Further Consolidation For Commercial Radio?

The Government is believed to be considering plans to further relax the radio ownership regulations in a move that would make way for greater consolidation within the industry.

According to a report in today’s Guardian, proposals that could trigger a number of take-overs and mergers between commercial radio groups are likely to be included in the Communications Bill, which is expected to form part of the Queen’s speech later today.

The Government is currently proposing to relax the existing regulations to allow just three different radio owners plus the BBC to operate in each local area (see Draft Communications Bill Relaxes Cross Media Rules). However, following lobbying from the commercial radio industry and extensive consolidation (see Committee Advises Government To Rethink Media Ownership), the Government is reportedly planning to reduce the rule to two owners plus the BBC.

Further liberalisation would pave the way for larger radio groups such as Capital, Chrysalis and GWR to own more stations in a smaller area (see NewsLine Column: Radio Looks At A Consolidated Future), allowing them to present a more attractive option to advertisers.

It was the commercial radio industry that originally suggested the “three plus the BBC” rule. However, this was viewed as inadequate in light of the Government’s decision to allow the creation of a single ITV, prompting radio groups to push for greater consolidation.

DCMS: 020 7211 6200 www.dcms.gov.uk

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