[cma-l] RadioCentre unimpressed with community radio changes

Ian Hickling transplanfm at hotmail.com
Fri Jan 23 16:06:21 GMT 2015


Aren't we relying here on the false concept of a finite advertising spend?The big selling point of CR is that it encourages additional levels of advertising that previously couldn't exist on an expense and span basis.
---------------------------------------------------- 

> Date: Fri, 23 Jan 2015 14:53:44 +0000
> From: lists at philedmonds.info
> To: cma-l at mailman.commedia.org.uk
> Subject: Re: [cma-l] RadioCentre unimpressed with community radio changes
> 
> The Radio Centre's reply is totally expected. They represent a group of 
> commercial businesses. Any change of legislation with a possible 
> negative impact on the revenues of their members would obviously not be 
> welcomed.
> 
> If all 200 odd Community Radio stations went out and sold their extra 
> £15k allowance then then whatever size of the commercial radio company I 
> was I'd be at least taking notice that a third of a million of the 
> sectors income being redirected to community radio.
> 
> Now that's taking the view that this extra community radio income is 
> coming from commercial radio's 'slice of the total advertising pie' and 
> not from local press or on-line's 'slice'. There is also a case to be 
> made that these extra community radio advertising sales may serve to 
> increase the size of the pie, by bring on board small businesses who 
> previously didn't make a media spend.
> 
> 
> At the end of the day it's all relative.
> 
> Nick mentioned Tudno in Llandudno. What is their possible impact on the 
> local small commercial radio station? Their local analogue commercial 
> radio licence, formally "Marcher Coast", is now part of the shared North 
> Wales 'Heart' which then changed to be a 'Capital' service.
> 
> A breakdown of sales for each licence area is not public, but the 
> accounts for 'Marcher Radio Group' in year ending 2012 report a turnover 
> of 2.7 million. Llandudno Community Radio turnover at the same time was 
> 29 thousand.
> 
> In the intervening years Marcher Radio Group's turnover has increased to 
> 3.4 million last financial year. The community radio group started 
> filing abbreviated accounts, so I haven't got turnover figures for 
> following years, but can assume that they have broadly remained the same 
> in line with sector averages as reported by Ofcom.
> 
> So for each community radio station in Marcher Radio Groups patch (I can 
> think of at least four off the top of my head), under the new 15k rule 
> could mean that they could loose up to 0.5% of their revenue per 
> community station next year. But in the past two years they have 
> actually increased their revenue by 25%. Having said that last year was 
> the first year since 2005 that Marcher Radio Group didn't make a loss.
> 
> I'd wager that Marcher Radio Group's renewed success will be down to 
> being part of a big group and would be reasonable to assume having a 
> "better" sales operation.
> 
> Community radios impact in North Wales can only be extremely minor on 
> the finances of commercial radio at this scale. I can't realistically 
> see any North Wales community station being able to bring in hundreds of 
> thousands of increased advertising sales, especially as it still needs 
> to be 'match funded' to some degree.
> 
> Is the impact likely to be more significant somewhere else in the case 
> of a small independent standalone commercial radio service overlapping 
> with a community station? That'll be one for another day to try and 
> crunch some numbers.
> 
> Phil.
> 
> 
> 
> 
> On 23/01/2015 11:09, James Cridland wrote:
> > You're not really comparing like with like. For the Global and Bauer's
> > of this world, they account for a large chunk of national advertising
> > and large regional advertising. Community radio isn't in this market.
> >
> > Small local commercial stations rely most heavily on smaller, local
> > advertisers. Where some have two or three community stations in their
> > patch, the prospect of potentially losing £35k of ad revenue a year is,
> > of course, going to be a concern.
> >
> > RadioCentre represents many different operators, not just Global and
> > Bauer. It is right to acknowledge that for some smaller independent
> > operators - many of which do not make appreciable profit - this change
> > will not be welcome.
> >
> >
> > On Fri, 23 Jan 2015 10:45 Den Packer <d.packer at csrfm.com
> > <mailto:d.packer at csrfm.com>> wrote:
> >
> >     It would seem that way Cat. And even more of a reason to ignore them
> >     when you read these stats from the link that Glyn posted.
> >
> >     "Community radio currently has a 0.7% share of radio advertising in
> >     the UK (source Ofcom Communications Market report 2014). If all CR
> >     stations take 100% advantage of the new £15k advertising ability it
> >     will increase to around 1.4% – hardly earth shattering."
> >
> >     'nuff said?
