An Application for the West Central Scotland Licence

An application for the West Central Scotland licence:

26th May 2016

Section 6 The application General information (a) Name of Applicant, Address, Telephone and E-mail address Original 96 Glasgow Ltd (Registered office) 20 Barnton Street Stirling FK8 1NE

Phone 01382 901000 Mobile 07917203633 E-mail [email protected]

(b) Main Contact (For Public Purposes) MAIN CONTACT

Name Adam Findlay Phone 01382 901000 Mobile 07917203633 Address 11 Buchanan Street, Dundee, DD4 6SD Email [email protected]

Original FM

(d) Area to be covered Original FM is applying for the Glasgow area licence using the cleared Cathkin Braes transmission site with the proposed specifications set out by Arqiva in the map below, with an anticipated population coverage of 1.3 million (adults 15+). The Arqiva technical specifications were released on 8th April 2016. Subject to final negotiations we would propose to use a full service and maintenance solution from Arqiva.

The following technical specifications and subsequent conclusions as set out in the technical proposal:

Transmission site: Cathkin Braes NGR: NS 62571 58267 Site height aod: 205m Antenna height: 57.7m agl Frequency: 96.3 MHz FM Total maximum ERP: 4 kW mixed polarisation (2 kW vertical plane + 2 kW horizontal) Anticipated adult (15+) population coverage: 1,328,163 - 1,454,732

Section 2 2.5 Applicants may be able to identify alternative transmission sites in the Glasgow area that would achieve similar population coverage.

SUBMITTED IN CONFIDENCE - (see appendix section 2)

(d) Main Contact (For Ofcom Purposes) MAIN CONTACT Name Adam Findlay Phone 01382 901000 Address 11 Buchanan Street, Dundee, DD4 6SD Email [email protected] Mobile 07917203633

Section 105(A): Ability to maintain proposed service 1. Ownership and control of company which will operate the licence (a) Board of Directors

Chairman and Non-Executive Director

Name: Norman Quirk CA Board Status: Chairman and Non-Executive Home address: Glenard, Uppertorwoodhill Road, Rhu, G84 8LE Nationality: British Occupation: Chartered Accountant and Business Consultant

Other directorships (last 5 years): David MacBrayne Limited Caledonian MacBrayne limited Northlink Ferries Limited Argyll Ferries Limited Mull Theatre Limited Comar Current directorships: Tron Theatre

Summary of Background:

Norman Quirk is a real all rounder in arts and broadcasting. In 2003 Norman was appointed Managing Director of SAGA 105.2fm, a new ILR station which had been awarded the licence to broadcast to Glasgow and West Central Scotland. He led the process of building the studios, recruiting staff and presenters and developing a PR and marketing campaign in support of the station’s launch in September 2004. The service exceeded audience projections in its first RAJAR and went on to become one of the most successful stations in Scotland. Norman continued as MD until SAGA’s Radio Division was sold to GMG in 2007. Norman’s distinguished career in Scottish commercial radio began when he became the Financial Controller of Radio Clyde, a post he held for ten years from 1974, during which time he played a significant role as a member of the team of executives that made the station the most successful in the UK.

Moving into consultancy and management, Norman built up a business that specialised in the promotion of partnerships with the arts. His expertise has been publicly acknowledged in his nomination as Adviser of the Year in 1996 for his work helping the Royal Lyceum Theatre in Edinburgh, and the award of Business Adviser of the Year for his work with the Stray Theatre Company in 1999. As a partner in Quirk and Co. his clients included the Bank of Scotland, Barclays Bank, Cable and Wireless and the Government of the Cayman Islands. Involvement with radio has been constant, both on and off air, for himself and his clients. A frequent contributor to Scottish broadcasting, his commercial involvement grew again in the nineties. In 1994 he became a Director of Central FM, the independent local radio station for Stirling and Falkirk, becoming Chairman in 1996. He was also a founder investor in the Fife ILR, Kingdom FM, of which he was also a director.

When the Independent Radio Group bought the central belt regional radio station Scot FM in 1996 it was losing one million pounds a year. The new owners established a wholly owned Scottish subsidiary company, the Independent Radio Group of Scotland, and appointed Norman MD with the remit of bringing the company into profit. By July 1997, within a year of his appointment at Scot FM, Norman had met all the agreed company targets and moved the station from loss to profitability. He then became Chairman of the Group, tackling the challenge of overseeing new licence applications, strengthening IRG Scotland’s position as digital radio began, and representing the group within the business community in Scotland. The Independent Radio Group of Scotland Ltd owned Scot FM, 96.3QFM, Discovery FM and was a major investor in Kingdom FM. Norman continued to play a key role in managing the company’s Scottish assets until they were bought by The Wireless Group in 2000.

Prior to joining SAGA Norman was The Executive Director of Scottish Ballet, Scotland’s national dance company, his responsibilities included press and media relations, fund raising, sponsorship, finance and administration, and oversight of the technical departments. He was appointed Director and Vice Chairman at a time of trouble in February 1998, before being retained later that year on a consultancy basis as MD. As well as day to day management in a difficult and at times hostile climate, he had the task of achieving the non-artistic merger with Scottish Opera as well as responsibility for excellence, flexibility and cost effectiveness across the company. His appointment three years later as full time Executive Director is an indicator of his success, an achievement all the more impressive as it coincided with comparable achievements in radio management.

Norman’s experience and understanding of Scottish radio is only equalled by his knowledge of the country’s arts and artistic community. He was, for many years, a Director of Mull Theatre, a producing and touring theatre company based on the island of Mull; in 2012 he was appointed Chair of Comar, a company set up to bring about the artistic and administrative merger of Mull Theatre and An Tobar, a music and visual arts centre based in Tobermory. Although a chartered accountant by profession, he is a manager by choice and talent, thriving on challenge and innovation and always working from the principle that the motivation, commitment and development of staff is the secret of an organisation’s success. His career is evidence that his philosophy helps creative businesses flourish. His flair for focussing on solutions and their implementation works especially well in the arts and media environment. In addition to his involvement with radio and the arts Norman has worked at a senior level within the Scottish business community. He was a Board member of Glasgow Chamber of Commerce from 2004 to 2009 and was President from 2006 to 2008. From 2007 to 2010 Norman was Chair of Scottish Chambers of Commerce and also a Director of British Chambers of Commerce. He was also a Board Member of Scottish Council for Development and Industry from 2007 to 2010. Norman is currently on the Board of Tron Theatre in Glasgow and a Member of the Scottish Council of the Royal National Lifeboat Institution. Norman brings to the Board practical experience of managing successful commercial radio operations of a range of scale and in a variety of markets. His knowledge and understanding spans the life of the industry in Scotland. Alongside his deep personal knowledge of the key players in the performing arts in Scotland, his contacts and his ability to see both the overview and the detail will provide a resource that will make him a real asset to the Board of Original FM. Norman brings to the Board practical experience of managing successful commercial radio operations of a range of scale and in a variety of markets. His knowledge and understanding spans the life of the industry in Scotland. Alongside his deep personal knowledge of the key players in the performing arts in Scotland, his contacts and his ability to see both the overview and the detail will provide a resource that will make him a real asset to the Board of Original FM.

