[cma-l] Advertising

Thu Feb 13 11:09:23 GMT 2014

Alan

I think we all know that there are always ways round a given situation - some legal, some not so - which a lot of CRs are either using already or appraising.

The CR Licensee organisation, be it a charity, a CIC or any of the other forms of not-for-profit entity, has under the 2003 Act to comply and to be seen to be complying with the 50% rule and in some cases with an advertising exemption. 

Using a parallel Company as a separate commercial entity enables the kind of expansion that you mention, but not many CR stations have either the knowledge or the initiative to go down that route.
What is needed is a corporate initiative to show them how they can legally expand.

Ian

From: alan.coote at 5digital.co.uk
To: transplanfm at hotmail.com; cma-l at mailman.commedia.org.uk
Subject: RE: Advertising
Date: Thu, 13 Feb 2014 10:54:17 +0000

Hi Ian,

I’m sticking with my assertion. 

Firstly, one only have to look at how some charities set up their commercial operations to see legitimate practical solutions. 

Secondly, CR stations can receive as much money as they like for off-air activities. It is would be fully legitimate to apportion income. 

Thirdly, many stations miss the opportunity to Offset or Trade. A nominal pound gained here is a benefit in-kind and worth real pound of available income.

Kind Regards
Alan

Alan Coote
Managing Director
5 Digital Limited

Hear Alan Every Week on Let’s Talk Business The UK’s Premier Radio Programme For Current and Future Entrepreneurs - Now Broadcast To 4 Million People  

From: Ian Hickling [mailto:transplanfm at hotmail.com] 
Sent: 13 February 2014 09:36
To: Alan Coote; cma-l at mailman.commedia.org.uk
Subject: Advertising

Quote = "no station need to turn any adverting away"

Sorry Alan - that simply isn't so.
A CR which is up to its quota has to turn away any additional advertising.
A station which is not permitted advertising at all has to turn away all advertising

From: alan.coote at 5digital.co.uk
To: cma-l at mailman.commedia.org.uk
Date: Thu, 13 Feb 2014 09:17:56 +0000
Subject: Re: [cma-l] Closure of Stroud FM

I think you have a point, but we you and I were in that meeting and heard that some stations allocate income in a way which makes it fall outside of the 50% rule anyway. I suspect if the rule were removed we would see a truer reflection of income. 

The truth is that no station need to turn any adverting away. The real problem is being attractive enough to advertisers in the first place.  

Kind Regards
Alan

From: cma-l-bounces at mailman.commedia.org.uk [mailto:cma-l-bounces at mailman.commedia.org.uk] On Behalf Of Martin Steers
Sent: 13 February 2014 00:30
To: shirleyludford at btinternet.co
Cc: cma-l at mailman.commedia.org.uk; Richard Hilton
Subject: Re: [cma-l] Closure of Stroud FM

there are two separate issues here.. the

50/50 rule (which I dont think they will actually remove)

and the rule that says NO advertising at all.. which I think is completely unfair and unjust and should be removed as soon as possible.. that will create the level playing fields and I dont think it will have any effect on 95% of commercial stations because I would suspect its mainly effecting old legacy IRL's which are now sudo national / regional brands (eg Heart)..

but your right that this has suppose to be coming for over 2 years now? I remember attending an ofcom meeting to discuss this 2 years ago and apparently the white paper would be in a few months time.. 

Is there any update with a tangible date as yet?

On Wed, Feb 12, 2014 at 10:34 PM, shirleyludford at btinternet.co <shirleyludford at btinternet.com> wrote:

Hi Richard,

As a Station unable to take any on-air commercial or advertising support, we continue to communicate with Minister Ed Vaizey, who, after his visit to us a year ago still praises our service which is receiving two more Awards and an ITV crew filming today for a programme about the Station - Lovely public accolades but at the same time I am struggling to pay increasing costs.   

A level operating field would be most welcomed.

 Shirls

 Shirley Ludford

Mob: 07951 366289

www..swindon1055.com

From: Richard Hilton <Richard.Hilton at bitc.org.uk>
To: "radio at bayfm.co.uk" <radio at bayfm.co.uk>; terry mechan <terrymechan at live.co.uk>; "cma-l at mailman.commedia.org.uk" <cma-l at mailman.commedia.org.uk> 
Sent: Wednesday, 12 February 2014, 18:17

Subject: Re: [cma-l] Closure of Stroud FM

Re Media UKs prediction; has anyone done any research on how much the dropping the 50/50 percentage rule will help the sector?

Ofcom’s 2013 Communications Market Report has detailed information on our sector.  Overall in terms of income in 2012 29% came from On-air advertising and sponsorship.  Grants made up 29%, SLA’s 7%, donations 14% and other 20%.  

So how is abolishing the 50% rule is going to help?  At 29% it’s not that the sector overall is close to hitting 50% limit.

Ofcom break these income categories by type of station. Their figures show the % for On-air advertising and sponsorship as follows:-

Geographic town / rural          32%

Geographic rural                     23%

Minority ethnic                       43%

Military                                   7%

Religious                                 31%

Youth                                      28%

So for minority ethnic stations at 43% the abolition of the rule might help but I can’t see it helping others. Personally speaking I think the rule was set up for all the right reasons; it encourages diversity in our funding models and makes us less dependent on one source of income.  Subtly it governs our sound and ethos. Maybe argue to push it to, say, 60% but I believe this fight is a red herring. 

A far most justifiable fight to pick would be to campaign for those community stations that aren’t allowed any on-air advertising and sponsorship as they have a small commercial station broadcasting near them. Their case is far more important. That is where we should be concentrating our fire power.

The Ofcom report is fascinating and well worth reading.  It will be on their website or email me and I’ll forward you a pdf.

Regards

Richard

From: cma-l-bounces at mailman.commedia.org.uk [mailto:cma-l-bounces at mailman.commedia.org.uk] On Behalf Of Bay Fm Radio

Sent: 12 February 2014 16:15
To: terry mechan; cma-l at mailman.commedia.org..uk

Subject: Re: [cma-l] Closure of Stroud FM

Another station to switch off, this news about Stroud FM is very sad indeed. 

Is there any news regarding the removal of the restrictions before anymore of us switch off too? 

I keep hearing "The consultation is in two weeks" but, when is it actually going to happen?

I see one of the radio predictions on Media UK for 2014 is...

2. The community radio 50/50 rule will get abolished as a percentage rule, but community stations will still have to be funded through additional sources, as the government will not allow community radio to be wholly funded by advertising.

Does he know something we don't?

Andy.

Bay FM.

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Stroud FM closing due to lack of money at midnight tonight 12/02/2014

Full details on

http://www.stroudfm.co.uk/

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