Ofcom provisionally blocks BBC Radio 2 spin-off

Ofcom has provisionally blocked the BBC’s plan to launch a Radio 2 extension.

The proposed spin-off, which would focus on music and archive content during 1950s-1970s, was deemed to “likely have an impact on commercial operators”, in particular Boom Radio.

Ofcom further argued that the station could deter new entrants and reduce investments for commercial radio operators more generally.

“We think that this would create a significant adverse impact on fair and effective competition, which would not be justified by the public value of the proposal,” Ofcom’s provisional determination reads.

Matt Payton, CEO of commercial radio industry trade body Radiocentre, commented that “Ofcom’s proposal to block the launch of a new Radio 2 spin-off service is very welcome and is the only sensible conclusion given its potential impact on competing services”.

He added: “Failure to act would have put the future of some existing commercial services at risk, during a time of significant economic uncertainty.”

On the other hand, in its provisional conclusions published on Thursday, Ofcom greenlit the BBC’s plan to launch three DAB+ stations: Radio 1 Dance, Radio 1 Anthems and Radio 3 Unwind.

The communications regulator suggested that these stations would have “limited impact on fair and effective competition”.

Payton added: “It is not entirely clear why Ofcom has not applied the same logic to the launch of the other proposed services from the BBC, which are also an imitation of existing commercial radio stations. We look forward to responding to Ofcom’s consultation setting out these concerns.”

Separately, the BBC’s proposal to extend broadcasting hours for Radio 5 Sports Extra has also been blocked.

While acknowledging that there would be “some” public value, Ofcom pointed to a lack of evidence supplied by the BBC on how it would appeal to its younger and working-class target audience.

Moreover, the regulator added that the BBC had not committed to providing significant exposure to sports that are currently under-represented in radio coverage.

The move could also have a negative impact on commercial sports radio, in particular talkSPORT, Ofcom noted, thereby creating “significant adverse impact on fair and effective competition”.

A talkSPORT spokesman told The Media Leader: “Given its scale and funding model, it’s vital that the potential negative impact of the BBC’s activities on competitors is properly recognised. TalkSPORT invests in providing high-quality sports coverage for audiences across the UK and this decision ensures that we will be able to continue to offer the live sports commentary and lively debate that our audiences love.”

A BBC spokesperson said: “We are disappointed that, in a thriving audio market, we are not able to launch the new Radio 2 extension or expand the content offer on Radio 5 Sports Extra.

“We believe our plans were distinctive and formed an important way for us to reach those audiences who currently get less from the BBC. We significantly redeveloped the proposals following an extensive consultation with the industry, so that they would complement the offer across the market for the benefit of listeners.”

The spokesperson told The Media Leader that the BBC will continue discussions with Ofcom.

Ofcom is inviting feedback to its provisional conclusions by 14 May. It plans to publish final decisions by 4 July.

The BBC announced in February 2024 that it planned to launch four DAB+ stations, as well as the extension of broadcasting hours on Radio 5 Sports Extra.

Having agreed with Ofcom that the changes would be considered “material”, the BBC conducted public interest tests on the proposals in November. Ofcom went on to launch full competition assessments.

Commercial radio calls on Ofcom to reject BBC spin-off plans