[cma-l] Community Radio Order

[Associated Broadcast Consultants]

Alan,

In parallel/addition to those subsidy figures, also the revenue figures as
detailed in Ofcom Communications Market review 2014
<http://stakeholders.ofcom.org.uk/binaries/research/cmr/cmr14/2014_UK_CMR.pdf>
:

Total Industry Revenue £1,178m
Commercial Revenue £454m
Community Radio Revenue £10.9m (0.9% of Total)   £3.27m of which is
advertising/sponsorship (0.7% of Commercial)

The commercial revenue is presumably mainly advertising and sponsorship
(uncapped).  The community radio revenue is 30% advertising & sponsorship
(capped).  Under current rules it would be impossible for the whole
community sector to reach 50% because a) it is illegal to exceed the cap,
and b) Some stations are unable or unwilling to take much advertising -
hence lowering the average.  The Ofcom document (in my opinion wrongly)
says that the achieved average figure being less than 50% is evidence that
the 50% cap is not a problem.

The figures speak for themselves - Community Radio does not need a cap
because it is nowhere near being a threat to commercial revenues.

>
> --
Glyn Roylance - Principal Consultant
Associated Broadcast Consultants <http://www.a-bc.co.uk/>
 <http://www.a-bc.co.uk/index.html>
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