Global dominance

pjexpjex Posts: 9,377
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Is there a reason why Global are allowed to own 73% of the commercial stations with an analogue licence covering the London area;

Global; Capital, Capital Xtra, XFM, Heart, Smooth, Gold, LBC, Classic FM

Bauer; Kiss, Magic, Absolute

Shouldn't the licences be shared out a bit more to avoid one company owning 8 stations and only having 2 commercial players in the UK's biggest radio market.

It's much more split in other cities e.g. Birmingham where you have 3 players involved Orion, Bauer and Global.
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Comments

  • jamie smith909jamie smith909 Posts: 193
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    Yes there is a reason.
  • Peter the GreatPeter the Great Posts: 14,229
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    pjex wrote: »
    Is there a reason why Global are allowed to own 73% of the commercial stations with an analogue licence covering the London area;

    Global; Capital, Capital Xtra, XFM, Heart, Smooth, Gold, LBC, Classic FM

    Bauer; Kiss, Magic, Absolute

    Shouldn't the licences be shared out a bit more to avoid one company owning 8 stations and only having 2 commercial players in the UK's biggest radio market.

    It's much more split in other cities e.g. Birmingham where you have 3 players involved Orion, Bauer and Global.
    Is there a reason? Yes and the reason is because Ofcom is an effing useless regulator.
  • 4-4-24-4-2 Posts: 5,413
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    pjex wrote: »
    Is there a reason why Global are allowed to own 73% of the commercial stations with an analogue licence covering the London area;

    Global; Capital, Capital Xtra, XFM, Heart, Smooth, Gold, LBC, Classic FM

    Bauer; Kiss, Magic, Absolute

    Shouldn't the licences be shared out a bit more to avoid one company owning 8 stations and only having 2 commercial players in the UK's biggest radio market.

    It's much more split in other cities e.g. Birmingham where you have 3 players involved Orion, Bauer and Global.

    Classic FM isn't a local license like the others so shouldn't be really included.
  • AmaraAmara Posts: 5,376
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    Is there a reason? Yes and the reason is because Ofcom is an effing useless regulator.

    Indeed what Global wants it generally gets they have been allowed to ruin UK radio. They takeover and then crucify. Ofcom has been an almost walkover its pathetic.
  • Station IDStation ID Posts: 7,411
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    Amara wrote: »
    Indeed what Global wants it generally gets they have been allowed to ruin UK radio. They takeover and then crucify. Ofcom has been an almost walkover its pathetic.

    An almost walkover really? They bought radio stations 2 years ago and only now xan they actually do anything with them. That's some walkover. Although Ofcom were fine with the deal the op's point has nothing to do with Ofcom.
  • SouthCitySouthCity Posts: 12,486
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    Station ID wrote: »
    An almost walkover really? They bought radio stations 2 years ago and only now xan they actually do anything with them. That's some walkover. Although Ofcom were fine with the deal the op's point has nothing to do with Ofcom.

    Indeed, from the Competition Commission report:
    Our assessment
    7.22 Although Global’s market share post-merger would be high, we do not consider the loss of Smooth in London to be significant in reducing the alternatives available to advertisers because it has a low listener and advertising revenue share. Also, post-merger there would be other good alternative stations available covering the same region and a range of demographics.

    Conclusion
    7.23 We therefore conclude that there are unlikely to be significant adverse effects in London as a result of the merger.

    http://www.competition-commission.org.uk/assets/competitioncommission/docs/2012/global-radio-gmg/130521_global_radio_gmg_final_report.pdf
    page 60
  • radiodadradiodad Posts: 2,071
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    pjex wrote: »
    Is there a reason why Global are allowed to own 73% of the commercial stations with an analogue licence covering the London area;

    Global; Capital, Capital Xtra, XFM, Heart, Smooth, Gold, LBC, Classic FM

    Bauer; Kiss, Magic, Absolute

    Shouldn't the licences be shared out a bit more to avoid one company owning 8 stations and only having 2 commercial players in the UK's biggest radio market.

    It's much more split in other cities e.g. Birmingham where you have 3 players involved Orion, Bauer and Global.

