Commercial radio groups have warmly welcomed the Government’s decision to allow greater consolidation within the industry through the further liberalisation of the radio ownership regulations.
The move to allow a minimum of two radio operators (in addition to the BBC) to operate in a specific local area was announced yesterday by culture secretary, Tessa Jowell. The new ownership system will become active when the Communications Bill comes into force next year, presenting operators with a range of merger and acquisition possibilities.
Two of the UK’s largest radio groups, Capital and GWR, welcomed the move as “cogent and well-researched”. They argue that the new ownership legislation will allow radio companies to offer greater diversity of programming and more effective local output.
Ralph Bernard, chief executive of GWR, added: “Balancing the opportunities for growth in local markets with the use of competition law on a UK-wide basis, the new regulations offer us the prospect of building stronger local stations to meet the challenges of the economic situation and the need to invest in making digital radio a success.”
Whilst broadly welcoming the more relaxed framework, the Radio Authority has also expressed its disappointment that the Government did not accept the formula it proposed to regulate in-area concentration of local commercial radio ownership.
Earlier this week the Government confirmed that the Communications Bill will be introduced in this Parliamentary session and Tessa Jowell is expected to unveil the full details next week.
