NEWS: OFCOM REJECTS UBC MEDIA PLC REQUEST TO CREATE "QUASI-NATIONAL NETWORK" FROM ITS LOCAL 'GOLD' AM RADIO

STATIONS by GRANT GODDARD

www.grantgoddard.co.uk February 2006

Ofcom has rejected a request by UBC plc request to consolidate 13 of its 18 'Classic Gold' local AM radio stations into regional clusters and has indicated that it will not permit its stations to move further towards a quasi-national network. Ofcom noted that extensive part-networking had already been approved by former regulator The Radio Authority, which now meant that the only local presenter on the Classic Gold stations is at drivetime. Additional local content is provided by 'drop-ins' and local news produced by the GCap Media plc local FM radio station in the area. As an experiment, UBC had earlier been permitted by Ofcom to use a single presenter for both its Swindon and Bristol local shows, and it subsequently sought to extend the scope of this arrangement to other stations. The UBC request was rejected on the grounds that: the loss of local programming would represent a substantial change to the licence; the range of radio programmes available in each licence area would be narrowed; insufficient evidence was provided by UBC to analyse the expected impact on competing stations; UBC did not demonstrate demand or support for the changes amongst the radio listeners in the affected areas. Ofcom took the opportunity of this consultation to make it clear that creating regional groups out of services that have clear local obligations was inconsistent with [Ofcoms] approach to preserving and upholding localness in local radio. However, it seems to be grappling internally with a regime inherited from The Radio Authority under which stations localness requirements have been routinely diminished under the guise of a 'light touch' regulatory philosophy. As recently as January 2006, CN Radio Limited commenced the re-launch its local Midlands stations under the single brand name 'Touch FM' without Ofcom having issued a public consultation. At the time, CN Radio group managing director Jon Hewson explained: Sharing resources will mean the stations will be regional and local at the same time. UBC remained undaunted by Ofcoms rejection of its proposal. Classic Gold managing director John Baish said: We're disappointed [however] that what we saw as a far-sighted solution to creating new regional programming does not meet with the regulator's approval. We nevertheless remain optimistic that our vision of the way radio should be delivered locally is what will prevail eventually." Baishs remark attests to the policy of attrition adopted by larger licensees towards the regulator. UBCs proposed changes to Classic Gold would have formed part of a much larger restructuring of AM gold stations that is desired by GCap Media, direct owner of the 'Capital Gold' network and which, under
News: Ofcom Rejects UBC Media plc Request To Create "Quasi-National Network" From Its Local 'Gold' AM Radio Stations Page 2 2006 Grant Goddard

the pre-merger GWR Group plc, had warehoused its majority shareholding in the Classic Gold network to UBC in 2000. GCap Media jumped the gun last November by boldly announcing its plans to combine Capital Gold (analogue) with our national digital station 'Life', and rebrand both as one national station. The challenge it faces is how to convince the regulator to convert its local AM licences into a single national network. Unsurprisingly, GCap offered the only response to the consultation that wholeheartedly supported UBCs proposals and, somewhat transparently, suggested that similar requests by other AM stations in the future should be able to be granted at the staff level by Ofcom and would not need to subject [sic] to a consultation. A contrasting perspective to the UBC proposal was provided by 'Radio Jackies response to the consultation, advocating Ofcom should be loath to agree any format changes that lead to less local broadcasting and allow more syndication, networking, voice tracking or regionalisation of news and music presentation. Jackie managing director Peter Stremes concluded: If the owners of local licensees dont want to operate true local radio stations, they should hand those licences back to Ofcom and apply to operate regional or national licences.

[First published in 'The Radio Magazine' as '21 Community Stations Licensed', #724, 22 February 2006]

Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk

News: Ofcom Rejects UBC Media plc Request To Create "Quasi-National Network" From Its Local 'Gold' AM Radio Stations Page 3 2006 Grant Goddard