Application to Ofcom West Central Scotland Fm Licence

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APPLICATION TO OFCOM

WEST CENTRAL SCOTLAND FM LICENCE

CALEDONIA HOLDINGS LTD

BROADCASTING AS

GO 96.3 GLASGOW

26th May 2016

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 1

GO 96.3 Glasgow.

(a) Name of Applicant, Address, Telephone and E-mail address:

Caledonia Holdings Ltd. Caledonia House. Lawmoor St, Glasgow. G5 0US.

Tel: 0141 290 0988

Email: [email protected]

(b) Main Contact (For Public Purposes)

Name: Spencer Pryor or Paul Cooney Telephone (daytime): 0141 290 0988 Address: c/o Caledonia Holdings Ltd Caledonia House Lawmoor St Glasgow G5 0US

E-mail address: [email protected]

GO 96.3 Glasgow

(d) Area to be covered

The City of Glasgow and surrounding area

(d) Main Contact (For Ofcom Purposes) Name: Spencer Pryor/Paul Cooney Telephone (daytime): 0141 290 0988 or 07962 721671 Address: c/o Caledonia Holdings Ltd Caledonia House Lawmoor St Glasgow G5 0US E-mail address: [email protected]

Section 105(A): Ability to maintain proposed service

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 2 1. Ownership and control of company which will operate the licence

(a) Board of Directors i) Provide the name, occupation, other directorships, other media interests, and, if not a director of an existing Ofcom radio licensee, the relevant media experience, of each director (executive and non-executive), including the proposed chairperson.

Name: Lord William Haughey. Baron Haughey of Hutchesontown in the City of Glasgow. (Chairperson) Occupation: Company Director. Other Directorships: GO Radio Ltd City Refrigeration Holdings (UK) Ltd City Facilities Management Ltd City Air Conditioning Company (UK) Ltd Caledonia Regeneration Ltd Crown Street Developments Ltd Faith in the Union Ltd Edendale Ltd The 1&7 Pub Company Ltd Stevens Property Development Ltd Caledonia Waterfront (Harbour Road) Ltd Relevant Media Experience: Lord Haughey is the primary trustee of the City Charitable trust, who along with Lady Susan, distribute £1 million a year to primarily local Glaswegian charities and good causes, and through this work and his Chairmanship of the £1.3 billion UK and Scottish Government 'City Deal' has a high media profile across all sectors.

Name: Sir Thomas Blane Hunter (Non Executive) Occupation: Company Director. Other Directorships: West Coast Capital (LIOS) Ltd Shorequest Ltd Riverbridge Ltd Relevant Media Experience: Was the principal funder of Radio Clyde's Cash for Kids Appeal and also the co-founder of the STV Children's appeal, which in the last year raised almost £3 million .

Name: Baroness Nosheena Mobarik CBE of Mearns (Non Executive) Occupation: Company Director Other Directorships: M Computer Technologies Ltd Craigholme School Better Together (2012) Ltd Relevant Media Experience: Former Chair of the CBI Scotland, and a Conservative peer.

Name: Paul Cooney (Managing Director) Occupation: Broadcaster and Company Director. Other Directorships: GO Radio Ltd Glasgow Chamber of Commerce Ltd Hamilton Park Racecourse Company Ltd Priorwood Investments Ltd

Relevant Media Experience: Paul Cooney started working at Radio Clyde as the "Saturday Runner" on the sports programme in 1975 and quickly became commercial radio's youngest broadcast journalist at the age of 18 gaining invaluable experience working on News, Sport, Politics, Religion and Music. He was the TRICS Scotland's Radio Reporter of the Year and had success at numerous Sony Awards over the years.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 3

Paul launched West FM for Scottish Radio Holdings in 1997 as MD at West Sound before returning to Glasgow in 2000 as MD of Radio Clyde. Under EMAP, he added Radio Forth and Borders to his responsibilities and he was Bauer's Regional MD for Clyde, Forth, West Sound, Southwestsound and Borders until summer 2009.

In 2010, he was asked by Global Radio to launch Capital FM where he was MD until May 2014 when ownership switched to Communicorp UK.

Paul is currently CEO of the Royal Bank of Scotland Kiltwalk Charity; a director of the UK's oldest Chamber of Commerce - Glasgow - and a director of Hamilton Park Racecourse. Previously he was a director of Scottish Enterprise Glasgow and was Chairman of "Scotland against Drugs" which was a UK Government all-party initiative.

Name: Spencer Pryor (Technical and Regulatory Director) Occupation: Radio Station Management. Other Directorships: Scrimshaws Information Directories Ltd (OFCOM FM licences holder for Dumbarton and Helensburgh) YOUR Radio Ltd GO Radio Ltd Relevant Media Experience: Former ITV journalist and radio presenter working for both the BBC and the commercial radio sector. Spencer's first position in Scottish broadcasting was as Sales and Sponsorship manager for the original licence holder of the 96.3FM frequency Q96 – Paisley back in 1992. He acquired a controlling interest in YOUR Radio (Helensburgh and Dumbarton licences) in 2015 from Newsquest and has successfully turned the station into profit after it sustained serious and long term losses under the previous management. His company is also the operator of the OFCOM Trial DAB minimux for the Glasgow area operating a single frequency network broadcasting 9 small commercial and community stations on DAB. He is a founding director of GO Radio Ltd and was it's main financial backer until recently.

