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22|11|07

Ofcom sets out radio sector reforms: securing commercial viability and local content

Ofcom today published its statement on future regulation of the commercial and community radio sectors. Ofcom’s approach simplifies regulation for the commercial radio sector, whilst safeguarding the interests of listeners.

Ofcom has considered fully all responses to ‘The Future of Radio’ consultation published in April this year. Today’s statement sets out the following:

Commercial radio

The importance of local content

Ofcom has decided to protect a minimum amount of local radio programming. Ofcom is not convinced by the argument that the market alone would provide this content without regulatory intervention.

New research conducted by Ofcom found that listeners perceive radio to be the default medium for delivering key local information such as local traffic and travel, weather and news. Furthermore, listeners took the view that the quality of information would suffer if it was not made and delivered locally. Ofcom is therefore proposing that:

• all FM local radio stations should provide at least ten hours of locally-made programming each weekday (including breakfast) and at least four hours on Saturdays and Sundays.

At the same time, Ofcom recognises the importance of increased flexibility for industry, and is therefore proposing that:

• smaller stations may be able to share a large proportion of this programming (outside breakfast) with other nearby stations;
• outside of locally-made programming requirements, stations may choose to broadcast network programming for a maximum of three hours a day during weekdays at day time and more at weekends.

Ofcom’s revised proposals on local programming are subject to a further Consultation, which closes on 21 December 2007. Once the outcome of this Consultation has been published, Ofcom will update the current localness guidelines and contact each commercial radio licensee regarding these changes.

Simplifying Format regulation

Formats set out the type of programming that should be broadcast and form part of each station’s licence. Ofcom will simplify Format regulation of analogue radio licences, to bring it in line with DAB (Digital Audio Broadcasting) Format regulation. This will remove unnecessarily detailed requirements from analogue radio Formats whilst maintaining diversity of radio services for listeners.

Simplifying ownership rules

Ofcom is recommending to Government a simplification of current ownership rules applying to radio, to allow for further consolidation within the industry, while protecting plurality within local commercial radio.

Radio’s digital transition

Ofcom welcomes today’s announcement made by the Department for Culture Media and Sport to set up a Digital Radio Working Group. Ofcom will play a major role in this group which has been tasked to assess the conditions needed for digital platforms to become the predominant means of delivering radio in the UK.

In the meantime, Ofcom will re-award any commercial radio licences, which are due to expire, under existing statutory legislation for a five-year period or with an expiry date of 31 December 2015 (whichever constitutes a longer period).

Community radio

Ofcom is recommending that Government should:

• Simplify the statutory criteria for community radio licences to allow Ofcom greater flexibility in considering licence applications; and
• Allow community radio licences to be eligible for a five-year licence extension.
• In addition, community radio stations will be allowed to recognise volunteer time as part of their income.

Ofcom Chief Executive, Ed Richards, said: "Our research shows that localness is still important to listeners and we believe that this should be protected."

He added: “We are confident that our revised proposals strike the right balance between easing financial pressures faced by industry and safeguarding the interests of listeners."

The ‘Future of Radio: The next phase’ statement and further consultation are available from the Ofcom website; see Related Items.

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