Non-Executive Director

Name: Adam Findlay Board Status: Non-Executive Home address: 14 Huntingdon Place Edinburgh, EH7 4AX Nationality: British Occupation: Managing Director Previous directorships: Crime Stoppers Scotland Cash For Kids Grampian Chamber of Commerce Current directorships: Original FM Aberdeen Ltd Wave 102 FM Ltd New Wave Media Ltd Original Events Company Ltd Help for Kids Ltd

Summary of Background: Adam Findlay is the Principal Shareholder and Managing Director of New Wave Media, an investment and management company whose principal activities are concerned with Radio Broadcasting. He set this up after spending over 16 years working his way to the most senior Managing Director positions within what was then Scottish Radio Holdings (SRH). Adam set up New Wave Media in 2007 following the sale of SRH to Emap. The purpose of New Wave Media was to create an acquisition vehicle which subsequently has also become the management company for all three radio stations, Central FM, Wave 102 and Original 106.

Adam has spent over 25 years working at all levels in the radio sector in a variety of roles both in London and throughout Scotland. Learning the ropes at the sharp end in local advertising sales at Central FM, he went onto to become Promotions Manager at Radio Tay. In 1996 Adam joined USP Radio Projects to oversee national and regional radio activity working on behalf of agencies as a radio specialist. He then joined Katz Radio sales as an Account Director which was soon acquired by Clear Channel International where Adam was appointed Group Head of UK Sponsorship & Promotions which at the time represented around 90 UK commercial radio stations. In 2000 he returned to Scotland as Advertising Director of Northsound Radio in Aberdeen and soon after he was appointed Managing Director. During this time Adam oversaw the relocation of Northsound into state of the art studios whilst doubling profits during this time. In 2004 he was appointed Managing Director of Radio Forth and also took on responsibility for managing the relationship between the holding company (SRH) and the Scottish Government directly. As MD of Radio Forth he was specifically tasked with rebuilding the audiences which he did until its acquisition by Emap in 2005. Adam resigned in 2006 to set up New Wave Media which was created to buy Wave 102. The opportunity arose to the buy Original 106 as a distressed purchase, it was days away from being liquidated by HMRC. Adam mounted a rescue bid aided by John Quinn and between them they invested around £500,000. This coupled with an aggressive turn around strategy has created one of the most successful and profitable stations in Scotland in recent times. Then in 2014 New Wave Media took over the management contract for Central FM bringing all three stations under the one management company.

Adam has an invaluable depth of knowledge of the Scottish radio market. His career as a successful station manager and as a developer of under-performing radio stations, will bring to the board a very relevant skillset that few can match.

Non-Executive Director

Name: John Pollock Quinn Board Status: Non-Executive Home address: 25 Chalton Lodge, Bridge of Allan, Stirlingshire, FK94DX Nationality: British Occupation: Company Director Current directorships: Central FM Limited Original Aberdeen FM Limited Original 106 Events Limited Original 96 Glasgow Limited Media Investments (Scotland) Limited Format (Ping Fang) Limited QRZ Limited Blue Water Scotland LLP Buewater (Glenrothes 2) Limited Bluewater (Glenrothes 1) Limited Bluewater (Fallside) Limited Bluewater (Stirling 1) Limited Muddy Fields LLP

Summary of Background: John Quinn is a Scottish Businessman and Entrepreneur who spent most of his business career establishing and developing his company Fasco into the UK's largest independent Engineers Merchants, supplying engineering and safety consumables to industry and Oil related businesses. In 2007 John sold the company and began sourcing metal fabricated parts from Asia. This opened up new markets, mostly in the dairy and retail / supermarket sectors.

Since the disposal of Fasco, John has also devoted much of his time to his property development business. This company acquires sites and builds and develops care homes, industrial buildings and trading estates. Local radio has been one of John's interests for many years. He has been involved in Central FM, a commercial station covering Central Scotland, for over 25 years where he was a Founder Shareholder, Board Member and latterly Chairman. In 2008 John became the majority Shareholder and Owner of the station in a deal reached with The Local Radio Company, Central FM's former owners. Since buying Central FM listening and revenue figures have shown a dramatic increase as the station worked towards John's vision of 'local media playing a crucial role at the heart of the community.' This success has been recognised by Central FM's nomination at the National 2009 Sony Radio Academy Awards in the Station of the Year category. In 2009, in partnership with Adam Findlay, owner of Wave 102 in Dundee, John acquired Original 106 in Aberdeen. This has now grown into a very successful business with new listeners being added at every RAJAR. Both revenue and listeners are now at an all-time high. This new group is now the largest independent Radio Group in Scotland with an appetite for growth and further success. John also has an interest in a medical research company which is making exciting developments in skin care and blood pressure treatment. John is also a past board member of Forth Valley Chamber of Commerce and Stirling Enterprise Park, a Local Enterprise Company providing business advice and property for start-up new businesses. He joined the board, having previously occupied the park as a tenant, upon the recognition of STEP's invaluable contribution to the growth of small business. Realising its importance, John felt drawn to involvement in such a worthwhile project. In the past John has been involved as a Board Member of Young Enterprise, while presently he occupies his remaining time as a Board Member of Stirling Business Centres Ltd coupled with other private investments. Stirling Business Centre provides advice and premises for small and expanding businesses. John is a successful businessman, with a passion for radio and the community it serves. He brings to the board a strong business focus, and an understanding of the need to balance financial success with high quality programming content which will satisfy Original’s audience.

Non Executive Director

Name: Richard Findlay CBE Board Status: Non - Executive Home Address: 20, Laverockbank Road, Edinburgh EH5 3DE Nationality: British Occupation: Private Investor & Non Executive Director Other Directorships (last 5 years):

STV Group plc National Theatre of Scotland Current Directorships: Innovate Financial Services Ltd Youth Group Ltd Educational App. Store Ltd New Wave Media Ltd Creative Scotland

Summary of Background

Richard Findlay has spent his entire working life in the media beginning his career at the BBC. He is a graduate of the Royal Scottish Academy of Music & Drama (now the Royal Conservatoire of Scotland) where he later served on the Academic Committee then both as a Governor and Chair of the Institute’s Endownment Fund. In recognition of his contribution to the Conservatoire he was conferred a Fellowship.

After a period with the BBC working in both radio and television Richard obtained a position in the Middle East helping the Government of Saudi Arabia establish an English language radio service. On returning to the UK he worked for the Central Office of Information Overseas Policy Unit with a special responsibility for North America. With the introduction of local commercial radio he joined the second station to go on air in London, Capital Radio, as a duty news editor and news reader.

