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From: Stephen Hebditch <steveh@orbital.demon.co.uk>
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Subject: AM/FM #15 - UK Radio Industry News
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    *    ------- ******* -------
   * *   **   ** *       **   **    AM/FM #15 FOR SEPTEMBER 1993
   * *   * * * * *       * * * *
  *   *  *  *  * *****   *  *  *    NEWS FROM THE UK RADIO INDUSTRY
  *****  *     * *       *     *
 *     * *     * *       *     *    EDITED BY STEPHEN HEBDITCH
 *     * ------- *       -------

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

*** LBC TO APPEAL OVER LICENCE DECISION

LBC is to seek a reversal of the Radio Authority's decision to take
away their licence and give it to London News Radio. Dame Shirley
Porter, chairman of the station, has launched a petition and plans to
campaign on air for LBC to be allowed to keep its licence. Executive
Director Matthew Cartisser is considering whether to seek a judicial
review in the High Court. This would require the station to show that
the Radio Authority had acted improperly in making their decision. The
chances of success in this are slim - a similar appeal by the former
ITV contractor for the West of England against the Independent
Television Commission failed last year.

London News Radio's Editor in Chief will be former LBC Managing
Director Peter Thornton and the station will employ a number of former
LBC staff. Its chairman is John Tusa, former boss of the BBC World
Service and currently presenter of the One O'Clock News on BBC
Television. The BBC did not know of his involvement until the
announcement on Friday. LNR's backers are led by merchant bank Guiness
Mahon and French media group Hachette. It will offer a rolling news
format on its FM frequency, repeating every 20 minutes throughout the
day. AM will be a mix of phone-ins, discussions and news similar to
London Talkback Radio. It expects to employ around 160 staff, compared
with the 120 currently employed by LBC. LNR will begin broadcasting in
October 1994.

Two new stations were awarded licences. London Country Radio plans to
launch in January and will broadcast on 1035 AM. It is backed by the
Allied Radio Group. Sunrise Radio will expand Londonwide from their
current West London operation. From early 1994 their Asian programming
will be heard on the 1458 AM frequency currently used by GLR. Their
existing licence for West London will be re-advertised later.

Two further Londonwide licences are expected to be advertised in 1994,
at the same time as those for Capital Radio's two frequencies are
re-advertised. Unsuccessful applicants in the current round will be
able to re-apply then without a further application fee. The licences
for Jazz FM, Kiss FM, Melody Radio and Spectrum International were all
retained by their respective companies.


*** COMMERCIAL RADIO BREAKS THE 40% BARRIER

The RAJAR audience research figures for April to June 1993, published
at the start of August, show commercial radio hitting an audience share
of over 40 percent for the first time. In the competitive London radio 
market this rises to 60 percent.

BBC Radio Five, believed to be at risk from the BBC's plans for a 24
hour rolling news station, had the greatest gains amongst BBC Network
Radio. Its audience was up by half a million to 4.6 million listeners.
Radio Two and Radio Four saw significant falls, although the BBC
largely attributes this to seasonal factors. BBC Local Radio saw major
gains, adding nearly 900,000 new listeners. The BBC see this as a
vindication of their decision to increase the news and speech content
of their local stations. 22% of people in the UK now tune in to BBC
local radio each week.

Virgin managed to reach its pre-launch audience target - just - with a
reach of 3.2 million. Radio One was impacted less than some observers
had predicted, its reach down slightly to 15.7 million listeners.
Atlantic 252 saw its reach drop by 209,000 listeners while Classic FM
saw a small increase of 7,000 listeners.

Locally, a number of ILR stations appear to have been hit by the
arrival of Virgin. Jazz FM saw its reach drop by a quarter, while
Capital FM and Capital Gold both lost hours. Following a large drop in
the last RAJAR figures, blamed on inaccurate sampling of young
listeners, Kiss was boosted by a massive 60% increase in hours. Top
three increases in reach amongst ILR went to Orchard FM, Radio City and
Radio Tay while the biggest decreases went to Piccadilly Gold, Ocean
and Swansea Sound.


*** PIRATE ACTIVITY UP

The Radio Investigation Service carried out 536 raids against 85 pirate
radio stations in the last 12 months, according to its annual report.
68 people were prosecuted as a result of its actions, with an average
fine of UKP 750.

