RadioCentre pushes for commercial radio review

RadioCentre is urging the Office of Fair Trading (OFT) to relax rules on local media mergers in a bid to prevent station closures.

The industry body for commercial radio had pressed the OFT to ensure its current local and regional media merger review spans all media, not just local newspapers.

In its submission to the competition body, it said that without a wider focus, which should include radio, there is a danger of creating an imbalance in local and regional media markets.

RadioCente supports the OFT’s review, claiming it is of “critical importance” but said there is “urgent need for reform of the local and regional media merger regime, to allow strong local media companies to be created”.

If the OFT relaxes the current rules, radio companies would have a chance to invest with certainty in a digital future, according to RadioCentre.

Its submission to the OFT also said that a reform would “secure investment in the local content which listeners most value and could even prevent the closure of many local radio stations round the UK”.

Andrew Harrison, chief executive of RadioCentre, added: “The level of ownership regulation faced by the Commercial Radio sector is out of all proportion to the industry’s size and influence on the advertising market.

“More than ever, we compete in a multi-media world for advertisers’ revenues as well as for consumers’ time; the media mergers regime needs to be updated to reflect the realities of the modern media market.

“The current rules are preventing consolidation which could really help stations to invest in content and thrive in the digital age. Commercial Radio is a small industry facing serious economic challenges, yet the combination of the current merger regime and media ownership rules restricts the activities of local radio in an even more severe manner than for the newspaper and TV industries.”