The thrill is gone – week of bad news for UK broadcasters

Just a week has passed since the UK’s largest commercial broadcaster posted another loss and its chief executive walked the plank. Now Macquarie Bank returned a local radio license before ever going on the air. Are investors finally giving up?

UK Radio Holdings, principally owned by Australian’s Macquarie Bank, surrendered to regulator Office for Communication (OFCOM) its license for local Plymouth radio station Diamond FM. Macquarie was awarded the license in March 2006. The station had a website, now dark, but had not take to the air. The station was required by license to be on the air by March 2008.

The award was, significantly, the second radio license given to a non-UK company after OFCOM relaxed foreign ownership rules. Local applicants complained. Several foreign broadcasting companies expressed interest in and even applied for UK radio licenses. That was yesterday. It was the third radio license surrendered to OFCOM this year.

OFCOM released its Future of Radio report last Thursday (November 22), which pushed (but not mandated) digital switch, ‘simplified’ ownership but did not relax local origination rules. Major UK commercial broadcasters wanted a fixed date for digital switch/analogue shut-off and a fewer locally produced hours. OFCOM offered no fixed date for analogue shut-off nor relief from local origination, a major budget item.

Macquarie, with partners, is seeking €365 million (US$537) to purchase 30% of South Korean cable operator C&M. Macquarie is Australia’s largest radio network owner. In April it paid €3.25 billion ($4.8 billion) for the UK’s emergency radio network.

Canadian publisher/broadcaster CanWest was the first non-UK radio investor, now operating several local UK stations. CanWest is Canada’s biggest media company. It plans expansion with a digital network in 2008. Revised OFCOM broadcast rules in 2005 were meant to spur broad investment in the UK broadcast sector. - Michael Hedges - November 30, 2007

Keywords:radio in the UK, foreign ownership

Flying Through Turbulence – Media in the New EU Member States

ftm reports on media in the 12 newest EU Member States. Will media find clear air or more turbulence? 98 pages PDF file (February 2007)

Free to ftm members and others from €39

Order

Rupert Murdoch - The Media Mogul

From Australia to the San Antonio, Texas tabloid to News Corp and News International, Mr. Murdoch fascinates all media watchers. Included is up to date information on the Dow Jones speculation and real deals, too. When Murdoch talks, the media world listens, and he has a lot to say about newspapers, broadcasting and new media. 42 pages PDF (June 2007)
Free to ftm members, others from €39
Order

Media Measurement Moves Forward and Everywhere

Includes: mobile and internet metrics, electronic measurement systems and device descriptions, RAJAR (UK) debate, with comments. 57 pages PDF (May 2007)
Free to ftm members, others from €39
Order