According to the RIS, pirate radio activity is on the increase once
more, particularly in London where over half the pirates in the UK
operate. Following a large increase in complaints earlier in the year
from legitimate broadcasters about growing interference to their
services, the RIS has revised its procedures. Reports of interference
from licensed services are now dealt with as a priority with special
channels of communication between them and the RIS.

A new phoneline has been set up by the RIS for people to report
interference problems. Local officers will investigate upon payment of
a UKP 31 fee which will be refunded if the problem proves to be due to
external factors. The telephone number for the service is 071 215 2150.


*** ROLLING NEWS DECISION POSTPONED

The BBC is expected to announce its decision on its proposed rolling
news service later than originally planned. It had anticipated making
an announcement in September as to whether the service would go ahead
and on what frequency. However, it now seems likely that a decision
will be held off until October or possibly November. Reports from BBC
staffers suggest that a merger with Radio Five to form a news and sport
network remains the most likely option.


*** SEVEN BIDS FOR SCOTLAND REGIONAL

The Radio Authority has received seven bids for the Central Scotland
regional radio licence. This will cover Edinburgh and Glasgow and the
area inbetween, around 2.3 million adults. The winner is expected to be
announced in at the end of November.

Applicants were as follows:-

  Caledonia FM
    - Music and speech from a Christian broadcaster.
  Central Scotland Broadcasting Ltd
    - Adult contemporary driven by Scottish and Celtic music.
  Central Scotland Radio
    - Adult contemporary and speech.
  Coast to Coast Radio
    - Easy listening and speech.
  Cross Country Radio
    - Country music.
  CSR-FM
    - Easy listening with a bias towards Scottish music.
  Radio Six Ltd
    - News and talk.


*** COMMERCIAL RADIO NEEDS 50% MORE REVENUE

A new report says that commercial radio needs to increase its total
advertising revenue by at least 50 percent to meet the planned number
of new radio stations. Analysts Coopers and Lybrand say that radio
needs to take 3 percent of the overall advertising cake to be able to
support the 180 local and 3 national stations expected to be on the air
in 1996. In 1992 Independent Radio took a 2 percent share, earning 140
million in advertising revenue.

Independent stations are hoping that new advertisers will be attracted
by its growth in audience share, its increasing diversity and the
higher profile of the new Independent National Radio stations. The
launch of INR has already tempted a number of advertisers to use radio
for the first time or to return to radio after a long absence. 62% of
the advertisers on Classic FM and 30% of those on Virgin 1215 are new
to radio.


*** SUNSET GOES 'PIRATE'

National Transcommunications Ltd pulled the plug on Manchester's Sunset
Radio on August 13th after they failed to keep up with payments for
their transmission facilities. Sunset temporarily organised its own
transmitter to get the station back on the air before sorting out its
differences with NTL and returning to the air properly. The Radio
Authority and the DTI's Radiocommunications Agency are considering
whether the temporary transmitter was in breach of Sunset's licence
conditions.


*** LOCAL LICENCES

The Radio Authority has advertised a new FM licence for St Albans and
Watford covering 230,000 adults. The closing date for applications is
the 2nd of November.

The licences currently held by Belfast Community Radio, Bradford's
Sunrise FM and Kettering's KCBC have been re-advertised.

13 groups have applied for the West Midlands regional radio licence:
Apna Radio, Buzz FM, Central Band, Easy FM, Enterprise Radio, EZ-FM,
Heart FM, LGD, Love FM, Sunrise Radio, Supa FM, United Christian
Broadcasters and WFM.

Three groups have applied for the ILR licence for Gloucester. They
include Severn Vale Radio, the Broadcasting in Gloucestershire
consortium and present licence holder Severn Sound, part of the
Chiltern Radio Group.

Canmore Radio is the sole applicant for the recently advertised licence
for Dunfermline in Scotland.

Red Dragon FM and Touch AM have retained their licences for Cardiff.

SGR-Colchester will launch on October 17th, broadcasting on 96.1 FM to
the Colchester area. The station is owned by the East Anglian Radio
Group.


*** PEOPLE

Paul Ross has taken over from Chris Evans on Virgin's Saturday mid-morning
show. He was previously presenter of the Sunday mid-morning slot on GLR
as well as producing Channel Four's The Word and presenting LWT's Crime
Monthly.

Claire Sturgess has taken over from the sacked Dave Lee Travis on the
mid-morning show on One-FM. DLT meanwhile says he is considering offers
from a number of stations.

