Talking Radio: BBC's video could kill the radio stars

Mark Story

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The BBC's plans for video news are risky and unfair, says Bauer's MD of radio brands Mark Story.

I am a friend of the BBC. I wake up to Today on Radio 4 (I do switch to Magic 105.4 in the bathroom) and if Evan Davis had a fan club I would join it. I often defend the corporation's right to exist with its unique funding and I am proud of its status worldwide, which remains unequalled. But sometimes friends have to say: "Enough is enough."

The corporation wants to spend £23m a year to create video-based news websites in 60 regions of the UK. This will directly compete with commercial radio and the local newspaper industry.

There is nothing wrong with fair competition, but this appears a cynically unfair attempt to deal a severe blow to both local commercial radio and newspapers at a time when conditions are at their toughest.
Local commercial radio has been a main source of local news for decades, but it is expensive to gather and to deliver.

But, while it is one of the most expensive things we do, we are not allowed to sponsor it or put commercials in it, not that I necessarily think we should. So it doesn't make money per se. News output is defended by under-resourced programme directors across the UK under attack from accountants trying to find savings which don't exist.

As with all media, we are seeing rapid convergence and, to meet this, radio has invested in websites and, with Independent Radio News, a fledgling video news service.

Before the economic slowdown, times were hard at many commercial radio stations, with the prospect of the situation getting tougher.
Nevertheless our listeners expect a cross-media offering and commercial radio is working hard, cutting back in other areas to meet the market expectation. Unlike the BBC, the commercial sector's investment (in video news) runs to thousands, not millions, and is modest compared with the £68m the BBC plans for its local video news sites between now and 2012/13.

There are few better examples of a company abusing its dominant position, but this isn't News Corporation or Microsoft plotting against the public good. This is the public broadcaster and the £68m is our money. The timing is also suspicious. All commercially funded media is suffering from the economic downturn.

There are many who think this is a cynical self-serving attempt by the BBC to expand into areas it has not been in before while the opposition is busy fighting economic battles. The House of Lords was right to declare its concern at the growing number of outlets for news but the rapidly shrinking number of sources of news.

I value BBC news but I don't want it to be my only source of local news. I want to continue hearing the rich outputs on stations such as Radio City in Liverpool and Clyde in Glasgow - built on years of forging community ties and which have won more Sony golds than there is space on the shelves for.

Ofcom is assessing the market impact of the corporation's proposals and the outcome is important for both commercial radio and the BBC.
If the BBC goes ahead, the demand for the licence fee to be used to support public service output on all radio, whether BBC, commercial or community, will become a roar. It's likely to be accompanied by a call for funding to be withdrawn from non-public service output on the BBC. That may herald a very different radio landscape. 

Mark Story is Bauer Media's MD of national brands