Presentation for CMA Network Meeting 17/07/2021

1. CMA Community Radio
Network Meeting
Funding and Sustainability
for Community DAB
Steve Buckley
Managing Director, Community Media Solutions
Chair, Sheffield Live! Radio and TV, Shefcast Digital

2. Funding and sustainability
for community DAB
 Understanding sustainability
 Ownership models
 Community DAB
 Business models
 Shefcast Digital – Case Story

3. Understanding sustainability
 Governance and ownership
 Social sustainability
 Technical sustainability
 Economic sustainability
 Environmental sustainability

4. Ownership models for SSDAB
 Single licence/ community ownership
 Content provider e.g. community radio licensee
 Local consortium of content providers
 Other community-based ownership
 Multiple licence mux operator
 Commercial platform providers
 Non-profit mux operating company
 Hybrid ownership models
 Local participation / external equity

5. Principles of Community DAB
 Social enterprise under local ownership
 Operating for community benefit
 Delivering resilient SSDAB infrastructure
 Assuring affordable cost for community radio
 Giving priority to C-DSPs and local DSPs
 Reinvesting any surplus:
 To maintain and develop the business
 To reduce costs to community radio
 To support community media development

6. Business models
 Capital expenditure
 Operating expenditure
 Revenue models

7. Capital Expenditure
 Planning and design
 Equipment and software
 Equipment installation
 Network installation
 Contribution – studio(s) > mux
 Distribution – mux > tx
 Licence application fee
 Pre-start operating costs

8. Operating Expenditure
 Transmission site costs
 Site rentals, rates, electricity
 Network charges
 Contribution – studio(s) > mux
 Distribution – mux > tx
 Multiplex system
 Monitoring, maintenance, updates
 Mux partnership management
 Ofcom licences
 Finance costs

9. Scenario 1 – Single mux / single site
Item CapEx OpEx – Year 1
Planning and design 5,000
Equipment / software 15,000
Equipment install 1,500
Ofcom fees 500 500
Transmission site 4,000
Distribution circuit 1,000
Tx/mux management 15,000
Total 22,000 20,500

10. Scenario 2 – SFN (2x tx), mux offsite
Item CapEx OpEx – Year 1
Planning and design 7,500
Equipment / software 30,000
Equipment install 3,000
Ofcom fees 500 500
Transmission site 8,000
Distribution circuit 2,000
Tx/mux management 15,000
Total 41,000 25,500

11. Revenue models
 Charges to channels (C-DSPs / DSPs)
 Administrative cost
 Fixed fee
 Market price
 Hybrid pricing
 Fair and effective competition
 Charges for additional services

12. Cost per channel – SSDAB trials
Ofcom (2016) Small Scale DAB trials, Annex 5

13. Start-up finance
 Grant funding
 Social investment loans
 Share issue / supporters loans
 Crowdfunding
 Hire purchase / transmission as a service

14. Grant funding
 National Lottery Community Fund
 https://www.tnlcommunityfund.org.uk/
 Arts Council
 https://www.artscouncil.org.uk/
 Power To Change
 https://www.powertochange.org.uk/
 Access Foundation – Reach Fund
 https://access-socialinvestment.org.uk/

15. Social investment loans
 Key Fund
 https://thekeyfund.co.uk/
 Social Investment Business
 https://www.sibgroup.org.uk/
 Co-operative and Community Finance
 https://coopfinance.coop/

16. Shefcast Digital – Case Story
 Background and context
 Groundwork and partnership building
 Licence application and award
 Business model

17. https://www.shefcast.org

18. Shefcast Digital:
a community-led consortium
 Joint initiative between
Sheffield Community Media Limited
Commedia Sheffield / Sheffield Live! 93.2fm
Pakistan Muslim Centre / Link FM
Redroad FM (Kiveton Park / Rotherham)
 Shefcast Digital Limited established as a
new not-for-profit social enterprise

19. Governance
Board of
Shefcast
Digital
Limited
Sheffield
Community Media
Limited
(nominates up to
4 directors)
Commedia
Sheffield
(nominates 1
director)
Pakistan Muslim
Centre (Sheffield)
Limited
(nominates 1
director)
Redroad FM
Limited
(nominates 1
director)

20. Ratecard

21. Pioneer partners
Forge Radio C-DSP Angel Radio DSP
Gumbo FM C-DSP Cosoro Radio DSP
Link FM C-DSP Gaydio DSP
Link Islam C-DSP Its Folk Radio DSP
Radio ADP C-DSP RB1 Radio DSP
Redroad FM C-DSP Radio Sangam DSP
Rother Radio C-DSP Skylab Radio DSP
Sheffield Live! C-DSP The Groove DSP
Sheffield Live! Extra C-DSP Venturadio DSP
Sine FM C-DSP VIBE Yorkshire DSP
Mondo Radio C-DSP

22. Technical plan

23. Business model - Capital
 Capital costs – transmission equipment,
multiplexer, network installation
 Estimated capital requirement £60k
including provision for working capital
 Met by:
Grants, social investment loans, community
shares and community bonds

24. Business model - Operations
 Costs - transmission site rentals, data
circuits, maintenance, management
Estimated operating costs £35-40k
 Income – fees for carriage of community
and other digital sound programme services
Estimate revenues at 90% occupancy £60k

25. Further information
 Shefcast Digital
info@shefcast.org
 Steve Buckley
steve@sheffieldlive.org