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ftm Radio Page - November 1, 2013

Station closure highlights license fees, public competition
It’s sad

Sweden’s only commercial talk radio station Radio 1 will leave the airwaves at the end of the year, announced Modern Times Group (MTG) Radio CEO Christer Modig to staff last week. The company is returning the concession and will concentrate resources on other stations in its stable, notably national network Rix FM. Media watchers, including competitor SBS Discovery, noted the long odds for new formats in Sweden.

Radio 1 launched on FM in Stockholm in the spring of 2011 with high profile talk show hosts. Morning show host Robert Aschberg, also a well-known TV personality, courted controversy. Plans to migrate Radio 1 to national digital multiplexes never materialized. This year and last the station was named radio station of the year at the annual Swedish Radio Day.

“The situation has gone from very problematic to directly unsustainable,” said Mr. Modig in a statement. “Unfortunately we are forced to give up because we no longer have the financial resources to continue to invest in something where we do not see that with the current conditions we will reach some sort of profitability.” He noted the lack of financial incentive for digital migration and high concession fees.

“It is sad that Radio 1 is closing down because it was an exciting and bold attempt to broaden the radio landscape,” said SBS Discovery radio CEO Staffan Rosell, quoted by radionytt.se (October 25). “Unfortunately, it's also a testament to how tough it is to operate private radio in Sweden, with the world's highest license fees and competition from a strong (public broadcaster) SR.” The annual concession fee for Radio 1 is about SEK 3.6 million (€415,000). (See more on media in Sweden here)

"The government, which says it wants to have a viable private radio,” Rosell continued, “should now if not sooner realize that something is seriously wrong and act accordingly. Reducing concession fees related to digitization is necessary and urgent.”

Multi-platform MTG, not known for suffering losses, posted Q3 revenue gains but lower profits last week (October 23). The company is expanding video production capacities through acquisitions as well as gaining a foothold in African TV.

Rix FM will broadcast its morning show from the Sochi Winter Olympic Games in February. (JMH)

Popular station evicted by security forces
Media watchers appeal

Armed security forces forcibly evicted Somali radio station Radio Shabelle Saturday morning local time, reported Al-Jazeera (October 26) and local sources. The broadcaster had received notice to vacate a building it had been leasing from the government. Station officials said relocating from the reasonably secure site near the Mogadishu airport would put staff and facilities at risk. Radio Shabelle is considered the most listened to media outlet in Somalia.

Radio Shabelle has been threatened by Islamists for several years. Ten of its employees have been murdered in ten years. More recently, station commentators have criticized Somali government officials. The station went dark shortly after the raid. Station employees, many of whom lived in the building, were loaded into vans, driven to a police station and released after six hours but told not to return to the site.

Earlier in the week (October 22), Universal TV reporter Mohamed Mohamud was shot in his automobile while driving in Mogadishu. He succumbed Saturday (October 26). The assailants have not been identified. A year ago Universal TV reporter Ahmed Farah Ilyas was shot dead. (See more on media in Africa here)

Reporters sans Frontieres (RSF), National Union of Somali Journalists, Freedom House, International Press Institute (IPI) and a dozen other regional and international media watchers appealed to Somali Prime Minister Abdi Farah Shirdon to rescind the eviction. “These repeated efforts to weaken Radio Shabelle and the representatives of the independent media are not worthy of a democratic society and undermine Somalia's progress towards rule of law,” said the open letter.


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