Commercial radio welcomes Ofcom proposal to block Radio 2 spin-off

Ofcom has announced today (10th April) that it plans to block the proposed launch of a new BBC Radio 2 spin-off service and plans to expand Radio 5 Sports Extra, as it believes these changes will have an adverse impact on competition that is not justified by their value to audiences.

Radiocentre, the industry body for commercial radio, has welcomed Ofcom’s initial conclusion which was published as part of its provisional determination consultation on the BBC’s proposals. The BBC announced plans last year to launch four new spin-off stations on DAB+, Radio 1 Dance, Radio 1 Anthems, Radio 3 Unwind and a Radio 2 extension focussing on music from the 50s, 60s and 70s, as well as extending Radio 5 Sports Extra.

Ofcom’s preliminary findings follow an assessment of the evidence provided by Radiocentre and the commercial radio industry, as well as the BBC itself, regarding the changes and specifically the impact of four new national radio services on DAB+ across the UK and on BBC Sounds. This assessment examined the effect that these new stations would have on competition and their public value contribution.

For the Radio 2 extension specifically, Ofcom identified a negative impact on direct competitors like Boom Radio and found that the overall the case for the distinctiveness of the station in terms of the level of innovation and range of music was not strong.

In parallel with the decision on the Radio 2 spin-off and Radio 5 Sports Extra, Ofcom has confirmed that its provisional conclusion is that the BBC can proceed with the launch of three other new BBC radio stations on DAB+ across the UK (Radio 1 Dance, Radio 1 Anthems and Radio 3 Unwind). Radiocentre has argued against the BBC’s proposals since their announcement by the BBC in early 2024 and will respond to Ofcom’s consultation in the coming weeks.

Matt Payton, Radiocentre CEO said:

“Ofcom’s proposal to block the launch of a new Radio 2 spin-off service is very welcome and is the only sensible conclusion given its potential impact on competing services. Failure to act would have put the future of some existing commercial services at risk, during a time of significant economic uncertainty.

“It is not entirely clear why Ofcom has not applied the same logic to the launch of the other proposed services from the BBC, which are also an imitation of existing commercial radio stations. We look forward to responding to Ofcom’s consultation setting out these concerns.”