Name: James Murphy (Finance Director) Occupation: Chartered Accountant Other Directorships: GO Radio Ltd Spirit Aid Ltd JPKM Consulting Ltd

Relevant Media Experience: Former auditor and advisor to several media companies. Until recently a senior partner in a Glasgow based firm of Chartered Accountants and now acts as a management consultant and advisor to a number of privately owned businesses on financial management and corporate governance. ii) If there are firm plans to appoint any further directors, provide information (with details of any specific individuals in mind). This information may be submitted in confidence.

No further plans to appoint additional directors at this time.

(b) Investors and Shareholding Structure

Full details of the shareholding structure should be provided, including: i) Names and addresses of all existing or proposed shareholders.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 4 Lord Haughey c/o Caledonia House, Lawmoor St, Glasgow. G5 0US 65% Sir Tom Hunter c/o Caledonia House, Lawmoor St, Glasgow, G5 0US 3% Baroness Mobarik 17 Broomcroft Road, Newton Mearns, Glasgow, G77 5ER 3% Paul Cooney 6 Witchwood Grove, Newton Mearns, Glasgow, G77 6GS 10% Spencer Pryor 15 Ardbeg Avenue, Burnside, Rutherglen, G73 5NF 5% James Murphy 30 Laxton Drive, Glasgow, United Kingdom, G66 5LR 5% Ross King c/o Caledonia House, Lawmoor St, Glasgow. G5 0US 3% Jim Kerr c/o Caledonia House, Lawmoor St, Glasgow. G5 0US 3% Jim White c/o Caledonia House, Lawmoor St, Glasgow. G5 0US 3% ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference, other etc.). 300,000 £1 Ordinary voting shares. iii) All voting shareholders and holders of 5% or more of non-voting shares and loan stock should be named. State the number, class/classes and price of shares to be issued to each investor.

Shareholder. Class. Number Value.

Lord Haughey £1 Ordinary 195,000 £195,000 Sir Tom Hunter £1 Ordinary 9,000 £9,000 Baroness Mobarik £1 Ordinary 9,000 £9,000 Paul Cooney £1 Ordinary 30,000 £30,000 Spencer Pryor £1 Ordinary 15,000 £15,000 James Murphy £1 Ordinary 15,000 £15,000 Ross King £1 Ordinary 9,000 £9,000 Jim Kerr £1 Ordinary 9,000 £9,000 Jim White £1 Ordinary 9,000 £9,000

------300,000 £300,000

iv) Outline any shareholders agreements or arrangements which exist. N/A v) Where a corporate body other than a current Ofcom licensee will be providing 30% or more of the required funding, details should be given of its directors and main shareholders, and of its activities. N/A vi) Ofcom may request additional information (e.g. a banker's letter, statutory/management accounts) regarding the shareholders, or any other providers of finance, listed in the application.

Letters of comfort can be supplied upon request.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 5

Details are required of the involvement by the applicant and its participants (including shareholders or other subscribers of more than 5% of the applicant's total funding requirements) in any of the activities listed below, and the extent of the interest. For these purposes, the applicant includes associates of the applicant (i.e. directors and their associates and other group companies). i) Advertising agencies; None ii) Newspapers; None iii) Other broadcasting interests; Spencer Pryor: Director of YOUR Radio Ltd, 50% Shareholder. – Holder of OFCOM DSP licence for YOUR Radio. Director of Scrimshaws Information Directories Ltd. 99% Shareholder. Holder of OFCOM FM licences for Helensburgh AL264 (YOUR Radio) and Dumbarton AL100375 (YOUR Radio) and DAB multiplex operator trial licence for Glasgow. SSDB008 Director of GO Radio Ltd. 5% shareholder – Holder of OFCOM DSP licence for GO Radio. Paul Cooney: Director of GO Radio Ltd. – Holder of OFCOM DSP licence for GO Radio. James Murphy: Director of GO Radio Ltd. - Holder of OFCOM DSP licence for GO Radio. Lord Haughey: Director of GO Radio Ltd. - Holder of OFCOM DSP licence for GO Radio. iv) Bodies whose objects are wholly or mainly of a religious nature; None v) Bodies whose objects are wholly or mainly of a political nature; Lord Haughey: Member of the House of Lords - Labour. Baroness Mobarik: Member of the House of Lords – Conservative. vi) Local authorities; None vii) Other publicly-funded bodies:

Lord Haughey: Chairman of the UK and Scottish Government sponsored 'City Deal Consortium'.

