Local Radio Support (LRS) and its undersigned associated stations would like to draw attention to the points below.
We believe it is in the interests of PPL (and PRS) to review licencing for smaller independent commercial operators. We suggest the relatively new joint licence for community radio is also reviewed and simplified. Distinctions between small commercial operators and community stations are becoming increasingly difficult to define. We believe a turnover based system for all smaller operators regardless of licence type would be more appropriate as the sector evolves. Our logic is:
The current commercial model was built for heritage commercial brands, this still works for stations with much larger turnover than a typical ‘new breed’ independent operating on DAB or SSDAB.
There is much confusion across the industry especially amongst smaller operators. Regardless of platform (AM, FM, DAB, SSDAB and Online) a turnover only based model would mean a simple ‘size’ based system. Moreover ‘not for profit’ organisations would potentially benefit the most in the true spirit of serving their audience. Music is a staple for most stations but is of no more or no less value according to platform or licence type.
Many ‘would be’ broadcasters abandon plans when they are made aware of the current minimum licencing levels. We see this all too often through our connections to multiplex operators. This is not good for all parties moving forward, PPL, PRS, DCMS, Ofcom and more.
Despite the above there are literally hundreds of new stations on DAB, SSDAB and online however many are struggling to cover costs. In many cases music royalties rank high or highest on the list of costs, even at the current minimum levels. If they are forced to close (and many have) the royalty revenue falls to zero whereas at a more sustainable level they could continue to contribute. This is important for future growth and also many of such stations provide exposure for artists that are NOT considered mainstream.
The absence of a more sustainable tariff for smaller operators of all types has the potential to severely restrict the success of digital growth in broadcasting and along with this in plurality of listener choice. Especially important as many local operators (both community and commercial) provide local information no longer carried by national brands in some cases.
As well as securing and retaining more licensees for PPL (and PRS) a new tariff would avoid removal of services because of royalty costs, something we are sure PPL (and PRS) would not wish to be responsible for. Alternatively given time to prosper new services can potentially grow into larger royalty contributors.
A new and simple approach for smaller operators on any platform (DAB, SSDAB, FM, AM, Online) based on a percentage of audited annual turnover and not minimum fees (with say a qualifying turnover level of less than £50,000) is we suggest more likely to ensure long term contributions from the fast evolving sector, avoid closures and lead to continued growth.
localradiosupport.com and the undersigned:
The letter has already been endorsed by over 100 independent operators, if you would like to sign it too you can do so at this link –