    While not London wide there is also London Greek Radio, Time 106.6, Time 106.8, Time 107.3

    And if your counting AM and DAB (i presume you are if you are including Gold) London French Radio, Sunrise, Premier and London Turkish as well as Gaydio.
  • Les WiresLes Wires Posts: 6,610
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    Amara wrote: »
    Indeed what Global wants it generally gets they have been allowed to ruin UK radio. They takeover and then crucify. Ofcom has been an almost walkover its pathetic.
    You can't help thinking that sooner or later Global and Bauer will be allowed to takeover more of the smaller groups until it's just the 2 of them.

    Then of course the ultimate Global/Bauer merger might happen.

    All this of course will be justified because you have adequate competition from the BBC.
  • [Deleted User][Deleted User] Posts: 135
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    radiodad wrote: »
    While not London wide there is also London Greek Radio, Time 106.6, Time 106.8, Time 107.3

    And if your counting AM and DAB (i presume you are if you are including Gold) London French Radio, Sunrise, Premier and London Turkish as well as Gaydio.

    Did Time 107.3 not close a couple of years ago?
  • hanssolohanssolo Posts: 22,659
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    pjex wrote: »
    Shouldn't the licences be shared out a bit more to avoid one company owning 8 stations and only having 2 commercial players in the UK's biggest radio market.
    A lot of the changes started with the 2003 Communications Bill when ownership regulations were relaxed.
    http://www.warc.com/LatestNews/News/Regulator%20Predicts%20Slow%20UK%20Radio%20Consolidation.news?ID=14844
    1 December 2003

    Forecasts of rapid consolidation in the UK radio market may be wide of the mark, according to the outgoing head of the sector's regulator.

    Radio Authority chairman/ceo David Witherow believes that, once ownership laws are relaxed at the end of the year, the pace of change will be slower than many pundits have predicted.

    "Local ownership rules, and competition law, will apply; so will format control," Witherow told the Voice of the Listener and Viewer conference. "While share values are well down from their peak, they still look high to potential buyers from outside the industry.

    "It is more likely that we will see convergence of interest, with some companies finding synergies with others rather than outright takeovers, at least in the short term."

    The soon-to-be-implemented Communications Act will allow greater consolidation and open up the market to companies from outside the European Union. However, Witherow believes there are still opportunities to expand organically, by launching new stations and services, both analogue and digital. He also predicts that commercial radio will take a greater slice of media adspend.

    Witherow is to retire when the Radio Authority passes its duties to communications supra-regulator Ofcom at the end of December.

    Data sourced from: MediaGuardian.co.uk; additional content by WARC staff
    How wrong they were that radio groups (with owners outside the UK) would not lend money to take over stations, so now in 2014 there are 2 large commercial radio groups left owning most of the radio stations.
  • doug italdoug ital Posts: 315
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    You can't help thinking that sooner or later Global and Bauer will be allowed to takeover more of the smaller groups until it's just the 2 of them.

    Then of course the ultimate Global/Bauer merger might happen.


    Yep that's what happend in tv..It became just Carlton and Granada..Now it's just ITV!

    Only a matter of time before it happens in radio!
  • AmaraAmara Posts: 5,376
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    SouthCity wrote: »

    Yes but they got what they wanted in the end they now dominate UK commercial radio its not good.
  • hanssolohanssolo Posts: 22,659
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    doug ital wrote: »
    Yep that's what happend in tv..It became just Carlton and Granada..Now it's just ITV!

    Only a matter of time before it happens in radio!
    With TV there are also other large commercial TV groups like Ch4, Ch5 and Sky
    At the moment there are still competition rules ensuring there are other local ad sales outlets, which is why Global were not allowed to fully take over GMG and Global will not be able to takeover Bauer radio.
    Ad agencies will want to ensure these are kept in place so they can have competition to get best ad rates.
    As listeners it is important these rules still remain.
  • [Deleted User][Deleted User] Posts: 401
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    If anything ever replaced Ofcom, a new regulator with some power should force Global to flog its Capitals (except for London, Scotland and Cardiff) and sell some of its Heart's to UTV, Orion, Media Sound Holdings and Celedor.

    So for instance, some Heart stations in the south could go to UTV and Orion, some of those in the Midlands (except 100.7 as that was the original one) could go to Media Sound Holdings or UTV, some of those in the north could go to Media Sound Holdings, Orion and Celedor and those in the west could go to UTV. In effect if a regulator forced Global to sell some of its assets off it would reduce the Heart Network to nothing more than a 10 station network.

    Plus it would give a reasonable mix of owners in other areas, you will have noticed that I haven't included Communicorp as they're in partnership with Global.
  • hanssolohanssolo Posts: 22,659
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    If anything ever replaced Ofcom, a new regulator with some power should force Global to flog its Capitals (except for London, Scotland and Cardiff) and sell some of its Heart's to UTV, Orion, Media Sound Holdings and Celedor.

    So for instance, some Heart stations in the south could go to UTV and Orion, some of those in the Midlands (except 100.7 as that was the original one) could go to Media Sound Holdings or UTV, some of those in the north could go to Media Sound Holdings, Orion and Celedor and those in the west could go to UTV. In effect if a regulator forced Global to sell some of its assets off it would reduce the Heart Network to nothing more than a 10 station network.

    Plus it would give a reasonable mix of owners in other areas, you will have noticed that I haven't included Communicorp as they're in partnership with Global.
    That will need changes to the radio ownership laws in the Communications Act which is unlikely, under the current Government there will probably be more deregulation.
    Under the current rules one commercial group would have ended up with the majority of listeners and Global was in the right place at the right time with rich backers to do it.
  • doug italdoug ital Posts: 315
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    hanssolo wrote: »
    With TV there are also other large commercial TV groups like Ch4, Ch5 and Sky
    At the moment there are still competition rules ensuring there are other local ad sales outlets, which is why Global were not allowed to fully take over GMG and Global will not be able to takeover Bauer radio.
    Ad agencies will want to ensure these are kept in place so they can have competition to get best ad rates.
    As listeners it is important these rules still remain.

    Yes but what ever happened to Tyne Tees, Ulster, Southern, LWT, Central? I'm thinking these tv stations were all absorbed into 2 then just one giant ITV company, and I firmly believe one day virtually all commercial radio will be owned by just one maybe 2 groups..Which i don't believe is good for the future of radio!
  • Black BoxBlack Box Posts: 765
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    My thoughts are that Global will stick around for a few more years, then they'll sell the business for a huge profit.

    They're certainly not in it for the long-term.
  • andrew1973andrew1973 Posts: 926
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    gavindowd wrote: »
    Did Time 107.3 not close a couple of years ago?

    Yup, April 2009, as did Time 106.8.
  • OrangyOrangy Posts: 1,441
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    If anything ever replaced Ofcom, a new regulator with some power should force Global to flog its Capitals (except for London, Scotland and Cardiff) and sell some of its Heart's to UTV, Orion, Media Sound Holdings and Celedor.

    I agree that the Hearts & Capitals being most of the commercial choice in some areas is a bit dull, however I wonder if local stations would survive. Local radio is dying in many cases. Just not as many people listen now with the abundance of mobile devices, Spotify, iTunes, etc, etc. Music you control and no ads if you just want a jukebox. UKRD have done a good job of keeping their stations local whilst being a good company to work for. However, try listening to Eagle for 2 hours during the day. After the endless adverts, most of which are repeated several times an hour, you'll end up tuning away.
  • [Deleted User][Deleted User] Posts: 303
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    Black Box wrote: »
    They're certainly not in it for the long-term.

    What makes you say that? Ashley and Richard are two of the most passionate radio people I know.
  • PassengersPassengers Posts: 764
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    Orangy wrote: »
    I agree that the Hearts & Capitals being most of the commercial choice in some areas is a bit dull, however I wonder if local stations would survive. Local radio is dying in many cases. Just not as many people listen now with the abundance of mobile devices, Spotify, iTunes, etc, etc. Music you control and no ads if you just want a jukebox. UKRD have done a good job of keeping their stations local whilst being a good company to work for. However, try listening to Eagle for 2 hours during the day. After the endless adverts, most of which are repeated several times an hour, you'll end up tuning away.

    Many local stations have been squeezed by the addition of regional stations which should never have been licenced. It was a layer of broadcasting that simply wasn't necessary and has left smaller operations unable to compete.
  • wckartistwckartist Posts: 1,682
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    Cut6 wrote: »
    What makes you say that? Ashley and Richard are two of the most passionate radio people I know.

    Such a shame then they cant be inspirational and creative with the output isn't it!

    Instead we have "groundhog day" FM, with music research tested on people who don't really have an interest in music!>:(

    Such passion!:(
  • [Deleted User][Deleted User] Posts: 303
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    wckartist wrote: »
    Such a shame then they cant be inspirational and creative with the output isn't it!

    Instead we have "groundhog day" FM, with music research tested on people who don't really have an interest in music!>:(

    Such passion!:(

    You don't need to have an "interest in music" to listen to the radio. You don't need to have an interest in baked beans to shop in a supermarket. You don't need to have an interest in engines to drive a car.

    Over 20 million people listen to Global radio stations every week. They're not necessarily looking for what you term "inspirational and creative" output. They want songs they love and are familiar with. Music research is carried out on these people, not those who know about obscure Meat Loaf b-sides or post on the radio forums of Digitalspy.

    The majority of managers at commercial radio stations are passionate about making their business a success, both for advertisers and listeners. They do that by creating popular radio that attracts the demographics advertisers want which in turn makes more money for the company.

    It amazes me that, with all your experience of commercial radio you've failed to grasp this simple concept.

    I should also point out that Richard Park has an encyclopedic knowledge of music. However, he doesn't let his personal taste get in the way of his business decisions. Which is probably why he is where he is today.
  • Terry PurvisTerry Purvis Posts: 143
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    Originally Posted by Black Box:
    They're certainly not in it for the long-term
    Cut6 wrote: »
    What makes you say that? Ashley and Richard are two of the most passionate radio people I know.

    That may be and I'm not going to suggest otherwise - but in the end Global’s UK companies are ultimately owned and controlled by the Jersey-based Global Radio Group Limited.

    In turn this company is 99% owned by a British Virgin Islands-registered company called Global Radio Worldwide Limited. The other 1% is owned from London by Ashley Tabor in a personal capacity.

    The decision will have little to do with Tabor and Park If and when the beneficial owners of Global Radio Worldwide Limited decide to sell on.
  • hanssolohanssolo Posts: 22,659
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    The decision will have little to do with Tabor and Park If and when the beneficial owners of Global Radio Worldwide Limited decide to sell on.
    In 2008 Mediaweek published some details of Global
    http://www.mediaweek.co.uk/article/800277/silent-face-global-radio-emerges
    Global's shareholders, through an offshore trust, include Irish racing magnates John Magnier and JP McManus, as well as Michael Tabor, another racing enthusiast and father of Ashley. Irish financier Dermot Desmond, who sold London City Airport for £750m in October 2006, is also understood to have a stake in the business.

    Deep pockets
    Global has deep pockets and ready money. The £375m takeover will be financed with an £84m loan from HBOS and Bank of Ireland; Tabor et al will provide the rest.

    One City analyst commented: "The deal was originally talked about as being backed one-third by the banks and two-thirds by private equity; it looks now more like one quarter to three quarters.

    "That suggests the consortium had to, and were able to, dig deeper into their pockets. This is an unusual consortium with some very rich individuals behind it and very good access to capital."

    In last year's Sunday Times Rich List, the wealth of Michael Tabor, Magnier, McManus and Desmond was valued at £620m, £723m, £561m and £1.4bn respectively.

    Magnier and McManus, who were famously shareholders in Manchester United before capitalising on an opportunity to turn a fast buck when they sold out to the American Malcolm Glazer, are not renowned as long-term investors. However, the consensus view among analysts is that Global is in radio for the long-term, certainly three to five years minimum.
    6 years on and they are still investing for the long term.Possible they may sell out to one of the international radio groups like RTL, NRJ or Clear channel, but does not look like it at the moment.
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