* Applicants should note that this information is required for the purposes of checking compliance with the ownership rules, and is not relevant to an applicant's ability to maintain its proposed service. If none of the categories above apply to the application this should be clearly stated.

2. Financial and business plan

(a) Overall Financial Strategy

Provide a concise summary of how the applicant considers it is able to establish and maintain, throughout the licence period, its proposed service, and how this licence fits in with the investors' strategy.

The Directors' strategy is simple: establish a successful, entertaining radio station for Glasgow and the surrounding area with a service that will combine the professionalism of the major groups – and the commensurate financial stability – with the enthusiasm and energy of a start-up which will quickly and effectively scale-up.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 6 GO 96.3 Glasgow has the security and backing of major high worth investors that are able to ensure that the station can perform to and achieve its target number of listeners and hours per head within a very short time frame.

The investors' strategy concerning the launch of GO 96.3 is that it will be funded by the Directors to the sum required to succeed under the projections put forward in this application. Although not open ended, the Directors will collectively guarantee funding to ensure GO 96.3 Glasgow meets its initial three year targets.

The Directors and shareholders believe the initial share capital issue of £300,000 will be adequate to meet minimum cash requirements, they are aware that if the need should arise because the projected targets are not met due to advertising revenue shortfalls, they will inject additional funds to ensure the station has enough working capital to meet its programming obligations.

Although a commercial operation, the directors want to establish a station from and for the people of Glasgow and commit 10% of annual profits to charitable causes in our TSA through a new charitable trust which will be administered by independent trustees. The trust, provisionally called The GO Glasgow Charitable Trust, will be set up with the object of distributing funds to other charities and good causes primarily within the station's TSA.

Even if GO 96.3 generates a large profit, the Directors' policy will be that only small dividends would be paid, if at all, and profits would be distributed to the GO Glasgow Charitable Trust for the benefit of the people of Glasgow.

For the avoidance of doubt, GO 96.3 Glasgow will not be put up for sale as soon as a licence is awarded and to reinforce that commitment we offer a five year pledge not to sell the company to a third party. The Directors neither need nor want to sell this locally-owned service to another radio group to achieve economies of scale and force it to conform to group philosophy. The Directors have seen this happen to other new licencees who have basically 'flipped' the station for a quick return on their investment. We will not do that. We are committed to Glasgow's Own GO 96.3.

We will be different; we will add to choice, we will bring credit to the commercial radio industry and we will enrich this market and give something back to the people of Glasgow and the West.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 7

(b) Funding

Detail the sources of finance that will be used to fund the licence, under the following headings: i) Share capital £300,000 ii) Loan stock N/A iii) Leasing/HP facilities (capital value) Studio equipment to a capital value of £60,000 has been leased from Clyde Broadcast Ltd over a five year term. iv) Bank overdraft Not arranged at present, but due to the strength of security of the investors in the company, facilities could be arranged if required. v) Grants and donations N/A vi) Other (please specify)

N/A

The applicant should provide financial projections on an annual basis for the licence. The projections must include:

I) Profit and loss accounts ii) Balance sheets iii) Cash-flow forecasts

The period covered is at the discretion of the applicant, but should be justified. The forecasts should be supplied on an Excel spreadsheet or similar, with any accompanying guidance notes. The applicant must also complete and submit the spreadsheet entitled “Financial Template” located at: http://licensing.ofcom.org.uk/radio-broadcast-licensing/analogue-radio/apply-for- licence/how-to-apply/ using information from its business model.

Three year forecasts are included in the form of Profit and Loss, Cashflow, and Balance Sheets. It is our opinion that after three years the company will have consolidated its position in the market and future projections will be along the lines of Year 3 projections as the station becomes mature financially, although with slight increases on a yearly basis.

Please note that throughout the projections VAT has been treated as a neutral variant for convenience and is not accounted for.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 8

This section must include a full listing of the underlying assumptions on which the financial projections are based, relating such assumptions clearly to other parts of the application (e.g. proposed format, extent of coverage area). The applicant should detail how revenue figures were derived, distinguishing between local, national and sponsorship revenue. The response to this question may be submitted in confidence.

Revenue assumptions.

Local commercial revenue availability:

A baseline figure of the available revenue in the proposed TSA needs to be established. Our calculation is to take the listening population of the TSA - 90% of 1.33 million - and using the 2015 Commercial Radio revenue figure per head of £14.14 (Source: OFCOM) to give us a probable radio revenue figure of £18.9 million per annum in the Glasgow area. To give a fairly representative idea of the amount each of the existing local commercial stations generate in revenue, (as these figures are not generally available or hidden amongst group accounts) we need to equalise their weekly reach to the proportion of the GO 96.3 measured TSA. No account has been noted of the national commercial stations and their revenue generation within the area. We are primarily concentrating on locally generated sales and national advertising placed with local stations.

