New Media Ownership Rules Become Law

The liberalisation of cross-media ownership rules became law today, effectively meaning that the key industry players will have more freedom to realise their expansion ambitions.

The key plank of the new Schedule to the Broadcasting Act 1996 is that numerical limits on the holding of radio and television licences has been abolished to be replaced by a percentage restriction of the total audience. What this means is that a radio or television licence-holder can now have interests in as many other licences as it wishes, as long as these holdings do not exceed 15% of the total television or radio audience. In the past both the radio and TV industries were restricted to owning stakes in no more than two other licences.

Other changes include:

Television

• The rules restricting some companies to a maximum 20% shareholding in certain licences have been abolished. The exception to this is national newspapers having 20% or more of national circulation.

Radio

• Local radio concentration rules have been changed to allow up to three radio licences serving the same area to be held by the same owner, provided there is at least one licence on each of the AM and FM wavebands. The second local radio licence on the same waveband will be subject to a public interest test.

• The rule restricting companies to a 20% maximum interest in national and local radio licences has been abolished except, in the same way as television, for national newspapers having 20% or more of national circulation.

Newspapers

• National newspapers having less than 20% of national circulation will be able to apply to control any broadcasting licences. However, any such moves will automatically be subject to a public interest test.

• Local newspapers having more than 20% of local circulation in the relevant area will be prevented from controlling an ITV licence.

• All local newspapers will be free to apply to control local radio licences outside their circulation areas. They will, however, only be able to hold local radio licences in the same area if they satisfy a public interest test.

• Newspaper groups having less than 20% of local newspaper circulation in the relevant area will otherwise be treated on exactly the same basis as any other applicant.

• Groups with between 20 and 50% of local circulation in the relevant area will be allowed to control no more than one AM and one FM licence in the same area.

• Those having more than 50% of circulation will be allowed to control only one radio licence, provided there is at least one other commercial radio licence serving the same area.

Digital Broadcasting

• No one will be able to control more than three digital television multiplex licences or more than one national digital radio multiplex.

• No one will be able to either hold or provide more than one national digital sound programme service licence.

Guides on media ownership and digital terrestrial broadcasting are available either through Kris Jones at the Department of National Heritage or via DNH’s website at http://www.heritage.gov.uk/.

Enquiries: Kris Jones, Broadcasting Act Team, 0171 211 6466