Report On Radio 1 Privatisation

The Henley Centre has published a report commissioned by the Radio Authority and the AIRC on the impact of transferring Radio 1 to the independent sector. The report suggests a commercialised Radio 1 would have a negative impact on the viability of existing commercial radio services, particularly Virgin and Atlantic.

While the report says a privatised Radio 1 would be immensely profitable, generating £53m in revenue in 1997, the total radio revenue cake would only grow by £22m to £204m (1992 prices).

The findings are to be submitted to the govt. for consideration in the white paper on the future of the BBC, due in the spring. The findings vindicate the AIRC, which had forecast a severe effect on existing stations. Members of the Radio Authority will meet next month to respond to the report, but they are now unlikely to push for Radio 1’s privatisation.

Share of revenue 1997

Net advertising revenue, 1992 prices

Source: The Henley Centre

Contact: The Radio Authority Tracey Mullins, 071 430 2724.

The Henley Centre, James Walker 071 353 9961.