Station Weekly Reach Adjusted weekly reach Projected Revenue Capital 573000 286000 £3.71 million Clyde 1 627000 438000 £6.19 million Clyde 2 151000 105000 £1.48 million Heart 411000 205000 £2.66 million Smooth 416000 291000 £4.11 million

Based on these estimates we have an estimated potential current revenue stream of £18.15 million in the TSA area. In Year 1 GO 96.3 would be looking to achieve £978,000 which is 5.3% of the revenue market. The Directors of GO 96.3 believe this is achievable.

GO 96.3 Revenue Assumptions

Year 1 and 2 revenue assumptions are based on a prudent and conservative calculation of selling 4 minutes per hour of airtime in a 12 hour broadcast revenue day, rising to 6 minutes per hour in Year 3.

Non Broadcast revenues are very conservative in their projections. Digital, social media and web advertising are assumed to generate around £1k per week in sales. Merchandise sales are shown nett after manufacturing costs and are very conservative given that we have studio premises that 20 million people a year walk past in the St Enochs Centre.

Year 1 based on 1.5 million listening hours per week and at an advertising cost rate of £1.20 per thousand listeners, would equate to £748,000 in airtime sales split 70/30 between local and UK national advertisers. Sponsorship of programming is expected to generate around 25% of the value of airtime sales, with roughly £193k per annum generated by five main sponsorship streams:Breakfast programme, sports programming, traffic and travel, weather and Drivetime programme, with smaller revenues coming from sponsorship of some of the more specialised programming such as Business, New music strands, and talk shows.

Year 2 still based on 4 minutes per hour of airtime sold in a 12 hour broadcast revenue day, however based on 1.95 million listening hours per week this would generate revenues of £973,000 from airtime sales. Sponsorship would be expected to be 25% of this figure giving a figure of £243,000 per annum.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 9

Year 3 is based on 6 minutes per hour of airtime sold in a 12 hour broadcast revenue day, and based on 2.45 million listening hours per week this would generate revenues of £1,834,000 from airtime sales. Sponsorship would be expected to be 25% of this figure giving a figure of £460,000 per annum.

It is the Directors' belief that these sums are achievable through historical and 30 years practical knowledge of the local and national market for radio advertising sales.

A national sales house has not been appointed at this time, however the Directors have close working relationships with First Radio Sales, and they would be invited to represent us at a National level.

(d) Audience Projections

The projected adult (aged 15+) population of the Total Survey Area (TSA) within which it is intended to measure the listenership of the service; 1,328,163 adults aged 15+ (Source: Arqiva Reference Offer based on Census 2011) ii) Projections for listenership ratings (e.g. weekly reach, average weekly hours of listening) over the first three years of the service, with detailed demographic breakdowns as appropriate; Year Weekly Reach Average hours per listener Total Weekly Hours 1 250,000 6 1,500,000 2 300,000 6.5 1,950,000 3 350,000 7 2,450,000 iii) The expected impact of the proposed service on existing services, in listenership terms; In general GO 96.3 Glasgow will take listeners from all five main local and regional commercial stations throughout the TSA, in particular Clyde 1 and Heart Scotland. There will also be gains from the BBC services, in particular Radio Scotland and Radio 2, and from the non-RAJAR'd local small commercial and community stations within our TSA. There is also the ability to regain listeners to the 96.3 FM frequency who were listeners to the previous licencee. In percentage terms we anticipate taking 2% of the current audience of Capital Scotland to 24% of the audience of Clyde 2 away from their current weekly reach figures with the other main stations falling between these two. In practice the drop in weekly reach in each of the stations will not be quite as noticeable as it is possible that GO 96.3's entry into the market will actually increase the overall numbers for weekly reach figures. In absolute numeric terms (Year 1): Station Current RAJAR weekly reach (Qtr 1 16) GO 96.3 acquisition Capital Scotland 573,000 10,000 Clyde1 627,000 80,000 Clyde2 151,000 40,000 Heart Scotland 411,000 70,000 Smooth Glasgow 416,000 30,000 Other stations 20,000

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 10 iv) The basis on which the estimates above have been calculated, and any assumptions taken into account.

The above estimates have been based on a number of factors:

Listening figures and total hour projections for GO 96.3 Glasgow are a result of the market research conducted which showed that 60% of the survey population of 1.3 million are likely to 'try' the new station.

'Hours per listener' are calculated by taking an industry average and then being cautious and reducing the amount slightly. Historically music orientated stations have always had a lower 'hours per listener' ratio than stations that carried higher amounts of speech and feature programming.

We have also taken cognisance that the best ever RAJAR figure achieved by a station on the 96.3 frequency was 125,000 for a specialist rock station on a TSA of 800,000. Although this fell away to 34,000 by the time the licence was returned by the previous operators, GO 96.3 is confident that it will achieve a base of 250,000 weekly listeners in the first year based on a larger TSA and a more robust transmitter power and a more appealing programming format.

As a station already operating on DAB, GO Radio Glasgow is already being surveyed on RAJAR with an almost identical TSA to that proposed for the 96.3 licence area and as such will have accurate audience figures for the FM service within three months of launch, as opposed to having to wait for 6 to 12 months if this station was starting from scratch.

