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From: Stephen Hebditch <steveh@orbital.demon.co.uk>
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Subject: AM/FM #12 - Radio news from the UK
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    *    ------- ******* -------
   * *   **   ** *       **   **    AM/FM #12 FOR JUNE 1993
   * *   * * * * *       * * * *
  *   *  *  *  * *****   *  *  *    NEWS FROM THE UK RADIO INDUSTRY
  *****  *     * *       *     *
 *     * *     * *       *     *    EDITED BY STEPHEN HEBDITCH
 *     * ------- *       -------

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*** RAJAR WAVE ONE RATINGS OUT

The latest audience research figures are out, covering the first three
months of 1993. Radio One remains Britain's top station with 16 million
listeners, followed by Radio Two with 10 million, Radio Four with 9
million, Classic FM with 4.5 million and Atlantic 252 with 3.9 million.
Classic FM's audience increased by 5.5%. Improved performances at Radio
Four and Radio Five helped boost the BBC's figures, giving the BBC 59%
of the total radio audience.

In London, Capital FM continued to pull the biggest audience, though
there was a surprise surge from Jazz FM, up 130,000 listeners to
666,000.

RAJAR have announced that they are to make changes to better tarket
young people in their next audience research. This followed criticism
of previous research for under-representing the youth sector.

The latest Cultural Trends survey shows radio undergoing a huge surge
in popularity and starting to close the gap on television. Nine out of
ten people now listen to the radio for three hours or more every day
with a total audience in the UK of 41.6 million listeners.


*** SUNSET LICENCE CUT SHORT

In an unprecedented move, the Radio Authority has cut short the licence
of Manchester's Sunset Radio. The Authority made the decision after
accusing the station of providing inaccurate information about its
financial and management affairs.

Sunset was launched in 1989 and provides a mixture of dance music and
ethnic programming. However, it has had a number of management and
financial problems. Its founder Mike Shaft was sacked, reinstated and
then resigned during its first year. John Darch, widely credited for
turning the station around and bringing it into profit, left in unclear
circumstances in 1991. Sunset is currently owned by Iraqi businessman
Hassan Al-Jaizani and was a shareholder in one of the groups applying
for the North West regional licence.


*** JAZZ FM FOR THE NORTH WEST

Golden Rose, owners of Jazz FM, have won the new regional Independent
licence for the North West. The new station will begin broadcasting in
September 1994 to around 4.3 million listeners in Merseyside, Greater
Manchester, South Lancashire and North Cheshire. Its format will be
similar to Jazz FM and will share some programming outside daytime
hours. Golden Rose faced competition from 10 other groups for the
licence.

Golden Rose are also applying for a Londonwide AM licence for a station
targetted at 30-something women. The company has raised 0.5 million out
of a needed 3.5 million pounds to support its London bid, bringing Jazz
FM into profit and winning the new North West regional licence.


*** DANN QUITS GLR

Trevor Dann has resigned as Managing Editor of GLR. He followed his
deputy Kate Marsh who walked out of the the station the previous week.
Along with former GLR boss Matthew Bannister, Dann had been responsible
for GLR's innovative mix of adult rock and talk. This helped to turn
around the station and bring in much larger audiences than the old
Radio London. However, BBC management wanted the station to concentrate
more on speech, as part of a general policy for BBC local radio. After
seeing the loss of many of his best staff to Virgin 1215 and the
audience drop substantially since the latest changes, Trevor Dann
finally decided to leave. He has been replaced by the boss of BBC Radio
Solent.

A 'GLR in exile' has been formed to apply for one of the Londonwide
licences currently on offer. The consortium was put together by
Nicholas Wapshott, chairman of the advisory panel to the BBC local
station, and has approached Trevor Dann to work for the new station. If
successful, the consortium would offer a format almost identical to the
GLR of old.


*** BBC NETWORK RADIO TO STAY IN CURRENT FORM

The BBC is to keep all its National networks in their current form. The
announcement was made by Liz Forgan, new head of BBC Radio, in an
interview on Radio Two. Radio Five was singled out for praise by her as
being the BBC's most adventurous station. She also announced that
further changes to Radio Three were likely in order to bring in a
larger audience for the classical music station. Richard Branson's idea
of swapping Virgin on AM for Radio Four on FM was dismissed by Ms
Forgan as a publicity stunt. Two thirds of Radio Four's audience
currently listens on FM.


