AN APPLICATION TO OFCOM FOR THE FM
INDEPENDENT LOCAL RADIO LICENCE
FOR HULL

March 2006
General Information
Details of Applicant

(a)

Name of Applicant, Address, Telephone and Fax nos., E-mail address:
Name:

...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(a)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(b)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(b)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(b)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
(b)...
Section 105(A) Ability To Maintain Proposed Service
1. Ownership and control of company which will operate the licence
Own...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(a) Overall Financial Strategy

Provide...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(a) Overall Financial Strategy & (b) Fu...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(c) Financial Projections

The purpose ...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(c) Financial Projections
The most obvi...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(c) Financial Projections

The applican...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(d) Audience Projections

Provide the f...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(d) Audience Projections

(iii)

The ex...
Section 105(A) Ability To Maintain Proposed Service
2. Financial And Business Plan
(d) Audience Projections
A benchmark wa...
Section 105(A) Ability To Maintain Proposed Service
3. Transmission Proposals

(i)

Provide details of the transmission si...
Section 105(A) Ability To Maintain Proposed Service
3. Transmission Proposals

(iii)

Describe proposed arrangements for t...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

(a)

This subsec...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

It would be fool...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

will keep the au...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

Radio Humberside...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

Alongside the HL...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

Therefore, on HL...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

(c)

If appropri...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
4. Programming Philosophy

22.00-02.00: HLR...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
5. Proposed Format

A blank Format is attac...
Section 105(B) and (C) Catering For Tastes And Interests And
Broadening Choice
5. Proposed Format

HLR STATION FORMAT
Lice...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand

This section should provide an analysis of the r...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand

(v)

Dates and location of research:
•
Fieldwork...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand

(vi)

Summary of main findings:
•
48% of respond...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand
RESEARCH PROJECT #3
(i)

Key objectives:
•
To ana...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand
•
•
•
•

Preferences for music formats (with samp...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand

(vii)

Full data tables
•
Full research report s...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand

(v)

Dates and location of research:
•
Fieldwork...
Section 105(D) Evidence of Local Demand Or Support
6. Evidence Of Demand

(vii)

Full data tables
•
Full research report s...
Section 105(D) Evidence of Local Demand Or Support
7. Evidence Of Support

RESEARCH PROJECT #7
(i)

Key objectives:
•
To d...
Section 105(D) Evidence of Local Demand Or Support
7. Evidence Of Support

This section should provide evidence of support...
'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard
'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard
'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard
'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard
'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard
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'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard

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Application to Ofcom for a local commercial FM radio broadcast licence for Hull by Hull Local Radio, written by Grant Goddard in March 2006 for Laser Broadcasting Limited.

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'An Application To Ofcom For The FM Independent Local Radio Licence For Hull By Hull Local Radio' by Grant Goddard

