ISBN 1-85765-818-3

Table of Contents

Executive Summary

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TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

MARKET SECTORS

MARKET POSITION

MARKET TRENDS

Table 1: Annual Share of Total Display Advertising Revenue Taken by Commercial Radio ( percent), December 1992-June 1996

Market Size

THE TOTAL MARKET

Table 2: UK Advertising and Sponsorship Revenues to Commercial Radio Broadcasters (£m), 1992-1997

Table 3: The Radio Audience - RAJAR Ratings, 2nd Quarter 1996 and 1997

Industry Background

RECENT HISTORY

INDUSTRY CONCENTRATION

EMPLOYMENT

TRADE ASSOCIATIONS

Table 4: Revenues of the Leading Commercial Radio Companies (£m), 1996 and 1997

Competitor Analysis

THE MARKETPLACE

MARKET LEADERS AND THEIR BRANDS

ADVERTISING AND PROMOTION

Table 5: Main Media Advertising Expenditure by Radio Operators (£000), Year Ending September 1997

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

RADIO ACCESS AND PARTICIPATION IN HOME LISTENING

Table 6: Participation in Home Listening ( percent of adults monthly), 1977-1996

Table 7: Weekly Reach of Commercial Radio ( percent of all adults), 4th Quarter 1977-1997

Table 8: The Commercial Radio Audience by Age Group ( percent), 4th Quarter 1997

Outside Suppliers to the Industry

NEWS SOURCES

SATELLITE MEDIA SERVICES

TRANSMISSION SERVICES

SYNDICATORS

INDEPENDENT PRODUCTION COMPANIES

Current Issues

DIGITAL RADIO

COMMERCIAL ACTIVITIES OF THE BBC

NEW RADIO AUTHORITY PAYMENT SCHEME

RADIO AUTHORITY RULES ON POLITICAL ANCHORS

EUROPEAN COMMISSION GREEN PAPER ON MEDIA REGULATION

Forecasts

THE FUTURE OF DAB

NEW LICENCES

Table 9: Forecast UK Advertising and Sponsorship Revenues to Commercial Radio Broadcasters (£m), 1998-2002

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HBI UK INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

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EXECUTIVE SUMMARY

After many years of stagnation in commercial radio revenues, strong growth has occurred in this sector from 1993, its value increasing by 119.1 percent between 1992 and 1996. While growth in this sector is still strong, the rate of increase is in decline and may not be sustainable in the long term. Key Note estimates that, in 1997, the value of the commercial radio sector grew by 7.4 percent. In 1998, Key Note anticipates that growth will slow further to 4.8 percent. By the end of 1998, the total market should be worth £348m.

Today commercial radio in the UK consists of 192 Independent Local Radio (ILR) services, three Independent National Radio (INR) services and Atlantic 252, which although transmitted from the Republic of Ireland, is directed at the UK market. The commercial services have nearly 29 million adult listeners every week, and in the third quarter of 1994, took a bigger share of all listening than the BBC for the first time in the industry's history.

Commercial radio's audience has not grown as fast as the number of stations, but its revenue from advertising and other sources has soared. In part, this is because many of the new stations cater for specialist tastes: for example, XFM, London's newest station plays `alternative rock'. This has drawn in new advertisers keen to reach small but dedicated audiences.

There is probably enough advertising revenue to pay for more commercial stations; the difficulty may be a lack of space on the airwaves. However, digital audio broadcasting (DAB) would go some way to solving this problem. The Government is expected to force companies to back it by switching off analogue frequencies. Analogue radio could look increasingly old-fashioned with the television industry's switch to digital. Nevertheless, there are serious problems yet to be overcome.

The trend toward consolidation in the commercial radio industry began in the early 1990s. However, the imminent arrival of DAB is providing a new commercial impetus. All of the major radio groups are vying with each other, both for new licences and growth by acquisition. Ultimately, the future of digital radio in the UK may depend on the willingness of regulatory bodies to permit further concentration of ownership. Key Note anticipates that by the year 2002, the commercial radio sector will be worth £423m.

Text © 1998 Key Note

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