By Luke on October 25th, 2004
Radio groups urge Ofcom to block merged Capital/GWR from licence bids
Radio groups are urging Ofcom to ban a merged Capital Radio/GWR from bidding for FM licences for the next five years.
Fair enough…
Radio groups are urging Ofcom to ban a merged Capital Radio/GWR from bidding for FM licences for the next five years.
Fair enough…
Latest from Ofcom
Why ‘fair enough’? Ofcom awards licences to the group it thinks would provide the best station that would widen listener choice and cater for the tastes and interests of listeners. If the merged group can do this, why shouldn’t they be awarded the licence?
Fair enough…
Of course…you have to be confident in Ofcom’s judgement here, since a combined Capital/GWR group would hold 40% of the radio advertising market, and 36% of the UK commercial radio audience.
This is not to say that a merged company couldn’t do a good job running plenty more stations – even every UK commercial station. But, personally, I would bet against this since it wouldn’t make commercial sense to, “widen listener choice and cater for the tastes and interests of listeners” beyond a certain point.
The key for consumers is that Ofcom is able to identify this point. And, as you point out, it may make more sense to outline where this point is likely to reached rather than implement a rather draconian ex ante blanket ban.
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