  1. 1. AN APPLICATION TO OFCOM FOR THE FM INDEPENDENT LOCAL RADIO LICENCE FOR HULL March 2006
  2. 2. General Information Details of Applicant (a) Name of Applicant, Address, Telephone and Fax nos., E-mail address: Name: Humberside Local Radio Limited Address: 9 Northwood Drive Hessle Hull HU13 0TA Telephone: 01482 643677 Fax: 01482 649480 E-mail: admin@hulllocalradio.com Certificate of Incorporation (Company No. 4607899) attached as Appendix 1. (b) Main Contact (For Public Purposes): Name: Telephone (day): 01482 643677 Fax: 01482 649480 Email: sean@hulllocalradio.com Address: (c) Sean Bell 9 Northwood Drive Hessle Hull HU13 0TA Proposed Station Name (if decided): HLR [working title] (d) Brief Description of Programme Service: A genuinely local radio station for 35 to 64 year olds, focused on Hull and the surrounding area, with significant speech content such as local news, interviews and community information forming an essential part of the output. (e) Main Contact (For OFCOM Purposes): This is to be found in Confidential Appendix 2. 2
  3. 3. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors (i) Provide the name, occupation, other directorships, other media interests, background and relevant media experience of each director (executive and nonexecutive), including the proposed chairperson. The HLR board controls 100% of the shares of HLR. There are just six board members ensuring a clear simple decision making process The board has a balance of radio experience supplied by Sean Bell, Nigel Reeve, Dave Parker and Mike Hammond and local business experience supplied by Paul Sewell and Michael Oughtred. Full details of the individual members follow: 3
  4. 4. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Paul Sewell (Chairman) Occupation: Joint Managing Director, The Sewell Group Other Directorships: Sewell Group plc, Sewell Construction Limited, Sewell Retail Ltd, Bentime Limited, Sewell Facilities Management Limited, Arcade Decorations Limited, Sewell Education (Hull) Limited, Hull Citycare (Investments) Limited, Hull Citycare Limited, Hull Citybuild Limited, Humber Forum Limited, Hull & Humber Chamber of Commerce HLR Holding: Paul represents the 10% of Sewell Construction Ltd Directors Retirement Benefit Scheme Background: Paul was born in Cottingham – youngest of four children of a Hull fruitier who made up part of a large dynasty of fruit stores in Hull. Seeking a career in professional football rather than the family business he spent his school years with Hull City, then Blackpool, Bridlington Town and North Ferriby. A badly broken leg at 19 ended hopes of full time professional football so he went to Leeds University to study Building Construction. There he met Dennis Sewell – son of the “other” Hull Sewell Family – the builders – and after both had spells with National Construction Companies they joined forces in 1978 to take over the then “F Sewell & Son” from Dennis’ father. Over the succeeding 20 years they took the traditional Hull Builder of repute to be one of the most successful companies in the region, diversifying into retail and facilities management to become Sewell Group plc in 1997. Paul has also been active in the wider Hull Community. As a football coach he took his village side Cottingham from the lower depths of the Amateur League to two senior titles and matches against his former club Hull City. Interested in training and development he took early roles with Hull College, the Construction Industry Training Board and Humberside TEC. He was the founder member of the Hull Local Purchasing Initiative and Champions the true regeneration of Hull by using the Local Economy through the Chamber of Commerce of which he is a past President. He has also been elected to be Chair of the Humber Forum – the Sub Regional Development Agency and has recently been appointed to the Board of Hull Citybuild – Hulls Urban Regeneration Company. He is an original Director of Preston Road New Deal for Communities where he is proud to have been part in winning £55m NDC money to regenerate the East Hull Community. He has now resigned in favour of a role as Development Partner to the NDC and the delivery of a brand new village centre to put the heart back into the estate. 4
  5. 5. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Paul has recently stood down from a Board position on Hull’s Local Strategic Partnership City Vision to concentrate upon his duties as Shadow Chair and prospective Chief Executive of Hull’s NHS LIFT Company City Care – the Sewell Group having attained the status as Private Sector Partner in the £50 million PPP to regenerate the Cities Primary Health Estate. His company have also been selected to provide 3 new PFI schools in York and hence build upon their pioneering work in delivering the first PFI school in the UK at Victoria Dock in Hull. Paul has recently been instrumental in bringing the internationally acclaimed Yorkshire International Business Convention to Hull where he hosted such names as William Hague, Tim Senders and Hans Blix. Summary: Paul is a high profile successful local businessman who is committed to making HLR a successful business. He will be available to the radio station at all times spending at least a day a week at the station during the launch period. 5
  6. 6. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Sean Bell (Deputy Chairman) Occupation: Owner of Hull based Commercial Production Company NYPD Other Directorships: Interactive Media Ltd 5.5% HLR Holding: Background: Sean is an award winning radio and television producer, writer and voice-over artist. He has been a driving force with Hull Local Radio since its inception in 2002. After leaving school, Sean joined one of the city’s biggest Advertising Agencies, where he worked for three years, before moving abroad. On his return in 1990, he worked around the UK in a freelance capacity across the radio and television production industry for six years, before taking a staff position with Hull based Pentagon Communications. Three years later, in 1999, Sean set up his New Yorkshire Production Department (NYPD), from where he now works with radio stations and advertising agencies globally, delivering creative radio commercials, programmes, station imaging and sound design to theme parks and visitor attractions. He has a passion for quality, creative radio, and as well as having worked for some of the UK’s major radio groups, Sean has also produced drama and documentaries for the BBC national radio networks, and often writes in a freelance capacity for a wide range of magazine publications. Post award Sean will commit at least a day a week to the station during the launch period. 6
  7. 7. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors David Parker (Managing Director) Occupation: Station Director, Fresh Radio Limited and HLR Other Directorships: Fresh Radio Limited HLR Holding: Background: One of two Laser Broadcasting Representatives on the board. Laser has a 53.78% holding. Although Dave Parker has had a lifelong interest in radio, he trained as a teacher at Durham University and subsequently spent many years working in local government as a Management Services Officer on ‘value for money’, efficiency and organisational projects for Wakefield District Council and West Yorkshire Police. He developed his radio experience through volunteering at his local hospital radio station, where he was Programme Controller for more than five years. Additionally, Dave learned the skills of a technical operator and relief presenter at several Independent Local Radio stations in the Yorkshire area. In early 1990, Dave joined Bradford City Radio, one of the Independent Broadcasting Authority’s ‘incremental’ radio stations. He presented the breakfast show for a year, working on the English language service of this unique multi-cultural service. Dave returned to local government as Press Officer for Wakefield District Council, while maintaining his freelance work at a number of radio stations. He was instrumental in forming an applicant group to apply for the new full-time licence for Wakefield, and operated three trial services in the City during 1994 and 1995. Dave’s work caught the eye of Lincs FM plc, which he joined in 1996 to work on a further Restricted Service Licence, pulling together the final applicant group, local support and, subsequently, writing the successful Ridings FM licence application. After licence award, Dave was appointed Managing Director of Ridings FM and oversaw the launch of the station and its first full year of operation. Under his direction, the station achieved very respectable audience figures and a prestigious Sony Radio Award for local news coverage after just six months on-air. As part of the Lincs FM plc management team, Dave helped with trial services and applications in Doncaster, Rugby and, most notably, in Barnsley where (as a diehard Barnsley Football Club fan) he has been involved in the operation of match-day Restricted Service Licence broadcasts for the last ten years. After leaving Lincs FM, Dave undertook a number of freelance projects, including contracts for stations in the Radio Investments Group. He was a regular voice on Stray FM in Harrogate from 2001 to the end of 2005. 7
  8. 8. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Dave has always believed in genuine local radio and welcomed the opportunity to join Fresh Radio in 2003 as Station Manager and, shortly afterwards, as Managing Director. He has helped to re-position the station, focusing it firmly on its local roots, and steering it to a Radio Academy award as Yorkshire and North East Radio Station of The Year for 2004. Dave continues to strengthen the position of Fresh Radio – an AM service in a diverse, widespread and technically difficult area. Summary: Dave counterbalances Paul’s business experience with his 15 years of radio experience and Management Services background. He will be the Managing Director overseeing the day-to-day operation of both Fresh Radio and HLR. 8
  9. 9. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Nigel Reeve (Non Executive Director) Chief Executive & shareholder in Laser Broadcasting Limited Occupation: Other Directorships: Laser Broadcasting Limited, Chorley Local Radio Limited, Exeter Local Radio Limited, Fresh Broadcasting Limited, Hereford Local Radio Limited, Monmouth Local Radio Ltd, Oxford Local Radio Limited HLR Holding: One of two Laser Broadcasting Representatives on the board. Laser has a 53.78% holding. Background: Nigel Reeve brings more than 35 years of media experience to the Board. He began his career with the local newspaper in Ipswich in 1969, transferring to the fledgling Radio Orwell in 1975. After six years, Nigel joined 2CR in Bournemouth as Sales Manager. In 1983, he became Sales Director at County Sound, before moving to Invicta Sound in 1985. Later, as Managing Director of Invicta, he helped deliver a £1m profit and subsequent stock market flotation. Between 1989 and 1992 Nigel was Chairman of the Commercial Radio Advertising Awards, where he championed improvements in the standard of radio commercials. During this same period he headed up a radio sale training company that held monthly sales training courses for local sales staff in the UK radio industry. Between 1986-1988 Nigel trained over 66% of all local sales staff in UK radio. In 1991, Nigel joined the launch team of Classic FM, the UK’s first national commercial radio station, with responsibility for all sales and marketing at the station. During this period the station delivered revenue far beyond expectations partly due to the innovative policies introduced by Nigel. He was responsible for selling the largest ever radio campaign in the history of UK commercial radio–a three year sponsorship and airtime package sold to Cross and Blackwell valued at over £3 million. He also introduced a quarterly advertising creative award that precluded the current Radio Aerials award. In 1995 Nigel also took responsibility for all sales and marketing at Classic FM’s radio stations in Holland, Sweden and Finland. After a very successful five years, Nigel was approached by London News Radio and became Chief Executive there in 1996, transforming a lossmaking station into a profitable business by 1999. At the end of 1999, Nigel established Fusion Radio Holdings, purchasing two radio stations in London and a third in Oxford. In September 2001, Nigel merged Fusion with Milestone Radio Limited, giving the new company controlling interests in additional stations in Newbury, Rugby and Basingstoke. Nigel formed Laser Broadcasting Limited in 2002, to bid for local FM radio station licenses and to develop holdings in existing commercial radio businesses, as part of the company’s long-term strategy to build interests in a group of locally focused radio stations. 9
  10. 10. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Nigel is an experienced media sales trainer, radio station manager and businessman. He brings this expertise, and over 30 years of radio-based knowledge, to the Board of Humberside Local Radio. Summary: Post award Nigel will continue to be involved as part of Laser’s contract to spend a minimum of 30 hours a month supplying support services to HLR. 10
  11. 11. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Mike Hammond (Non Executive Director) Occupation: Radio Station Manager and Radio Sales Training Specialist. Other Directorships: None HLR Holding: Mike represents the Hull Broadcasting Partnership 26.36% holding on the HLR board Background: Mike started his radio career in 1985 at Radio Aire in Leeds progressing from a trainee sales executive to a senior member of the sales team. In 1993 he moved to Yorkshire Coast Radio as its launch Sales Manager before joining Yorkshire Dales Radio as Sales Manager in 1996. His experience in launching stations proved invaluable when he joined Huddersfield FM as its launch Sales Manager in 1997 before becoming Launch Director and Managing Director of Oak FM in Loughborough in 1998. In 2001 Mike launched his own training company, Creative Training, specialising in radio management training plus sales, presentation, production, promotions, marketing, research and recruitment. Mike has travelled extensively training radio personal in Europe and the Far East. Summary: Post award Mike will take the role of Station Manager overseeing the day to day running of the business, leading the sales team and using his sales training skills to build a firm revenue base. 11
  12. 12. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (a) Board of Directors Michael Oughtred (Non Executive Director) Occupation: Vice Chairman & Corporate Development Director of William Jackson and Son Limited Other Directorships: William Jackson and Son Limited, Non Executive Chairman of Oughtred & Harrison Limited HLR Holding: 4.36% Background: Michael is Vice Chairman & Corporate Development Director of William Jackson and Son Limited, winners of the 2004 J P Morgan Private Bank Family Business Honours Award for Governance. The company is a fifthgeneration Hull based family food business, founded in 1851 in Hull and is based in the city to this day. Household brands under the Jackson umbrella include Jacksons Stores, Tryton Foods, Kwoks Foods and Hazeldene Foods. Michael is also Non Executive Chairman of Oughtred & Harrison Limited, a role he has held for 16 years. The company is a successful third generation family business based in Hull experiencing major growth over the last 7 years due to investment in new business opportunities and a strong principle of rewarding success. He is the former President of the Hull & Humber Chamber of Commerce and is currently Vice President of the Yorkshire and Humber Chamber of Commerce and Chairman of Hull Truck Theatre Company Limited – an award winning regional theatre company. Summary: Michael combines with Paul Sewell to give HLR two of the most highly rated businessmen in the area. He has committed to spending at least one day a week to the radio company during its launch period. 12
  13. 13. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (b) Proposed Investors And Shareholding Structure (ii) If there are firm plans to appoint any further directors, provide information (with details of any specific individuals in mind). This information may be submitted in confidence. There are currently no further plans to appoint additional directors Full details of the shareholding structure should be provided, including: (i) Names and addresses (the latter may be submitted in confidence) of all existing or proposed shareholders. The HLR shareholders are as follows: HLR Shareholders Laser Broadcasting Ltd Hull Broadcasting Partnership Sewell Construction Ltd Directors Retirement Benefit Scheme Sean Bell Michael Oughtred (ii) Crowther Rd, Washington, NE38 0BW Victoria House, 82 Beverley Road, Hull, HU3 1YD Geneva Way, Leads Road, Hull HU7 0DG 9 Northwood Drive, Hessle, Hull, HU13 0TA Uplands, 5 Brimley, Molescroft Road, Beverley, HU17 7EE Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference, other etc). Post award there will be 200,000 A ordinary shares in issue. All shares will be voting shares. (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. The full shareholder list is as follows: HLR Shareholder Holdings Laser Broadcasting Ltd Total Shares 107,553 Hull Broadcasting Partnership Sewell Construction Ltd Directors Retirement Benefit Sc Sean Bell Michael Oughtred Total % Price Per Share Total Investment 53.78% £3.10 £333,413 52,722 26.36% 20,000 10.00% 11,000 5.50% 8,725 4.36% 200,000 100.00% £3.10 £3.10 £3.10 £3.10 £163,439 £62,000 £34,100 £27,048 £619,999 The shareholder structure has deliberately been designed to encourage small local investors to become involved in HLR through the Hull Broadcasting Partnership which has had its roots in the community for the last five years. (iv) Outline any shareholders agreements or arrangements which exist. There is currently a signed shareholders agreement in place covering the authorised share capital, shareholder protection, confidentiality, funding, assignment, intellectual property and conflicts of interest. A full copy can be supplied if required. 13
  14. 14. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (b) Proposed Investors And Shareholding Structure (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. Laser Broadcasting was formed in 2002 initially to work with local groups to bid for new licence applications. Since then it has expanded to include station ownership and is currently negotiating to purchase a number of current licences. During the course of this application process it hopes to complete a number of these purchases and Ofcom will be informed of this development. As of 27th February 2006 Laser is also a 25% shareholder in Fresh Radio, the Yorkshire Dales licence holder. Current Laser Directors and main shareholders are as follows: Hugh Morgan Williams, Chairman Hugh was one of the first employees of Metro Radio and went on to work for LBC/IRN and Middlesbrough based Radio Tees. He was then a founding director of Minster Sound in York followed by Chairman of Galaxy Radio North East. He is currently chairman of leading radio equipment supplier, Canford Audio and chairman of the CBI's SME Council. Hugh brings a vast amount of radio and business experience to the Laser board. Nigel Reeve, Chief Executive Officer See HLR Directors. David Bickle, Finance Director David is a member of the Chartered Institute of Management Accountants and the Chartered Institute of Certified Accountants. He worked for Trimoco and Marconi before running his own manufacturing company for 14 years before a successful trade sale. For the last 10 years he has specialised in developing start up companies and SME’s with his most recent venture, Angel Biotechnology being floated on the stock market in October 2005. Charles May, Non Executive Director Charles is the Divisional Director of Wise Speke, a wholly owned subsidiary of Brewin Dolphin Securities. He has been involved in the investment world for 35 years and has backed Laser as a start up business with the potential to grow into a major member of the radio industry. Alan Mullett, Director of Development Alan started his career working for the Wolverhampton Express and Star before joining Beacon Radio in 1976 firstly as Sales Executive before becoming Sales Director and then Managing Director in 1987, a role he continued in until 1996. During this time Alan increased annual turnover from £1.6 million to £3.9 million and in his final year at the station delivered a profit of £1.09m. He also successfully applied for and launched the Telford and Shrewsbury licence in addition to launching Radio WABC on the AM frequency. 14
  15. 15. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (b) Proposed Investors And Shareholding Structure Chrysalis plc owned Heart FM and Capital plc (now GCap) owned BRMB overlapped the four stations controlled by Beacon Broadcasting and Communications Ltd. Despite this fierce competition the Beacon stations consistently maintained the dominant position in terms of market share and regularly delivered the highest revenue per listener in the industry. Alan also played a part in the development of commercial radio in the UK. Operating in a highly competitive market, he pioneered the packaging of commercial airtime to maximise local revenue and created of training, administration and management modules for use in the sector. He was also Chairman of the Radio Advertising Awards. After guiding the company through a financial reconstruction, which ended in the acquisition of Beacon by GWR Plc, Alan left Beacon and formed Motionsound Ltd, a vehicle created to apply for radio licences. Currently Managing Director of Instep UK Limited, a management and organisational consultancy he advises number of organisations on their development and organisational strategy. He has worked for clients such as Cheltenham & Gloucester Building Society, Microsoft, Johnson & Johnson, British Telecom and Glaxo Smith Kline. Alan joined Laser Broadcasting in January 2006 with responsibility for the long-term strategy and the project management of the AIM flotation and fund raising initiatives. Stuart Linnell MBE, Director of Projects Stuart has worked in the radio industry for 35 years. In 1985, he was appointed Managing Director of Coventry based Mercia Sound before becoming the Deputy Managing Director and Operations Director of Midlands Radio plc in 1990. Since the mid nineties, he has worked extensively for BBC national radio, BBC TV, Sky Sports News, Radio 5 Live and talkSport. He has won 3 prestigious Sony Awards and 2 New York Radio Festival Awards. In 1994, he was awarded an MBE for services to broadcasting. Stuart joined Laser in the spring of 2005. David Mortimer, Director of Projects David has worked in radio for 14 years and was, until 2005, Managing Director of Quaywest FM where he managed a buy out from its previous owners. He also negotiated the purchase of BCR FM from Chrysalis before this. Prior to this he was an accountant, is a member of Acma, the Institute of Cost and Management Accounting and has a BSc (Hons) in Accounting and Financial Analysis at the University of Warwick. David joined Laser in the summer of 2005. Will Westley, Director of Strategy Will brings more than 20 years experience of strategic development of business to the Team. His extensive work building for rapid growth, efficiency and excellent service delivers highly profitable, successful enterprises. He most recently delivered the first ‘Live Digital TV and Digital Radio Broadcast to Mobile phones’, as Director of Operations for BT Livetime, BT PLC. This breakthrough development enhancing the U.K. DAB network and optimising convergent digital IP technologies is seen by the industry as a most significant contribution to Digital Audio Broadcasting. Will enjoys senior relationships with Ofcom and the Department of Culture Media and Sport (DCMS). 15
  16. 16. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence (b) Proposed Investors And Shareholding Structure Laser Main Shareholders Total Full Name Shares Holding Hugh Morgan Williams 10,940 1.88% Nigel Reeve 105,000 18.00% NEL Ltd 225,384 38.64% Charles May 77,240 13.24% Keith Rawlings 35,000 6.00% John Roberts 50,000 8.57% David Hulf 15,000 2.57% Others 64757 11.10% 583,321 100.00% 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. This can be supplied if required. 16
  17. 17. Section 105(A) Ability To Maintain Proposed Service 1. Ownership and control of company which will operate the licence Ownership and control of company which will operate the licence (c) Involvement of the Applicant in Specified Activities 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 applicants 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). (a) Advertising agencies: None (b) Newspapers: None (c) Other broadcasting interests: See Laser Broadcasting Ltd above (d) Bodies whose objects are wholly or mainly of a religious nature: None (e) Bodies whose objects are wholly or mainly of a political nature: None (f) Local authorities: None (g) Other publicly-funded bodies: None *Applicants should note that this information is required for the purposes of checking compliance with the ownership rules, and is not relevant to an applicant’s ability to maintain its proposed service. If none of the categories above apply to the application this should be clearly stated. 17
  18. 18. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (a) Overall Financial Strategy Provide a concise summary of how the applicant considers it is able to establish and maintain, throughout the licence period, its proposed service, and how this licence fits in with the investors’ strategy. The philosophy behind the HLR financial projections and growth strategy is as follows: Broadcast Area When finalising the broadcast area HLR considered a larger TSA with coverage both north and south of the Humber estuary and a smaller area but with a stronger reach north of the estuary and across to the East Riding of Yorkshire. After local consultations (see answer to Question 7) it is clear that the area has a strong local identity and does not historically associate with Lincolnshire and south of the Humber. Therefore it was decided to broadcast to the smaller area of north of the Humber and the East Ridings. This produced a population of 368,830 compared to an advertised area of over 400,000 adults. The lower figure has been used on all audience and revenue calculations. Income Projections Revenue projects are based on conservative audience projections over the first five years producing achievable listening hours. These hours have then been multiplied by the industry average revenue per thousand hours listened producing an achievable revenue target. In years one a further 10% has been deducted, year two sees the average figure reduced by 5% and the current average figure (as of 3rd March 2006) has been used in years 3-5. Laser Position Laser Broadcasting has a 53.78% holding in HLR and a 25% holding fellow Yorkshire station, Fresh Radio. This holding will be increased in May 2006 and Ofcom will be informed of the new percentage at that time. Laser is currently supplying accountancy, commercial trafficking, IT, commercial production, training and a full administrative service to Fresh Radio. Fresh Radio is also moving to new premises in Skipton and Laser is moving its administrative offices to within Fresh Radio. This policy has reduced Fresh Radio’s running costs. Laser Broadcasting will supply the same services to HLR, as already agreed and ratified in a Service Level Agreement that can be supplied on request. Working with Fresh There will be a close working relationship between HLR and Fresh Radio through their joint shareholder Laser Broadcasting. The stations will have a joint Managing Director (Dave Parker) who will have the responsibility of ensuring the stations share resources and exploit sales opportunities. Dave Parker will sit on both the HLR and Fresh Radio boards. In addition Mike Hammond, the HLR Station Manager will move from Fresh where he is currently working with the Fresh sales team. Cashflow policy When considering the cashflow requirements, following extensive long-term research, the HLR board have raised sufficient funds not to need an overdraft unless the revenue forecasts are 20% below expectations for the first three years. 18
  19. 19. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (a) Overall Financial Strategy & (b) Funding Dividend policy The board of HLR have set a prudent policy of working towards a dividend in year five in line with the financial projects below.. Financial projections have been produced for the first 3 years covering the period until the first significant profit is shown. Projected profits in years 4 and 5 will enable HLR to pay a dividend at the end of year 5. A full breakdown can be supplied if required. (b) Funding Detail the sources of finance that will be used to fund the licence, under the following headings: (i) Share capital 200,000 shares will be issued post award raising £620,000 ensuring the radio station does not need an overdraft unless revenue drops by over 20% on the current projections. (ii) Loan stock None (iii) Leasing/HP facilities (capital value) The only leasing will be a vehicle for the Station Manager (£20,000) and 4 sales cars (Average £7,000 each). The total value will be £48,000. (iv) Bank overdraft HLR has carried out sensitivity analysis on its income projections and will not need an overdraft even if revenue falls by 20%. However the company’s bankers have indicated that a facility would be available if required. (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) Not applicable (ii) Assets leased Company vehicles will be the only leasing arrangement. Three separate quotes are available although the final decision on vehicles will be made after the award. Therefore a final quotation is not included. All of the funding above should be confirmed to the applicant. Explanation should be provided if this is not the case. 19
  20. 20. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (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. THE LOCAL NEWSPAPER MARKET The projected Total Survey Area of Hull Local Radio is almost identical to the existing circulation area of the Hull Daily Mail, the regional daily newspaper, which has a circulation of 68,371 and a 249,951 weekly reach. Part of the Northcliffe local newspaper group owned by the Daily Mail & General Trust, The Hull Daily Mail first published in 1885 and has a loyal readership throughout the East Riding, where it is re-titled The East Riding Mail. The Hull Advertiser series is similarly owned by Northcliffe, delivering a weekly free newspaper to 75% of households in Hull and 45% in the East Riding through five different titles with a combined weekly circulation of 158,690. Spin-off publications include The Journal, an upmarket glossy magazine delivered free to homes in the East Riding, Beverley and Hull; Stop Out, a youth-targeted glossy magazine comprising fashion, entertainment and clubs/pubs content; The Wedding Journal, an annual A4 magazine delivered free to homes; and Auto Weekly, a free pick-up magazine with a 20,000 print-run. There is little competition against Northcliffe’s dominance of the local press market. The Yorkshire Post sells only 1,562 copies in Hull and only 3,805 in the East Riding. THE LOCAL RADIO MARKET Radio listening is as popular ever in the Hull area, with 91% of adults listening to radio each week. What has changed dramatically over recent years is the shift of the audience away from commercial radio services and towards BBC stations. Six years ago, commercial radio attracted 51% of listening (versus 48% for the BBC), whereas now commercial radio attracts only 42% of listening (versus 57% for the BBC). Six years ago, Viking FM was the market leader with an 18% share, but it now ranks fifth with only a 9% share. Over the same time period, Magic 1161’s share has fallen from 5% to 3%. Both heritage stations have lost more audience than any other station in the market, during a time when there have been no new station launches or new competitors entering the market. Viking FM has lost audience almost equally from all demographics. Its share in 15-24 year olds has fallen from 33% to 14%, in 25-34 year olds from 32% to 19%, and in 35-44 year olds from 24% to 15%. HLR’s market research has clearly shown that this huge loss of interest in Viking FM is due to: • Lack of local content • Poor quality presenters • High repetition of a small library of songs • A lack of variety of music artists • Poorly compiled music playlists 20
  21. 21. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (c) Financial Projections The most obvious negative to the audience is the Viking FM breakfast show, which fails to attract an audience significantly higher than the remainder of the day’s output. Six years ago, the Viking FM breakfast show peaked at 6% of the available audience, whereas now it barely reaches 3%. The long-term and extensive market research over three years demonstrated that the audience that used to listen to Viking FM has since migrated to several other stations, including BBC Radio Two, BBC Radio Humberside and Galaxy Yorkshire. None of these stations completely satisfied the defecting listeners. Many people voiced the opinion that BBC Radio Humberside broadcast considerably more local content than Viking FM but was seen as quite fuddy-duddy. BBC Radio Two was considered more entertaining but contained no local content whatsoever. Galaxy Yorkshire was an option for young people but held little interest for anyone over the age of 35. BBC Radio Two has benefited most from Viking FM’s decline, and is now the market leader. Its share of listening has increased from 12% to 15% since 1999. BBC Radio Humberside has also gained, with its share up from 9% to 14% over the same period. Galaxy Yorkshire has increased its share from 5% to 8%. Local commercial stations broadcasting from outside the Viking FM survey area have a strong following, currently attracting 13% of listening (though this figure went as high as 19% three years ago). The failure of Viking FM and Magic 1161 to maintain their audiences is demonstrated by the fact that their combined share of listening (11.7%) is now less than that of stations based outside their survey area (13%). The HLR research demonstrates that both the out-of-area stations (Minster FM, Lincs FM, etc) and the BBC stations are failing to completely satisfy the substantial radio audience in Hull who desire a station that: • Is committed to local content • Plays a wide variety of music • Repeats specific songs or artists less frequently • Is less fuddy-duddy than BBC local radio • Is committed to a breakfast show that has mass appeal • Hires presenters who talk about Hull rather than themselves • Reaches out specifically to a 35+ audience The opportunity for HLR is to implement the results of the market research and launch a station that deliberately satisfies the desires of the local population, whilst avoiding the deficiencies that they have identified in existing stations. [Details of the market research quoted here are itemised in answers to Question 6.] 21
  22. 22. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (c) Financial Projections The applicant should provide financial projections on an annual basis for the licence. The projections must include: (i) Profit and loss accounts See Appendix 3 (ii) Balance sheets See Appendix 3 (iii) Cash-flow forecasts See Appendix 3 The period covered is at the discretion of the applicant, but should be justified. The forecasts should be supplied on an Excel spreadsheet or similar, with any accompanying guidance notes. The applicant must also complete and submit the spreadsheet entitled ‘Financial Template’ located at www.ofcom.org.uk/radio/ifi/rl/commer/ar/lapr/ftap.xls using information from its business model. The Financial Template is attached as Appendix 4 This section must include a full listing of the underlying assumptions on which the financial projections are based, relating such assumptions clearly to other parts of the application (e.g. proposed format, extent of coverage area) The applicant should detail how revenue figures were derived, distinguishing between local, national and sponsorship revenue. The response to this question may be submitted in confidence. Assumptions detailed in confidential Appendix 5 22
  23. 23. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (d) Audience Projections 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. The projected adult population (aged 15+) is 368,830. This has been derived from 2001 Census data and the coverage prediction supplied by Arqiva [see answer to Question 3]. The population count has been calculated against a signal strength of 54 dBuV/m and above. According to Arqiva’s analysis of data from the 2001 Census, the population within the Total Survey area comprises: • 51% females; • 98% of the population describe themselves as “white”; • 44% of the adult population are within ABC1 socio-economic class and 56% are C2DE; • 12% of the employed adult population are “managers & senior officials”; • 9% of the employed adult population are “professionals”; • 66% of households own their own home. (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 Board’s analysis performance will be: Adult (15+) TSA Weekly reach % Reach # Average hours/week Total hours has determined that YEAR ONE 368,830 17 % 62,701 8.0 hrs 501,608 the station’s YEAR TWO 368,830 18 % 66,389 9.0 hrs 597,501 projected YEAR THREE 368,830 19 % 70,077 10.0 hrs 700,770 Extensive, independent and professional market research over the last three years [see answers to Question 6] has demonstrated the wide appeal of the proposed radio station to a substantial proportion of the potential audience between the ages of 35 and 64. This age group comprises 48% of the adult population of Hull and the East Riding of Yorkshire. Additionally, there is likely to be some overlap of the station’s appeal to 30-34 and 65-70 year olds, who comprise a further 13% of the adult population. 23
  24. 24. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (d) Audience Projections (iii) The expected impact of the proposed service on existing services, in listenership terms. The impact of Hull Local Radio on existing services within its Total Survey Area at the end of Year One is summarised in the table below: IMPACT ASSESSMENT OF HLR ON HULL RADIO MARKET (368,830 TSA) - YEAR ONE ALL RADIO BBC R BBC HUMBER RADIO 2 SIDE BBC RADIO 4 BBC RADIO 1 VIKING GALAXY CLASSIC BBC RADIO FM YORKSHIRE HULL L.R. FM FIVE LIVE MAGIC 1161 pre-launch W EEKLY REACH (000) % REACH TOTAL HOURS (000) AVERAGE HOURS MARKET SHARE 336 91% 8760 26.1 103 28% 1343 13.0 74 20% 1180 16.0 63 17% 953 15.2 77 21% 798 10.3 74 20% 767 10.4 74 20% 693 9.4 41 11% 398 9.8 41 11% 316 7.8 18 5% 243 13.2 100.0% 15.2% 13.8% 10.6% 9.3% 9.0% 8.1% 4.7% 3.6% 2.7% 394 309 230 4.4% 3.4% 2.6% end of Year One W EEKLY REACH (000) % REACH TOTAL HOURS (000) AVERAGE HOURS MARKET SHARE 8988 1314 1093 948 783 701 669 100.0% 14.6% 12.2% 10.5% 8.7% 7.8% 7.4% 63 17% 502 8.0 5.6% The launch of HLR will increase hours listened to all radio by 3% in Year One to 8,988,000 hours. Hull Local Radio will rank seventh in the market with a 6% share of listening in Year One, a performance that is projected to improve by 40% by Year Three. The launch of Hull Local Radio is projected to reduce listening hours to these stations by these amounts within the station’s Total Survey Area in Year One: • • • • • • • • • • • • • (iv) BBC Radio Humberside Viking FM BBC Radio Two Galaxy 105 BBC Radio One Magic 1151 BBC Radio 5 Live Virgin Radio TalkSport BBC Radio Four Classic FM BBC Radio Three Other stations 87,039 hours per week less 66,199 hours per week less 28,196 hours per week less 24,518 hours per week less 14,711 hours per week less 13,485 hours per week less 7,355 hours per week less 6,130 hours per week less 6,130 hours per week less 4,904 hours per week less 3,678 hours per week less 3,678 hours per week less 7,355 hours per week less The basis on which the estimates above have been calculated, and any assumptions taken into account. Audience Projections: The Board’s projections for the performance of the station in its first three years, based on deep local knowledge, have been derived from statistical analysis of empirical data from RAJAR ratings reports [1999Q2 to 2005Q3]. 24
  25. 25. Section 105(A) Ability To Maintain Proposed Service 2. Financial And Business Plan (d) Audience Projections A benchmark was provided by the start-up performances of all 21 local (not regional) commercial radio stations with Total Survey Areas of between 100,000 and 300,000 that have commenced broadcasting since 1999 and have participated in RAJAR. Their average performance at the end of each of their first three years on-air was as follows: YEAR ONE Weekly reach % Average hours/week 17.2 % 9.4 hrs YEAR TWO 18.2% 8.6 hrs YEAR THREE 18.6% 9.7 hrs Hull Local Radio’s programme format is comparable to the stations included in this analysis, and its target audience, like those stations, is by no means a niche demographic. These figures were rounded and revised with a more natural year-on-year progression to arrive at the projections for the station’s performance in the first three years. The year-on-year increase in hours listened has been approximated to 20% for Years Two and Three, a rate of growth observed in start-up stations in similarly sized markets. Impact on existing services: • • The Board’s projections for the impact of the new station on existing broadcasters have been derived from quantitative market research [see Research Project #5] in which respondents who indicated they would listen to the new local radio station were asked how they would make time to listen. Some respondents answered that they would listen to the radio longer, while others said they would listen to existing stations for less time or not at all. Listening to Hull Local Radio is assumed to replace listening to an existing station on an hour-for-hour basis, a simplification of the real situation where listeners are more likely to add a station to their listening menu and share time between them (if anything, this results in an overestimation of the impact on existing services, and an underestimation of the new listening added to the market). The results show that: • 228,232 hours per week listening to Hull Local Radio is “new listening” that has been added within the market; • the remainder of the total 501,608 hours per week listening to Hull Local Radio in Year One is derived from listeners replacing former listening to existing stations. These changes in hours listened to different stations have then been applied to the “pre-launch” snapshot of the Hull market. Although recognised to be a simplification of the complex radio listening dynamics, and to be based on assumptions about the local market, the results nevertheless give some indication as to the anticipated impact of Hull Local Radio on existing radio stations and its projected position in the market after its first year on-air. 25
  26. 26. Section 105(A) Ability To Maintain Proposed Service 3. Transmission Proposals (i) Provide details of the transmission site you propose to use, under the following headings: (a) Name and National Grid Reference of site Site Name: National Grid Reference: (b) High Hunsley SE 945 350 Height of site above Ordnance datum (in metres) 164 metres (c) Height of transmitting aerial above ground level 64.5 metres (d) 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). Radiated Power: Pattern: 500 watts vertical + 500 watts horizontal Antenna pattern is Directional. A copy of the radiated pattern is included as Appendix 6. The applicant should confirm whether he believes that his 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. Arqiva has informed Hull Local Radio that it owns the High Hunsley site and the existing antenna system used by Viking FM. This can be made suitable for sharing. Planning permission is not required for the changes required and can be accommodated within the present building. The site provides excellent coverage for Hull, the East Riding and the surrounding area. 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. (ii) Please provide a detailed computer predicted map (in colour) of the coverage anticipated using the transmission site and parameters described above. Arqiva Coverage Predictions for the area are attached as Appendix 7. 26
  27. 27. Section 105(A) Ability To Maintain Proposed Service 3. Transmission Proposals (iii) Describe proposed arrangements for transmission provision (installation, maintenance and repair). The transmission system and equipment must comply with the Engineering Code originally published by the Radio Authority, which represents Ofcom’s current policy, and is available at www.ofcom.org.uk/radio/ifi/rl/commer/ar/ Arqiva is well resourced to install the complete system and subsequently maintain and monitor the transmission parameters. Telemetry and remote monitoring systems provide critical information back to Arqiva’s control centre (carrier power, lack of modulation, etc.) on a 24-hour basis. Arqiva’s maintenance personnel are highly trained with the necessary spares and test equipment to resolve any problem quickly. (iv) What is the anticipated time lapse between the award of licence and start of broadcasting? Applicants should note that failure to commence broadcasting the service within two years of the date on which the licence is awarded is likely to lead to the offer of a licence to the successful applicant being withdrawn. In these circumstances the licence would be advertised afresh and a new competition would be held to award the licence. Hull Local Radio plans to launch within 26 weeks of the licence award. 27
  28. 28. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy (a) This subsection of the application should take the form of a statement setting out the applicant’s overall programming philosophy and vision for the radio service. MUSIC It is already something of a present-day cliché, but by no means an understatement, to say that local commercial radio stations all sound the same. Even the most casual sampling of stations in any given area makes it almost impossible to detect a significant difference between one station and the next by the music they play. It is by no means unusual to even hear the same record being played at the same time by different stations in the same area. This has occurred because: • Stations’ music policies have become driven by, in part, the easy option of playing hit singles categorised by era – 60s, 70s, 80s, 90s – and, in part, by music programmers being encouraged to explore that easy option because radio groups perceive it to be the “safe” way of building and maintaining audiences. It is also symptomatic of the “lowest common denominator” programming and presentation style that pervades and has come to define UK commercial radio. • The Guinness Book of Hit Singles, an important and remarkably useful research tool, has become relied upon as the foundation stone of UK commercial radio music programming, rather than as just one part, albeit a fundamental part, of a music programmer’s toolbox. • RCS Selector music scheduling software has too often become used as a substitute for the human touch in music programme production. It is a classic example of software being allowed to govern a situation, rather than it being used, once again, as a tool of the trade that enables the execution of a carefully considered strategy. It is little wonder that BBC Radio Two has become established as the nation’s most popular radio station, with an imaginative music policy and innovative programme scheduling. Where the BBC has invested in local radio, it too has delivered creative, original and entertaining programming. A combination of selective listening to BBC national and local radio services by our target audience of 35 to 64 year olds has often been at the expense of local commercial radio. HLR will address these issues by implementing a music philosophy that places an experienced human musical ‘ear’ at the heart of its scheduling and programming. All our presenters will be involved in the overall selection of the station’s music within a clear, core policy, guided by a senior presenter with responsibility for ensuring compliance with the policy across the entire station output. 28
  29. 29. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy It would be foolish to pretend that there is no place for Top Twenty hits, as defined by the Guinness Book of Hit Singles, but rather than dominate the output with a limited number of tracks on high rotation, they will be used by HLR to punctuate and underpin the station sound. This will be characterised by two distinct elements – the station’s commitment to speech, addressed below – and by a staple diet of quality album tracks. Throughout our research, the station’s target audience of 35 to 64 year olds has repeatedly called for something other than the regular diet of the same old hits, played over and over again. The continual repetition of a small selection of Top Twenty singles is regarded by listeners as highly irritating. Nor is the target audience locked in a time warp that calls for music only from a particular era. A considerable amount of current music holds great appeal for 35 to 64 year olds, and artists such as Katie Melua, James Blunt, Michael Buble, Scissor Sisters, David Gray and Jamie Cullum attract support through both album sales and concert attendance. All these artists have recorded hit singles, but these are often headline tracks from an album that offers many additional tracks that would be highly appropriate for radio play but rarely, if ever, receive it. When they do, it is usually only from the BBC. HLR will certainly not want to be regarded as an “album track” station, but rather as one that plays really great music, be it a hit single or an album track. The core values of our music programming will be: • • • • A distinctive and popular foundation of quality album tracks by topselling album artists; A flavouring of Top Twenty hit singles from the past forty years, though not dominated by an era-determined policy; A variety of genres throughout the broadcast day to provide an essentially eclectic sound; A selection of artists with a mature approach and songs with intelligent lyrics to characterise the station as “grown-up radio for grown-up people”. SPEECH HLR will be an inclusive service in which speech will play a targeted but prominent role. When we talk, we will seek to reflect the character of the area and encourage the active participation and the engagement of local people. Contact with our audience will be fundamental to our speech output, with phone-in, text and e-mail access used regularly within our programming, thus making local voices a key element of the sound and style of the radio station. Our audience will play a critical role in determining the direction of programmes with their on-air and off-air contributions. We will encourage listeners to use the HLR website which will become an important supportive resource to our programme output. The programme content will provide everyone living in and around Hull with information vital to everyday living. Our news and sport programmes 29
  30. 30. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy will keep the audience up to date with the latest events in the local area, in the UK and in the rest of the world. News and sports summaries, as well as traffic and weather information, will appear regularly throughout the day. Public sector organisations involved in the regeneration of Hull will be able to use the station to convey their messages to the local population. (b) The strategies which the applicant proposes to implement in regard to: • catering for the tastes and interests, general or particular, of persons living in the area; Programming In a market otherwise served by commercial stations that concentrate almost solely on popular music, HLR will be essential listening for anyone who wants news, information and discussion on the issues that matter most to Hull, all set in an accessible, entertaining context. It will provide a forum for listeners to discuss and debate things that are important to them, from war to weather, from sport to fashion, from pubs to politics, all laced with music that reflects tastes of the target age group of 35-54. Contemporary media in all its forms plays a central role in most people’s everyday lives, influencing the way they eat, speak, dress and even undress. It is also central to the way society functions, affecting and reflecting views and opinions on such issues as crime and punishment, whether and how to aid the poor in other countries or our own, and across a huge range of other social and moral current affairs. HLR is deeply sensible to the responsibility it will have in this regard, particularly in an area like Hull where social deprivation and urban regeneration have become the dayto-day agenda for those engaged in guiding the area’s current and future well-being. As our research shows [see answers to Question 6], the 35-54 target audience is particularly under-served by existing commercial radio services. All existing local commercial radio stations offer music-led formats with only minimal speech content. HLR will be a full service radio station, offering a lively, entertaining and provocative mix of speech and music, balanced to maximise its audience appeal without comprising any programming element. At present, the main spoken word programming for listeners in the area is provided by UK-wide national radio – BBC Radio 4, BBC Radio 5 Live and talkSPORT – and by the BBC local station, BBC Radio Humberside. While the latter serves the city of Kingston-upon-Hull, it also covers a much wider area and the concentration of its service to Hull is therefore diluted to some degree. It attracts an audience primarily aged 55+, but it has been particularly successful in delivering community radio in the widest sense and in involving its audience in a way which none of the existing commercial radio services in the area manage to do. HLR will be focused precisely on the interests of Kingston-upon-Hull with a music format carefully researched to attract the target 35-64 age group. HLR’s appeal will, therefore, be generally broader and younger than BBC 30
  31. 31. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy Radio Humberside, while remaining sharply keyed into the attitudes, events and affairs of the city. It will provide a meaningful community focus for the significant local audience that prefers commercial radio. HLR has already set up processes that ensure that research will be an ongoing process, ensuring that the radio station is constantly in tune with what our listeners want to hear. We will be supported in this by the efforts of our major shareholder, the Hull Broadcasting Partnership, that will provide the station with major guidance on broadcasting policy. News will be a core element of our speech output. Our research confirms the paramount importance of reliable, informative, up-to-the minute news to the people of Hull and the East Riding. Moreover, while not ignoring the wider regional, national and international perspective, HLR news must be essentially local to the area. The people who live in this city have an active interest in what happens here and, particularly, in what they perceive is happening to them as a result of both local and more remote decision making about the area’s future. Through the day, news and information will provide the foundations and the supporting structure to a programme schedule that listeners will find both entertaining and engaging. It will be fun without being trivial, but serious when it needs to be, balancing lightness of touch with consistent credibility and seeking to involve people in the many and varied activities of the area they live in. The breakfast show will appeal to those busy and on the move, with news and feature content clearly setting the agenda for Kingston-upon-Hull and the East Riding. With other essential information, such as travel news, weather, time-checks and sports updates, the show will include music, competitions and listener involvement The post-breakfast sequence, moving from mid-morning to lunchtime will be more relaxed in style, but without losing the sharpness of focus on local issues that are clearly of interest to the target audience. Listener involvement will be key at this time of day, sitting alongside regular input from lifestyle experts and celebrity guests. The afternoon sequence will reflect the leisure and cultural aspects of the area until drive-time delivers a tighter, brisker pace to the output once more. Evening and weekend programmes will include the opportunity for more specialist and specific programming, with such diverse interests as sports, arts and specialist music genres catered for. The content of these programmes will not be solely confined to the professional sphere but will include the extremely active local amateur and semi-professional scene. Sports programming will be a vital and integral part of the HLR output covering Hull City Football Club, Hull Kingston Rovers rugby league club, Hull FC Superleague Rugby Club, Hull Stingrays ice hockey club, as well as news of local and junior sports clubs. We will be providing extensive and balanced coverage of all the sports across the City that are of interest to listeners. 31
  32. 32. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy Alongside the HLR sports coverage, Saturday and Sunday afternoon programming will see the radio station covering major events in the area, participating where appropriate and taking a flavour of local life to those listening but unable to be there themselves. On Sunday morning, the different faiths of the region will be featured on the breakfast show as HLR reports on their many activities. Throughout the year, through a series of carefully targeted campaigns, HLR will work with CSV Media to prompt interest in a variety of community groups, as well as active citizenship and civic renewal. The HLR presenters will have excellent local knowledge and links. Some key presenters have already been identified and, for contractual reasons, they are named only in the confidential appendix to this document. They will know about the issues they are discussing, with an instinctive feel for the interests of the target audience, and they will be wholly familiar with the music they play. NEWS News will play a key role in our output. It will be a core element of our speech output. Our research confirms the paramount importance of reliable, informative, up-to-the minute news to local people. Moreover, while not ignoring the wider regional, national and international perspective, HLR news must be essentially local to the City it serves. The people who live in this area have an active interest in what happens on their doorstep, as well as maintaining pertinent views on the wider world. Through the day, news and information will provide the foundations and the supporting structure to a programme schedule that listeners will find both entertaining and engaging. It will be fun without being trivial, but serious when it needs to be, balancing lightness of touch with consistent credibility. Two extended news bulletins – one at lunchtime, the other during afternoon drive time – will present a comprehensive round up of the day’s news and allow for the considered examination of one or two major local issues. With a necessarily tightly run staffing complement, news management will be a vital aspect of the station’s operation. Too often, radio stations dispense with a news story after it has been read two or three times, without considering who has heard it and whether it should be revived for a fresh audience later in the day. Similarly, the quick grab, sound-bite culture that broadcast news has developed often leaves the listener with only a hastily presented tit-bit of information, with barely any explanation or reasoning. 32
  33. 33. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy Therefore, on HLR, one or two major stories each day will be treated differently to others and will be the subject of an extended interview. As well as providing shorter clips for general bulletins, the extended interview will be featured at up to 60-seconds duration in the ten-minute extended lunchtime bulletin and at up to 90-seconds in the fifteen-minute extended drivetime news. NEWS: locally presented mix of local, national & world stories Mon – Fri Sat Sun 0700 3 min 3 min 0730 2 min headlines & sport 0800 5 min 3 min 3 min 0830 2 min headlines & sport 0900 3 min 3 min 3 min 0930 1 min headlines 1000 3 min 2 min 2 min 1100 3 min 2 min 2 min 1200 3 min 2 min 2 min 1300 10 min 1400 3 min 1500 3 min 1600 3 min 1700 15 min 1800 3 min IRN national/world news hourly throughout remainder of day and night • broadening the range of local commercial services available in the area; HLR will broaden choice among commercial radio stations available in Kingston-upon-Hull and the East Riding, introducing a new independent and committed voice to the area, mixing speech and music in a style clearly distinct from the almost wholly music commercial services currently available. News and information, features and interviews, listener phone-in’s, studio discussions and live coverage of local events will feature prominently alongside, but will not dominate, a clearly defined music mix. HLR will be a full service radio station that is profoundly needed to widen commercial radio choice for the local audience. • the provision of local material, if any; HLR will broadcast, to and from Kingston-upon-Hull, 24-hours a day. It will include minimal external content from providers such as IRN. • the proportion of locally-made programming, if any should be set out in this section All HLR programming will be locally originated, other than contributions from providers such as IRN and possible shared overnight programming in the early hours. 33
  34. 34. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy (c) If appropriate, the applicant may also provide a typical programme byprogramme weekday schedule, to give a flavour for the direction of the station. Monday-Thursday: 02.00-07.00: The Late & Early Show: music through the early hours of the morning to see home those who have been out overnight, whether at work or play, and to ease listeners with an early start into the day ahead. 07.00-10.00: HLR Breakfast: lively talk and the very best in music to start the day, featuring the major stories of the day from Kingston-uponHull and district, from across the UK, and from the rest of the world. Plus regular news and sports bulletins, travel updates and business news, as well as weather and coastal forecasts and listener competitions. Hourly news bulletins will be complemented by headlines on the half-hour from 07.30-09.30. Audience participation will be a key element through competitions, phone-call’s, texts and e-mail’s. 10.00-13.00: HLR Mornings: From mid-morning to lunchtime, more great music will link lifestyle experts, celebrity guests and input from listener’s. Callers will be invited to have their say on the issues that matter to them, to quiz the experts and talk to the guests. Plus regular news, weather and travel updates and a lunchtime sports bulletin. 13.00-13.10: HLR Lunchtime News: A considered update of the day’s news, sports and business news. 13.10-16.00: HLR in the Afternoon: The hit music continues alongside news and information about local leisure and cultural activities and events. 16.00-19.00: HLR Drivetime: Regular travel, weather, business and sports updates come to the fore with presenter-led features and interviews on the day’s top news stories. Plus what’s on at the cinema and local theatres, a guide to the area’s best restaurants and check at what’s on TV tonight, including: 18.00-18.15: HLR Evening News: An extended bulletin of all the day’s news, sports, business news and weather, including feature-length interviews on the major stories. 19.00-22.00: HLR Evenings: Specialist nightly features will include coverage of sports and arts events, as well as specialist music sequences and live reports from meetings and events taking place in the area. Live music by local artists will feature on certain nights, and on others relationship issues, fears, phobias and anxieties, obsessions and compulsions, family and sexual problems will be explored sympathetically, with the best advice offered by the HLR team of experts and counsellors. 34
  35. 35. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 4. Programming Philosophy 22.00-02.00: HLR Nights: Music and chat at the end of the day and across midnight, with guest interviews, listener reaction and competitions delivered in a relaxed but informed context. Friday: As Monday-Thursday, except: 18.00-19.00: HLR Sports Week: Guests from the world of sport discuss the hot topics affecting sport in Hull and district, with listener reaction via phone calls and text messages. 35
  36. 36. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 5. Proposed Format A blank Format is attached at Appendix 3. Fill it in, ensuring that each of the following criteria are addressed within, where it is felt appropriate to do so. It should follow the style of Ofcom Formats, which can be viewed at www.ofcom.org.uk/static/radiolicensing/amfm/analogue-main. Reasons for omission of any particular criteria (and it is accepted that not all criteria will be relevant to all applications) should be set out separately. 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) Station Name (working titles accepted) (b) Service Duration. This is the number of hours you will broadcast each day. It should also include the number of hours of locally-made programming (i.e. programming made within the licence area) promised. As set out in Phase 2 of Radio – Preparing The Future, Ofcom does not believe that the amount of automation utilised by a station is an indication of programme quality. Therefore, Ofcom has no specific rules relating to the amount of automation that a licensee may utilise, and applicants do not need to include details in their proposed Format of how much live programming they intend to provide. However, should an applicant wish to include such information, it should be included in this part of the Format and will be regarded as a binding commitment in the event of a licence award. (c) Character of Service. This is a clear, one or two sentence, description of the output and target audience. (d) Detail. This should address, where appropriate: • • • • • • A clear description of the type/range of music Specialist music programmes A level of speech content (peak/non-peak) Any specific plans for local material News obligations, local and national (weekdays and weekends, peaktime, non-peak, etc) Other character-defining elements of programming The proposed format for HLR is detailed on the next page. 36
  37. 37. Section 105(B) and (C) Catering For Tastes And Interests And Broadening Choice 5. Proposed Format HLR STATION FORMAT Licence Outline HLR [working title] Station Name Licence Area Frequency Service Duration Hull area (as defined in Ofcom’s Measured Coverage Area map) 24 hours a day (all locally produced/presented) Definitions Speech Peaktime(s) Daytime Locally produced/presented “Speech” excludes advertising, programme/promotional trails & sponsor credits, and may be calculated across daytime on non-daytime. “Peaktime(s)” refers to Weekday Breakfast and Afternoon Drivetime output, and Weekend Late Breakfast. “Daytime” refers to 0600 to 1900 weekdays, and weekend output from 0800 to 1400. Production and presentation from within the licence area. All requirements for locally produced/presented output must include peaktime. Character of Service A GENUINELY LOCAL RADIO STATION FOR 35 TO 64 YEAR OLDS, FOCUSED ON HULL AND THE SURROUNDING AREA, WITH SIGNIFICANT SPEECH CONTENT SUCH AS LOCAL NEWS, INTERVIEWS AND COMMUNITY INFORMATION FORMING AN ESSENTIAL PART OF THE OUTPUT. Details Speech content will not fall below 30% during daytime hours, 15% outside of these times, and will include local news, sport, community information, weather and travel news, entertainment and what’s on information. News will be broadcast at least hourly, including locally produced and presented news bulletins from 0700 to 1800 on weekdays, 0700 to 1200 on Saturday and 0800 to 1200 on Sunday. Regular updates of weather, travel and what’s on information pertinent to the area will be broadcast from 0600 to 2200 every day. Speech will feature significantly within the output, focused on issues, events and activities relevant to Hull and the surrounding area, including studio discussions, interviews, phone-ins and short features. Sports coverage will also play a key role in the output, with daily bulletins and sports programmes scheduled according to the appropriate season and fixture dates. Music will comprise a wide range of melodic popular hit songs ranging from the 60s to the present day, combined with a significant proportion of album tracks by popular artists that integrate seamlessly into the music mix. During non-daytime output, specialist music programming complementing the main mix may be scheduled. Automation will be limited to a maximum of 0200-0700 daily, and all programming will be produced and presented locally. 37
  38. 38. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand This section should provide an analysis of the reasons as to why it is considered that there is a demand for the type of service proposed, with a reference to the size and nature of the proposed target audience. If original market research has been undertaken, please provide the following information for each piece of research: (i) (ii) (iii) (iv) (v) (vi) (vii) A statement of the key objectives of the research The specific questions that the research sought to answer How the research was conducted The size and composition of the sample(s) When and where the research was conducted A summary of the main findings from the research, showing how these demonstrate evidence of demand for the service proposed. Full data tables for any quantitative research undertaken (these may be submitted in confidence). Please provide your responses to (i) – (v) in tabular format. HLR has commissioned a huge volume of independent market research since 2003, providing the Board with substantial information on which to base its plans for a radio station that will satisfy the needs of listeners in the Hull and East Riding: RESEARCH PROJECT #1 (i) Key objectives: • To establish listening levels to the Hull Local Radio Restricted Service Licence [RSL] broadcast from 30 August to 26 September 2003; • To determine the likelihood of listening to a new permanent radio station. (ii) Specific questions asked: • Radio stations listened to during the last seven days; • Awareness of, and listening to, the RSL broadcast; • Appreciation of programming elements within the RSL broadcast; • Likelihood to listen to a permanent local radio station. (iii) How research conducted: • Quantitative research commissioned from Marketing In Practice research specialists. (iv) Size and composition of sample: • Telephone survey of 511 adults (aged 15+) living within the RSL transmission area, randomly selected from residential numbers; • Quotas applied to ensure the sample reflected the population profile by age and sex. 38
  39. 39. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand (v) Dates and location of research: • Fieldwork conducted between 22 and 26 September 2003; • Within the RSL transmission area. (vi) Summary of main findings: • The highest weekly reach was recorded by: Viking FM (33%), BBC Radio Two (26%), Galaxy FM (25%), BBC Radio One (23%), BBC Radio Humberside (19%) and BBC Radio Four (14%); • 55% of respondents were aware of Hull Local Radio; • 19% of respondents had listened to the Hull Local Radio trial broadcast; • Of those adults who had heard the Hull Local Radio trial broadcast, 84% said the music was “very good” or good”, 84% said the news and information was “very good” or “good”, 91% said the local content was “very good” or “good”, and 73% said the music/speech mix was “very good” or “good; • 75% of respondents said they would be “very likely” or “likely” to listen to a permanent version of the Hull Local Radio trial broadcast. (vii) Full data tables • Full research report submitted as Appendix 8 RESEARCH PROJECT #2 (i) Key objectives: • To establish listening levels to the Hull Local Radio Restricted Service Licence [RSL] broadcast from 20 to 30 September 2005; • To determine the likelihood of listening to a new permanent radio station. (ii) Specific questions asked: • Radio stations listened to during the last seven days; • Awareness of, and listening to, the RSL broadcast; • Appreciation of programming elements within the RSL broadcast; • Likelihood to listen to a permanent local radio station. (iii) How research conducted: • Quantitative research commissioned from Keith Gorton Services research specialists. (iv) Size and composition of sample: • Telephone survey of 304 adults (aged 25+) living within the RSL transmission area, randomly selected from residential numbers; • Quotas applied to ensure the sample reflected the population profile by age and sex. (v) Dates and location of research: • Fieldwork conducted between 29 September and 7 October 2005; • Within the RSL transmission area. 39
  40. 40. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand (vi) Summary of main findings: • 48% of respondents used the Hull Daily Mail newspaper as their primary source of local information; • Asked which music eras they would like to hear on the radio, 82% were “very interested” or “Interested” in hits from the 1970s, 75% in hits from the 1960s, and 74% in hits from the 1960s; • Asked which speech content they would like to hear on the radio, 80% were “very interested” or “interested” in hourly local news during the day, 78% in regular local weather reports, 76% in regular local what’s on information, and 74% in regular local travel information; • The highest weekly reach was recorded by: BBC Radio Humberside (47%), Viking FM (44%), Galaxy FM (24%), BBC Radio Two (21%), Magic 1661 (18%) and BBC Radio Four (15%); • 21% of respondents were aware of Hull Local Radio; • 11% of respondents had listened to Hull Local Radio; • Of those respondents who had listened to Hull Local Radio, 72% said the music was “very good” or “good”, 71% said the presenters were “very good” or “good”, 67% said the local content was “very good” or “good”, and 62% said the local news and information was “very good” or “good”; • Offered a description of a new radio station specifically for Hull with: o Well known hit songs from the 1960’s to the present day o Presenters who know and understand the area o Hourly local news bulletins during the daytime o Regular local weather, travel, entertainment, sport and what’s on information o Community information and daily interviews or features on local people, local issues and local events o Regular coverage of local charities, community organisations and local cultural events. 56% of respondents said they would be “very likely” or “likely” to listen; • 33% of respondents who said they would listen to the new radio station explained that its format appealed to them because they were interested in local issues; • Of those respondents who said they would listen to the new station, 55% said they would listen to the radio longer, while 41% said they would listen less to existing stations in order to make time for the newcomer; • Of those respondents who said they would spend less time listening to existing stations, 37% said BBC Radio Humberside, 32% said Viking FM, 11% said BBC Radio Two and 9% said Magic 1161. (vii) Full data tables • Full research report submitted as Appendix 9 40
  41. 41. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand RESEARCH PROJECT #3 (i) Key objectives: • To analyse radio listening habits within the Hull market over the last six years. (ii) Specific questions asked: • Analysis of RAJAR data from 1999 to 2005 for stations audible within the Hull radio market. (iii) How research conducted: • Quantitative research commissioned International research specialists. from Radio Development (iv) Size and composition of sample: • RAJAR data from six consecutive annual sample points – Quarter 3 in 1999, 2000, 2001, 2002, 2003, 2004 and 2005. (v) Dates and location of research: • December 2005; • Desk research. (vi) Summary of main findings: • Trends from 1999 to 2005 [data indexed for population and TSA changes] within the Viking FM TSA: • Radio listening has remained relatively static (91% reach); • Commercial radio’s share of listening has fallen from 51% to 42% since 1999; • Viking FM’s share of listening has fallen from 18% to 9% since 1999; • Magic 1161’s share of listening has fallen from 5% to 3% since 1999; • Galaxy Yorkshire’s share has risen from 5% to 8% since 1999; • Viking FM ranks fifth in the market, while Magic 1161 ranks ninth; • The top ranked four stations are all BBC. (vii) Full data tables • Full research report submitted as Appendix 10 RESEARCH PROJECT #4 (i) Key objectives: • To determine the interest amongst the potential audience for a new local radio station for Hull; • To determine potential listeners’ preferences for the new permanent radio station, including music content, presenter styles and features; • To determine the propensity to listen to a new local radio station. (ii) Specific questions asked: • Current radio listening habits; • Perceptions of existing local commercial radio stations; • Perceptions of “localness”; • Descriptions of the “perfect” radio station; • Preferences for news coverage; • Preferences for traffic and travel information; 41
  42. 42. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand • • • • Preferences for music formats (with samples played of three different music stations); Preferences for presenter styles; Preferences for features; Likelihood to listen to a new local radio station of this specific description: A local radio station focused specifically on Hull and the surrounding area with: • A wide variety of quality songs from the 1960s to the present day, mixing well-known hits with album tracks by popular artists. • Presenters who know and understand the area. • Hourly local news bulletins during the daytime. • Regular local weather, travel, entertainment, sport and what’s on information. • Community information, daily interviews or features on local people, local issues and local events. • Regular coverage of local charities, community organisations and local cultural events. (iii) How research conducted: • Qualitative research commissioned from Keith Gorton Services research specialists. (iv) Size and composition of sample: • Two focus groups: o the first group comprised 10 adults aged 25 to 35 who lived in Hull; o the second group comprised 10 adults aged 45 to 64 who lived in Hull. (v) Dates and location of research: • The evening of 17 January 2006; • The Cornmill Hotel, Hull. (vi) Summary of main findings: • Participants wanted more local what’s on information on local radio; • The Hull Daily Mail newspaper was the most commonly used source of information; • Repetitive music and irritating presenters were turning people away from local stations such as Viking FM; • Respondents (particularly older ones) tended to listen more to BBC Radio Humberside because they valued the local information, even though younger listeners thought the station’s presentation style was rather old fashioned; • Respondents wanted a radio station to be “upbeat, fun and energetic” with listener interaction and lots of local information and news; Respondents wanted the station’s music policy to cover songs from • the 1960s to today, including less commercial music; • Reaction to the station description was extremely positive from respondents of all ages in both groups. 42
  43. 43. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand (vii) Full data tables • Full research report submitted as Appendix 11 RESEARCH PROJECT #5 (i) Key objectives: • To ascertain existing radio listening habits; • To examine perceptions of existing local radio stations; • To determine the importance of various programmes and features for a new local radio station; • Likelihood to listen to a new local radio station of a specific given description; • To determine the impact of this new local radio station on listening to existing stations. (ii) Specific questions asked: • Sources of local information; • Favourite station and weekly reach; • Strengths and weaknesses of competing radio stations; • Importance of different speech features and music genres; • Likelihood to listen to a new local radio station of this specific description: A local radio station focused specifically on Hull and the surrounding area with: • A wide variety of quality songs from the 1960s to the present day, mixing well-known hits with album tracks by popular artists. • Presenters who know and understand the area. • Hourly local news bulletins during the daytime. • Regular local weather, travel, entertainment, sport and what’s on information. • Community information, daily interviews or features on local people, local issues and local events. • Regular coverage of local charities, community organisations and local cultural events. • Stations likely to attract less listening to make time for new radio station. (iii) How research conducted: • Quantitative research commissioned from Keith Gorton Services research specialists. (iv) Size and composition of sample: • Telephone survey of 510 adults (aged 25+) living within the proposed station’s survey area who listened to the radio for at least 30 minutes per day, randomly selected for telephone interviews. • Quotas applied to ensure the sample reflected the population profile by age and sex. 43
  44. 44. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand (v) Dates and location of research: • Fieldwork conducted from 14 December 2005 to 13 January 2006; • Sample restricted to respondents within the station’s survey area. (vi) Summary of main findings: • Asked their main source of information to find out what is going on in their area, 61% cited local newspapers, compared to 56% for local radio; • The Hull Daily Mail was the most popular newspaper source of information (69%) and BBC Radio Humberside was the most popular radio source (55%); • The highest weekly reach was recorded by: BBC Radio Humberside (48%), Viking FM (42%), BBC Radio Two (24%), Galaxy 105 (22%) and BBC Radio One (16%) in prompted recall; • BBC Radio Humberside was liked most for its local news and features, while Viking FM was liked most for its music; • 32% of respondents said they listened to both Viking FM and Magic 1161 less now than they did a year ago; • 91% of respondents said that local news would be “very important” or “important” for a new local radio station; • 88% of respondents said that local weather reports would be “very important” or “important” for a new local radio station; • 87% of respondents said that local travel news would be “very important” or “important” for a new local radio station; • 86% of respondents said that local what’s on information would be “very important” or “important” for a new local radio station; • 73% of respondents said that discussion programmes would be “very important” or “important” for a new local radio station; • 73% of respondents said that they would be “very likely” or “likely” to listen to a new local radio station playing easy listening music; • 70% of respondents said that they would be “very likely” or “likely” to listen to a new local radio station playing album tracks by popular artists; • 68% of respondents said that they would be “very likely” or “likely” to listen to a new local radio station playing songs from the 1970s; • 66% of respondents said that they would be “very likely” or “likely” to listen to a new local radio station playing songs from the 1960s; • 66% of respondents said that they would be “very likely” or “likely” to listen to a new local radio station playing songs from the 1980s; • 71% of respondents “strongly agreed” or “agreed” that some local radio stations’ music policy is repetitive; • 62% of respondents “strongly agreed” or “agreed” that it would good if local radio stations played album tracks and not just chart hits; 70% of respondents said that it was “very likely” or “likely” that • would listen to a new local radio station of the given description; • To make time to listen to the new station, 46% of respondents would listen to the radio for longer, while 54% would listen less to existing radio stations; • The stations that would be listened to less were BBC Radio Humberside (37%), Viking FM (28%), BBC Radio Two (12%) and Galaxy 105 (10%). 44
  45. 45. Section 105(D) Evidence of Local Demand Or Support 6. Evidence Of Demand (vii) Full data tables • Full research report submitted as Appendix 12 RESEARCH PROJECT #6 (i) Key objectives: • To analyse the music content of existing local commercial radio stations audible in the Hull market. (ii) Specific questions asked: • Analysis of output of Viking FM, Magic 1161 and Galaxy Yorkshire. (iii) How research conducted: • Quantitative research commissioned from Keith Gorton Services research specialists. (iv) Size and composition of sample: • The output of the relevant stations on five consecutive weekdays 0700 to 1900 in January 2006. (v) Dates and location of research: • January 2006; • Desk research. (vi) Summary of main findings: • Viking FM daytime output: o 359 different songs in 637 total plays; o 0% from 1960s, 2% from 1970s, 18% from 1980s, 23% from 1990s, 20% from 2000s and 37% from 2005/6; o most played songs: Kelly Clarkson “Because Of You” (16 times), KT Tunstall “Suddenly I See” (15 times), Shayne Ward “That’s My Goal” (15 times), Robbie Williams “Advertising Space” (14 plays) and Coldplay “Talk” (13 plays); o most played artists: Robbie Williams (22 plays), Kelly Clarkson (17 plays), Sugarbabes (17 plays), Texas (16 plays) and Coldplay (15 plays); o 10 most-played artists account for 24% of all songs played; • Magic AM daytime output: o 524 different songs in 662 total plays; o 21% from 1960s, 27% from 1970s, 37% from 1980s, 7% from 1990s, 2% from 2000s and 5% from 2005/6; o most played songs: Daniel Powter “Bad Day” (6 plays), James Blunt “High” (4 plays), Michael Buble “Home” (4 plays), Police “Don’t Stand So Close To Me” (4 plays) and Rolling Stones “Rain Fell Down” (4 plays); o most played artists: Beatles (24 plays), Rolling Stones (10 plays), Diana Ross (9 plays), Police (9 plays) and James Blunt (8 plays); o 10 most-played artists account for 15% of all songs played. (vii) Full data tables • Full research report submitted as Appendix 13 45
  46. 46. Section 105(D) Evidence of Local Demand Or Support 7. Evidence Of Support RESEARCH PROJECT #7 (i) Key objectives: • To determine the propensity of local businesses to advertise on the new local radio station. (ii) Specific questions asked: • Which media does the business currently use for advertising; • How much does the business spend annually on advertising; • Which advertising medium is found to be most productive and cost effective; • How interested is the business in advertising on a new local radio station; • Is the cost of an advertising campaign on the new station considered reasonable. (iii) How research conducted: • Qualitative and quantitative research commissioned from Keith Gorton Services research specialists. (iv) Size and composition of sample: • 30 face-to-face interviews and 71 telephone interviews with businesses located within the station’s transmission area, specifically with executives responsible for advertising and marketing decisions within each company. (v) Dates and location of research: • 10 January to 5 February 2006; • Within station’s transmission area. (vi) Summary of main findings: • The majority of the sample advertised in Yellow Pages and around half used classified or display advertising in local advertisers or direct mail; • One fifth of the sample had advertised on local radio; • The majority of businesses who had not advertised on the radio were put off by the perceived cost; • 62% of the sample welcomed a new radio station for Hull; • 48% of the sample said they would be likely to advertise on a new local radio station; • 99% of respondents believed that a new local radio station would increase the choices available to local advertisers; • 97% of the businesses interested in radio advertising said the £60 cost of a commercial was acceptable to some degree; • Over four-fifths of the businesses who were interested in local radio advertising reported that the £440 per week cost of an advertising campaign was acceptable to some degree; • Three quarters of the sample wanted to see the new local radio station controlled by a local company. (vii) Full data tables • Full research report submitted as Appendix 14 46
  47. 47. Section 105(D) Evidence of Local Demand Or Support 7. Evidence Of Support This section should provide evidence of support, where appropriate, from the applicant’s potential audience or from prospective local advertisers. Public consultation has been taking place since the first RSL in September 2003. Feedback has shaped two subsequent RSLs, with the last one in late September 2005 being advertised prominently in the local press, with a full colour page in the weekly entertainment supplement of the Hull Daily Mail and East Riding Mail, to encourage public feedback and participation in formal research. From late August 2005 to early March 2006 Hull Local Radio has been gathering support for its proposals by consulting with the key decision makers and opinion formers representing the local community in the public, private and voluntary sectors in the Hull and East Yorkshire area. Opinions were sought on gaps and shortcomings of existing commercial radio and media services; how HLR proposes to fill such gaps and improve upon the current provision; and any specific programming content or policy suggestions. The consultations took the form of bespoke individual meetings consisting of a brief explanatory presentation followed by questions and then discussion around the above points. Without exception, all those consulted were enthusiastic for a radio station that could focus on local issues, information and entertainment. They were especially supportive of a radio style that creates a positive voice for local people at a time of great change. PUBLIC SECTOR HLR met with both Hull City Council and East Riding of Yorkshire Council cabinets and senior officers, including their chief executives and political leaders. Hull City Council emphasised that they are managing a significant period of change within Hull, undergoing consultation and making plans to improve such areas as education, health, public safety, housing and the wider regeneration of the City. A combination of public and private sector investment in the City is expected to reach around £500 million per annum over the next five years – a period of ‘profound’ change which will see the city resemble a ‘building site’ over the next five to seven years. (See Hull’s public sector regeneration web site www.hull.co.uk) “Communication with the public is going to be a vital component of managing change and expectation over the next few years,” Chief Executive Kim Ryley told us. Radio is seen as an important medium. The ability to deliver a focused message to a local audience will be vital. Cllr Kath Lavery, Cabinet Portfolio Holder for Regeneration and Renewal and Chair of the Local Strategic Partnership – Cityvision, said she hoped the new radio service would: “Encourage more positive attitudes to such aspects of local life as learning, health and the ‘respect’ agenda through creative and entertaining features, short information spots, case studies, quizzes and competitions. Informing the public on progress in regeneration and other Council programmes; stimulating public participation in delivering change.” 47

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