Addition of Heart Extra to the Multiplex Is Therefore Likely to Increase Significantly the Appeal of Services on Digital One to This Demographic

Home , Capital Xtra, Digital One, Heart (radio network), Magic (UK radio station), Radio X (United Kingdom), Sound Digital

Radio Multiplex Licence Variation Request Form

This form should be used for any request to vary a local or national radio multiplex licence, e.g:

• replacing one programme or data service with another • adding a programme or data service • removing a programme or data service • changing the Format description of a programme service • changing a programme service from stereo to mono • changing a programme service's bit-rate

Please complete all relevant parts of this form. You should submit one form per multiplex licence, but you should complete as many versions of Part 3 of this form as required (one per change). Before completing this form, applicants are strongly advised to read our published guidance on radio multiplex licence variations, which can be found at: http://licensing.ofcom.org.uk/radio-broadcast- licensing/digital-radio/radio-mux-changes/

Part 1 – Details of multiplex licence

Radio multiplex licence: DM01 National Commercial

Licensee: Digital One

Contact name: Glyn Jones

Date of request: 15 January 2016

Part 2 – Summary of multiplex line-up before and after proposed change(s)

Existing line-up of programme services Proposed line-up of programme services Service name and Bit-rate Stereo/ Service name and Bit-rate Stereo/ short-form description (kbps)/ Mono short-form (kbps)/ Mono Coding (H description Coding (H or F) or F) Absolute Radio 80F M Absolute Radio 80F M Absolute 80s 80F M Absolute 80s 80F M BFBS 80F M BFBS 80F M Capital XTRA 112F JS Capital XTRA 112F JS Classic FM 128F JS Classic FM 128F JS KISS 80F M KISS 80F M LBC 64H M LBC 64H M Magic UK 80F M Magic UK 80F M Planet Rock 80F M Planet Rock 80F M Premier Christian 64H M Premier Christian 64H M Smooth Extra 80F M Smooth Extra 80F M talkSPORT 64H M talkSPORT 64H M UCB UK Christian 64H M UCB UK Christian 64H M INRIX UK TPEG 16 Data INRIX UK TPEG 16 Data Traffic Master 8 Data Traffic Master 8 Data (shared) (shared) What’s On 8 Data What’s On 8 Data (shared) (shared) Radio X 80F M Radio X 80F M Heart Extra 80F M Any additional information/notes:

Part 3 – Details of proposed change For each proposed change you wish to make to your licence, please answer the following question and then complete the relevant sections of the rest of the application form.

Outline of proposed variation

Set out details of how you wish your licence to be varied, e.g. is this a request to add a new programme service, to remove an existing service, to change the technical parameters of a service?

This Variation request would add the annex description Music from the Last Three Decades to Digital One’s licence and enable the launch of Heart Extra.

Complete the following section if your request is to add, remove or replace a programme service.

Details of existing service to be Details of proposed new service removed/replaced (if relevant) (if relevant)

This information should be taken from your For guidance on the style and content of DAB licence. Format descriptions, please refer to the guidance

Service provider: Service provider: Global Radio

Service name: Service name: Heart Extra

Short form Short form description: description: Music from the Last Three Decades

Character of Character of service: service: A service featuring music from the last three decades with particular appeal to audiences aged 25-44.

Date you wish proposed change to be implemented 0001 29 February 2016

Is this proposed change linked to proposed changes on other multiplexes? If so, please provide details.

Please set out the statutory criterion, or criteria, that you believe is/are satisfied in relation to this radio multiplex licence variation request, and the reasons for this:

For details of the statutory criteria, and relevant Ofcom policies, please refer to the guidance.

The statutory criteria relevant to this change is as follows:

In respect of a national radio multiplex licence, Ofcom “shall vary the condition accordingly unless … it appears to the Authority that, if the application were granted, the capacity of the digital sound programme services broadcast under the licence to appeal to a variety of tastes and interests would be unacceptably diminished” (section 54(6A) of the Broadcasting Act 1996).”

