Introduction

As Co-Chair of the Music Business Forum, British Music Rights co-ordinated the music industry’s input into discussions in this area whilst the Communications Bill was progressing through Parliament.

For the purposes of this consultation, we also draw attention to s314 of the Communications Act which takes into account the local content and character of local sound broadcasting services and reiterate that Parliament has specifically legislated for the fact that ‘local material’ explicitly includes ‘music’ in subsection (7)(c).

The central theme of our response is the need for OFCOM to meet this duty and that ‘localness’ factors should be implicit within OFCOM’s overall radio strategy to ensure access to a wide range of musical diversity for the listening public.

1: What comments do stakeholders have in relation to Ofcom's views on localness and its approach to localness which they indicate?

We acknowledge that this consultation deals with ‘outputs’ and a further consultation will be forthcoming on issues pertaining to ‘inputs’. Notwithstanding, the broadcast ‘output’ of a local commercial radio station - what the listener experiences – is dependent on, and closely related to ‘inputs’ - and the delivery system, such as automation and programming syndication. Consequently, we urge OFCOM to recognise how difficult it is to neatly differentiate between these two aspects.

Localness is important as it allows for an increase of diversity and culture, reflecting the interests of local listeners within a geographical area or community. The background to the consultation document explains that localness is an important issue for the industry. However, we believe that it is important aspect for the listener as well. Furthermore, we concur that localness is easily identifiable by its absence.

During the progress of the Communications Bill last year, an NOP opinion poll was conducted which found that 68% of 15- to 24-year-olds want to hear a wider variety of music played on general radio stations, and some 72% of people would support measures to encourage local radio stations to cover local music.

The localness factor in (local) commercial radio is a vital characteristic which has been affirmed by all sides of both Houses of Parliament during the progression of the Communications Bill. The Broadcasting Minister whilst the Bill was in Standing Committee in the House of Commons, Kim Howells MP, made reference to this fact by suggesting that “one of the aspects of local radio that we value most is its localness”.

Given that both Parliament and the general public consider localness and music to be important interrelated factors, naturally, we expect for OFCOM to give such matters its full consideration when these principles are put into practice through guidance.

2: Do stakeholders/consumers agree that the statements, in themselves, offer ingredients that can be used in a number of different ways to create a reasonable level of localness?

British Music Rights believes that broadly, OFCOM is moving in the right direction with respect to the actual statements on localness outlined in the consultation. However, we would like to make the following six observations specifically:

(i) The very first statement - ‘that localness is not an issue for all stations’ - as a priority statement is concerning and confusingly ambiguous. We believe that for both small and large local radio stations, localness is an issue. Indeed, radio stations themselves acknowledge that ‘localness’ is a key component of their programming for commercial market-driven reasons.

(ii) The statements listed in the interim guidance suggest that localness can be characterised and delivered in a number of ways. Whilst OFCOM suggests that prescriptive definitions are unhelpful, we do believe that clear statements are certainly useful, especially in the instance of interim guidance. Whilst it is important that any guidelines provide flexibility for the operator, the guidance must reflect the spirit of the Act, which includes the promotion of diversity and consideration of music specifically.

(iii) OFCOM has stated that this consultation addresses ‘outputs’ only. However, mentioned in the second paragraph of the definition of ‘what localness is’ section is reference to the fact that “localness can be both characterised and delivered in a number of ways”. This is somewhat confusing given that the ‘delivery’ angle has not been considered elsewhere in the consultation and has been purposely excluded. Arguably, such an inclusion somewhat verifies the intrinsic nature of what the listener experiences and its delivery mechanism, yet OFCOM has chosen to separate these factors and only consult currently on the former aspect.

(iv) We believe there should be further appreciation by OFCOM with respect of the value that local programming can have for listeners specifically.

(v) We believe that the phases ‘content drawn from, and /or relevant to, the area’ should be separated. The phrase ‘content drawn from’ implies the necessity of local platforms for local artist and performers to be given opportunities, but such a statement should go further. We believe there should be full and proper consideration given to the need to encourage and provide a broad range of entertainment, and in particular, deliver live musical performances. However, the idiom “relevant to” is a different attribute and we believe that there should be a fuller consideration of local tastes. There are notable regional and local variations in tastes and interests throughout the UK. Both aspects are equally important, but separate in their own right and therefore should be recognised as such in the statements and consequential guidance.

(vi) Finally, we also suggest that OFCOM should specifically make a statement correlating the importance of localness to diversity.

3: Are there any other 'output' aspects of localness (i.e. that which is broadcast rather than the way in which it is delivered, such as through automation) which Ofcom should consider when viewing the whole localness issue?

There seems to be an inherent contradiction within this question posed. OFCOM is not considering the ‘whole’ localness issue by separating the issues of ‘broadcast’ and ‘delivery’. This does not represent an all encompassing approach, as suggested.

Given that ‘localness’ has been accredited as being an important theme, OFCOM’s guidance should be drawn up to ensure that it is not be placed at the outer limit of programming scheduling. Arguably, stations may be keen to demonstrate local participation and consideration to local aspects but this may be undermined through poor scheduling. OFCOM must remain vigilant in this area by ensuring that stations meet and maintain their commitments, as outlined within format requirements.

‘Localness’ output is also a factor in radio mergers. We are aware through previous experiences in the radio broadcasting sector that mergers assessed on competition aspects alone fail to take music into consideration specifically in the criteria, but instead decisions are based wholly on other factors, such as the local advertising market. Because diversity is an important factor, there should be a significant awareness of ‘local material’ in such potential assessments and as part of this, music should be given the proper consideration it deserves.

We acknowledge that digital radio has the ability to reshape the entire market in time. However, we expect that its impact will still take some years to develop. Whilst larger numbers of people may listen to digital radio stations broadcast on satellite, cable and terrestrial digital television platforms, these are normally national digital radio services, not local services. Other new technologies, particularly Internet radio, have strong long-term prospects but are unlikely to affect the local radio market within the next three to five years. This emphasises the importance of the role to be played by commercial radio broadcasters at the local level, especially in the short to medium term.

It seems sensible to briefly demonstrate the importance of the close relationship between ‘input’ and ‘outputs’. In short, larger commercial groups have centralised play lists so there is a great overlap in the music which is being playing and listened to by the public. The consequences are that independent record companies in particular finding it difficult to get airplay for new artists and bands. We recognise that this consultation provides a limited opportunity for a fuller discussion of such considerations and so we intend to outline such problems during the next phase of consultation on ‘inputs’.

Notwithstanding this fact and in line with OFCOM's approach to holding informal discussion with people and organisations prior to the announcement of a big consultation, we would welcome the opportunity for the wider music industry to engage with OFCOM in advance of the forthcoming digital radio strategy.

We look forward to maintaining ongoing dialogue with OFCOM on the whole area of radio licensing.

For more information please contact Scott Walker at British Music Rights.