Response by UKRD Group Limited to United Kingdom media regulator Ofcom consultation on proposed Format change of ‘Heart Cornwall’ local commercial radio station, written by Grant Goddard for UKRD Group Ltd in August 2012.

1. RESPONSE BY UKRD GROUP
LIMITED TO OFCOM
CONSULTATION ON PROPOSED
FORMAT CHANGE OF ‘HEART
CORNWALL’
GRANT GODDARD
August 2012

2. CONSULTATION QUESTION
Q1. Should Atlantic Broadcasting Ltd be permitted to make its proposed
changes to the Format of Heart Cornwall, with particular regard to the
statutory criteria set out in Section 2 of this consultation document ?
(Section 106 (1A) of the 1990 Broadcasting Act, as amended, relating to
Format changes).
RESPONSE
Background
In 2004, Ofcom received eight applications for a new FM local radio licence
for Cornwall, each of which had proposed:
 Atlantic FM: a "full service station for Cornwall with broadly-targeted
daytime music and locally-focused speech"
 CKFM: a "music-based adult-melodic station" for 40-59 year olds
 Itchy FM: "popular youth targeted music" for under-35s
 Extreme FM: "an upbeat mix of urban dance, R&B and rock" for young
people
 Kernow FM: "classic tracks from the last 5 decades" for over-35s
 SouWest: "a mix of good conversation, useful information and quality
music" for over-45s
 St.Piran FM: "classic adult contemporary music" for over-35s
 Time FM: "a full local service" for over-40s.1
In 2005, Ofcom awarded the licence to Atlantic FM, having matched its
application most closely to the criteria it considered of paramount significance
in its decision:
 "the ability of each applicant to maintain, throughout the period for
which the licence would be in force, the service which it proposes"
was "of particular importance"
 "the extent to which a proposed service would broaden the range of
programmes available by way of local (commercial) services in the area,
and would cater for tastes and interest different from those already catered
for" was considered "important", though "less significant" than
 "the extent to which an applicant's proposed service would cater for local
tastes and interests" [emphasis added].2
Ofcom stated that it felt the Atlantic FM application:
 "was superior to one which aimed to provide a service to a narrowly-
defined age-group"
 "should not be confined by a narrow demographic target audience"
 "demonstrated strong evidence of demand for the amount of local material
and proportion of locally-made programming it proposed"

3.  will "broaden choice in relation to Pirate FM by offering alternative output
across a broad range of tastes and interests".3
Atlantic FM launched in 2006 with an Ofcom licence that defined its Format
as:
 "A full service local station specifically for Cornwall, with speech an
important part of the content. It will feature locally-focused news,
information and speech content, mixed with adult-orientated popular music
for a broad audience with particular appeal for listeners aged 25-54"
[emphasis added].4
In March 2012, Atlantic FM was acquired by Global Radio Limited, which
immediately applied to Ofcom to request changes to its licence for:
 locally-made programmes to be reduced from (a minimum of) 10 to 7
hours per day on weekdays
 locally-made programmes that had, until then, been entirely produced at
Atlantic FM to be produced at Heart FM stations in either Plymouth, Exeter
& Torbay, Barnstaple, South Hams or Cornwall.5
Global Radio argued that:
 "the proposed increase in local news provision, and associated reduction
in locally-made hours … will not substantially alter the character of the
service"
 the "provision to share all programming with Heart stations in the South
West region" will "provide flexibility for our programming team".6
In its request to Ofcom, Global said it was "mindful of the station’s particular
Character of Service obligations" and that, "pending any agreed change to the
station’s Character of Service", it promised that:
 "the station will therefore continue to provide a high level of local news and
more speech content than other stations in the Heart network"
 "as well as broadcasting some news bulletins produced specifically for the
station, some local programming made in Exeter will be produced
specifically for the station and not shared with other Heart stations in the
South West".7
Ofcom approved this request, having agreed with Global Radio that "the
departure would not substantially alter the character of the service".8 The
station's name was changed to 'Heart Cornwall'. It was evident from Global's
narrative that a further request to Ofcom to change the station's Format would
be forthcoming.
In the meantime, the original Atlantic FM licence continued to define the
station's format as "full service … specifically for Cornwall", despite the
approved amendments now permitting the station's entire output to be
produced outside of Cornwall.
Ofcom's own definitions are useful in understanding the terminology employed
within a station's Format. According to Ofcom:

