Radiocentre: New BBC radio stations should be rejected by Ofcom

Radiocentre is urging Ofcom to use its powers to reject BBC plans to launch new music radio stations on DAB.

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 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

Radiocentre points out that the BBC remains the 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.”

In reaction, the BBC told us: “Over the past eight months, the BBC has been running an extensive engagement process with the audio and music industry.

“The BBC has conducted robust market and audience analysis and modelling, with the approach to these agreed with Ofcom. As a result, many of the comments and findings have been incorporated into the final plans.”

Lorna Clarke, BBC Director of Music says: “We have received a wide range of feedback and reflected much of it in our plans, including significantly redeveloping our proposal for the Radio 2 extension to increase its editorial distinctiveness. Our music extensions allow us to support new music, showcase British talent, resurface performances from the BBC’s unrivalled archive, and help audiences discover a greater breadth and range of music than what’s available on the market.

“The continued growth of commercial radio and the global streamers have shown there’s room for multiple ways to bring genres and decades to life for audiences. Our plans are unique, with context, curation and storytelling done in a way only the BBC can do, meeting the evolving expectations of audiences and providing more choice to licence fee payers.”

Boom Radio, which runs a service similar to the proposed BBC Radio 2 extension, is also against the move.