Ofcom, the UK media regulator, has found that independent radio stations are most likely to be affected by the BBC’s proposed online music streams. The launch of an online-only music service on the BBC Sounds app, specifically targeting older listeners, could have a significant adverse impact on competition. As a result, Ofcom has directed the BBC to halt the proposed changes to Radio 2 extensions.
The three new music streams proposed by the BBC include extensions for Radio 1, Radio 2, and Radio 3. After reviewing the proposals, Ofcom stated that the launch of the Radio 2 extension constitutes a “material change” to the BBC’s output. This stream is aimed at listeners aged 55+ who are seeking a more comprehensive nostalgic experience.
Ofcom highlighted that the launch of the Radio 2 extension could have a significant impact on independent radio stations like Boom Radio, which also caters to older listeners with a mix of nostalgic and newer music. Since there is an overlap in the target demographic between Boom Radio and the proposed Radio 2 extension, Boom Radio could potentially lose a large percentage of its listeners if the BBC proceeds with the launch.
While the BBC’s own assessment indicated that the impact on competitors would be limited, Ofcom emphasized that independent stations and larger commercial groups would be affected differently. The two largest commercial radio groups in the UK, Global and Bauer Media, account for a substantial portion of radio listening time. Ofcom noted that Boom Radio would be less able to mitigate the potential impact of the Radio 2 extension, leading to reduced investment in new content.
Ofcom’s review also highlighted the need for a public interest test (PIT) if there is a disagreement with the BBC’s assessment. Once the regulator receives the BBC’s PIT, it plans to conduct a competition assessment within six months to determine whether the proposed changes can proceed.
The CEO of Radiocentre, Matt Payton, the industry body for UK commercial radio, welcomed Ofcom’s decision as an encouraging first step. He emphasized the importance of considering the material impact of online radio services on competition, given the rapid growth in online radio listening and the significance of online revenues. Payton also called for increased BBC accountability and focus on market impact from the new government.
In addition to the concerns raised about the Radio 2 extension, Ofcom approved the proposed Radio 1 and Radio 3 extension streams on BBC Sounds, along with changes to the existing Radio 1 Dance stream. The Radio 1 extension is aimed at younger audiences aged 15-34 and offers a mix of hits from the 2000s and 2010s. The Radio 3 extension will provide a calming and relaxing classical music experience. Ofcom concluded that these two streams are unlikely to have a significant adverse impact on fair and effective competition.
The Epoch Times has reached out to the BBC for comment but has not received a response at the time of publication.