4.  "a 'full service' station stands apart from more mainstream stations by
virtue of its wide appeal and its generous, creative speech content"
[emphasis added].9
Ofcom also states that:
 "if a service is described as 'locally focused' or 'locally orientated', we
would not expect hour after hour to pass by with no local content"
[emphasis added].10
Heart Cornwall's present licence continues to describe its format as "full
service" and "locally-focused", making these two requirements mandatory
for the station's Format.11
Ofcom consultation
Global Radio's latest request to Ofcom in July 2012 seeks to:
 remove the "full service" requirement from the station's format
 replace the phrase "locally-focused news, information and speech
content" with "locally orientated music and information station" within the
station's format
 remove the phrase "with speech an important part of the content" from
the station's format.12
Global Radio argues that these changes will:
 "bring the written description for Heart Cornwall more closely into line with
other Heart stations in the South West"
 "[ensure] that the range of programmes available in the local area is not
narrowed"
 "enhance the range of programmes available in the area by offering a
broader regional perspective".13
However, according to Ofcom's own definitions noted above, the proposed
changes mean that:
 the removal of the phrase "full service" from the station's format will
evidently lose the station its "wide appeal and its generous, creative
speech content"
 the removal of the phrase "locally-focused news, information and
speech content" from the station's format will evidently reduce the
volume of non-music content and its local relevance.14
We note Ofcom's comment within the consultation document that:
 "the requested change … is consistent with other recent format changes
that have been approved by Ofcom".15
Despite this apparent regulatory acquiescence, we believe that the proposed
amendments will significantly impact the provision of local commercial radio
content in the Cornwall market, to the detriment of listeners, advertisers and
effective competition.

5. Criteria in Broadcasting Act 1990
In terms of the specific criteria itemised in the Broadcasting Act 1990:16
(a) that the departure would not substantially alter the character of the service;
We concur with Ofcom that the proposed changes represent a substantial
change to the character of Heart Cornwall's output.
(b) that the departure would not narrow the range of programmes available by
way of relevant independent radio services to persons living the area or
locality for which the service is licensed to be provided;
We believe that the proposed changes could only lead to a narrowing of
content within Heart Cornwall's service area because:
 Heart Cornwall's present licence requirement to be a "full service" local
station would be removed, despite it being the only commercial radio
station in the local market with this Format requirement
 Heart Cornwall's present licence requirement to "feature locally-focused
news, information and speech content" would be removed, despite it
being the only station in the local market with this Format requirement
 Heart Cornwall's present licence requirement that "speech [is] an
important part of the content" would be removed, despite it being the
only commercial radio station in the local market with this Format
requirement.17
Furthermore, Global Radio's proposal to amend Heart Cornwall's Format to "a
locally orientated music and information station for Cornwall …" gives it
an almost identical mandate to competitor Pirate FM's existing Format, which
is "a locally orientated, broad music and information station for
Cornwall."18
This proposal changes the current situation from one in which the two local
commercial radio stations have different Formats to one where the two have
almost identical Formats, which could only lead to a narrowing of content in
the local market.
(c) that the departure would be conducive to the maintenance or promotion of
fair and effective competition
A market in which the only two licensed local commercial radio stations would
have almost identical Formats certainly would not foster effective competition.
For twenty-three years, since second and third local commercial radio stations
were first licensed in local markets, successive UK media regulators have
used 'Formats' to ensure that the limited number of stations were not directly
competing head-to-head for the same audiences with similar content.