Shock jock James Whale and comedian Simon Fanshawe are to join GLR. The
station has been on the look out for new talent following a mass
defection of its staff to Virgin 1215 earlier in the year. Fanshawe has
previously worked on Radio Five while James Whale is best known for his
work on Leeds' Radio Aire. A new permanent Managing Editor will be
appointed to GLR in the autumn.

LBC's Mike Carlton went on holiday three days early after falling out
with his station. He had earlier attacked LBC for refusing to let him
broadcast a copy of the John Major 'bastard-gate' tape.

Radio Scotland has axed three of its specialist music presenters. Gerry
Ford, Jan Fairley and Gordon Cruickshank who host the country, world
music and jazz programmes will leave in the middle of September. The
specialist Scottish music programme, Celtic Horizons, hosted by Robbie
Shepherd is also believed to be under threat.


*** CONTRACTS

British Airways has pulled out as sponsor of Capital Radio's traffic
spotter plane. It decided not to renew the three year contract which
ended on September 4th.

WH Smith are to sponsor a new listener choice slot on Virgin 1215.
Listeners will get to choose tracks by an artist who will then be
promoted in-store the following week.

Woolworths has launched a new syndicated computer games review show on
ILR. The Woolworths Thumb-busters Games Guide will air twice weekly
until next January.

Coca Cola are to sponsor all Kiss FM's live concert promotions for the
next 12 months.

Classic FM and Time Magazine are to begin selling advertising for each
other to try and expand each other's advertising bases. Time-Warner are
one of the main shareholders in the INR station.


*** FINANCIAL NEWS

Allied Radio, owners of stations in Surrey, Sussex and Hampshire, have
announced further losses. In the six months up to the end of March,
Allied made a loss of UKP 1.17 million before tax. It is now looking at
restructuring its finances, but has denied reports that it plans to
enter into a friendly takeover deal with Southern Radio.

Virgin has dismissed reports that Richard Branson intends to put the
station up for sale. There were rumours that he was opening talks with
a US consortium for the disposal of the station.


*** BITS

The World Radio Network will begin test transmissions on the Astra
satellite on September 15th. Full programming begins on October 1st,
featuring the pick of public radio from around the world. WRN can be
found on the 7.74MHz subcarrier of channel 22.

The BBC has imposed a blanket 1.5 percent pay rise on its staff this
year. This came in advance of a union ballot which rejected the pay
deal.

GLR is considering moving into the former headquarters of Thames
Television in the Euston Road in London, a few doors down from Capital
Radio. It would be co-sited with Newsroom South East as part of the
BBC's strategy to use journalists for both TV and radio. The current
Elstree studios used by Newsroom South East are to be closed.

Radio Clyde has opened two new transmitters, improving reception for
around 200,000 listeners. Towns around the Firth of Clyde now have a
new transmitter on 103.3 FM, with the second transmitter on 97 FM
broadcasting to the north side of the river.

A former Virgin employee is organising a boycott of the station which
she considers to be racist and sexist. Robin Katz, now a freelance
journalist, has attacked the station for not having enough female or
black employees or playing music by female or black artists.

Kiss-FM has launched a new collection of club-wear in association with
Global Hypercolor.

Capital Radio's Managing Directory, Richard Eyre, has banned horoscopes
from the station.


*** AM/FM "THE PAPER EDITION"

To satisfy a growing number of requests, a print version of AM/FM has
been launched this month. This will be published monthly in advance of
the Online Edition and over the coming months will begin to incorporate
extra editorial material that will not be in the Online Edition.

Subscriptions within the UK are priced at 22 pounds sterling per year
or 2 pounds sterling for individual copies. To other countries in
Europe the price is 28 pounds sterling per year. Via airmail to
destinations in the rest of the world the price is 38 pounds sterling
per year. Private individuals in the UK can subscribe at the special
offer price of 11 pounds sterling for 12 issues if they subscribe
before October 31st.

Payment should be by cheque or bankers draft in pounds sterling made
payable to 'TQM Communications' and sent to AM/FM, TQM Communications,
BCM Box 225, London, WC1N 3XX. If you have any further queries, please
write to amfm@orbital.demon.co.uk.

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

             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
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  This publication may be freely distributed provided it is done so in
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------------------------------------------------------------------------



