Channeling Politicians

Michael Hedges August 3, 2009 Follow on Twitter

Public broadcasters across Europe should be celebrating. Audience shares are recovering, in many countries, from the entry of ‘the commercials’ last century. Success, though, just brings out the critics.

Commercial broadcasters in the UK have long railed about the BBC’s unique and, so perceived, dominant position. If only, they’ve said, the BBC had less, did less, was less then they would have more…or equal…or something. Zero-sum thinking has by its simplicity a certain ‘head of the pin’ quality, appealing to accountants, shareholders and politicians.

BBC Radio 1 has long been a target of commercial broadcasters ire. The youth-targeted channel with national coverage would be, they say, a huge money spinner if privatized, ads inserted. Indeed, BBC Radio 1 overpowers the three national commercial channels, which, in total, have seen market shares drop to their lowest level in four years. (See RAJAR audience history here)

Since the recession has taken firm hold in the UK commercial broadcasters have largely turned from most the bitter complaints about the BBC. More important, at the moment, is getting ever scarce ad revenue in the door and, though public admission is politically incorrect, the monkey of digital radio off their backs. It is timely that, in all the important ways, politicians are taking up the cause.

UK Conservative party spokesperson on media and the arts Ed Vaizey is ready to auction off BBC Radio 1 to correct the “imbalance” between BBC and commercial radio channels. “The sale of Radio 1 would help to alleviate the imbalance,” he said to the Sunday Times (August 2). “Industry experts believe the station’s frequency could be worth at least £100m.”

If UK polls and political pundits are an indicator, the Conservative Party (right-side) will take control of the government within a year. Economic pain has a way of “throwing the bums out.”  And the BBC’s independence has long been a target for politicians in search of compliance if not outright subservience. Changes to the body of law required to auction off any part of the BBC would take years to negotiate, through which political fortunes would likely change again.

BBC critics do have a point or two in their favor. Radio 1 was launched in 1967 as a neo-Victorian ‘voice of youth’ radio channel. Its controllers famously banned a considerable body of popular music during the next two decades to maintain a politically correct standard of taste. Pirate radio stations had different standards, if you like, and attracted considerable audience. The result was legalizing privately owned commercial radio licenses. Radio 1, too, became far less conservative in its game. In the iPod and YouTube era the Radio 1 remit could stand a re-evaluation.

Other public broadcasters operate youth-targeted radio channels. Most were designed, like Radio 1, to keep the kids on the straight and narrow. Some are extremely successful. Austrian public broadcasting (ORF) youth channel O3 has nearly 50% daily reach, according to the Radiotest audience survey of the first half 2009. Others - Le Mouv’ in France, for example – barely move the needle. Most have given up in loco parentis for the ratings chase.

In response to anxiety among commercial radio owners UK regulator OFCOM has been slowly revising a variety of rules. Chief among the recent changes is relaxation of local origination rules. While UK radio licenses – the three national concessions excepted – are granted for specific localities with requirements for local program origination. Companies bid on local licenses, find themselves in financial difficulty then beg the regulator for relief. Local programming is expensive.

Anxiety is not exclusive to commercial broadcasters. Facing bankruptcy Latvian public radio has won regulator approval to lease Latvijas Radio 2 to a commercial broadcaster in a deal that has eyes rolling. Polish public television and radio have fallen under the control of one political party. Czech and Hungarian politicians continue to hold up funding plans for public broadcasters.

Major public broadcasters find themselves in a bit of a pickle. Success, as the saying goes, breeds contempt. Denmark’s public radio broadcaster DR has all but driven out commercial operators bringing on questions about media plurality. Swiss regulator BAKOM ‘top-sliced’ the radio and television license fee tax to support struggling local commercial radio. The next UK RAJAR radio audience survey will be released this week (August 5) and certainly BBC radio programmers are cheering for their commercial competitors.