New BBC radio stations should be rejected by Ofcom

Radiocentre, the industry body for commercial radio, is urging Ofcom to use its powers to reject BBC plans to launch four new music radio stations.

Commercial radio broadcasters are concerned that the planned spin-off stations on DAB+ and online (Radio 1 Dance, Radio 1 Anthems, Radio 3 Unwind and a Radio 2 nostalgia service) will largely imitate existing commercial stations, provide limited value for audiences and could put some commercial services out of business.

The BBC’s detailed proposals were published today (21^st November) following an initial consultation, or Public Interest Test, overseen by the BBC itself. As part of this the BBC concluded that the impact on competition is acceptable and that the new services would ultimately be distinctive. The proposals will now be reviewed by Ofcom as the BBC’s external regulator.

Radiocentre submitted evidence to the BBC’s consultation earlier this year that highlights how the BBC’s proposals:

• Are not perceived as distinctive by potential listeners
• Could significantly impact commercial radio listening and, in turn, reduce industry advertising revenues by 10% (around £71m pa) and make some services loss-making
• May ultimately force commercial radio stations to close, reducing choice for listeners

The BBC remains biggest single player in the UK audio market and receives significant licence fee funding. As a result, it is required to demonstrate that its proposals deliver public value to audiences and do not have a significant adverse impact on competition. 

Matt Payton, Radiocentre CEO said:

“The BBC’s proposals for new spin-off radio stations should be rejected by Ofcom. They are still largely an imitation of existing commercial services and appear to provide little in the way of distinctive content. Should the new stations be given a green light they would clearly have a material impact on advertising revenues and affect the viability of some stations.

The process so far has consisted mainly of the BBC marking its own homework. We now look forward to working with Ofcom on an independent assessment of these proposed changes, where we will continue to highlight the negative effect on audiences and competition”.