Radio Authority Seeks Assurance From Capital

The Radio Authority is to seek formal assurances from Capital Radio Plc that it will not exploit its dominant position in radio advertising sales.

The sales house Media Sales and Marketing (MSM), a wholly-owned subsidiary of Capital, now controls 66% of national radio ad sales after winning new clients including Emap and GWR (Newsline 29/02).

The Authority is now seeking four undertakings from Capital Radio:

• No conditional selling – conditional selling will not be permitted by Capital Radio or MSM. Advertisers must be afforded the opportunity to buy advertising on whichever service or services they choose and buying advertising on one station should not be contingent on purchase of airtime on another.
• There should be a clear distinction between the activities of MSM and Capital Radio. The Authority will look for clear evidence in this respect, particularly in geographic areas where both organisations sell airtime.
• Smaller clients will not be disadvantaged by MSM’s growth.
• All stations should be given the opportunity to be represented nationally.

The move comes as a result of the Authority receiving representations from ISBA and the IPA regarding Capital Radio’s growing dominance of the radio ad sales market. The Office of Fair Trading has also been consulted and the Authority intends to keep the matter under continuous review.

Radio Authority: 0171 430 2724