> >
> >     Den
> >     CSR FM
> >
> >     *Dennison Packer  |  Media Co-ordinator  |   CSRfm
> >     **Tel:***01227 816101  | *Website*: *www.csrfm.com
> >     <http://www.csrfm.com>  | *97.4 FM in Canterbury  | @CSRfm
> >     <http://www.twitter.com/csrfm>
> >
> >
> >     On 22 January 2015 at 18:51, <cma-l-request at mailman.commedia.org.uk
> >     <mailto:cma-l-request at mailman.commedia.org.uk>> wrote:
> >
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> >         Today's Topics:
> >
> >             1. Re:  RadioCentre unimpressed with community radio changes
> >                (Cat Lake)
> >             2. Re:  RadioCentre unimpressed with community radio changes
> >                (Two Lochs Radio)
> >             3. Re:  RadioCentre unimpressed with community radio changes
> >                (Canalside's The Thread)
> >
> >
> >         ----------------------------------------------------------------------
> >
> >         Message: 1
> >         Date: Thu, 22 Jan 2015 18:35:09 +0000
> >         From: Cat Lake <connect at catlake.uk <mailto:connect at catlake.uk>>
> >         To: martin at martinsteers.co.uk
> >         <mailto:martin at martinsteers.co.uk>,  CMA-Mailing-List
> >                  <cma-l at mailman.commedia.org.uk
> >         <mailto:cma-l at mailman.commedia.org.uk>>
> >         Subject: Re: [cma-l] RadioCentre unimpressed with community radio
> >                  changes
> >         Message-ID:
> >
> >         <CAAERnb4dYhHtn7kwAV3sr9OMudzV8biCpTK0fD2Wfk-D2zxcSA at mail.gmail.com
> >         <mailto:CAAERnb4dYhHtn7kwAV3sr9OMudzV8biCpTK0fD2Wfk-D2zxcSA at mail.gmail.com>>
> >         Content-Type: text/plain; charset="utf-8"
> >
> >         Just ignore this. It's not like we've gone from no advertising to
> >         unlimited. We've been competing for local advertising for years
> >         now. Stupid
> >         people.
> >
> >         Cat
> >           On Jan 22, 2015 2:52 PM, "Martin Steers"
> >         <martin at martinsteers.co.uk <mailto:martin at martinsteers.co.uk>>
> >         wrote:
> >
> >          > Via Radio Today:
> >          >
> >         http://radiotoday.co.uk/2015/01/radiocentre-unimpressed-with-community-radio-changes/
> >          >
> >          > RadioCentre, the industry body for commercial radio, says
> >         changes to the
> >          > way community radio stations can fund themselves is a concern for
> >          > commercial stations.
> >          >
> >          > The Government today said
> >          >
> >         <http://radiotoday.co.uk/2015/01/community-radio-order-updated/> the
> >          > not-for-profit stations can now make the majority of its
> >         income from
> >          > advertising, rather than the previous 50% rule.
> >          >
> >          > Siobhan Kenny, Chief Executive of RadioCentre said: ?This is a
> >          > disappointing outcome and will be a real cause for concern
> >         for small
> >          > commercial radio stations where margins are already squeezed.
> >          >
> >          > ?The changes proposed by the Department of Culture, Media and
> >         Sport (DCMS)
> >          > risk blurring the lines between community and commercial
> >         stations and puts
> >          > them in direct competition for limited local advertising,
> >         alongside local
> >          > press, local television and online.
> >          >
> >          > ?Community radio can perform a valuable complementary role to
> >         commercial
> >          > radio and the BBC, but it must offer something significantly
> >         different to
> >          > the communities it serves. Any changes must be accompanied by
> >         a renewed
> >          > emphasis on enforcement and compliance with the key
> >         commitments of these
> >          > stations.?
> >          >
> >          > The Government?s announcement follows a consultation carried
> >         out by the
> >          > DCMS launched in February 2013.
> >          >
> >          > More details on today?s changes can be found here
> >          > <http://radiotoday.co.uk/2015/01/community-radio-order-updated/>.
> >          >
> >          > _______________________________________________
> >          >
> >          > Reply - cma-l at commedia.org.uk <mailto:cma-l at commedia.org.uk>
> >          >
> >          > The cma-l mailing list is a members' service provided by the
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> >
> >         ------------------------------
> >
> >         Message: 2
> >         Date: Thu, 22 Jan 2015 18:43:44 -0000
> >         From: "Two Lochs Radio" <tlr at gairloch.co.uk
> >         <mailto:tlr at gairloch.co.uk>>
> >         To: "The Community Media Association Discussion List"
> >                  <cma-l at mailman.commedia.org.uk
> >         <mailto:cma-l at mailman.commedia.org.uk>>
> >         Subject: Re: [cma-l] RadioCentre unimpressed with community radio
> >                  changes
> >         Message-ID: <F87C18B650A048FEA0BA4A100D30EEC0 at wwpc04>
> >         Content-Type: text/plain; charset="utf-8"
> >
> >         I agree that with a ?15,000 cap there is no serious threat from
> >         community stations to most commercial stations, but I'm not sure
> >         you're right regarding spot rates. Many very small commercial
> >         stations charge ?4-12 per 30s spot. Is that an order of
> >         magnitude higher than those CR stations that can sell commercial
> >         time?