With the award of new local commercial radio licences he joined the consortium that won the Edinburgh based licence as Programme Controller, becoming Managing Director some 18 months later. As ownership rules relaxed the company expanded by acquiring the Dundee based Radio Tay, opening up a small station in the Scottish Borders, another in Carlisle and then adding Moray Firth in Inverness to it’s portfolio.

Radio Forth developed a reputation for innovative programming and was the first station to offer a ‘sponsored’ separate service on one of it’s two frequencies during the Edinburgh Festival.

In Glasgow the highly successful Radio Clyde had also been expanding and, having bought Northsound in Aberdeen, it was decided that a merge of Clyde and Forth made sense. Scottish Radio Holdings plc was thus created with Richard Findlay later becoming Chief Executive and with the now Lord Gordon as Chair. SRH, as it was called, rapidly expanded under Richard’s stewardship adding radio stations across the UK and the Republic of Ireland to its portfolio. It also developed a wide portfolio of local newspapers to complement its radio stations. As the industry further consolidated SRH was bought by Emap which sold on the newspapers and then was subsequently bought itself.

In 2004, The Scottish Government asked Richard to form the National Theatre of Scotland which he did with considerable international success and which he chaired until the end of 2013.

In 2007 the shareholders of Scottish Media Group plc, the holder of the two Scotland independent TV licences, asked him to take on the Chair of the company which had lost its way and had an unsustainable level of debt. The challenge was immense but, with a completely new board, Chief Executive and Senior Management team, the situation was resolved and the company returned to its core activity (the TV licences) and was renamed STV Group plc to reflect that. On standing down from the Chairmanship in 2013 Richard was made a CBE for services to the Arts & Creative Industries.

In January 2015 Richard was asked by the Scottish Government to take on the Chair of the public body, Creative Scotland, which had been formed by the merging of the Scottish Arts Council and Scottish Screen and then given responsibility also for the wider creative industries. The organisation had a troubled birth and required fresh thinking and a re-focus which is underway and beginning to bear fruit.

In other areas Richard chairs an independent financial adviser firm, Innovate Financial Services Ltd and Youth Group Ltd., which develops internal services on school, college and university computer systems. He is also a significant investor in the Educational App. Store, an online service that both sells and validates educational apps working in partnership with Samsung and other international operators.

Richard has a unique in-depth knowledge and experience of both the radio and cultural scenes in Scotland. His achievements have been widely recognised, and his reputation for commitment to making a success of new challenges will ensure that he will play a major role in Original’s success.

Non-Executive Director

Name: Professor Lesley Sawers

Board Status: Non-Executive

Home address: 11 Whittinghame Drive, Kelvinside, Glasgow, G12 0XS Nationality: British Occupation: Business and Market Insights Consultant

Other directorships (last 5 years):

Scottish Council for Development and Industry Glasgow City Marketing Bureau Commonwealth Youth Trust Business Trust Scotland

Current directorships: Equalities and Human Rights Commission (Scotland Commissioner) Scottish Environmental Protection Agency, Deputy Chair GenAnalytics Ltd Glasgow Life

Summary of Background:

Lesley has over thirty years’ experience working across the private, public and voluntary sectors both in the UK and internationally in the areas of economic policy, business strategy, strategic stakeholder engagement and communications. She also currently holds a number of senior public appointments with a focus on equalities, social justice and economic growth.

She was appointed Equalities and Human Rights Commissioner for Scotland in April 2016. Her remit as Commissioner in Scotland to provide leadership to the organisation, an independent statutory body, to encourage equality and diversity, eliminate unlawful discrimination, and protect and promote human rights. Lesley regularly speaks and presents to both business and civic audiences on gender and diversity in the workplace linked to economic growth and business performance. She is also a member of the Secretary of State’s Business Advisory Board.

Lesley is currently Executive Chair of GenAnalytics Ltd, a specialist analytical and market insights consultancy focused on business performance improvement linked to equality and diversity in the workplace. Lesley formed this organisation to develop her research and consultancy work following on from the publication of the Sawers Review in 2015. This independent review commissioned by the UK Government Scotland Office examined the role and contribution of women to the Scottish economy, and identified a range of actions and recommendations for Government, business and civic society. Many of these recommendations have been accepted and implemented at a UK and Scotland level, including pay gap reporting, the establishment of a Scottish Business Women’s Council, greater focus on gender measurements mentoring and support programmes and entrepreneurship. GenAnalytics is currently working with a number of business and local authority partners including Glasgow City Council on the development of an Equalities Measurement Framework to evaluate City economic growth, public policy investments and social innovation programmes. GenAnalytics will be launching Scotland’s first Diversity Awards and national workplace survey in Autumn 2016 in partnership with the Herald and Evening Times Group.

Previously Lesley was Vice Principal and Pro Vice Chancellor for Business, Enterprise and Innovation at Glasgow Caledonian University having responsibility for the commercialisation of research activity, business engagement and development activities. She was awarded an Honorary Professorship from GCU in 2015 and remains committed to developing and enabling greater business engagement and transfer of research knowledge and innovation expertise from the Higher Education sector to Scotland’s businesses and civic groups.

Lesley also has extensive experience in economic development and regeneration policy. She was Chief Executive of the Scottish Council for Development and Industry, Scotland’s leading civic economic-think tank. Notable development in this this role, Lesley was responsible for the development of the Scottish Cities Alliance and Scotland’s Cities Working Strategy with the Leaders of Scotland’s seven Cities, the Deputy First Minister and national agencies, she secured a £7million Cities Investment Fund that subsequently led to the development of a number of City Region Growth Deals. Lesley also chaired the Scottish Cities Alliance Leadership Group for two years. She is currently Deputy Chair of the Scottish Environmental Protection Agency (SEPA) and Chair of its Audit Committee. SEPA is Scotland’s environment regulator, protecting Scotland’s environment through assessment, legislation and regulatory enforcement. In her Board role, Lesley’s focus is on developing innovation strategies, business and education partnerships, climate and social justice impact measurements and providing leadership on the development of

equalities programmes and people talent management both within SEPA and other public bodies. In its audit work, SEPA is leading the way in Scotland in developing Best Value measures and evaluation processes within public sector bodies.

Lesley has also held senior leadership positions at ScottishPower, Royal Mail, CACI (a geo-demographic research consultancy) and Glasgow Chamber of Commerce, where she was the first female Chief Executive in its 270-year history. She was also a Board member of VisitScotland and Event Scotland for eight years, helping to secure and deliver the Glasgow 2014 XX Commonwealth Games and Ryder Cup.

As a native Glaswegian, Lesley is committed to public service within the City. She is a Trustee of Glasgow Life, a Charitable Trust that manages all the city of Glasgow’s museums, libraries, sport centres, arts and community events and early years’ education delivery. As part of this role, she is also Chair of the Community Interest Company that generates commercial income from catering, leisure, retail, event and venue services.

