Last year, following consultation, Ofcom published a report called Radio – Preparing for the future. That report set out Ofcom’s view on the public purposes of radio and a strategic framework for the future regulation of the industry. Alongside these we also published an outline of what we thought a healthy radio market in the UK would look like. We stated our ambition to encourage a market-driven approach aimed at delivering a wide range of innovative UK-wide commercial stations, a wide range and diversity of local and regional commercial services, and community services for every community that wants one, all supported by multimedia services where viable. These services should be provided alongside a strong independent BBC.
Since we published that report, there has been much coverage in the press of the problems faced by commercial radio - from the financial situation of GCap to the first instance of a local commercial radio licence (the one for Stroud) being revoked at the licensee's request.
Some people may argue that these problems are due to cyclical factors and that the industry will recover in the next advertising upturn. But we believe the changes happening in the radio industry may be more structural and may need to be addressed in the interests of listeners.