For information, Caledonia Holdings Ltd have licenced the brand name and designs of GO Radio and it's derivatives from GO Radio Ltd for a nominal sum per annum. Caledonia Holdings believe that the GO brand is an integral part of the look and feel of the station, and it is already realising a high recognition factor around the TSA.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 11

3. Transmission proposals

GO 96.3 Glasgow does not plan to use the previous licence holder's transmission facilities at Sergeant Law on the Glennifer Braes at 200W. The station plans to use the alternative transmission site suggested by OFCOM in the original licence advertisement. We can concur that this potential site has good geographic coverage as one of the DAB Trial Digital Multiplex transmitters is sited nearby and achieves excellent coverage from a slightly lower site and a much reduced power of only 100W vertical compared to the 2kW vertical that has been proposed and frequency cleared by OFCOM and Arqiva. i) Name and National Grid Reference of site; Arqiva Site, Cathkin Farm South, Cathkin Braes, Rutherglen, Glasgow, G73. NS62571 58267 ii) Height of site above Ordnance datum (in metres); 205m aod. iii) Height of transmitting aerial above ground level (in metres); 58m iv) Radiated power in either or both planes of polarisation, and aerial radiation pattern (if no aerial radiation pattern is submitted, it will be assumed without exception to be omni-directional). Please confirm whether you believe that your intended mast aperture will be available, and whether, where required, planning permission can be obtained. Where appropriate, evidence to support this belief should be provided. Details of any negotiations which have been entered into with the site owner should also be provided. A standard Reference Offer has been received from Arqiva concerning the use of the Cathkin Braes transmitter site. The salient details are listed below and are also used in the financial projections. No planning permission will be required, and Arqiva have confirmed that they would be more than willing to supply services to GO 96.3 Glasgow based on their Reference Offer.

The Reference Offer transmission Cathkin (S) parameters for the Cathkin (S) station transmitter are as follows: Location National Grid Reference NGR: NS 62571 58267 Total Maximum ERP 4kW, (2kW vertical and 2kW horizontal) Frequency 96.3 MHz

Cathkin (S) Antenna System Transmitter System The transmit antenna comprises two tiers of Eddystone S7605 transmitter. Lindenblad antennas at 57.7m with an Output power is 2.75kW, ERP 4k W. omnidirectional pattern. Telemetry provided by Dataminer Programme Input Equipment (PIE) Equipment Rack

Antenna System Horizontal Radiation Pattern is predicted to be contained within the following restrictions.

Bearing 0 10 20 30 40 50 60 70 80 ETN (degrees)

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 12 Restriction 0 0 0 0 0 0 0 0 0 Bearing 90 100 110 120 130 140 150 160 170 ETN (degrees) Restriction 0 0 0 0 0 0 0 0 0 Bearing 180 190 200 210 220 230 240 250 260 ETN (degrees) Restriction 0 0 0 0 0 0 0 0 0 Bearing 270 280 290 300 310 320 330 340 350 ETN (degrees) Restriction 0 0 0 0 0 0 0 0 0

The information provided above must take into account any requirements set out in Section 2 of this Notice. In the event of minor non-compliance, Ofcom may revisit an applicant's proposals with a view to modest adjustment following award and closer scrutiny. Significant non-compliance may render the application liable to disqualification. v) A detailed computer predicted map (in colour) of the coverage anticipated using the transmission site and parameters described above. Attached coverage plan as prepared by Arqiva. A separate full size file is attached as an appendice

vi) The proposed arrangements for transmission provision (installation, maintenance and repair). The transmission system and equipment must comply with the Ofcom Engineering Code, which represents Ofcom's current policy and is available at: http://stakeholders.ofcom.org.uk/broadcasting/guidance/tech-guidance/eng_code/

A full design, install, maintenance and repair contract will be entered into with Arqiva, based on their published Reference Offer for the West Central Scotland licence criteria. Arqiva are well versed in operating under the OFCOM Engineering Code and will comply in all matters with that code. We anticipate to be able to commence broadcasting within three months of the licence award.