Her commitment to the City is also demonstrated as a Non-Executive Board Member of Glasgow City Marketing Bureau the award winning destination- marketing organisation, to promote Glasgow as a city for investment, conventions, events and tourism to a global audience. She is also past Chair of Action for Children (Scotland).

Lesley has a degree in Economics from the University of Glasgow, a PhD from the University of Stirling, and Honorary Doctorates from both Glasgow Caledonian University and the University of Strathclyde.

With extensive experience operating at senior levels in both the private and public sector, Lesley brings a detailed understanding of equalities and diversity both in terms of organisational performance and in successful engagement and support of local communities, businesses and stakeholder networks.

There are no current plans to appoint further directors.

(b) Investors and Shareholding Structure Full details of the shareholding structure should be provided, including: i) Names and addresses

Original 96 Glasgow Ltd is jointly owned on an equal basis by John Quinn and Richard Findlay. John Quinn is the majority shareholder and Chair of Central FM, John also owns 50% of the share equity in Aberdeen (Original 106) where he is also Chairman. Richard Findlay is a Director and Chairman of New Wave Media which will hold the management contract for Original 96 Glasgow Ltd. The details of the two shareholders are:

John Quinn Richard Findlay CBE Chalton Lodge Woodville 25 Chalton Road 20 Laverockbank Road Bridge of Allan Edinburgh Stirling EH5 3DE FK9 4DX ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference, other etc.).

 The company will issue 400,000 ordinary £1 shares with equal voting rights. 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.

 200,000 ordinary £1 voting shares will be issued to Richard Findlay at par  200,000 ordinary £1 voting shares will be issued to John Quinn at par

iv) Outline any shareholders agreements or arrangements which exist. The two shareholders have agreed to use the existing shareholders agreement currently in place at Original 106 in Aberdeen between New Wave Media and John Quinn as a heads of terms between Richard Findlay and John Quinn for Original 96 Glasgow Ltd.

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. Not applicable 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. 20% of the required funding will be by means of a Royal Bank of Scotland loan (see letter in appendix Section (1a)

(c) Involvement of the Applicant in Specified Activities 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; Richard Findlay Richard Findlay is a Director of New Wave Media which currently holds the management contract for Central FM, Wave 102 and Original 106. John Quinn 50% of the issued share capital in Original 106 78.6% of the issued share capital in Central FM 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; None vi) Local authorities; None vii) Other publicly-funded bodies. Richard Findlay is Chairman of Creative Scotland, the public body responsible for the development and funding of arts, film and wider creative industries in Scotland with an annual budget of circa £85 million.

2. Financial and business plan (a) Overall Financial Strategy The directors of the company have considerable business, community and hands on media experience across radio, television, outdoor and press.

Original FM will be supported and operated by the only Scottish owned radio management group, a company committed to developing a sizeable, highly professional business delivering entertaining, compelling local radio, complementing existing services in the areas in which it operates. Under the direction of the board, New Wave Media, which manages stations in Aberdeen, Dundee and Stirling, will be awarded the management contract. Original FM will benefit from New Wave Media’s experience to date and their business strategies already in place which are delivering record audiences and investor returns.

Research conducted in the region has confirmed and underpinned our programming proposals indicating that 24% of respondents would be likely to listen. Original FM’s target market is set to be one of the fastest growing demographics in Glasgow and West Central Scotland in the coming 20 years (see chart below) and according to our research is currently underserved by the existing radio services.

Our business projections are based on research and our experience in other markets and have been benchmarked against current industry performances.

Understanding our market is critical to our business strategy - we know Scotland and its seven cities and we’ve undertaken a detailed analysis in West Central Scotland.

Additionally, Original FM listeners are highly active and engaged consumers, perfect for local, regional and national advertisers.

Advertising Revenue: New Wave Media is a highly competent and capable operator, with extensive local knowledge and insight into of each of its markets connecting advertisers with highly desirable audiences. Client care, customer service and delivering on advertiser expectations are key and one of the main reasons why on average New Wave Media managed radio stations have 70% or more repeat business monthly. We offer unique and highly popular local advertising solutions, which allow clients to pay by direct debit, this now accounts for more than 50% of each station’s annual turnover. (See advertiser letters in appendix.)

We propose to contract out national sales to First Radio Sales with whom we have an existing relationship. Projections have been calculated in collaboration with the sales house.

Marketing: it is vital to establish the new station quickly with both audiences and advertisers. We have allocated a minimum spend of £100k in the first year and a minimum of £50k per year thereafter in years 2, 3, 4 and 5.

Successful: We have already demonstrated that the Original radio format can attract and grow an audience whilst complementing existing services and this is also true of advertisers. This is also a market in which we can complement the existing offerings with our high-end ABC1 audience delivered through strong affordable local advertising solutions.

(b) Funding Detail the sources of finance that will be used to fund the licence, under the following headings: i) Share capital 400,000 shares to be bought by the two parties (Richard Findlay and John Quinn) for a consideration of £400,000 ii) Loan stock An intercompany loan over 5 years from Original 106 of £400,000 iii) Leasing/HP facilities (capital value) Not applicable iv) Bank overdraft A facility provided by Royal Bank of Scotland for £200,000 at an interest rate of 2.5% over base rate. v) Grants and donations None vi) Other (please specify) None Where relevant, provide information on: i) Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms); The £400,000 intercompany loan is an interest free loan over 5 years which we expect to pay back in part or in full within the 5-year term. Any outstanding balances after 5 years would be charged at interest of 4.5% above The Bank of England base rate at the time. ii) Assets leased. Not applicable All of the funding identified above should be confirmed to the applicant. Explanation should be provided if this is not the case. (c) Financial Projections The purpose of this question is to allow the applicant to demonstrate its understanding of the market. The forecasts should be based on reasonable assumptions that are logically applied and justifiable. Robust and coherent financial projections have been generated from our research and the Directors’ knowledge of the marketplace. We have submitted a 5-year profit & loss, balance sheet and cash flow forecast which can be seen in section 1 (c) to (f) which is submitted in confidence.

The applicant should provide financial projections on an annual basis for the licence. The projections must include: i) Profit and loss accounts Submitted in confidence in appendix section 1 (c) ii) Balance sheets Submitted in confidence in appendix section 1 (d) iii) Cash-flow forecasts Submitted in confidence in appendix section 1 (e)

Included in the financial forecast is a full list of assumptions and explanations which can be found in the appendix section 1 (f). The calculations have been based on current market providers for office accommodation, suppliers and utilities using current market rates, where assumptions have been used these are based on sector supplier advice upon request.

We have also included our completed financial template which you can read in appendix section 1 (g).

