Memorandum submitted by GWR Group plc
& Emap Performance Network
Radio in the UK is thriving—as other media
suffer from the increasing demands on consumers' time, radio's
quality of parallel consumption has seen listening increase (by
8.8 per cent in the last two years) as people tune in whilst surfing
the web, driving or working.
GWR Group and Emap Performance are two of the
largest commercial radio groups, employing 2,000 people between
them. GWR owns Classic FM, the national digital stations Core
and Planet Rock, and 37 local radio stations. GWR is the majority
shareholder in Digital One, the national digital radio multiplex,
and owns three local multiplexes. Emap Performance owns the Big
City, Magic and Kiss radio networks, and 10 digital local radio
multiplexes. It also owns music television channels including
The Box, and music magazines including Smash Hits, Q and Mojo.
The Communications White Paper contains much
that is good for radio, although the interests of television and
telephony are given much more prominence. 90 per cent of the population
use radio for an average of 23 hours a week each, and every household
owns six radio sets. Radio is a significant engine of the economy:
it employs 22,819 people, compared to TV with 24,102 employees.
Radio is the most pervasive and universal medium and deserves
a level of consideration commensurate with its use. The UK radio
industry needs three things from new legislation:
— The relaxation of ownership controls
to allow listeners to benefit from ownership convergence. The
breadth of listener choice embodied in the BBC's five national
services, or in the 10 services on a digital radio multiplex,
demonstrate that owners with a range of services to offer will
position them for minimum overlap and maximum choice. The industry
and its regulator, the Radio Authority, have proposed that competition
law alone should be used to regulate national radio ownership,
and the Communications Act should incorporate this.
— A consistent approach to content
regulation. Currently independent radio services run to tight
"formats" imposed by the Radio Authority, whilst BBC
services are approved—on much looser definitions—by
the Secretary of State. OFCOM should provide independent regulation
of both commercial and BBC content, to ensure that services do
not overlap and that the best range of services is provided. OFCOM
sprang from a desire for consistency across the converged communication
industries: it must also provide consistency between the BBC and
commercial sectors.
— Support for digital radio through
licence renewals and a switchover plan. The White Paper proposes
extending analogue licence periods to equate with those for digital
licences and offers the prospect of OFCOM negotiating with current
providers for "renewal of a licence if it is justified by
their level of performance". Investment in digital radio
is supported by income from analogue licences, as digital radio
has a long payback period. The extension of analogue licences,
and their negotiated renewal, are vital factors underpinning digital
investment and must be incorporated in the Act. Government should
also define its criteria for digital radio switchover, as has
been done for digital TV. This would provide a valuable target
for the industry, and provide the certainty that is needed to
encourage manufacturers and retailers in the growing digital radio
consumer market.
The White Paper will shape the communications
industry in its most significant growth stage—digital convergence.
For consumers to benefit from the opportunities of digital development,
regulation must be flexible, consistent, responsive to market
changes, and light touch.
We commend the Committee for holding this inquiry
and look forward to the Report.
February 2001
|