Section 105(B) and (C): Catering for tastes and interests/broadening choice

4. Format

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 13

A blank Format is attached at Annex 2. Fill it in, ensuring that each of the following elements are addressed within. The Format will form part of the licence. Therefore, questions of clarification may be asked prior to licence award and the wording amended to reflect this, if necessary. a) Service Name (working titles accepted); GO 96.3 Glasgow b) Station Character of Service. This must be a clear description of the programme output and target audience of the service. It should include a brief description of the type and range of music to be played (if relevant), and any proposals regarding speech content which are considered essential to the character of the service; A FULL SERVICE SCOTTISH LED STATION WITH WIDE RANGING MUSIC FROM THE 1970S TO CURRENT AND NEW MUSIC FOR 25 ‐ 60 YEAR OLDS FOCUSING ON THE CITY OF GLASGOW AND THE SURROUNDING AREA, WITH A SERIOUS COMMITMENT TO LOCAL NEWS, CURRENT AFFAIRS AND SPECIALIST SPEECH AND MUSIC PROGRAMMES. c) Service Duration. This is the number of hours you will broadcast each day; 24 hours a day. d) Studio location. The licensed area(s) from where your locally-made programming will originate, taking account of any proposed co-location arrangements; GO 96.3 Glasgow will broadcast from its existing studio premises in the heart of the City of Glasgow at the St Enochs Shopping Centre. The company also has additional studio and office space at Gorbals Sound recording studio complex. e) Locally-made hours. The minimum number of hours each day that you will provide locally-made programmes (i.e. programmes from the studio location(s) set out under d) above). Generally all programming will be produced at the studios in the St Enochs Centre, with a minimum of 16 hours per day weekdays and 12 hours per day on weekends being live and locally produced. f) Programme sharing. Provide details of any other existing licences with which you intend to share any of your locally-made programmes. No programme sharing is envisaged. g) Local news. The proposed schedule of news bulletins (e.g. hourly during peaktime) which will include local news;

Bulletins containing local news will be broadcast at:

Full bulletins (Live - min 2 minutes duration, with the ability to extend on an ad hoc basis) containing international, Scottish and local Glasgow news:

Mon – Friday

06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 22:00

Saturdays and Sundays (and certain Bank Holidays)

07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00

Local news headlines and sports bulletins:

Mon -Friday

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 14 07:30 08:30 12:30 17:30 18:30

Saturdays and Sunday (and certain Bank Holidays):

08:30 09:30

Outwith of these times UK national bulletins from IRN may be carried.

A draft Format is attached as a separate document.

5. Programming Philosophy a) Explain how your proposed Format will cater for the tastes and interests, general or particular, of persons living in this local area;

GO 96.3 Glasgow intends to launch with a strong line up of well known local presenters who have the ability to connect with our Glasgow audience. Coupled with specialist speech programmes such as 'Glasgow 'Prenuers'' our locally-produced business news programme; sports programming that's different to the current offerings and a news team that truly believe that they will make a difference to the local news agenda, GO 96.3 Glasgow will become the 'buzz' of the City of Glasgow. People make Glasgow – and part of this is the humour that is the hallmark of Glasgwegians and we will reflect this in specialist comedy programme output. Another important part of Glaswegian culure is religion, in all its aspects and faiths, and we will reflect this in a multi- cultural way in dedicated programming, primarily on a Sunday morning.

Our research showed that speech programming is an important and highly popular strand of the station's output. Over 70% of those surveyed believed that a locally focussed news service concentrating on West Central Scotland and in particular the City of Glasgow would be highly apppreciated and informative. We intend to make our full time news team the first place listeners in Glasgow tune to for what is happening in our City.

Speech and information is an important part of our philosophy from the 'friendly voice' of a late night presenter to simple informative features such as charity events information; school closures, traffic jams to more specialised output such as book reviews, film and food information. Glaswegians love a bit of 'the banter' and nowhere better than our late night phone in!

Our independent research shows that our proposed music format of a wide range of musical genres along with the local interaction of the station with its listeners has the highest approval rating of any format with over 77% of those surveyed in our independent market research stating that they would 'Love it' or 'Highly enjoy' the output.

The second and third most popular choices of music format namely: 'A light rock' and 'A Scottish- centric music format highlighting Scottish indigenous acts from all genres' will be incorporated into the music output of GO 96.3 in proportion to their popularity.

GO 96.3 notes that in the near future OFCOM are proposing to relax the music formatting rules on exisiting FM stations, and this will enable stations to be far more flexible in their music output.

It could be said that GO 96.3 is a 'throwback' to a traditional Independent Local Radio station of the 1980s when the usually solus commercial radio station in an area had to be 'all things to all men'. We agree that this description could apply to GO 96.3 to an extent but with a twist to cater for the presentational style of the 21st century. We believe that there is an underlying body of listeners that are not currently served to the fullest extent with a range and variety of music and speech. GO 96.3 will rectify that.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 15 We also recognise that the station is a multi-platform station available on FM, DAB and digital. b) Explain how your proposed Format will cater for tastes and interests different from those catered for by other existing local commercial and community radio services available in this local area.

In a nutshell radio is about having a connection with the audience; having something in common with the listener. In years gone by if you wanted to feel part of Glasgow, Radio Clyde was your soundtrack. If it was happening in Glasgow, they were there.

The 1990s saw competition increase and gave listeners a choice of different local voices. The radio industry has now dramatically changed over the last 10 years. In Glasgow, Scot FM began as a Scottish station with almost exclusively Scottish output and has now become Heart. Breakfast and Drivetime shows are locally presented, however, the majority of the output is broadcast from England. This is mirrored by Capital and Smooth Radio.