(d) Audience Projections Applicants should provide the following information: i) The projected adult (aged 15+) population of the Total Survey Area (TSA) within which it is intended to measure the listenership of the service; Cathkin Braes

Field strength Population count Expected coverage

variable mono indoor 48dBuV/m 1,454,732

robust mono mobile 54dBuV/m 1,328,163 robust mono indoor

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; The Adult population has been estimated from the area defined by the coverage prediction map supplied by Arqiva. Our estimated TSA is 1.3m. This is less than other West Central Scotland service areas including Heart Scotland West, Clyde 1, Clyde 2, Smooth Scotland and Capital Scotland West each around 1.7m-1.9m respectively. We have reached our projected numbers based on independent fieldwork and focus group activity carried out by Taylor McKenzie Marketing and Research in Glasgow suggesting that 24% of respondents would be extremely likely to listen to Original FM. In addition to this we have carried out our own in depth analysis of the marketplace using Rajar and Octagon (see appendix section 2(b).

We have therefore estimated audience growth as indicated on the table below.

Based on TSA 1.3m YEAR 1 YEAR 2 YEAR 3

Reach % 13% 15% 17%

Total Reach 169,000 195,000 234,000

Total Hours 1,183,000 1,462,500 1,989,000

Average Hours 7.0 7.5 8.5

Demographic breakdown In our extensive research we found that 17% of radio listeners in the transmission area would listen to Original FM 5 times per week or more. Within that, 8% would listen at least once a day and overall an average of 3 occasions per week. Women (especially the 35-59s) claimed the highest listening frequency.

The following demographic breakdown was calculated using the social demographic responses from the quantitative research and the first three years RAJAR of Original 106 in Aberdeen, which has a similar music format.

TSA 15+ 15-24 25-34 35-44 45-54 55-64 Male Female ABC1 C2DE 1.3M

Reach 169 16.9 21.9 47.3 30.4 37.1 743.6 946.4 106.9 62 (000’s)

Reach % 13% 10.3 13.1 28.5 18.2 22.4 44 56 63.3 36.7

iii) The expected impact of the proposed service on existing services, in listenership terms; Our predicted impact is based on the findings of the quantitative analysis which found that we would grow the market by 7%, and also the actual impact that Original 106 (in Aberdeen) has had on existing services in the Aberdeen area since it began broadcasting in 2008.

The above chart shows the negligible impact Original 106 has had on existing services in the North East of Scotland and how it has grown the listening market in real terms since it began broadcasting.

Our independent research shows that Original FM would grow the market by 7%. The table below demonstrates the impact that would have in West Central Scotland. According to the RAJAR (Q4 2015) all radio listening is currently delivering 35.5 million hours, a 7% growth in the market would increases this to 38 million hours which is in line with our own audience projections.

Current population 1,891,900 Current all radio reach 1,684,500 Current % reach 89% Current total radio hours 35,584,300 Original FM Growth Projection (+7%): 38,075,201

iv The basis on which the estimates above have been calculated, and any assumptions taken into account. We have used market based evidence from our actual performance since 2008 using the Original format in the North East of Scotland. Added to this we also measured the initial impact Saga radio had in audience terms in the West Central Scotland market in its first three years. We have applied the quantitative and qualitative research from Taylor McKenzie with particular consideration to item (iii) above in this section.

3. Transmission proposals Applicants proposing to use the same transmission site and parameters as the former Paisley licence should provide the following information: Not applicable a) Have you entered into negotiations with the owner/operator of the site regarding arrangements for the new licence? If so, provide details; if not, state what arrangements are anticipated. Applicants proposing to use an alternative transmission site should provide the following information: i) Name and National Grid Reference of site; Cathkin (S) Grid Ref NS 62571 58267 ii) Height of site above Ordnance datum (in metres); 205 meters iii) Height of transmitting aerial above ground level (in metres); 57.7 meters 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). Radiation pattern as per Arqiva proposals.

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.

There is capacity and we have approval in principle to use the Arqiva proposal, we have a positive and on-going existing business relationship with Arqiva across all our existing radio services.

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.

vi) The proposed arrangements for transmission provision (installation, maintenance and repair). Antenna System is an Eddystone s7605 transmitter on output power of 2.75 KW, ERP 4kw using Prodys Prontonet audio codecs with MP3 player back up. Audio Processor is an Orban Optimod 5700 with RDS encoder Audemat FMB 80.

We recognise the ever growing drive towards DAB and the increased demand steadily building from listeners, therefore it would be our intention to explore DAB carriage at a point where this was viable and economical.

We have also identified a suitable alternative transmission provision which is detailed in confidence in appendix section 2.

Section 105(B) and (C): Catering for tastes and interests/broadening choice 4. Format ● 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); 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; c) Service Duration. This is the number of hours you will broadcast each day; d) Studio location. The licensed area(s) from where your locally-made programming will originate, taking account of any proposed co-location arrangements; 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). f) Programme sharing. Provide details of any other existing licences with which you intend to share any of your locally-made programmes. g) Local news. The proposed schedule of news bulletins (e.g. hourly during peaktime) which will include local news;

ANALOGUE COMMERCIAL RADIO STATION FORMAT

Service name

ORIGINAL FM

Licence number TBC

Licensed area Glasgow and West Central Scotland

MCA population 1.3 Million (subject to final transmission solution)

Frequency/ies 96.3MHz

Character of Service

AN ADULT ALTERNATIVE STATION PLAYING ADULT-ORIENTATED ALBUM TRACKS, CLASSIC AND MELODIC ROCK, PREDOMINANTLY NON-CONTEMPORARY POP HITS AND A SPRINKLING OF CONTEMPORARY POPULAR COUNTRY AND SOUL WITH PARTICULAR APPEAL FOR 35-59 YEAR OLD LISTENERS, WITH 24-HOUR NEWS.

* Album tracks which became UK Top 20 singles, or UK Top 20 singles subsequently appearing on albums, would not qualify.

Service duration 24 hours

Locally-made Studio location: West Central Scotland programming Locally-made programming must be produced within the licensed area.

Locally-made hours: 24 hours a day daytime weekdays 24 hours weekends.

Programme sharing: There are no programme sharing arrangements in place.

Local news Monday-Friday Daily hourly bulletins with extended daily evening bulletins Weekends Hourly

Definitions Speech Excludes advertising, programme/promotional trails & sponsor credits Peak-time Weekday breakfast and drive-time, and weekend late breakfast Daytime 06.00 to 19.00 weekdays and weekends

5. Programming Philosophy a) Explain (in no more than 500 words) how your proposed Format will cater for the tastes and interests, general or particular, of persons living in this local area;

We propose to create a radio station focussed on Glasgow and West Central Scotland playing melodic rock music, mixed with past chart classics and a sprinkling of contemporary popular soul and country tracks, with news, sport and items of interest to our target demographic aged 35-59. We have achieved considerable success with a similar format in Aberdeen and our extensive research encourages us to believe that the service would be equally popular in Glasgow and West Central Scotland.

