rose to £12.1 million for the six months ending 30 September 2002 and Scottish Radio Holdings announced improvements in its radio advertising levels. Meanwhile, Classic FM announced plans to launch a 24-hour television channel (see Classic FM Launches Round The Clock Music Channel) and Guardian Media Group acquired Clear Channel UK’s radio sales division for an undisclosed sum (see GMG Set To Consolidate Radio Ad Sales).
December
Guardian Media Group announced plans to move Jazz FM’s sales operation from Clear Channel Radio Sales to Chrysalis and the Wireless Group confirmed its commitment to digital radio by winning the digital radio multiplex licence for Swansea (see Wireless Group Expands Digital Reach). Meanwhile, Emap announced that its new interactive Smash Hits chart show is to launch in the New Year after Pepsi withdrew its sponsorship from the Network Chart Show.
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