Despite an increase in radio stations, we now have a decrease of local choice. At 2pm on a weekday Heart Scotland broadcasts from England, as do Smooth and Capital. Today, Glasgow has no commercial radio station which makes and presents every show from Glasgow.

GO 96.3 Glasgow aims to change that.

Musically, a lot of respondents to our research commented on how the current commercial stations played only a narrow range of music. By using data from comparemyradio.com GO 96.3 has to agree that the majority of existing stations in our TSA have a very limited repertoire. GO 96.3 aims to play a wide ranging selection of all genres and which our research shows the vast majority of the population would approve.

Unique Tracks Total Tracks Most Played High Rotation (No of tracks played in 30 days) (No of times in 30 days) (No of tracks>No of times played) Clyde 1 1095 6071 135 36>30 Clyde 2 1488 7013 43 10>30 Heart 933 4327 53 14>30 Smooth 746 7107 28 0>30 Capital 661 9575 255 40>68 YOUR Radio 1969 9899 62 34>30

Research has shown that our proposed wide ranging mix of music is similar to the 'Jack' format currently in place on a number of stations in England. The nearest equivalent locally and with a similar music format to what we wish to offer is YOUR Radio based in Dumbarton and outwith our proposed TSA. Data (Source:YOUR Radio management) for the last 30 days show they played 1,969 unique tracks with only 34 tracks played more than 30 times within the month and 1,020 tracks were played three times or fewer over the month. In other words 'Just Great Songs!'.

This wide ranging amount of music from all genres stays fresh in the mind of the listener. It is not overly repetitive and there is always a surprise around the corner! Part of GO 96.3's remit will be to give airplay to local bands. YOUR Radio in Dumbarton has been very successful in giving airtime to up and coming bands. Indeed both Turin Breaks and Jack Savoretti, both local artistes and now international stars, received their first airplay on YOUR Radio. GO 96.3 will make a commitment to playing new local artists in their main daytime programming and not just in specialised 'new music' programmes.

The Community Radio stations in our proposed TSA have a limited appeal on a limited geographic coverage. GO 96.3 notes what they achieve but with the exception of Celtic Music Radio, who have a strong listenership and presence for a community station, and have some Scottish music

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 16 output that would coincide with GO 96.3's playlist, the others do not particularly cross over into our proposed format, with them being in the main specialist religious, disability or social inclusion stations broadcasting to specific niche audiences.

Section 105(D): Evidence of local demand or support

6. Evidence of Demand

Summarise the main findings of any original market research undertaken, or any analysis of existing audience research information, which demonstrates a demand for the type of programme service you are proposing to provide. If original market research has been undertaken, please provide the following information for each piece of research:

Two distinct pieces of research were carried out in support of this application: i) An in-house music analysis of the existing major commercial local and regional stations broadcasting to Glasgow, concerning the breadth of their playlists and the repetitiveness of those tracks played over the period of a month. ii) A full independent market research survey was conducted by White Heather Research Ltd, a Market Research Society accredited company.

a) A statement of the key objectives of the research; The main objective of the research conducted by White Heather Research is to provide evidence of the level of demand, within the specific transmission area, for a local radio station of the format proposed. b) The specific questions that the research sought to answer; Specific objectives and questions within the questionnaire included –

‐ Measuring the frequency of listening to local Radio Stations

‐ Establishing the level of current enjoyment (of stations listened to)

‐ The reasons for not listening to radio (if they currently don’t listen)

‐ The level of enjoyment of listening to current stations

‐ The locations of radio listening, the format/devices used, and the times of day of listening

‐ The level of appeal of various aspects of proposed new format

‐ The level of appeal of various format / music genre combinations

‐ The likelihood of listening to the new radio station / format

‐ And the extent to which this new station would broaden the choice of local radio listening

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 17 c) How the research was conducted; The research was conducted via an online survey (Snap software) of the general population in the west of Scotland area. A specialist access panel provider was used to identify and engage with a mix of all ages and both genders to ensure a balanced sample was obtained.

The questionnaire was developed and drafted by the Wild Heather research team with input and approval by Spencer Pryor. d) The size and composition of the sample(s); A sample size of 500 was obtained and statistically this has a maximum margin of error of + or – 4.5% and therefore we consider the results to be sufficiently robust for a project of this nature, in a defined geographic area.

Quota controls were used to ensure an appropriate balance of population took part.

Participants had to live in any G post code, PA1,2,3,4 post codes or any ML post code (except ML11 or ML12). e) When and where the research was conducted; The research was conducted online using a specialist access panel provider with pre-screened respondents. 509 interviews were achieved between the 7th and 14th of May 2016. f) A summary of the main findings from the research, showing how these demonstrate evidence of demand for the service proposed; The Key Findings from the research were:

 Around 6 out of 10 (59%) of the General Population consider they would be ‘likely’ to listen to this new local radio station based on the description provided. With 22% saying they would be ‘very likely’.

 This appeal for the format is widespread across all ages, both genders and all socio-economic groups.