Imagine hearing Steely Dan, then The Police followed by Anita Baker, The Beatles, Sheryl Crow, The Eagles and The Proclaimers, add in speech items relevant to adults aged 35- 59 and sprinkle in some famous Glasgow humour and charm and you have Original FM.

The selection of these great songs is a craft and skill that will not be left to a computer program but trusted to an experienced Head of Music to fine tune the rotation.

We know from our target market research that our potential audience is active and engaged in a wide variety of the arts. According to the most recent (2011) life-style survey commissioned by Glasgow City Council, 86% of Glaswegians took part in some kind of cultural activity in that year. These included: cinema (55%), museums (41%), live music events (32%), libraries (28%) and theatre (25%). These interests will be reflected in Original FM’s programming. Glasgow and West Central Scotland is also home to 41% of Scotland’s actors, dancers and broadcasters, 38% of its musicians and 29% of its artists and graphic designers. The creative community be invited to use our airwaves to publicise their activities.

The various festivals, events, films, comedy and wider family arts that contribute to the area’s diversity and culture will make up much of the Original FM Gig Guides and What’s On listings. These features will be cross-promoted utilising social media and the web.

Original News

Our news will be local, engaging, relevant, interactive and accessible. Furthermore, it is our intention to operate a fully serviced local newsroom 24 hours a day / 7 days a week. Our ambition is eventually to offer an off-peak and overnight Scottish News Service free of charge to ALL community radio operators who feel they could benefit from this service.

Original Sport

Original FM will also include and pay particular attention to local items of sport. Sports round-ups will feature local mainstream and minority sports.

Original FM will reflect the lifestyles and aspirations of those living and working in the whole of West Central Scotland. The sound of the station will have a city feel about it but we are conscious of the wider and diverse surrounding areas therefore we aim to be inclusive at all times. Half our audience do not actually live in Glasgow itself, so Original FM with be as focused on serving the very active and crucial commuter towns like Paisley, Renfrew, Dumbarton, Bishopbriggs, Coatbridge, Airdrie, Motherwell and Rutherglen.

Original FM will always endeavour to exceed the expectations of our listener.

b) Explain (in no more than 600 words) 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. We have studied the formats of the other stations broadcasting to Glasgow and West Central Scotland and have monitored their output. (The table included in Evidence of Demand summarises our findings and demonstrates where Original FM will fit in the radio landscape, highlighting our differences.)

In addition there are a number of community stations broadcasting to parts of the proposed TSA. Generally their output can be described as ultra local, super-serving their tightly defined areas.

Original Music

Unlike many of our competitors, Original FM will not heavily rely on the current Top 40 for musical content. Original FM will offer a broad selection of music spanning the decades, peppered with hidden gems and album tracks, most of which are not heard elsewhere on ILR. Tracks played will be carefully selected to be relevant to the target 35-59 demographic. Our music mix will include classic and melodic rock and a sprinkling of soul and contemporary country.

Original Local

According to our focus groups there is a strong demand for local content, particularly news and travel information. The perception is that the existing stations are failing to meet this need. In fact, BBC Radio Scotland is thought of as the local station. Original FM will take on the role of promoting Glasgow and surrounding towns like Paisley, Greenock, East Kilbride, Motherwell and Hamilton. We shall take pride in promoting these areas, their events and projects - Original FM will reflect and celebrate Glasgow and its environs.

Original Lifestyle

Original FM will be in tune with the lifestyle of our listeners. They enjoy attending cultural events and concerts spanning a variety of musical genres. We shall cover events at venues large and small across West Central Scotland; for example, The Glasgow Jazz Festival hosting some of the biggest names in jazz, blues, soul, funk, R&B and world music; Glasgow’s largest multicultural event, The West End Festival; The Glasgow Film Festival celebrating the passion the people of Glasgow have for the movies and Celtic Connections (International Music Festival); all held in the city each year.

The events in some of West Central Scotland’s smaller venues will also be featured as part of the Original FM commitment to the community. These tend to be ignored by other stations due to networking or being “off their target market’s interests.” We will encourage social media interaction and engage with our listener in a contemporary environment making our presentation team more accessible than any other in the current marketplace.

Original Presenters

Our knowledgeable and locally based presenters will be encouraged to get involved in the “local scene” and be creative in their craft. Focus groups also required presenters to be “passionate and witty.”

Original’s Commitment to News

Uniquely, news will be live 24 hours a day with a West Central Scotland focus throughout the day and a wider Scottish agenda through the night. The overnight service will be offered to community radio operators on a free of charge basis. This will help underpin the delicate community radio infrastructure in Scotland.

Original’s Commitment to Sport

Our daily sports round-up will focus on the major sporting fixtures and will include those sports that traditionally get less coverage within West Central Scotland including snooker, hockey, curling, women's and junior football, tennis, rugby and cricket.

The Original FM format will fulfil a need and provide listeners with a radio station that lives and breathes its transmission area.

Elsewhere our stations have proven they can grow their respective markets, enhancing the choice of listening throughout Scotland.

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.

Section 105(D): Evidence of local demand or support Glasgow based Research and Marketing company Taylor McKenzie carried out both quantitative and qualitative research for Original FM.

Quantitative Research The quantitative survey took the form of on street, face to face interviews conducted with 490 respondents. Our objectives were to: ● identify the current listening habits of West Central Scotland ● establish which format might make the population listen to the radio more ● quantify the audience for Original FM

The current listening habits of West Central Scotland Compared to 5 years ago, there is a net increase in people listening to the radio ‘more often these days’ (40% listening more compared to 13% listening less). Although changing lifestyles and the availability of music on the internet or via apps are the primary causes of less frequent listening, there are also issues with a lack of variety or boredom due to the repetitive nature of the rotation of stations’ playlists. Presenters are considered to be unappealing and local stations are thought to be sounding less local. Almost half of all potential listeners in the proposed transmission area listen to radio via FM transmission at least once a day - an average of 8.8 occasions per week, with those in the 35-59 age bracket having the highest listening frequency (9.5 occasions per week). Listening via FM radio transmission remains the most popular method across all ages. Listening when in the car is the most popular location for all except older men & women over 60. On average, people listen to 2.7 radio stations with men 35+ listening to 3 or more stations. Clyde 1, BBC Radio 1, Capital FM and BBC Radio Scotland are the most frequently listened to stations.

For men in the target 35-59 age group, Clyde 1 remains the station listened to most often but frequent listening to BBC Scotland, BBC Radio 2 and 5 Live is also significant. For women in the target 35-59 age group, there is no leading station; with Smooth, Heart and Clyde 1 all battling for listenership.

