Radio Round Up
Two subjects have dominated radio news over the past few months, the launch of Virgin and the debate over the future of BBC Radio. These have to some extent overshadowed the flurry of activity among the ILR stations, whose licences are all gradually being re-advertised.
The launch of Richard Branson’s Virgin Radio was well received, both by those within the industry and the listening public. The stations’ performance in the current Rajar survey (Apr-Jun’93) is eagerly awaited. If it lives up to expectations this will be despite the major handicap of an AM frequency. The station’s ultimate goal is to transfer to an FM frequency. Within the next few weeks the station will also be transmitted via the Astra Satellite, enabling anyone with a dish to receive the service in stereo.
Classic FM, the first national commercial station, has now been on air for 9 months. The station has proved its critics wrong and is going from strength to strength, so much so that last month it increased its ad rates by 25%.
The debate over the future of BBC Radio continues following the publication of the government’s Green Paper. The corporation itself is determined to retain its 5 national stations, with no or little change to their format. The commercial sector, however, points to the unfair frequency balance for the network stations. The BBC currently holds 4 FM frequencies across the network while the commercial sector holds only 1.
The commercial sector suggests that the BBC stations should not be providing services similar to those provided by the independent stations. This criticism is often aimed directly at Radio 1 . One area that both sides agree on is that the BBC stations should not take advertising. London station Jazz FM has been boosted by its successful application for the North West regional local licence. It beat 10 other applicants, including Southern radio, for the franchise which has an estimated TSA of 4.3 million adults. In its application Jazz projected an adult reach of 10% at launch, rising to 14% over 3 years and average listening hours of 7 per week rising to 8.
The new station is likely to go on air in September 1994. ILR stations already broadcasting in the area include Aire, Piccadilly, Sunset, Radio Wave, Radio City, Signal Cheshire and Red Rose. The re-advertisement of the existi ILR licences by the Radio Authority now well under way. All of those that have been awarded so far have go back to the existing licencees. The London licences have drawn the most interest. Next week applications close for 6 of the existing licences and new licences. The only London frequencies not yet re-advertised are the 2 held by Capital Radio.
A number of consortia have declared an interest in the licences, while several others are thought to be planning a bid
POSSIBLE LONDON BIDDERS: (Excluding Incumbents)
Radio Greater London Headed By Nick Wapshott
Viva – Golden Rose Communications
Emap
David Lee – Founder shareholder Jazz FM
Douglas Moffat & Peter Thornton Formerly Finance Editor & MD At LBC Associated Newspapers
Country Music Association
Avtar Lit – founder of Sunrise
StarRadio
United Christian Broadcasting
The commercial radio sector will continue to grow in size over the next few years as the Radio Authority maintains its policy of advertising new licences. This will include 2 new much sought after FM licences in the London area to be advertised in 1996. It is suggested that radio listening is reaching saturation point. If this is the case then listeners for the new stations will only be gained at the expense of existing services. As choice widens station loyalty is likely to become a thing of the past as listeners choose stations to match their mood and circumstances.