 Almost two thirds (63%) of the General Population consider that their choice of local listening options would increase based on the description of the new radio station format. This perception is held strongly across all ages, both genders and socio- economic groups. It is particularly strong amongst the 35-54 age range (69%).

 ‘Local News – focussing on West Central Scotland’ (70%), Local Bands, Artists and music scene in West Central Scotland’ (61%), ‘Features, Interviews, and events – focussing on West Central Scotland’ (61%), and ‘Programmes and outputs which are unique and not the same as on other stations, but truly ‘local’ (59%), were all considered to be appealing ideas with majority support amongst the general population.

 The music format description ‘ A completely varied choice in music covering from the 60s,70s,80’s 90s, and 00s, of all types and genres of music to the present chart music of today’ was the most popular format amongst those tested with more than three quarters (77%) saying they would either ‘love it (28%) or ‘enjoy it’ (49%).

A complete copy of the market research report is attached as an appendice to this application.

GO 96.3 Glasgow – FM Licence Application for West Central Scotland Page 18 g) Full data tables for any quantitative research undertaken (these may be submitted in confidence).

The full data tables for the research undertaken by White Heather Research Ltd are attached as a separate file due to the size and depth of the information.

7. Evidence of Support

Summarise any evidence of support for your application from your potential audience or from prospective local advertisers.

In regard to the local advertising market Glasgow has a tradition of companies going "Direct" to advertise, with stations such as Clyde, Capital and Heart all having substantial Scottish businesses opting to deal with the local sales team rather than book through a London agency. One of the key reasons for this is the bespoke service they receive from highly talented and locally based sales staff and this will be the hallmark of our commercial operation.

Paul Cooney has a 30 year track record with Bauer and Global of dealing with business and advertisers in this area and with advertising agencies in Scotland and the major advertising agencies in London for national business. He has no doubt that GO 96.3 will be well received by advertisers.

GO 96.3 Glasgow has already been in negotiations with a number of the leading media buying agencies who are already approaching the station in regard to placing business for their clients. There are a number of regional 'direct' advertisers who have expressed an interest in advertising, primarily due to the addition of another radio sales outlet into the local market.

With Lord Haughey, Sir Tom Hunter and Baroness Mobarik on board, we have three of the country's outstanding business and philanthropic leaders with contacts in business at every level; from start-ups to the biggest plc's and privately owned companies in Scotland and throughout the UK.

Since GO Radio's plans to launch a station for Glasgow, there has been a high level of support from both members of the general public and from the business and third sector communities. Although not an accurate reflection of support from the general public GO Radio Glasgow has gained nearly 4,000 Facebook 'likes' in support of its plans. Open text responses within our commissioned market research shed a fascinating light on a) the current dissatisfaction of the existing output of the currently available stations with comments such as 'hate it!' in regard to dance music output and comments concerning the narrowness of current playlists: 'I like a variety of music as well as music from the 60's onwards. I don't want to listen to the top 40 over and over again with very little else. Radio can be very repetitive when listened to for several hours.' to b) positive comments supporting our proposed format and speech output including: 'I enjoy programmes with eclectic content', 'Focussing on and promoting Scottish talent rather than just playing the same old chart hits as all the other stations' , 'If it informed you about local news and events etc., I would be more inclined to listen to it. If the presenters were local I would definitely listen to it.' In general our research shows that the people of Glasgow and the business sector are excited about the prospect of a different locally orientated station taking to the airwaves, and in particular feel that our format of a wide range of music coupled with local speech segments and specialised programming will be a success.

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Declaration Do you confirm that, to the best of your knowledge and belief:

a) the applicant is not a disqualified person in relation to the licence by virtue of the provisions of section 143(5) of the Broadcasting Act 1996 (relating to political objects); b) no director or person concerned directly or indirectly in the management of the company or the applicant group is the subject of a disqualification order as defined by section 145(1) of the Broadcasting Act 1996; c) no person involved in the application has been convicted within the past five years of an unlicensed broadcasting offence and that the applicant will do all it can to ensure that no person so convicted will be concerned in the provision of the service, the making of programmes included in it, or the operation of a radio station if the applicant is granted a licence; and d) any matters which might influence Ofcom's judgement as to whether the directors and substantial shareholders involved in the application are fit and proper persons to participate in a radio licence have been made known to Ofcom?

Applicants should note that Ofcom reserves the right to revoke a licence if at any time any material statement made is found to be false and to have been made by the applicant or any member or officer thereof knowing it to be false, and that in the circumstances of section 144 of the Broadcasting Act 1996, the provision of false information or the withholding of relevant information with the intention of misleading Ofcom could incur a criminal conviction and a disqualification from the holding of a licence.

I declare that to the best of my knowledge and belief the aforementioned criteria are true.

For and on behalf of Caledonia Holdings Ltd.

Signed.

Name: Spencer Pryor

Position: Director – Caledonia Holdings Ltd..

Date: 25th May 2016

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