According to a sector review, independent radio stations are likely to be impacted by the BBC’s newly proposed online music streams. The UK media regulator, Ofcom, has found that the launch of an online-only music service on the BBC Sounds app, targeting older listeners, could have a significant adverse effect on competition.
Ofcom has directed the BBC to halt the proposed Radio 2 extension changes, which include three new music streams: BBC Sounds only Radio 1, Radio 2, and Radio 3 extensions. Ofcom stated that the launch of one of these streams represents a “material change” to the BBC’s output.
While the BBC’s assessment suggested a limited impact on competitors, Ofcom highlighted that independent stations and larger commercial groups, such as Global and Bauer Media, could be affected differently. Ofcom emphasized that Boom Radio may struggle to mitigate the impact and invest in new content if the Radio 2 extension stream is launched.
Regarding accountability, Radiocentre CEO Matt Payton welcomed Ofcom’s decision as an “encouraging first step” in acknowledging the potential competition impact of an online-only BBC radio service. He called for a focus on BBC accountability and market impact by the government.
In its review, Ofcom approved the proposed Radio 1 and Radio 3 extension streams on BBC Sounds, along with changes to the existing Radio 1 Dance stream. The Radio 1 extension targets younger audiences with hits from the 2000s and 2010s, while the Radio 3 extension offers a calming classical music experience.
The BBC has been contacted for comment, but a response has not been received at the time of publication.
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