6. A regulatory decision now to purposefully license the only two local
commercial radio stations in existence within the Cornwall market with almost
identical 'Formats' would appear to directly contravene one of Ofcom's prime
regulatory duties:
 "ensuring a wide range of TV and radio services of high quality and wide
appeal".19
Ofcom has made it clear that, in radio regulation, competition is enhanced by
the licensing of diverse radio stations:
 "Ofcom’s primary concern in radio is to look after the interests of the
listeners. We have duties to ensure there is a wide range and diversity
of radio services across the UK catering for local tastes and interests and
that an appropriate amount of local material is broadcast on commercial
local radio, with a suitable proportion of it locally made" [emphasis
added].20
Our opinion is that the licensing of two local commercial radio stations with
almost identical Formats is inconsistent with Ofcom achieving its regulatory
goals in a local market that has only two local commercial radio stations.
(d) that there is evidence that, amongst persons living in that area or locality,
there is a significant demand for, or significant support for, the change that
would result from the departure
Global Radio has not submitted market research to support its arguments for
its proposed amendments to the Heart Cornwall licence.
Global Radio's application to Ofcom noted that:
 "there is a wide range of geographical perspectives, some of which are
better served regionally than locally"
 "'Devon and Cornwall' is also an established and well-understood editorial
patch, providing almost all content covered by BBC South West and ITV
Westcountry …"
We concur with Global that different geographical perspectives are best
served by different media. Historically, 'local' television has always
successfully been served to viewers at a regional level. Historically, local
commercial radio has always successfully served listeners at a local level.
Even the small number of 'regional' commercial radio stations that had been
licensed during the last two decades have recently been re-designated as
'national' services by Ofcom.
We are unaware of evidential data which demonstrates that there exists an
unrealised demand from listeners or advertisers within Heart Cornwall's
service area for a regional radio station.

7. On the contrary, market research commissioned by Ofcom in 2004,
specifically to inform its advertisement of a new local radio licence for
Cornwall, concluded that:
 "listeners in Cornwall favour the local option [over the regional option]
because of a stronger preference for local coverage"
 "the quantitative sample in Cornwall appears to want a more local
service".21
(e) that (i) the departure would result from programmes included in the
licensed service ceasing to be made at premises in the area or locality for
which the service is provided, but (ii) those programmes would continue to be
made wholly or partly at premises within the approved area (as defined in
section 314 of the Communications Act 2003 (local content and character of
services)).
This criterion is not applicable for this consultation, as Ofcom had already
granted permission in 2012 for Heart Cornwall's output to be produced
beyond the station's original service area.
Conclusion
Our belief is that the changes proposed by Global Radio to the Heart Cornwall
'Format' would:
 substantially alter the character of the station's service
 narrow the range of programmes available from local commercial radio
stations within Heart Cornwall's service area
 diminish effective competition within the local market between local
commercial radio stations
 require evidential data from persons living within the service area that
supported the proposals.
Furthermore, we consider that the changes proposed by Global Radio are
being sought primarily, in the words of Global Radio:
 "to bring the written format description for Heart Cornwall more closely into
line with other Heart stations in the South West".22
It was perfectly clear in 2005 that, when Ofcom awarded the licence to
Atlantic FM after careful deliberation, it decided that:
 a "full service" format was most appropriate for this local market
 Atlantic FM would broaden the range of content available from commercial
radio in the market
 Atlantic FM had demonstrated its ability to maintain its "full service"
throughout the length of the licence
 Atlantic FM's format would cater for local tastes and interest.
In 2004, seven other applicants had competed with Atlantic FM to win this
licence and they failed because they were not considered by Ofcom to have

