Ofcom recommends relaxation of local ownership rules

Ofcom has recommended the relaxation of local radio and cross-media ownership rules to tackle the “significant economic changes” that have affected the industry.

Following a period of consultation, the media regulator has suggested to the Secretary of State (Culture, Media and Sport) that “some relaxation of the local ownership rules will benefit citizens and consumers by helping to ensure that local content continues to be commercially provided”.

As such, Ofcom has recommended removing the local radio service ownership rules and the local and national radio multiplex ownership rules, in a bid to “reduce regulation on an industry facing difficult market conditions and increase the likelihood that stations continue to be viable”.

Secondly, Ofcom suggests liberalising the local cross-media ownership rules so that the only restriction is on owning all three of: local newspapers (with 50% plus local market share); a local radio station; and a regional Channel 3 licence.

“This liberalisation will increase the flexibility of local media to respond to market pressures. Consumers still rely on television, radio and press for news so we are not recommending complete removal of the rules,” Ofcom said.

However, the regulator does not recommend changing cross-ownership of Channel 3 and national newspapers; ownership restrictions that apply to television and radio broadcasting licences to guard against undue influence; the appointed news provider rule that ensures national and international news on Channel 3 is independent of the BBC and adequately funded and; the media public interest test.

Today’s recommendations to the government follow on from Ofcom’s proposals in July, which form part of the regulator’s three-yearly review of media ownership rules.

Ofcom said the consultation responses were “supportive” of its proposals.