> >
> >         I might have a distorted picture from the commercial/community
> >         overlap that exists in Scotland, but I always had the impression
> >         there was significant rate overlap in the ?5-10/spot region
> >         between CR advertising rates (where available) and very small
> >         commercial station ratecards.
> >
> >         Alex
> >            ----- Original Message -----
> >            From: Geoff Rogers
> >            To: The Community Media Association Discussion List
> >            Sent: Thursday, January 22, 2015 6:21 PM
> >            Subject: Re: [cma-l] RadioCentre unimpressed with community
> >         radio changes
> >
> >
> >            Even the smallest commercial radio stations have advertising
> >         rates an order of magnitude higher than many (most?) Community
> >         Radio stations.  (I work in both sectors so I think I have the
> >         right to comment here.)
> >
> >
> >            Therefore customers of Community Radio stations would be very
> >         unlikely to take out advertising on the local commercial
> >         station, so RadioCentre do not have a point here.
> >
> >
> >            It's this kind of comment that further alienates commercial
> >         radio operators while co-operation between the two, can and does
> >         work.
> >
> >
> >            These opinions are my own.
> >         -------------- next part --------------
> >         An HTML attachment was scrubbed...
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> >
> >         ------------------------------
> >
> >         Message: 3
> >         Date: Thu, 22 Jan 2015 18:49:33 -0000
> >         From: "Canalside's The Thread" <office at thethread.org.uk
> >         <mailto:office at thethread.org.uk>>
> >         To: "'The Community Media Association Discussion List'"
> >                  <cma-l at mailman.commedia.org.uk
> >         <mailto:cma-l at mailman.commedia.org.uk>>
> >         Subject: Re: [cma-l] RadioCentre unimpressed with community radio
> >                  changes
> >         Message-ID:
> >
> >         <!&!AAAAAAAAAAAYAAAAAAAAAJdWVmK8n0ZDnFrnt7yKPuLCgAAAEAAAAIoYk2n0xVNBmtTHf+krZdcBAAAAAA==@thethread.org.uk
> >         <http://thethread.org.uk>>
> >
> >         Content-Type: text/plain; charset="us-ascii"
> >
> >         The middle bit is the key bit here           SOMEONE IN THE
> >         COMMERCIAL
> >         SECTOR DOESN'T HAVE A POINT
> >
> >
> >
> >         That has always been the point, my point, your point, the
> >         Community Radio
> >         point .. They don't have a point, never have and never will,
> >         there is no
> >         point.
> >
> >
> >
> >         Finally, has no one ever thought that if the rules go and the
> >         50% even gets
> >         wavered, we could reduce our prices right down on an individual
> >         basis (which
> >         we do anyway)   and then business4es in the Community could run
> >         with both
> >         and it wouldn't cost that much more and then we would all be happy.
> >
> >
> >
> >         I am desperately trying to walk away from this debate and weigh
> >         up the
> >         options . they ain't looking good at the minute. I can't walk
> >         away because
> >         I'm getting wound up again. I wanted to remain calm ....why are
> >         words like
> >         'cop-out'  'hoodwinked'   'shafted'    'conned'    'bottled out'
> >         springing to mind  ??     something must be amiss
> >
> >
> >
> >         I would like to receive an e-mail from someone / anyone who
> >         thinks this is
> >         brilliant !   I'm not going to argue or fall out as you are
> >         entitled to your
> >         opinion, and if you think that something has been gained (which
> >         I'm not sure
> >         if you add the others bits to the debate)    it's just a bit of
> >         a token
> >         gesture.
> >
> >
> >
> >         There's another one   'token gesture'
> >
> >
> >
> >         Thoughts please ?              obviously we have to be careful
> >         here that we
> >         don't undermine the efforts of Bill and Dom .. This is NOT a
> >         criticism of
> >         them, they have got out of this all that could be got out of it
> >         as it is the
> >         mindset at the top and the mindset in Government that has
> >         swerved. Well it
> >         hasn't, it was never on the straight and narrow from the outset.
> >
> >         Number 6 deserves a pat on the back for everyone though .. and I
> >         mean
> >         everyone .they have moved well over half-way on that one.
