[cma-l] Independent local radio's demise began when it lost its localness

[CMA-L]

New book by Tony Stoller, former Chief Executive of the Radio
Authority, traces the history of commercial radio.

The Guardian, Monday 24 May 2010

http://www.guardian.co.uk/media/2010/may/24/independent-local-radio-demise

Commercial radio has just fallen close to an historic low in its
audience competition with the BBC. This month's Rajar figures give it
a share of just 41.3%. At its peak in 1997, that stood at 51.1%, and
it seemed then to have the BBC on the run. So what happened to what
used to be called independent local radio (ILR)? And why has
commercial radio had such a tough time since the turn of the century?

In its persistent lobbying over the past 25 years, the radio industry
has been pursuing three aims. First, to be free of its public service
obligations, and free from regulation. Second, to be allowed ever more
ownership consolidation. And third, to be able to network and to
automate programming output.

Successive governments and regulators have steadily conceded ground.
Margaret Thatcher's 1990 Broadcasting Act removed commercial radio's
public service obligations. Legislation allowed for greater
consolidation of ownership. The first significant steps towards
networking of FM stations were approved in 1995. Automation began to
be common from 2000.

Today, commercial radio has largely got what it has lobbied for
although, citing internet and BBC competition, the industry is arguing
for still more deregulation. Two conglomerates own the plurality of
radio stations - Global and Bauer. Much of the output is common across
groups. Networking and automation are the norms. Since 2000, localness
has been in headlong retreat. Just this month, Ofcom has permitted the
remaining local programmes to be originated from studios outside the
broadcast area, and regional stations to ditch local output entirely
in favour of quasi networks. Digital switchover is being pressed
improbably early, to help rescue the commercial companies. The old
government facilitated all this; and historically those in the new one
have applauded it. The Tories backed the early switch-off for digital
radio, and they have consistently supported ownership liberalisation.

Yet at its inception, the UK was not destined to have commercial
radio. Once the offshore pirate radio stations had been scuppered in
1967, Edward Heath's Conservative government legislated in 1972 for
something very different. ILR was intended to be public service radio,
funded by advertising, and tightly regulated. Each company was
independent, and owned by local people, with stations broadcast
entirely from local studios. Independent Radio News apart, networking
was unknown and syndication rare.

Those standalone companies had a prominent presence in their areas,
with local premises and studios, boards and managing directors. There
were substantial local newsrooms. Each station produced a varied
output and staged concerts and ran local action-lines.

All that has now changed, as independent radio in the UK has morphed
into commercial radio. Yet commercial radio, which is now largely
indifferent to its historic legacy, has been steadily losing ground,
and not just in audience share. Advertising and sponsorship annual
revenue had risen throughout the 1990s to reach £594m in 2000. By the
end of last year it was back down to £506m. If you were to adjust for
inflation, and all the additional new digital and analogue stations in
the past 10 years, that comparison would be even more stark. As
commercial radio has moved further away from its independent public
service roots, so it has struggled to find a workable business model.

Looked at from the perspective of four decades, that is not
surprising. Local public service was independent radio's USP. Genuine
localness that is, not just automated weather, traffic and what's ons,
and regionally-gathered news, all coming from remote studios. ILR
succeeded by being local, not just seeming local. Relaxing the
regulation which ensured that, may have damaged rather than saved the
medium.

The apparent paradox that it was under heavier regulation that non-BBC
did best in audience terms and even comparatively in attracting
revenue. Commercial radio nowadays has all but abandoned genuine
localness – leaving that field to the new phenomenon of community
radio – but it has still to demonstrate a convincing new
distinctiveness. History suggests that, until it does, its struggles
may continue.

Sounds of Your Life is published by John Libbey Publishing at £22.50;
http://www.johnlibbey.com

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