8. satisfied the criteria so successfully. Approval now of such a significant
amendment to Atlantic FM's licence would surely have the effect of
contradicting Ofcom's considered verdict in 2005 for the award of this licence.
Although it goes beyond the scope of Ofcom's consultation, we note recent
statements made by Atlantic FM and Global Radio about the radio station's
continuing commitment to 'localness':
Jeremy Scott, deputy chairman, Atlantic FM:
 "Very few local stations get the invitation to join a network like Heart,
where they care about the localness of their output and offer high quality
network programming in a challenging new digital era."23
Richard Park, director of broadcasting, Global Radio:
 "In the daytime, we have our network broadcasters [in London] and they
have the ability to talk to Cornwall directly with what we call split links – so
that local flavour will remain. … We want to be part of the community in
Cornwall – that was one of the attractions of having a presence there – so
we want to make sure we are part of that community. … It is important that
we come to be part of the community and, while some broadcasting will
come from Exeter, it doesn't mean we won't be getting involved in
Cornwall."24
It is difficult to understand how these words could be translated into practice,
given the statement by Global Radio in its latest request to Ofcom that:
 "The only proposed change to Heart Cornwall's [output] following the
requested [Format amendment] will be the replacement of the current
Cornwall-only weekday drive show broadcast from 4pm to 7pm with the
programme currently broadcast [from Devon] on other Heart stations in the
South West."25
This impact of this change would be that none of Heart Cornwall's
programmes would be produced specifically for Cornwall, let alone in
Cornwall. As a result, the implied notion that Heart Cornwall will remain, in
any realistic shape or form, a genuinely local commercial radio station for
Cornwall would become utter nonsense.
© 2012 Grant Goddard
Published by Radio Books
http://www.radiobooks.org
http://www.grantgoddard.co.uk
1
http://licensing.ofcom.org.uk/radio-broadcast-licensing/analogue-radio/apply-for-licence/applications/corn/
2
http://licensing.ofcom.org.uk/radio-broadcast-licensing/analogue-radio/licensees/awards/cornwall/
3
ibid.
4
http://www.ofcom.org.uk/static/radiolicensing/formats/al296.doc
5
http://stakeholders.ofcom.org.uk/binaries/broadcast/radio-ops/formats/Atlantic_FM.pdf
6
ibid.
7
ibid.
8
ibid.

9. 9
http://stakeholders.ofcom.org.uk/broadcasting/radio/formats-content/about-formats
10
ibid.
11
http://stakeholders.ofcom.org.uk/binaries/consultations/heartcornwall/summary/Heart_Cornwall.pdf
12
ibid.
13
ibid.
14
http://stakeholders.ofcom.org.uk/broadcasting/radio/formats-content/about-formats
15
http://stakeholders.ofcom.org.uk/binaries/consultations/heartcornwall/summary/Heart_Cornwall.pdf
16
ibid.
17
http://stakeholders.ofcom.org.uk/binaries/broadcast/radio-ops/formats/Atlantic_FM.pdf
18
http://stakeholders.ofcom.org.uk/binaries/consultations/heartcornwall/summary/Heart_Cornwall.pdf
http://stakeholders.ofcom.org.uk/binaries/broadcast/radio-ops/formats/Pirate_FM.pdf
19
http://www.ofcom.org.uk/about/what-is-ofcom/statutory-duties-and-regulatory-principles/
20
Peter Davies, Speech to RadioCentre Conference, 24 January 2007.
21
http://stakeholders.ofcom.org.uk/binaries/consultations/future_fm/statement/devn_crnwl.pdf
22
http://stakeholders.ofcom.org.uk/binaries/consultations/heartcornwall/summary/Heart_Cornwall.pdf
23
http://www.mediaweek.co.uk/news/1122830/Global-Radio-extend-Heart-Atlantic-FM-acquisition/
24
http://www.thisisexeter.co.uk/Head-says-station-Cornish-heart/story-15920424-detail/story.html
25
http://stakeholders.ofcom.org.uk/binaries/consultations/heartcornwall/summary/Heart_Cornwall.pdf