*** RADIO ONE'S COMMERCIAL PARTNERSHIPS DEFENDED

The BBC has defended Radio One against claims that it is breaching its
licence by running promotions with private companies. This followed a
complaint from the Association of Independent Radio Companies to the
BBC and the Department of National Heritage. They allege that in the
past year outside companies have spent one million pounds on
co-promotion activities with the station. Because of the BBC's
behaviour they believe Independent Radio is being deprived of
advertising and sponsorship revenue. A spokesman for Radio One said
that it kept editorial control and worked within the strict rules,
although Radio One "pushed to the limits of the guidelines".


*** TWO NEW FM STATIONS FOR LONDON?

The Radio Authority are looking into the possibility of licensing two
new FM stations for London. These would broadcast on the 105 to 108 MHz
part of the band that becomes available by 1996. A decision has yet to
be made as to whether these should cover just the Metropolitan area or
a wider spread across the South East. The new licences are likely to be
offered at the same time as those for Capital FM and Capital Gold are
renewed.


*** RESEARCH WITH RENEWAL REMINDERS

The BBC are to ask two million people a year what they think of the
Corporation's output and how it is performing. Along with their TV
licence renewal reminders, one in ten people will get a questionaire to
fill in. The plan was outlined in the BBC submission to the Government
on its future after its charter is renewed in 1996. The BBC says it
wants to continue offering the broad range of quality and distinctive
programmes it does now, but with greater openness and accountability. A
White Paper which more firmly decides just what will happen to the BBC
will be published by the end of the year.


*** LONDON LICENCE APPLICANTS

Joan Bakewell is behind a talk and quality pop station aimed primarily
at women.

The Chrysalis Group and French pop network NRJ have applied to run an
adult rock station.

A group of people previously involved with eighties pirate station
Solar FM want to run a new soul station.

Bloomberg, owners of New York news station WNEW-AM, have bid to run a
business news station.

London Transport have applied for a station to carry London travel
information during the day and rock music at night.

The deadline for applications closed on the 8th of June. The next issue
of the AM/FM Online Edition carries a full listing of applicants, many
of whom are also profiled in the AM/FM Newsletter.


*** LOCAL LICENCES

Five groups have applied for the regional radio licence for the North
East: Heritage FM, Easy FM and The Mix - all promising easy listening
formats - country station Radio North East and Christian station Sound
FM.

Three groups have so far announced plans to apply for the new FM
licence for the West Midlands. These are Diamond Radio, an AOR service,
pop/dance station Buzz FM who want to expand their coverage area, and
Allied Radio.

The Radio Authority has advertised the Independent Regional Radio
licence for Central Scotland. The station will reach a potential
audience of 2.3 million people and is expected to cover most of the
area from Glasgow to Edinburgh. This is the last of the regional
licences to be advertised in the current phase.

The BBC has launched a new station, Dorset FM, to compete with the new
ILR station for the area opening later in the year. The station will
include locally produced breakfast and lunchtime programmes, with the
rest of the output taken from BBC Radio Devon.

Chiltern Radio has retained its licences for Bedford / Luton and
Northampton.

Mercia Sound has retained its re-advertised licences for Coventry.

Hereward Radio was the sole-bidder for its re-advertised licences for
Peterborough.

Yorkshire Coast Radio has won the new ILR licence for Scarborough.

Mid Anglia Radio was the sole applicant for its re-advertised licences
for Peterborough.

The Radio Authority has re-advertised the licences for Gloucester,
currently held by Severn Sound Hot FM and Severn Sound Supergold, part
of the Chiltern Group. The licences for Exeter and Torbay, held by
DevonAir Radio, have also been re-advertised.

Ten17, the new ILR station for Harlow, took to the air on May 1st. The
station is owned by Essex Radio, with 30 hours a week of its own local
programming.


*** FINANCIAL NEWS

Capital Radio made a profit of 4.6 million pounds on a 16 million pound
turnover in the 6 months up to the end of March. Profits were up by
around 13 percent over last time on a similar turnover. This was helped
by a reduction in the amount the station has to pay for record
royalties.