> >
> >
> >
> >         Nick
> >
> >
> >
> >            _____
> >
> >         From: cma-l-bounces at mailman.commedia.org.uk
> >         <mailto:cma-l-bounces at mailman.commedia.org.uk>
> >         [mailto:cma-l-bounces at mailman.commedia.org.uk
> >         <mailto:cma-l-bounces at mailman.commedia.org.uk>] On Behalf Of
> >         Geoff Rogers
> >         Sent: 22 January 2015 18:22
> >         To: The Community Media Association Discussion List
> >         Subject: Re: [cma-l] RadioCentre unimpressed with community
> >         radio changes
> >
> >
> >
> >         Even the smallest commercial radio stations have advertising
> >         rates an order
> >         of magnitude higher than many (most?) Community Radio stations.
> >         (I work in
> >         both sectors so I think I have the right to comment here.)
> >
> >
> >
> >         Therefore customers of Community Radio stations would be very
> >         unlikely to
> >         take out advertising on the local commercial station, so
> >         RadioCentre do not
> >         have a point here.
> >
> >
> >
> >         It's this kind of comment that further alienates commercial
> >         radio operators
> >         while co-operation between the two, can and does work.
> >
> >
> >
> >         These opinions are my own.
> >
> >
> >
> >         On 22 January 2015 at 16:58, Alan Coote
> >         <alan.coote at 5digital.co.uk <mailto:alan.coote at 5digital.co.uk>>
> >         wrote:
> >
> >         "[CR] must offer something significantly different to the
> >         communities it
> >         serves";
> >
> >
> >
> >         True. I think many of my commercial radio friends would agree,
> >         that's a bit
> >         rich coming from the head of a sector which is better resourced
> >         and funded
> >         than CR, yet over the years has lacked innovation and all but
> >         erased any
> >         creativity.
> >
> >
> >
> >         Just a thought.
> >
> >
> >
> >         Alan
> >
> >
> >
> >         From: cma-l-bounces at mailman.commedia.org.uk
> >         <mailto:cma-l-bounces at mailman.commedia.org.uk>
> >         [mailto:cma-l-bounces at mailman.commedia.org.uk
> >         <mailto:cma-l-bounces at mailman.commedia.org.uk>] On Behalf Of
> >         Martin Steers
> >         Sent: 22 January 2015 14:46
> >         To: CMA-Mailing-List
> >         Subject: [cma-l] RadioCentre unimpressed with community radio
> >         changes
> >
> >
> >
> >         Via Radio Today:
> >         http://radiotoday.co.uk/2015/01/radiocentre-unimpressed-with-community-radio
> >         -changes/
> >         <http://radiotoday.co.uk/2015/01/radiocentre-unimpressed-with-community-radio%0D-changes/>
> >
> >
> >
> >         RadioCentre, the industry body for commercial radio, says
> >         changes to the way
> >         community radio stations can fund themselves is a concern for
> >         commercial
> >         stations.
> >
> >         The Government today
> >         <http://radiotoday.co.uk/2015/01/community-radio-order-updated/>
> >         said the
> >         not-for-profit stations can now make the majority of its income from
> >         advertising, rather than the previous 50% rule.
> >
> >         Siobhan Kenny, Chief Executive of RadioCentre said: "This is a
> >         disappointing
> >         outcome and will be a real cause for concern for small
> >         commercial radio
> >         stations where margins are already squeezed.
> >
> >         "The changes proposed by the Department of Culture, Media and
> >         Sport (DCMS)
> >         risk blurring the lines between community and commercial
> >         stations and puts
> >         them in direct competition for limited local advertising,
> >         alongside local
> >         press, local television and online.
> >
> >         "Community radio can perform a valuable complementary role to
> >         commercial
> >         radio and the BBC, but it must offer something significantly
> >         different to
> >         the communities it serves. Any changes must be accompanied by a
> >         renewed
> >         emphasis on enforcement and compliance with the key commitments
> >         of these
> >         stations."
> >
> >         The Government's announcement follows a consultation carried out
> >         by the DCMS
> >         launched in February 2013.
> >
> >         More details on today's changes can be found
> >         <http://radiotoday.co.uk/2015/01/community-radio-order-updated/>
> >         here.
> >
> >
> >         _______________________________________________
> >
> >         Reply - cma-l at commedia.org.uk <mailto:cma-l at commedia.org.uk>
> >
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> >
> >
> >
> >
> >
> >
> >         --
> >
> >         Geoff Rogers
> >         Programme Director
> >         Susy Radio, Local Community Radio for Redhill and Reigate
> >         On-air across Sussex and Surrey on 103.4FM NOW
> >         Web: susyradio.com <http://susyradio.com> <http://www.susyradio.com>
> >
> >         Susy Radio Ltd. A company registered in England and Wales.
> >         Registered Office: 54 Nutfield Road, Merstham, Redhill, Surrey,
> >         RH1 3EP.
> >         Registered Number: 06748586
> >
> >
> >
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