Digital One is submitting this request to vary its licence after carefully considering its licence obligations.

Background

This new request is to add the Music from the Last Three Decades description. Ofcom has previously considered a request to add this description to Digital One’s licence annex, and launch Heart Extra on Digital One. However, Global Radio then opted to substitute the launch of Radio X and the Rock Music description.

Ofcom is also aware of the launch of Sound Digital in the spring of 2016, with the launch of new services and some content currently broadcast on Digital One. The launch of Heart Extra at the end of February is an important step in ensuring, at a point when digital radio is experiencing significant growth and change, Digital One continues to maximise its appeal to a range of tastes and interests.

Music Policy

Heart Extra will feature music from the last three decades and will play a mix of tracks from a variety of artists designed to appeal to the female 25-44 age group, such as: • Wham / Michael Jackson / Lionel Richie • Pink / Take That / Phil Collins / George Michael / Whitney Houston • Roxette / Robbie Williams / Bon Jovi / UB40 • Justin Timberlake / Maroon 5 / Kylie Minogue / Coldplay / Keane • Adele / Sam Smith / Bruno Mars

The Heart Extra playlist will feature hits and tracks from mainstream commercial artists, informed by research about music which has high appeal for the target audience.

Comparison of age and gender of existing D1 services

RAJAR data shows that relatively few services on Digital One appeal to female listeners. Based on the demographic breakdown of Heart, Heart Extra is likely to appeal particularly to women. The addition of Heart Extra to the multiplex is therefore likely to increase significantly the appeal of services on Digital One to this demographic.

The only other station currently on Digital One which appeals to this age and gender demographic is Magic. RAJAR analysis of the listenership of Heart and Magic in London, where both stations are well established on FM and DAB, shows that there is only a limited cross-over in listenership between these stations. Some two-thirds of Heart listeners in London do not listen to Magic at all.

The 25-44 female demographic is a significant group – both for listening and commercial radio revenues. Global Radio believes that the addition of a Heart branded station nationally benefits listener choice and digital radio as a platform.

Age and Gender of Services on Digital One

60 60

Classic FM 55 55 Classic FM

Premier Christian50 Radio Smooth Extra 50 LBC Smooth 45 LBC 30% 40% 50% 60% 70% 80% 90% Talksport % Male MagicMagic Absolute 80s Planet Rock Heart % Male 40 45 30% 40% 50% Absolute60% Radio 70% 80% Talksport Heart35 Absolute 80s Planet Rock 40 Radio X Kiss Absolute 30 Capital XTRA 35

25 Capital XTRA KissAverage Age 30 Average Age Source: RAJAR W3 2015

Commercial and Contract Issues

During 2015, Global Radio made an expression of interest to Digital One to take additional capacity on the multiplex for services to develop distribution for its brands. Digital One’s directors considered this, and other expressions of interest and, taking into account Digital One’s licence obligations and commercial interests, selected Global Radio as the provider for this additional service.

Please provide any additional information and/or evidence in support of the proposed change:

Complete the following section in respect of any new service being added.

Multiplex /ensemble name: D1 National Multiplex

Long service name: Heart Extra

Short service name: TBC

Service mode (stereo/joint stereo/mono): Mono

Sampling rate (half rate@24khz/full full rate at 48kHz rate@48khz): Protection level (UEP, 1-5) 3

Bit-rate: 80kbits/sec

Does this service currently broadcast on another multiplex or another platform? If so, is this a 100% simulcast or will there be opt-outs? Please give details (including all known SIds) below:

A new SId code will need to be issued for this service.

(Dec 2012)

Decision

Request agreed under section 54(6A) of the Broadcasting Act 1996 – that the variation would not unacceptably diminish the capacity of the licensed service to appeal to a variety of tastes and interests.

January 2016