Commercial Radio 1 'threat to industry'
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE commercialisation of Radio 1 would prove so attractive to advertisers that it would have a 'devastating impact' on the viability of independent radio stations, according to a study designed to influence the Government's forthcoming White Paper on the BBC after 1996, writes Maggie Brown.
The Henley Centre study was commissioned by the Radio Authority and the Association of Independent Radio Companies (AIRC). James Walker, who devised it, said: 'A commercial Radio 1 would undoubtedly boost the credibility of radio as an advertising medium in the UK, and lead to overnight growth of 20 per cent in national advertisers' spending on radio. However, the existing commercial radio services are currently trading at an aggregate loss, and even though we are forecasting very strong growth in radio advertising over the next five years, the industry could not withstand Radio 1 taking advertising in 1997.'
Virgin 1215, Atlantic 252 and the forthcoming speech- based INR3 would be hardest hit: national commercial radio stations would lose pounds 17m a year and local radio stations pounds 15m.
The report adds that one way round the problem - if the Government pushes ahead with privatisation - would be for five-year restrictions on the amount of advertising Radio 1 could sell - perhaps six minutes per hour, compared with nine minutes for other stations.
A commercial Radio 1 would add an estimated pounds 19m to national commercial advertising, but it would take more than pounds 53m in revenue, giving it a 26 per cent share of the pounds 204m total radio income and making it very profitable.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments