Oxford's Fm107.9

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OXFORD’S FM107.9 Request to change Format

Consultation Publication date: 19 February 2010 Closing Date for Responses: 19 March 2010

Format change request – Oxford’s FM 107.9

Contents

Section Page 1 Summary 2 2 Background 4

Annex Page 1 Responding to this consultation 5 2 Ofcom’s consultation principles 7 3 Consultation response cover sheet 8 4 Consultation question 10 5 Oxford’s FM 107.9 request for a change of Format 11 6 COMMERCIAL RADIO STATION (PRESENT) FORMAT 25 7 Other Commercial and community radio stations operating in the Oxford area 26

1 Format change request – Oxford’s FM 107.9

Section 1 1 Summary

1.1 Ofcom has received a request from Passion Radio Oxford (PRO) to change the Format of Oxford’s FM 107.9. The station is currently a “voice for the young” with a requirement to deliver the sort of cutting-edge and credible music that would be appreciated by Oxford’s students and youth community. PRO wishes to change the character of the station to become an easy listening station targeted at an older audience of over 45’s.

Current Format

THE STATION WILL BE THE VOICE FOR YOUNG OXFORD THROUGH A MIX OF PRIMARILY NEW, ‘CUTTING EDGE’ AND CREDIBLE CHART MUSIC (eg URBAN, DANCE AND ALTERNATIVE) WITH NEWS, PHONE-INS, INFORMATION AND YOUTH CULTURE FEATURES TARGETING 15-29s IN THE CITY.

Proposed Format

THE STATION WILL BE THE VOICE FOR OXFORD THROUGH A MIX OF EASY- LISTENING SOFT MUSIC AIMED AT 45+ ADULTS WITH LOCAL NEWS, PHONE-INS, LOCAL INFORMATION AND CULTURE FEATURES TARGETING THE CITY

1.2 Ofcom has published guidelines with regard to criteria that will be considered when stations request a change of Format.

1.3 If a station wants to make changes that will substantially alter the character of its service, Ofcom consults publicly before coming to a decision. In this case the request would, if granted, substantially alter the character of the station’s service.

1.4 Ofcom must consider the request by the station to change its Format against the statutory criteria set out in the legislation below, and the consultation question, at Annex 4, reflects that.

Ofcom has the ability to consent to such changes under conditions included in the Oxford’s FM 107.9 licence, in accordance with Sections 106 (1A) of the Broadcasting Act 1990 if it is satisfied that at least one of the following criteria is satisfied:

(a) The departure would not substantially alter the character of the service

(b) The change would not narrow the range of programmes available in the area by way of relevant independent radio services

(d) There is evidence that, amongst persons living in the affected areas, there is a significant demand for, or significant support for, the change.

Format change request – Oxford’s FM 107.9

1.5 In this case, the change of character would be stark, and criterion (a) above is not satisfied. So, the changes can only be approved if one of criteria (b) to (d) is satisfied. In these circumstances Ofcom is required to carry out a public consultation.

1.6 In particular, when considering whether criterion (b) is satisfied (the change would not narrow the range of programmes available in the area by way of relevant independent radio services), neither local DAB services nor BBC services ‘count’ as relevant independent radio services. The relevant independent radio services are those local analogue commercial which operate in the region, which are listed in Annex 7. (There are no operational community stations in the area.)

1.7 Even if Ofcom is satisfied that the proposed change would meet one of these statutory criteria, Ofcom still has discretion as to whether to agree to the change. Ofcom has published guidance about how it generally expects to exercise its discretion. The guidance is attached to this paper at Annex 8 and is at : http://www.ofcom.org.uk/radio/ifi/rbl/formats/formats/fc/changeregs/

1.8 Ofcom, therefore, seeks views on the requests, having particular regard to the Broadcasting Act 1990 Section 106 (1A) (b) (c) and/or (d), as set out above.

1.9 Annex 5 contains the Format change request, in which an argument is made that over 45’s are underserved, that there is a call for such a service and that targeting a student audience will never be commercially viable because it is transient and unlikely to be RAJAR diary-friendly.

1.10 Other commercially sensitive information has been provided in confidence to Ofcom, and will be taken into account by Ofcom in coming to a decision.

3 Format change request – Oxford’s FM 107.9

Section 2 2 Background

2.1 A small-scale licence was awarded by the Radio Authority in late 1996 and launched, as Oxygen FM, in February 1997, as a very student-oriented station. Its Measured Coverage Area is 214,000.

2.2 It has never been successful financially, and it was sold and re-launched as Fusion FM and again as Passion FM, before being bought by PRO and re-named Oxford’s FM 107.9 in June 2006. Its present, new-style Format is attached as Annex 6.

2.3 PRO also own the Jack FM licence, which covers Oxford and South Oxfordshire with a Format delivering pop and rock for the over 35s. The stations share studios.

2.4 The third commercial station available in the area is Heart (formerly Fox FM), which covers a wider area (Oxford and Banbury) with chart and contemporary music for under 44s.

2.5 PRO proposes a station that serves over 45’s with the sort of melodic Format that has become associated with Smooth FM ; a service aimed at older audiences but focusing on slightly more contemporary artists (eg Susan Boyle, George Benson and the like) than Saga Radio, Smooth’s predecessor in the Midlands.

Format change request – Oxford’s FM 107.9

Annex 1 1 Responding to this consultation

How to respond

A1.1 Ofcom invites written views and comments on the issues raised in this document, to be made by 5pm on 19 March 2010.

A1.2 Ofcom strongly prefers to receive responses using the online web form at http://www.ofcom.org.uk/consult/condocs/oxfordsfm1079/howtorespond/form, as this helps us to process the responses quickly and efficiently. We would also be grateful if you could assist us by completing a response cover sheet (see Annex 3), to indicate whether or not there are confidentiality issues. This response coversheet is incorporated into the online web form questionnaire.

A1.3 For larger consultation responses – particularly those with supporting charts, tables or other data – please email: [email protected], attaching your response in Microsoft Word format, together with a consultation response coversheet.

A1.4 Responses may alternatively be posted or faxed to the address below:

Oxford’s FM 107.9 consultation FAO Martin Campbell Chief Advisor, Radio Ofcom Riverside House 2A Southwark Bridge Road London SE1 9HA

Fax: 020 7981 3850

A1.5 Note that we do not need a hard copy in addition to an electronic version. Ofcom will acknowledge receipt of responses if they are submitted using the online web form but not otherwise.

A1.6 It would be helpful if your response could include direct answers to the question asked in this document, which are listed together at Annex 4. It would also help if you can explain why you hold your views and how the proposals would impact on you.

Further information

A1.7 If you want to discuss the issues and questions raised in this consultation, or need advice on the appropriate form of response, please contact Jon Heasman on 020 7783 4509.

Confidentiality

A1.8 We believe it is important for everyone interested in an issue to see the views expressed by consultation respondents. We will therefore usually publish all responses on our website, www.ofcom.org.uk, ideally on receipt. If you think your response should be kept confidential, can you please specify what part or whether

5 Format change request – Oxford’s FM 107.9

all of your response should be kept confidential, and specify why. Please also place such parts in a separate annex.

A1.9 If someone asks us to keep part or all of a response confidential, we will treat this request seriously and will try to respect this. But sometimes we will need to publish all responses, including those that are marked as confidential, in order to meet legal obligations.

A1.10 Please also note that copyright and all other intellectual property in responses will be assumed to be licensed to Ofcom to use. Ofcom’s approach on intellectual property rights is explained further on its website at http://www.ofcom.org.uk/about/accoun/disclaimer/

Next steps

A1.11 Following the end of the consultation period, Ofcom intends to publish a statement.

A1.12 Please note that you can register to receive free mail Updates alerting you to the publications of relevant Ofcom documents. For more details please see: http://www.ofcom.org.uk/static/subscribe/select_list.htm

Ofcom's consultation processes

A1.13 Ofcom seeks to ensure that responding to a consultation is easy as possible. For more information please see our consultation principles in Annex 2.

A1.14 If you have any comments or suggestions on how Ofcom conducts its consultations, please call our consultation helpdesk on 020 7981 3003 or e-mail us at [email protected] . We would particularly welcome thoughts on how Ofcom could more effectively seek the views of those groups or individuals, such as small businesses or particular types of residential consumers, who are less likely to give their opinions through a formal consultation.

A1.15 If you would like to discuss these issues or Ofcom's consultation processes more generally you can alternatively contact Vicki Nash, Director Scotland, who is Ofcom’s consultation champion:

Vicki Nash Ofcom Sutherland House 149 St. Vincent Street Glasgow G2 5NW

Tel: 0141 229 7401 Fax: 0141 229 7433

Email [email protected]

Format change request – Oxford’s FM 107.9

Annex 2 2 Ofcom’s consultation principles

A2.1 Ofcom has published the following seven principles that it will follow for each public written consultation:

Before the consultation

A2.2 Where possible, we will hold informal talks with people and organisations before announcing a big consultation to find out whether we are thinking in the right direction. If we do not have enough time to do this, we will hold an open meeting to explain our proposals shortly after announcing the consultation.

During the consultation

A2.3 We will be clear about who we are consulting, why, on what questions and for how long.

A2.4 We will make the consultation document as short and simple as possible with a summary of no more than two pages. We will try to make it as easy as possible to give us a written response. If the consultation is complicated, we may provide a shortened Plain English Guide for smaller organisations or individuals who would otherwise not be able to spare the time to share their views.

A2.5 We will consult for up to 10 weeks depending on the potential impact of our proposals.

A2.6 A person within Ofcom will be in charge of making sure we follow our own guidelines and reach out to the largest number of people and organisations interested in the outcome of our decisions. Ofcom’s ‘Consultation Champion’ will also be the main person to contact with views on the way we run our consultations.

A2.7 If we are not able to follow one of these principles, we will explain why.

After the consultation

A2.8 We think it is important for everyone interested in an issue to see the views of others during a consultation. We would usually publish all the responses we have received on our website. In our statement, we will give reasons for our decisions and will give an account of how the views of those concerned helped shape those decisions.

7 Format change request – Oxford’s FM 107.9

Annex 3 3 Consultation response cover sheet

A3.1 In the interests of transparency and good regulatory practice, we will publish all consultation responses in full on our website, www.ofcom.org.uk.

A3.2 We have produced a coversheet for responses (see below) and would be very grateful if you could send one with your response (this is incorporated into the online web form if you respond in this way). This will speed up our processing of responses, and help to maintain confidentiality where appropriate.

A3.3 The quality of consultation can be enhanced by publishing responses before the consultation period closes. In particular, this can help those individuals and organisations with limited resources or familiarity with the issues to respond in a more informed way. Therefore Ofcom would encourage respondents to complete their coversheet in a way that allows Ofcom to publish their responses upon receipt, rather than waiting until the consultation period has ended.

A3.4 We strongly prefer to receive responses via the online web form which incorporates the coversheet. If you are responding via email, post or fax you can download an electronic copy of this coversheet in Word or RTF format from the ‘Consultations’ section of our website at www.ofcom.org.uk/consult/.

A3.5 Please put any parts of your response you consider should be kept confidential in a separate annex to your response and include your reasons why this part of your response should not be published. This can include information such as your personal background and experience. If you want your name, address, other contact details, or job title to remain confidential, please provide them in your cover sheet only, so that we don’t have to edit your response.

Format change request – Oxford’s FM 107.9

Cover sheet for response to an Ofcom consultation

BASIC DETAILS

Consultation title: Oxford’s FM 107.9 Consultation

To (Ofcom contact): Martin Campbell

Name of respondent:

Representing (self or organisation/s):

Address (if not received by email):

CONFIDENTIALITY

Please tick below what part of your response you consider is confidential, giving your reasons why

Nothing Name/contact details/job title

Whole response Organisation

Part of the response If there is no separate annex, which parts?

If you want part of your response, your name or your organisation not to be published, can Ofcom still publish a reference to the contents of your response (including, for any confidential parts, a general summary that does not disclose the specific information or enable you to be identified)?

DECLARATION

I confirm that the correspondence supplied with this cover sheet is a formal consultation response that Ofcom can publish. However, in supplying this response, I understand that Ofcom may need to publish all responses, including those which are marked as confidential, in order to meet legal obligations. If I have sent my response by email, Ofcom can disregard any standard e-mail text about not disclosing email contents and attachments.

Ofcom seeks to publish responses on receipt. If your response is non-confidential (in whole or in part), and you would prefer us to publish your response only once the consultation has ended, please tick here.

Name Signed (if hard copy)

9 Format change request – Oxford’s FM 107.9

Annex 4 4 Consultation question

One Question

A4.1

Q 1. Should Oxford’s FM 107.9 be permitted to make its proposed changes to the station, with particular regard to the statutory criteria as set out in the summary? (The Broadcasting Act 1990 Section 106 (1A) (b) and (d) relating to Format changes).

Format change request – Oxford’s FM 107.9

Annex 5 5 Oxford’s FM 107.9 request for a change of Format

Format Change Request Form OfW 332

Station Name: Oxford’s FM107.9 Name of Person Proposing Format Ian Walker Change:

Outline Format Change(s) CURRENT FORMAT: Proposals:

THE STATION WILL BE THE VOICE FOR YOUNG OXFORD THROUGH A MIX OF PRIMARILY NEW, ‘CUTTING EDGE’ AND CREDIBLE CHART MUSIC (EG URBAN, DANCE AND ALTERNATIVE) WITH NEWS, PHONE-INS, INFORMATION AND YOUTH CULTURE FEATURES TARGETING 15-29S IN THE CITY.

PROPOSED FORMAT:

THE STATION WILL BE THE VOICE FOR OXFORD THROUGH A MIX OF EASY- LISTENING SOFT MUSIC AIMED AT 45+ ADULTS WITH LOCAL NEWS, PHONE-INS, LOCAL INFORMATION AND CULTURE FEATURES TARGETING THE CITY.

Operators of analogue local radio licences may apply to Ofcom to have the station’s Format amended. Any application should be made using the layout shown on this form, and should be in accordance with Ofcom’s published procedures for Format changes (available on our website).

11 Format change request – Oxford’s FM 107.9

Under section 106(1A) of the Broadcasting Act 1990 (as amended*), Ofcom may consent to the change only if it is satisfied that at least one of the following four criteria is satisfied:

(a) that the departure would not substantially alter the character of the service;

(b) that the departure would not narrow the range of programmes available by way of relevant independent radio services to persons living the area or locality for which the service is licensed to be provided;

(d) that there is evidence that, amongst persons living in that area or locality, there is a significant demand for, or significant support for, the change that would result from the departure.

Only one of these four criteria need be satisfied in order for Ofcom to consent to the proposed change. However, even if Ofcom is of the opinion that the proposed change satisfies one or more of the statutory criteria, there may be reasons (depending on the particularly circumstances of the case) why Ofcom may not consent to the proposed change.

In addition, applicants should note that, under section 106ZA of the same Act (as amended*), a proposed change that does not satisfy the first of these criteria (i.e. a change that Ofcom considers would or could substantially alter the character of the service) must, if it is to be considered further under any of the other three criteria, be consulted upon. #.

In the event that Ofcom receives a request for Format change and considers that criterion (a) is not satisfied, it will seek confirmation from the applicant as to whether it wishes to proceed with the request (and, if so, whether it wishes to amend or replace its submission in light of the necessity to make it public).

Please present your submission in the following manner:

Section 106(a) relevance…

(a) that the departure would not substantially alter the character of the service;

There would be a change in the music format, but Oxford’s FM107.9 would continue to provide local news, phone-ins, local information and culture features targeting the city.

Section 106 (b), (c) and (d) relevance…

Format change request – Oxford’s FM 107.9

As well as FM107.9 there are two other Independent Local Radio stations in Oxford:

Heart Oxfordshire:

A locally-oriented contemporary and chart music and information station for under 44s in the Oxford/Banbury area.

Jack FM:

A music-intensive station playing a variety of pop/rock and classic rock for over-35s in the Oxford and South Oxfordshire area, with frequent but concise news and information.

Heart Oxfordshire (formerly Fox FM) is the ‘heritage’ contemporary and chart music FM station. Since 23rd March 2009 it has been part of Global Radio’s quasi-national ‘Heart’ brand providing the required minimum 10 hours of locally-produced programming a day.

Oxford’s FM107.9 and Jack FM, are both operated within the one legal entity - Passion Radio (Oxford) Limited (PRO). All programming is produced and presented locally and the stations provide Oxford’s only regular local news service throughout the day as Heart only has regular local news coverage during breakfast and drivetime.

The news team’s commitment to localness was recognised through a nomination in the 2009 Sony Radio Academy Awards and the team also won a Bronze for the special programme “Afghanistan: Oxfordshire’s Forgotten Army”.

Oxford has no local ‘heritage’ AM station nor is there a regional FM commercial station covering the area. A local DAB multiplex has been licensed but this has not yet launched.

A new Community Radio station was granted a licence by Ofcom in December 2009. An on-air date has not been announced.

OX4 FM will provide a service tailored to the interests of the diverse residents of the OX4 area of Oxford. It will provide community information, discuss issues directly relevant to the area, and promote local artists and local organisations. It aims to be a unifying force for the area, increasing community cohesion and inviting participation.

Although the proposed format change for FM107.9 would result in a reduction in the range of music programmes available by way of relevant independent local radio services to a younger audience, the change would actually provide a corresponding increase in the range of available programmes for a greater number of older listeners, who are currently under-served by independent local radio in Oxfordshire.

The proposed new Format would target 45+ listeners, who are above Heart’s own target (25-44) age-group, and would also target women, which would provide a difference to Jack’s rock and pop/rock-orientated male focus.

Oxford’s FM107.9 would continue to provide a service of local news and information.

Monitoring:

13 Format change request – Oxford’s FM 107.9

Using data from Nielsen Music Control and music logs from FM107.9 comparisons were made between FM107.9 and Heart Oxfordshire, as well as with BBC Radio 1. Although not a “relevant independent radio service”, Radio 1 is a major music station in the Oxford market.

The following chart shows the number of tracks played, as well as the crossover, between FM107.9, Heart and Radio 1 on a typical weekday.

Oxford’s FM107.9 163 tracks - 115 unique 24 shared with Radio 1 (20.9%) 15 shared with Heart (13.0%)

Heart Oxfordshire Radio 1 151 tracks -118 unique 115 tracks - 85 unique 12 shared with FM107.9 (10.2%) 24 shared with FM107.9 (28.2%) 5 shared with Radio 1 (4.2%) 5 shared with Heart (5.9%)

Across a full 7-day period 16 of the 20 most-played tracks on Heart Oxfordshire were also played on FM107.9. 17 of the 20 most-played tracks on FM107.9 were also played on Radio 1, while 12 of the 20 most-played tracks on Radio 1 were also played on FM107.9.

A further comparison was then carried out between London’s Smooth Radio, which has a similar music format to our proposal, Heart Oxfordshire and Jack FM.

The following chart shows the number of tracks played, as well as any crossover between those three stations.

Format change request – Oxford’s FM 107.9

106 Jack FM 127 tracks – all unique 3 shared with Smooth (2.4%) 0 shared with Heart

Heart Oxfordshire Smooth Radio 142 tracks – 107 unique 130 tracks - 124 unique 0 shared with Jack 3 shared with Jack (2.4%) 15 shared with Heart (14.0%) 15 shared with Heart (12.1%)

Of the 50 most-played tracks on Heart Oxfordshire across the period of a week, just six also appeared in Smooth’s 50 most-played.

We therefore believe the proposed new format will be distinctive and broaden the choice of listening; especially for an audience that is currently under-served by commercial radio.

As there would still be three commercial stations offering different music formats the status quo regarding ownership and sales would be maintained.

15 Format change request – Oxford’s FM 107.9

(d) that there is evidence that, amongst persons living in that area or locality, there is a significant demand for, or significant support for, the change that would result from the departure.

In order to help us determine the likely direction and popularity of the proposed new format we undertook some preliminary quantitative research in October 2009, which was designed primarily to gather information about several aspects of radio listening in Oxfordshire, including station awareness and listening habits, as well as some questions relating to local musical tastes.

From a total of 746 adult respondents, the Male/Female split was 40%/60%. 26.0% were aged 45+, with a further 25.0% coming from the 35-44 age group.

We then carried out further quantitative research in December 2009 in order to provide some evidence of significant demand or support for the proposed new format.

In this survey, from a total of 468 adult respondents, the Male/Female split was 45%/55%. 25.8% were aged 45+, with a further 31.4% coming from the 35-44 age group.

Some different music clusters were researched and the survey included a question directly relating to the proposed new format in order to gauge the likelihood of those within the target age group to listen:

If a new COMMERCIAL radio station was to be the voice for Oxford playing a mix of easy-listening soft music aimed at adults over 45 & featuring artists such as Norah Jones, George Benson, Susan Boyle, Michael Bolton, Tina Turner and Jamie Cullum - plus provide local news & travel information with phone-ins, how likely would you be to listen to this new station?

55.5% of respondents aged 45+ said they would be ‘Likely’ or ‘Very Likely’ to listen to the proposed new station.

This figure rose to 63.4% for Women 45+, who would be our core target audience for the new format.

Format change request – Oxford’s FM 107.9

Any additional information and/or evidence in support of proposed change(s).

History

1997 Station launched as Oxygen

2000 Station acquired by Fusion Radio Holdings (FRH) and re-branded as Fusion 107.9

2001 FRH acquired by Milestone Group

2002 Licence re-awarded

2003 Station relaunched as Passion 107.9

2006 Bought by Absolute Radio International Limited - re-launched as Oxford’s FM107.9

Oxford’s FM107.9 has, under a number of different names and owners, been broadcasting since 14th February 1997.

It has hardly enjoyed the best combination of commercial operating factors for much of its pitted history.

From the beginning, as a student radio concept called Oxygen, poor reception issues were a major problem and the station was unable to compete effectively in the Oxford marketplace. It achieved less than its small 100 watts power limit due to technical and site issues.

Once the power was moderately increased, the station was re-branded. This was overshadowed by an incident involving the fabrication of on-air logging tapes which resulted in regulatory sanctions by the Radio Authority shortening the licence and triggering an early re- award process.

Fusion Radio was sold to Milestone Group plc prior to the re-advertisement and the licence was awarded to Milestone as a youth service. Milestone then proceeded to implement further changes which were, in our opinion, not supported by a proper in-depth understanding of the Oxford youth market and lacked a proper basis from research and operating experience.

Throughout this time, BBC Radio 1 and FOX FM focussed their appeal to younger listeners, resulting in stiffer competition in the market.

It is understandable that none of the above has provided any sense of continuity or security amongst the listeners, advertisers and staff.

The station was acquired by the present owners in June 2006 and relaunched as Oxford’s FM107.9 three months later. They were subsequently awarded the licence for Jack FM in October 2006 and the two stations are co-located at 270 Woodstock Road, Oxford.

Reasons for the requested change

We believe the proposed change is needed to secure the commercial sustainability of the station.

The present owners had previously run the similarly-formatted Juice FM in Liverpool from

17 Format change request – Oxford’s FM 107.9

2003-2005, during which time the station achieved its highest-ever market share and total hours.

Following the acquisition of Passion Radio it very quickly became apparent that there were huge challenges ahead, not only in building the revenue from a very low base but also having to deal with other financial pressures.

(A more-detailed account of FM107.9’s financial history and present situation is attached as a separate confidential appendix.)

Despite the owners’ previous experience and success in the format, as well as investment in people and resources, Oxford’s FM107.9 has continued to struggle and its overall reach has shown a general decline over the past five years.

FM107.9 - Reach %

0 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09

(Source: Rajar/Ipsos MORI/RSMB – 2004-2009)

Note: FM107.9’s TSA has changed on several occasions. The increase in June 2008 was to match that of 106 Jack FM, which entered Rajar in that quarter.

TSA (‘000s) September 2004 – March 2005 185.3 June 2005 – September 2005 193.9 December 2005 – March 2006 235.8 June 2006 – March 2007 238.4 June 2007 – March 2008 212.7 June 2008 – March 2009 412 June 2009 – December 2009 418

Format change request – Oxford’s FM 107.9

Meanwhile the station’s share of listening within its target 15-29 age group has been erratic because of the transient nature of the target audience.

% Market Share

20 15-19 20-24 25-29

17.8 18 17.0

16 14.5 14

12 11.5

8 6.5 6.1 5.8 6 5.1 4.3 4.3 4 2.8 2.4 2 1.1 0.8 0.7 0.7 0.2 0 0 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09

(Source: Rajar/Ipsos MORI/RSMB – Q4/2009)

We have already pointed out that Oxford is not a well-developed commercial radio market. It has no heritage AM/Gold or regional FM commercial station, while a DAB multiplex has been licensed but has yet to launch.

As a result in Oxford* BBC stations enjoy a 76% Reach and 72.1% Share, while Commercial Radio has a 51% Reach and 26.7% Share.

*(FM107.9 TSA – Rajar Q4/2009)

The equivalent national figure for All BBC is 65% Reach and 55.2% Share. Commercial radio has a 61% Reach and 42.6%.

In particular there is a much higher share of listening to the BBC’s national networks compared to the rest of the country; in particular Radios 3 and 4.

19 Format change request – Oxford’s FM 107.9

National Stations in Oxford - % Share (Source: Rajar/Ipsos MORI/RSMB - Q4/2009) National Oxford

25.0

21.2 20.5 20.0

16.5

15.0

12.2 12.5

9.8 10.0

4.5 4.7 5.0 3.9 3.5 3.8 2.1 1.1 0.9 0.7 0.4 0.0 BBC R1 BBC R2 BBC R3 BBC R4 BBC 5 Live Absolute Radio Classic FM TalkSport (Q1/09)

Therefore we believe that FM107.9 would have a greater chance of success targeting an older audience which is currently under-served by local commercial radio in Oxfordshire, while the proposed format would be more likely to attract new listeners from BBC national and local stations rather than from existing commercial services.

Population:

During the licence application for Jack FM a population study was conducted using data provided from CACI extracted from details of the ONS Census 2001 information.

2001 population levels in Oxford were higher than across the UK average in the 15-54 age groups. The area had a high proportion of ABC1s, indexing at 119.5 against the UK average.

2001 Oxford 2001 UK Population Population % % Male 49.4 48.6 Female 47.7 48.5

15-24 19 12 25-34 19 14 35-44 19 15 45-54 16 13 55-64 11 11 65+ 17 16

ABC1 64 54 C2DE 36 46

Format change request – Oxford’s FM 107.9

At the same time we further commissioned ONS predictions to show population growth projects and key points which reflected [Jack FM’s] launch (2007), Year 3 (2010) and Year 5 (2012). Data was digitally extracted using mapping software based on the proposed coverage area.

2001 2007 2012 Adults 15-24 58,790 68,626 71,611 Adults 25-34 59,067 58,602 63,360 Adults 35-44 58,624 63,072 59,046 Adults 45-54 48,634 50,633 56,852 Adults 55-64 35,800 42,129 42,861 Adults 65+ 52,761 56,063 83,135

These figures show a projected increase in the 45+ population of 39% between 2001-2012, with a corresponding increase of 10% for 15-44s of 10%.

The following is Rajar’s current population breakdown (Q3/2009) by age in FM107.9’s TSA

Rajar 2009 (FM107.9 % of TSA TSA) Adults 15-24 82,000 19.6 Adults 25-34 72,000 17.1 Adults 35-44 74,000 17.7 Adults 45-54 65,000 15.4 Adults 55-64 53,000 12.6 Adults 65+ 73,000 17.6

****

Oxford, as a major university city, has a large, but transient, student population.

In 2008 79.4% of the full-time university students at Oxford came from outside the South East of England: Berkshire; Buckinghamshire; East Sussex; Hampshire; Isle of Wight; Kent; Oxfordshire; Surrey; and West Sussex.*

* (Source: University of Oxford Admissions Statistics. The most-recent statistics available)

Although there are no separate county-by-county figures for Oxfordshire alone it would be reasonable to assume that many of the 20.6% of students who come from the South East are not originally local to Oxford.

As students only tend to live in Oxford during term-time, and return home when not studying, they have little particular local loyalty.

This means that after spending money marketing the radio station to the audience most of them will move on after a few years, which means we are continually having to re-market to a new audience every year.

Radio 1 has a strong audience in Oxford and we believe that many of the students moving to Oxford will already be regular Radio 1 listeners who are happy with that station.

21 Format change request – Oxford’s FM 107.9

During a series of focus groups for Jack FM carried out in March 2009 one participant explained why they preferred Radio 1: “I like bigger national stations, they have more money so they can play better music.”

The usual problems with Rajar diaries not reflecting student households do not appear to apply in Oxford as many students live in houses and flats rather than halls of residence, and these properties are more likely to receive Rajar diaries. This can be seen by Radio 1’s strength in Rajar.

****

We also looked at other stand-alone stations targeting young audiences with a similar format.

 Juice 107.6 in Liverpool was sold by Forever Broadcasting in September 2003 to AR- UK Ltd for £3.1million. The station had made an adjusted operating loss of £760,000 and at 30th September 2002 had net liabilities of £4.02m. In September 2005 UTV, which had been a partner in AR-UK and held a third of Juice, paid £2.1 million for the remaining 67% stake in the station. 

(Source: Rajar/Ipsos MORI/RSMB – Charts by Media UK)

 Juice 107.2 in Brighton was acquired by Forever Broadcasting in December 2000 for more than £4 million. In October 2003 it was bought back by several of the station’s original owners for £450,000. In the year ending September 30, 2002, Juice had made a loss of £500,000 and had net liabilities totalling about £1 million.

Format change request – Oxford’s FM 107.9

(Source: Rajar/Ipsos MORI/RSMB – Charts by Media UK)

(NOTE: Juice 107.2 no longer participates in Rajar – figures are only available to Q4/2006)

 In 2009 The Local Radio Company sold its stake in its Bournemouth station Fire Radio, which has net liabilities of £863,096, for £40,001 to Westward Broadcasting, a subsidiary of Triple Media Communications Group. Fire Media reported revenue of £216,494 and an operating loss of £128,926 in the seven months to 30 April. Net liabilities were £863,096 at the end of the same period.

(Source: Rajar/Ipsos MORI/RSMB – Charts by Media UK)

The Galaxy and Kiss brands perform much better, mainly because they have the advantage of being part of larger groups (Global and Bauer respectively). Much of their output is networked and as the stations are either serving major cities or regions there is greater opportunity to build audiences which are more appealing to major advertisers; as well as provide greater opportunities for S&P revenue.

Smaller stations do not have the resources to match and the audience levels are too small to

23 Format change request – Oxford’s FM 107.9 be as commercially-viable as Galaxy or Kiss.

FM107.9 has a relatively small MCA (214,710) which means that even if it was able to achieve similar Reach/Share figures within its core 15-29 target to those of the most-successful Galaxy/Kiss stations, the resulting audience would still not be large enough to be commercially viable as a stand-alone station.

We feel that a higher Reach could be attainable by the new format which would enable the station to be more commercially sustainable.

Conclusion

This proposed change of format will enable Oxford’s FM107.9 to provide a service to a larger and growing section of the local population which is currently under-served by commercial radio.

Existing co-location with Jack FM will continue to provide cost benefits with shared running costs, while providing the opportunity for local advertisers to take advantage of being able to buy airtime on two stations which, while targeting an adult audience, will be distinctive from each other.

We also believe the new format would not only prove attractive to advertisers, but would also benefit commercial radio in Oxford as a whole through fairer and more effective competition in the market with Heart. PROPOSED NEW FORMAT

OXFORD’S FM 107.9 Character of Service

THE STATION WILL BE THE VOICE FOR OXFORD THROUGH A MIX OF EASY LISTENING SOFT MUSIC AIMED AT 45+ ADULTS WITH LOCAL NEWS, PHONE-INS, LOCAL INFORMATION AND CULTURE FEATURES TARGETING THE CITY.

Licensed area Oxford area (as in Ofcom advertisement) Frequency 107.9 MHz Service duration 24 hours Locally-made hours At least 10 hours a day during daytime weekdays (must include breakfast). At least 4 hours daytime Saturdays and Sundays. Local news bulletins Hourly at peaktime. Outside peak, UK-wide, nations and international news should feature.

Co-location Co-located with Jack FM (Oxford)

Programme sharing No Arrangements

Definitions Speech / Music Excludes advertising, programme/promotional trails & sponsor credits Peaktime Weekday breakfast and drivetime, and weekend late breakfast Daytime 0600 to 1900 weekday and weekend Locally-made Production and presentation from within the licensed area

MCA Population : 214,710 Licence number AL 193-2

Format change request – Oxford’s FM 107.9

Annex 6 6 COMMERCIAL RADIO STATION (PRESENT) FORMAT

OXFORD’S FM 107.9

Character of Service

Shared arrangements (if applicable)

Co-location Co-located with Jack FM (Oxford)

Programme sharing No Arrangements

Definitions

Speech / Music Excludes advertising, programme/promotional trails & sponsor credits Peaktime Weekday breakfast and drivetime, and weekend late breakfast Daytime 0600 to 1900 weekday and weekend Locally-made Production and presentation from within the licensed area

MCA Population : 214,710 Licence number AL 193-2 Notes

This Format should be read in conjunction with Ofcom’s published Localness Guidelines as updated with additional text from “The Future of Radio : The Next Phase” (2007) AGREED FEB 2008

25 Format change request – Oxford’s FM 107.9

Annex 7 7 Other Commercial and community radio stations operating in the Oxford area

Commercial Stations

 Heart (Oxford and Banbury) - Chart and Contemporary Under 44s

http://www.ofcom.org.uk/static/radiolicensing/formats/al127-3.doc

A LOCALLY ORIENTED CONTEMPORARY AND CHART MUSIC AND INFORMATION STATION FOR UNDER 44s IN THE OXFORD/BANBURY AREA.

 Jack FM - Pop and Rock Over 35s

http://www.ofcom.org.uk/static/radiolicensing/formats/al320-1.doc

A MUSIC-INTENSIVE STATION PLAYING A VARIETY OF POP/ROCK AND CLASSIC ROCK FOR OVER-35s IN THE OXFORD AND SOUTH OXFORDSHIRE AREA, WITH FREQUENT BUT CONCISE NEWS AND INFORMATION.

Community Stations – None operational

Format change request – Oxford’s FM 107.9

Annex 8 OFCOM’S FORMAT CHANGE GUIDANCE The regulation of Format changes

In its consultation statement of January 2006, following Radio “ Preparing for the Future (Phase Two): Implementing the Framework, Ofcom outlined the principles involved in the regulation of local commercial radio Format changes.

Although a regime based on Formats is simple and transparent, there will always be occasions on which Formats need to change. Radio is a dynamic industry and Ofcom would want to see station Formats evolve in parallel with listeners’ changing preferences and interests, so long as the overall character of the service was not compromised. This is not to say that Ofcom will not also consider more fundamental changes, as required by statute. Local commercial radio stations are, by their nature, commercial businesses and if a Format fails to deliver a commercial return to the owner there may be a need to allow a more fundamental change.

The Broadcasting Act 1990 (as amended) sets out the circumstances in which Ofcom may consent to a departure from the Format of a service. One of four grounds specified in the Act must be met for Ofcom to be able to consent to the change: a. that the departure would not substantially alter the character of the service. (Note: The legislation requires Ofcom to have regard to the selection of spoken material and music in programmes when determining what the character of the service in question is.); b. that the departure would not narrow the range of programmes available by way of relevant independent radio services to persons living in the area or locality for which the service is licensed to be provided; c. that, in the case of a local licence, the departure would be conducive to the maintenance or promotion of fair and effective competition in that area or locality; or d. that, in the case of a local licence, there is evidence that, amongst persons living in that area or locality, there is a significant demand for, or significant support for, the change that would result from the departure.

We have developed a framework for dealing with Format change requests. The internal Ofcom process follows a different path depending upon whether or not the request is for a substantial change. It is difficult to provide exact definitions of substantial in this context but, as a guide, the simplest test for a substantial change would be if the Character of Service, as defined in the Format, required a change in wording. This would undoubtedly signal such a fundamental change, but that should not be the only type of change that could be regarded as substantial.

If the change is substantial, Ofcom will consult on it (as required by the legislation) before reaching a decision.

It is important to note that the legislation leaves to Ofcom’s judgement the decision as to whether to permit a change, even if one of the statutory criteria is satisfied.

27 Format change request – Oxford’s FM 107.9

If one of the four statutory criteria is met, Ofcom applies the following criteria against which to judge whether a request should be approved or not:

The extent of the impact of the change on the character of the service . The judgement will be made on the basis of the overall ‘sound’ of the station. Making this assessment may require the stationâ€™s content to be evaluated in detail in the context of the Format.

The time elapsed since the licence was awarded . Ofcom recognises that audiences change over time, and that stations need to adapt in parallel. As digital listening increases, the pace of change in the market is also increasing and so analogue stations may need to be more adaptable than previously. Consequently, a station's request to modify its Format is likely in general to be considered positively in the light of changing listener demands. However, a change soon after licence award (or re-award, in the case of a re-advertised licence) would be inconsistent with the licensing process whereby stations define their own Formats in their licence application. Ofcom will therefore expect a stronger case to be made for changes that are requested within two years of launch (or commencement of a new licence period) than for stations which have been established for a longer period. For example, Ofcom would be unlikely to allow a complete change of character of a service within two years, but smaller changes may be allowed. No substantial changes to a Format will be made without a formal consultation, as required by the legislation. None of the above guidelines will be affected by any changes in ownership of a radio station.

 Considerations taken into account in making the original award. Where the original decision to make the award depended heavily on a specific commitment in the proposed Format, then Ofcom is likely to be reluctant to allow the change.  The views of listeners and stakeholders. Where Ofcom issues a consultation about a proposed change, the views of listeners and stakeholders will be fully taken into account.  The avoidance of ‘Format creep’. Ofcom will be alert to the possibility that a series of small changes to a Format could in aggregate amount to a substantial alteration to the character of a service. Consequently Ofcom will take into account the effect of a proposed change in the context of previous changes.  Whether the station broadcasts on AM or FM. Ofcom has long recognised that AM stations are at a disadvantage in retaining listeners because of the relatively poor quality of the medium. Changes, including substantial changes, to AM station formats, will therefore be more willingly agreed than would be the case for FM stations.

In addition, Ofcom may need to consider other statutory obligations in relation to a particular decision. For example, a proposed change that affects the amount of local material or locally-made programming would have to be considered in light of Ofcom's localness obligations under section 314 of the Communications Act., and our published localness guidelines.

If a station is considering applying to change its Format, it may wish to contact Ofcom colleagues for advice as to what specific information would be required to support its case for change. This is likely to vary on a case-by-case basis.