[cma-l] Community Radio 50% Rules

Mon Oct 11 12:22:23 BST 2010

Good call Murray

Last year, I was sat with Ed Richards [CEO Ofcom] at Wythenshawe FM with a
few other local licence holders and he asked us - unbidden - what we thought
of the 50% rule.  I expected a bit of a ruck from the stations that had spot
ads and sponsorship cental to their business plan - but there was none.
Indeed one ex ILR head [who I'd expected to lead the charge] said he was
happy with the rule - because of the 'in kind' rule in main.

I was part of the original lobby for sector's founding legislation and we
proposed the 50% rule as a safeguard for a 'mixed economy' - to ensure that
stations would not have to go for biggest audience/lowest common denominator
- as they would if reliant solely on commercial revenue. Of course this does
deprive some stations of vital revenue so the challenge I'd put back is -
what other means could there be to ensure that the essential 'social gain'
character of the sector is not lost?  And that cant be by more rigorous
policing of the Key Commitements as we're likely to see a very different
[shrunk?] Ofcom.  Perhaps a different number other than 50%?

And besides - isnt the headlong retreat from local output by many of the
main commercial operators opportunity enough?

So, let's have light touch regulation that preserves our distinctiveness -
but please dont make the mistake of thinking that a solely advert funded
station will be able to deliver social gain in the same way as a mixed
economy one...  As Zane Ibrahim famously said - dont make your stations
popular - make them necessary!

bests

Phil

[who now battens down the hatches...]

On 10 October 2010 18:49, Murray Dawson <murraywdawson at gmail.com> wrote:

>  Alan,
>
> I feel that the changes to the 50% rule now leaves a fair amount of
> flexibility to ensure that Community Radio stations can develop on a sound
> financial footing - without 'selling out' by going down the commercial ad
> driven route.
>
> Our organisation works across a range of community media formats, which
> allows us even greater flexibility, as it's the income of the company that
> is measured.  Therefore every grant we get for another area of the
> organisations work means the rule becomes less and less relevant to us (and
> in any case we had 14,000 hrs of volunteering last year, and had no
> commercial adverts).
>
> I did have a major issue with the original rule though - and it cost our
> organisation heavily as we had to scale back our original Big Lottery bid to
> a figure which I felt we could match 50/50 - this is no longer the case
> though.
>
> So my recommendation - diversification......
>
> Where I do have a serious problem with the 'rules' though is with the power
> and range we can transmit.
> Why should we be restricted to a fraction of the power of the commercials?
>
> In Aberdeen, we are in a situation where a large proportion of our target
> communities don't get reception - or get a very poor reception, and the
> commercials still moan to Ofcom that our reach is too far!
> Too far for what?
> We're not interested in stealing their revenues or audience - the opposite
> is the case.  We have evidence that our station has increased radio
> listeners across the city (commercial and community) by re-engaging people
> with the medium again.
>
> Let's pull together and campaign on this one instead?
>
> All the best
>
> Murray
>
>
> On 09/10/2010 12:48, Alan Coote wrote:
>
>  Ian,
>
>
>
> The CMA will do nothing.
>
>
>
> Sorry to be so harsh, but during the Ofcom Community Radio review a couple
> of years ago they supported the 50% rule as it characterises Community
> Radio.
>
>
>
> I totally agree with you it’s outdated and in desperate need of review
> along with a number of aspects – the sooner the better.
>
>
>
> Alan
>
>
>
>
>
>
>
>
>
>
>
> *From:* cma-l-bounces at mailman.commedia.org.uk [
> mailto:cma-l-bounces at mailman.commedia.org.uk<cma-l-bounces at mailman.commedia.org.uk>]
> *On Behalf Of *Ian Hickling
> *Sent:* 09 October 2010 8:47 AM
> *To:* Jaqui Devereux; cma-l
> *Subject:* [cma-l] Community Radio 50% Rules
>
>
>
>
> I think most of us understood them Jaqui.
> More so now - thank you.
> But what exactly is the CMA doing about changing this outdated and
> punishing regulation?
>
> Ian Hickling
> Partner
> transplan UK
>
>  ------------------------------
>
> Date: Fri, 8 Oct 2010 15:46:23 +0100
> From: jaqui.devereux at commedia.org.uk
> To: cma-l at commedia.org.uk
> Subject: [cma-l] Community radio 50% rules - understanding them
>
> Dear all
>
> Just a clarification on the revised 50% rules for community radio following
> the CR Amendment Order:
>
>
> No more than 50% of your income can come from on air advertising and/or
> sponsorship.
>
> The Amendment Order does however now allow that more than 50% can come from
> grants, Service Level Agreements etc.
>
> Volunteer time can be counted as part of the "income" mix, but it must be
> auditable (timesheets, signing in sheets etc).  However, if 50% of your
> income does come from on air ads etc, then only 25% of your income can be
> from volunteer in kind time.
>
> So e.g.:
>
> 1 - station has a Big Lottery grant of £50,000 for the year (lucky it!), on
> air ads etc £20,000, volunteer time £10,000 - that mix is OK.
>
> 2 - station has a BL grant of £20,000, on air ads £50,000, volunteer time
> £30,000 - NOT OK as volunteer time exceeds 25% of the total
>
> 3 - station has BL grant of £25,000, on air ads £50,000, volunteer time
> £25,000 - is OK as volunteer time 25%
>
> 4 - station has BL grant of £20,000, on air ads £50,000, volunteer time
> £30,000, OFF air ads/sponsorship £20,000 - is OK as off air does not count
> towards the 50% limit
>
> Hope that  helps....
>
> Jaqui
>
> --
> Jaqui Devereux
> Director, Community Media Association
>
>
>
>
> --
> Jaqui Devereux
> Director, Community Media Association
>
>
>
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> --
> please reply to
> murray at shmu.org.uk
>
>
> Murray Dawson
> Project Director
> Station House Media Unit
> Station Road, Woodside,
> Aberdeen  AB24 2WB
>
> Tel - 01224 515013
> www.shmu.org.uk
>
> listen to our community radio station live on 99.8FM and at www.shmufm.net
>
> SHMU is a charity registered in Scotland - SC034211 and a registered Limited Company - SC332413
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-- 
Phil Korbel
Director
0161 237 5454

Radio Regen is a community, media and urban regeneration charity
A company limited by guarantee and registered in England and Wales No.
3753832
Registered office: 12 Hilton Street, Manchester, M1 1JF
Registered Charity No. 1077763
www.radioregen.org
www.communityradiotoolkit.net

-- 
Phil Korbel
Director
0161 237 5454

Radio Regen is a community, media and urban regeneration charity
A company limited by guarantee and registered in England and Wales No.
3753832
Registered office: 12 Hilton Street, Manchester, M1 1JF
Registered Charity No. 1077763
www.radioregen.org
www.communityradiotoolkit.net
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