Radiocentre, the industry body for commercial radio in the UK, is pressing Ofcom to reject the BBC’s plans to launch four new music radio stations.
The organisation argues that these proposed stations could impact the commercial radio sector and will provide only limited value to audiences.
Commercial radio broadcasters have expressed concerns about the BBC’s planned spin-off stations, which include Radio 1 Dance, Radio 1 Anthems, Radio 3 Unwind and a Radio 2 nostalgia service.
These stations, set to broadcast on DAB+ and online platforms, are seen as potential imitators of existing commercial stations.
Radiocentre’s submission to the BBC’s consultation earlier this year highlighted several key issues, including the fact that the proposed stations are not perceived as distinctive by potential listeners and that they could potentially reduce industry advertising revenues by 10% (around £71 million per annum).
Critics fear that some commercial services may become loss-making, potentially forcing closures and reducing listener choice
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The BBC recently published detailed proposals following an initial consultation, or Public Interest Test, which it oversaw internally. The corporation concluded that the impact on competition would be acceptable and that the new services would ultimately be distinctive.
As the BBC’s external regulator, Ofcom will now review these proposals. The review process is expected to last around six months before a final determination is made on whether the BBC can proceed with its plans in their current form.
Matt Payton, Radiocentre CEO, described the proposals as “largely an imitation of existing commercial services and appear to provide little in the way of distinctive content.” He added, “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.”
As the UK’s largest single player in the audio market and a recipient of significant licence fee funding, the BBC is required to demonstrate that its proposals deliver public value to audiences without significantly impacting competition.