Which format might make people listen to the radio more? Music is by far the biggest driver of choice of radio station – more than 3 times larger than the next biggest drivers – news, sport and being local. The target audience of men in the 35-59 age bracket is very much motivated by a mix of music styles to appeal to personal taste, local news, sport and traffic updates The target audience of women in the 35-59 age bracket is very much motivated by a station that is easy to listen to with music they like and content which is local (news / traffic). Past chart music is appreciated by the 35+ age group. In the target group, men aged 35-59 also enjoy rock (both traditional & melodic), whilst past chart, current chart, traditional & contemporary country and soul music are amongst the genres important to women aged 35-59.

Scottish & local news are key requirements in general and especially for 35-59 year old men for whom Scottish sports news is particularly important. Females aged between 35- 59 are the demographic MOST likely to agree that what’s on / local information about their area is important to them. Reflecting audience lifestyles, being relevant to where they live and providing local news and issues with interviews and information are all key to attracting listeners, especially for the target 35+ audience. Networking from elsewhere in the UK is not popular with the 35-59 age group.

Quantifying the audience for Original FM Respondents were first read the following station description: “A radio station playing melodic rock with a mix of past chart classics and a sprinkling of contemporary popular country. A locally based service offering constantly updated local and national news with information relevant to me and my area.” They were then asked to agree or disagree with the statement:

“This radio station would meet my needs” Overall 32% agreed. In the target age group women responded more positively (43%) than men (28%). Respondents were then played an audio example of the sound of the station.

Overall 24% expressed a high likelihood of listening, with women 35-59 expressing the strongest likelihood of listening (34%).

17% of listeners in the transmission area would listen to the proposed new station 5 times per week or more, with 8% potentially listening at least once a day. Overall an average of 3 occasions per week were recorded, with women (especially those aged 35-59) claiming the highest listening frequency.

7% of the sample declared that they would listen to the radio more, as a result of the introduction of the Original FM format into the radio landscape in Glasgow and West Central Scotland.

Qualitative Research Taylor McKenzie conducted two 1.5 hour focus groups in Glasgow City Centre. 8 participants were invited to each focus group. All were recruited based on the following requirements: ● all to listen to an FM radio station in the West Central Scotland TSA (in past 7 days) ● all to live in the Glasgow and West Central Scotland area ● all aged 35–59, ABC1C2 Social Class

The objective of this research was to support the Quantitative survey with in depth views and comment from potential listeners. The focus groups were to be used to provide information to: ● explore current listening habits ● identify the opportunity for Original Radio ● refine the proposition

Current listening habits Participants had a good knowledge of existing radio services and a clear understanding about what each station provides.

Our potential audience is listening to various services and therefore it is harder to connect with them. They admit they are less loyal than they used to be and many are switching between stations to find what they are looking for.

“If a song doesn’t come on you just flick now, there is just so much!” “I listen to Radio Scotland for travel up-dates which is good except when it tells me about traffic in Inverness!” “I want what I like which was 20 years ago; I like to dip in and out of memories and eras. It gets your brain thinking ‘who sang that’?” “I like the music, I don’t always want to hear the chat. I like back to back music. Some of the ‘DJ chat’ can be annoying and irrelevant”

The opportunity for Original FM There is a gap in the marketplace for Original FM. To fill it, the station needs to: ● tap into some of the key strengths identified by listeners of BBC Radio 2 and BBC Radio Scotland ● have presenters with genuine integrity and knowledge ● provide strong ‘local’ presence and combine serious news content with a more commercial approach in terms of musical style

“BBC Radio Scotland has the ‘local’ but not the music” “there is definitely a role for a Scottish version of BBC Radio 2 that played old music, mix of new and old and talk, news and sports…you could switch on to that all day”

Building the ideal station Before seeing the Original FM proposition, participants were asked about their ideal station. They wanted the station to be local, relevant, an eclectic mix, with varied content presented at a comfortable pace by genuine knowledgeable presenters. All of our participants spontaneously talked about looking for strong local content in terms of news and travel and many were dipping in and out of different stations to get this information. “When the helicopter hit the Clutha that affected us, the bigger stations couldn’t give proper news. It was only the local stations that had the real news. Local news is about schools closing, road closures, if traffic lights are out” “I like to hear in the morning about travel updates, you don’t get local updates on Radio 1” Participants identified a real gap in the market for a station that would highlight local events, festivals and local gigs, this will be very much part of Original FM’s remit. Many talked about feeling “out of touch” with what’s going on locally and struggling to find one comprehensive source for this type of information.

“Comedy would be good, gigs and events. The comedy festivals, the Glasgow International Arts Festival has just finished….” “lots of local venues that could be talked about, the music scene is busy right now.…” “so many things happen that I don’t know about, a radio station could fill that gap.” Presenter selection is critical and sets the tone for the station. ‘Celebrity’ presenters are not necessary but presenters must be knowledgeable, passionate and down to earth and take listeners on an interesting (and sometimes) surprising journey. They want to be challenged but within their comfort zone. People are not satisfied with the more obviously ‘play listed’ stations. There is a need for more freedom in station content where presenters can occasionally “handpick” songs. Respondents were looking for a mix of more nostalgic songs combined with more contemporary material wishing to feel connected to the music scene today. For the more music savvy, the ideal station is one that introduces them to ‘good /interesting music’ across genres and eras.

Participants talked about the need for a station with a calm, comforting feel or pace and a varied content to take you on a journey throughout the day.

Respondents were then introduced to the Original proposition through a written concept and a montage edit of music, news, sport, travel and presentation. The service was broadly well received.

“the clip was different to anything I’ve heard, it’s like a music service – you would tune into that.” “on the face of it there is everything I would like on the radio and I like the mix of news and sport.” “I enjoyed it! I like how varied it was! I prefer not to have to change. The different music was good…its perfect for what I’m looking for. It’s like everything in one!.” There were also concerns that participants felt should be addressed. ● while local news is appealing watch out that content does not become too parochial or small time ● ensure that music offered is distinct from Smooth / Clyde 2 with more up-tempo selections and the opportunity to introduce some ‘surprises’ and unfamiliar tracks ● include other centres in West Central Scotland not just Glasgow

Original FM has already addressed these issues.

Format Comparison

We have examined the radio landscape in the Glasgow and West Central Scotland area. We have referred to our quantitative and qualitative research surveys, studied the formats of the Glasgow-wide stations and conducted informal monitoring. Using all of these sources we have compiled the chart below, which demonstrates that Original FM will not duplicate any existing service. The chart highlights the differences between each of the main operators and our proposed service.

Station Format The Original FM Difference

Clyde 1 Contemporary and chart - Music tailored to the over 35s music and information - Limited current top 20 chart hits station for under 40s. - 24 hours a day Local output

- More speech

Clyde 2 Full service of broad music - Limited current top 20 hits and information station - 24 Hour Local and Scottish News aimed primarily at over 35s. West Central Scotland focussed

Heart Full service of mainstream - Limited current top 20 hits popular music targeting - More ‘spice’ tracks primarily 25-54 year olds - More Scottish artists - More accessible to male listeners - Local shows 2 24 hour Local and Scottish News - More speech

Smooth An easy listening station Younger target demographic featuring lifestyle oriented - Local shows speech, primarily targeting 2 24 hour Local and Scottish News a Glasgow audience aged 50 plus. - More speech

Capital A rhythmic-based music-led - Limited current top 20 hits service for 15-29 year olds - Older target demographic supplemented with news, - 24 hours Local and Scottish news information and entertainment. The - More speech programme service should have particular appeal for listeners in their 20s.

Your Radio Full service for Dumbarton & Helensburgh area listeners Not a local station for aged 25-64 featuring local Dunbartonshire or the Firth of Clyde. news and information with a 24 hours local and Scottish news broad mix of classic hits and More Speech current hits.

Existing Service Format The Original FM Difference 107.2 Awaz FM Asian Not dedicated Asian output Glasgow city/southside 103.5 Sunny Govan Glasgow Not community, health and social Radio community need Glasgow city/southwest Insight Radio 101 FM For blind and Not dedicated to the visually Glasgow city/westend visually impaired impaired 100.8 Revival FM Christian and Cumbernauld, North positive Not Christian Lanarkshire message Pulse 98.4 Barrhead & East Barrhead, East Renfrewshire Not aimed solely at East Renfrewshire/south community Renfrewshire Glasgow area Celtic Music Radio 95 Celtic and FM traditional music Not exclusively for traditional music Glasgow city CamGlen Radio 107.9 General and FM happy ‘n’ Not aimed solely at this area of Glasgow/Cambuslang healthy Cambuslang and Rutherglen and Rutherglen, Sth Cambuslang Lanarkshire and Rutherglen

a) A statement of the key objectives of the research;

b) The specific questions that the research sought to answer

c) How the research was conducted Quantitative Research used a CAPI quantitative questionnaire programme (CAPI - Computer Assisted Personal Interview) with face to face interviews, weighted using a process called the “juster scale.”

d) The size and composition of the sample(s); 490 respondents

e) When and where the research was conducted; The research was carried out over 8 days from 20th April 2016 at a number of locations using 5 researchers each working a 7 hour shift. Interviews were carried out on the street using I-Pads at a variety of locations across West Central Scotland.

f) A summary of the main findings from the research, showing how these demonstrate evidence of demand for the service proposed…

Key research findings and subsequent conclusions

Findings Conclusion

Changing lifestyles and the This is good news for the Original radio availability of music on the proposition as all of our existing radio internet/via apps are the primary stations have state of the art apps, we causes of less frequent listening, have a broad music rotation and our there are also issues with lack of ‘being local all of the time’ will fill a variety/boredom of repeated significant gap in the market. songs, DJs not appealing and local stations sounding less local.

On average, people listen to 3 radio None of the current stations on offer give stations with older men (35+) the 35+ audience everything they need listening to the broadest choice of in one place and they have to station stations. Although Clyde 1, Radio 1 hop in order to find the right and Capital FM are the most combination of music, sport and local frequently listened to stations, a relevance. Original FM will give this plethora of other commercial/non- market the right music with measured commercial stations are also being sport and news coverage with local listened to. connectivity.

Music is by far the biggest driver for Original FM will be a strong music led choice of radio station – more than offering with a keen eye for relevant and 3 times bigger than the next biggest engaging content when and where this drivers – news, being local and is relevant. sport.

On hearing an audio clip of how the This reaffirms our own audience new station might sound, almost projections which show a more modest one-quarter of all potential listeners three-year planned journey to a weekly in the proposed transmission area reach of 17% reach with 1,989,000 hours. claim they are extremely likely to listen to the proposed new station – although women are more motivated to listen than men.

Overall, 7% of potential listeners The summary of the research findings would listen to the radio more often imply that Original FM is likely to grow as a result of the new proposed the existing market by around 7% and station being introduced with an that our audience projections are very average increase in listening of much in line with the research findings 44%. and our experiences of growing the market in the North East of Scotland using the Original radio format.

The research showed more than 1 in These will be two key areas that Original 10 people are listening to the radio FM will offer a fresh and clear distinct less because of changing lifestyles alternative in the market from the current but also due to lack of variety and offering. boredom of repeated songs, DJs not appealing and local stations sounding less local.

g) Full data tables for any quantitative research undertaken (these may be submitted in confidence).

All data tables are supplied in confidence in appendix section 2 (b)

7. Evidence of Support Summarise (in no more than 500 words) any evidence of support for your application from your potential audience or from prospective local advertisers. Listeners Our research evidence found that 17% of radio listeners in the transmission area would listen to Original FM 5 times per week or more, with 8% listening at least once a day – overall an average of 3 occasions per week with women, especially the 35-59s having the highest claimed listening frequency. Our year three audience projection is 17% and we are predicting average hours of 8.5 which is born out by the research findings. The research showed Original FM would likely grow the existing market by 7% which would add around 2.5 million listening hours not currently in existence. Our year three projection is just under 2 million hours so again our audience ambitions are supported by the research findings. 1 in 10 people are listening to the radio less which they described was a result of lack of variety, stations sounding the same and local stations sounding less local. An opportunity exists for Original FM to re-energise the sector and attract new listeners whose needs are not currently being met and achieve an audience from mostly disenfranchised listeners to radio. Our programming philosophy, music offering and local ‘all the time’ proposition will meet this need.

Our focus groups again reaffirmed this belief and revealed deeper feelings and views which highlighted a number of supportive observations and comments.

We then played the same groupings a short sample of output which led to these supportive comments:

Advertisers The appeal of Original FM is equally strong with advertisers who are keen to work with our radio group. Scotland’s largest advertising agency, Carat, has offered its support. (see email in appendix section 1 (b). McEwan Fraser, one of Scotland’s most prolific radio users across the country is enthusiastic to hear our radio brand in West Central Scotland. (see letter in appendix section 1 (b).

Finally, in keeping with the theme of growing the market Scotland’s largest dairy producers Grahams is considering a major step into radio advertising as a direct result of working with New Wave Media. (see letter in appendix section 1 (b). Our successful family of radio station’s Original 106, Central FM and Wave 102 are great examples of local radio produced and run extremely well - Our success has been recognised with Awards. 103.1 Central has previously won a Sony Gold Award for Station of the Year and this year Central FM and Original 106 were nominated for three awards between them with Central FM taking Silver in its station of the year category.

Declaration

Applicants are required to conclude their submission by responding to the following question: 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);

Confirmed 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;

Confirmed 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

Confirmed 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?

Confirmed

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.

None of the directors or shareholders are in breach of any of the above items.

Appendix

Section 1

(a) Royal Bank of Scotland Letter

(b) Advertiser Letters/E-mail

(d) Balance sheet

(e) Cash Flow

(f) Assumptions (g) Ofcom Financial Template

(h) Certificate of Incorporation

Section 2 (a) Second Transmission Proposal (b) Full research reports Quantitative Reports

Qualitative Reports