Metro Radio saw advertising revenue at the station go up to 6.6 million
pounds from 5.95 million for the six months up to the end of March.
Profits were up 19 percent to 797,000 pounds. Local advertising has
been doing well at the station, up 21 percent, but national advertising
has been down 10 percent. This has been partly due to problems at
Independent Radio Sales who represent Metro to national advertisers.
IRS is owned by Crown Communications who are currently in receivership.

Radio Clyde made a profit of 1.5 million pounds in the six months up to
the end of March - 50 percent more than it made in the whole of the
previous year. Clyde, which now owns stations throughout Scotland,
turned over 7 million pounds in the half year period.

Losses at the Chiltern Group are growing. In the six months up the end
of March, the station had a loss of 325,000 pounds compared to an
180,000 pound loss last time. Turnover was up 7.8 percent to 2.75
million.

Southern Radio, owners of most of the ILR stations south of London,
have seen their profits go up by nearly 60 percent. In the six months
to the end of March, the group made a 165,000 pound profit on a 4.01
million pound turnover.


*** BITS

The Radio Authority have upheld a complaint over Birmingham's Buzz FM.
The Authority found that the station had fallen below the requirement
in its promise of performance for 70 percent black music. Instead it
says listeners were being treated to a mainstream contemporary service
during the daytime and black music at off-peak hours.

Complaints have been flooding in to the BBC over the new schedules for
Radio Scotland. In line with the rest of the Corporation's output, the
BBC has introduced more speech on the station. This has meant the axing
of several contemporary music programmes, cutting access to the
airwaves for Scottish rock music. Other specialist programmes have also
gone, to make way for more talk and MOR music.

The Save Radio Four on Long Wave campaign have backed Richard Branson
in his suggestion that Virgin 1215 should carry out a swap with the
BBC's FM frequencies for Radio Four.

Virgin 1215 have been banned from booking advertising time for the
station on Capital FM. The station originally planned to spend half a
million pounds on local radio advertising.

Atlantic 252 and Classic FM are considering linking up to try and sell
a joint advertising package to national advertisers.

Classic FM has put up its advertising rates following its success in
the latest audience research figures.

LBC was forced to apologise on air after accidentally running an old
advert. In place of the correct commercial for Harrod's, an old one for
a one-off warehouse sale was put out. The station put out special
announcements to correct the error, but some members of the public
still turned up the Harrod's Osterley warehouse.

A junior school in Birmingham was closed for several days in May for a
'cooling-off period' after a local pirate station broadcast calls for a
demonstration in support of a boy who staff were refusing to teach.

Attendances at churches which featured in a local radio advertising
campaign by the Church of England at Christmas were up 16 percent
compared with those that didn't take part.


*** AM/FM 1993 NEWSLETTER

The Summer '93 AM/FM Newsletter is now out. Inside its six pages you'll
find a major feature looking at the current state of British Radio -
BBC, Independent, Satellite and pirate. You can also find out who we
rate as the winners in the Londonwide licence war and there's a chance
to win a satellite dish.

If you haven't requested a copy yet then there are still a few
available. Residents of the UK can obtain a copy free of charge by
sending an e-mail to 'newsletter@orbital.demon.co.uk' with their name
and postal address. Outside the UK, you can get a copy by sending a
self-addressed envelope and two International Reply Coupons to AM/FM
Newsletter, BCM Box 225, London, WC1N 3XX. Your details will not be
passed on to other companies. Please state if you do not wish to
receive any further mailings from us.

------------------------------------------------------------------------

             amfm@orbital.demon.co.uk   fax: +44 81 509 0729
              AM/FM, BCM Box 225, London, WC1N 3XX, England

   This is a monthly summary of stories carried by AM/FM Newsline, the
weekly UK radio industry news round-up on 0336 404550. (Calls charged at
 36p per minute cheap rate, 48p per minute other times, available within
     the UK only, TQM Communications, PO Box 2306, London, E17 4TU.)

 The AM/FM Online Edition can be obtained on the Usenet rec.radio.info
 newsgroup, in the 'broadcast' conference on London's CIX conferencing
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       Copyright (C) 1993 TQM Communications. All rights reserved.
  This publication may be freely distributed provided it is done so in
whole, no alterations are made and only basic online charges are levied.

------------------------------------------------------------------------


