Community Radio

Community Radio Annual report on the sector: 2008/2009

Statement Publication date:

18 November 2009

Main Heading

Contents Section

Page

1

Executive summary

1

2

Sector overview

4

3

Community Radio Stations’ Income

11

4

Community Radio Stations’ Costs

22

5

Community Radio Stations’ Key Commitments and Social Gain

25

Annex 1

Page Stations Completing an Annual Report in 2008/09

35

Community radio annual report 2008/2009

Section 1

1 Executive summary 1.1

Community radio stations are a new type of not-for-profit radio service, designed to operate on a small-scale and to deliver community benefits (‘social gain’) to one or more communities. The legislation to enable community radio services to be licensed was introduced in 2004, and the first station launched in November 2005. This is Ofcom’s second annual report on the sector.

1.2

Ofcom has now licensed 214 stations over two rounds of licensing. 159 of these are broadcasting, 12 have either decided not to launch or have handed their licence back and the remainder are preparing to start broadcasting. The second round of licensing is ongoing - Ofcom is currently considering 13 applications from groups based in the southeast of England (excluding London and other areas within the M25) and a further 31 applications from groups based in London or other areas within the M25 motorway.

1.3

Community radio serves a wide range of communities; the majority serve a general audience in either an urban area (17%) or a town / rural area (44%). However, many others serve smaller communities of interest including those aimed at minority ethnic groups (14%), young people (9%) and religious groups (7%). 170 of the stations awarded a licence are in England, 14 in Northern Ireland, 20 in Scotland and 10 in Wales.

1.4

The legislation governing community radio sets out the characteristics of community radio services and defines social gain. Each station has a set of ‘key commitments’ which forms part of its licence and details how the station will meet these characteristics and deliver social gain, including for example, its core aims and commitments in respect of training, access and accountability.

1.5

The legislation also provides for Ofcom to set licence conditions that limit the amount of income that can be generated from on-air advertising and sponsorship. For most stations this limit is 50%; however, two stations have a lower limit (25% and 10%) and a further 18 stations are not allowed to receive any income of this type. The additional restrictions are in order to protect smaller commercial services with whose coverage areas the community services overlap.

1.6

Every station that has been broadcasting for more than a year is required to complete an annual report; this report details how a station has performed against its key commitments and also identifies its sources of income and expenditure, in part to ensure that the station has met the legislative requirements on funding. For the period April 2008-March 2009 Ofcom received reports from 99 stations (92% of those required to complete a return). Seven reports are outstanding in full or part (stations that launched during this period or later are not included in this report).

1.7

The average station’s income in 2008/09 was around £79,000, although the median figure (the mid-point in the distribution of stations’ incomes) is significantly lower at £50,000, suggesting a small number of stations earn significantly more than the majority. (The reported income of the four highest income stations is as large as the 50 lowest income stations combined, at around £1.4 million. If we exclude these four stations the average income drops to around £67,000, with no significant change in the median.) Stations serving particular communities reported a higher income then the sector average - those serving general audiences in urban areas (an average

1

income of £92,000) and those serving minority ethnic communities (an average income of £106,000). 1.8

The average income is down by around 20% on the previous year’s reported figures (the average for 2007-2008 was £101,000) and similarly, the median income is also down by around 20%. The relative contribution of different types of income does not appear to have changed substantially in comparison with the previous year. Although we cannot be certain as to the reason for the drop in reported average incomes, the indications are that the recession has had an impact and community radio stations themselves often reported that they believed the recession was a major factor impacting not just on advertising but also grant income.

1.9

The most significant type of income for the sector is grant funding, which accounts for around 41% of the total. Income from on-air advertising or sponsorship is the next most important, accounting for around 23% of the total (23% of stations in this year’s report did not seek income from advertising or sponsorship at all either because (1) they choose not to (16 stations) or (2) because they were prohibited under their licence from doing so (seven stations)).

1.10

Public sources of funding – usually in the form of grants - account for around 43% of the sector’s total income. Local authorities are a major source of public funding, accounting for around 17% of the sector’s total income whilst the Community Radio Fund, administered by Ofcom on behalf of the Department for Media, Culture and Sport, accounts for around 4% of the sector’s total income. The Community Radio Fund remains the individual largest single source of income for the sector although we are aware of a number of other grants in excess of £100,000 that have been paid to individual stations.

1.11

Community radio stations are, on average, spending a little more than their income – on average stations cost £81,000 to run. The major item of expenditure is staff at around 52%; premises and technical costs are the next most significant items at around 10% each. The sector average is a deficit of just under £3,000, but this disguises a wide range from surpluses of £83,000 down to a deficit of £133,000. 40% of all community stations which have returned annual reports were in deficit and 23% of stations had deficits in excess of £10,000. In general, large deficits are being funded by parent organisations whilst any surpluses are invested in the operation of the service.

1.12

Community radio stations broadcast live on average for around 77 hours a week, and typically broadcast a further 10 hours per week of original pre-recorded material. On average, around 32% of stations’ daytime output is speech, featuring a diverse range of local organisations and community members. Music output is similarly broad: some stations focus on particular genres that are not commonly heard on the radio whilst others take a more mainstream approach during the daytime but then branch out into specialist genres in the evening.

1.13

The average station has around 75 volunteers – although again there is a wide variation, from 1 to 287 – who together give around 222 hours a week of their time in total. There are now some 159 stations broadcasting and Ofcom therefore estimates that volunteers contribute nearly 150,000 hours a month to community radio.

1.14

Ofcom is addressing a number of regulatory issues following receipt (or non-receipt) of individual reports. Ofcom is seeking further information from three stations with respect to the statutory 50% limit on the amount of income that is received from onair advertising and sponsorship, seven stations have not yet returned their reports in

2

Community radio annual report 2008/2009

full or part to Ofcom, which is a potential breach of a station’s licence, and Ofcom has written to one station with respect to its ‘key commitments’ where Ofcom considers that the station has not provided enough information to allow Ofcom to assess whether it is meeting its commitments. If we are not satisfied with the steps taken by stations then we may consider regulatory action.

3

Section 2

2 Sector overview 2.1

Community radio forms a distinctive third tier of broadcasting services alongside the BBC and commercial radio. Its distinctiveness is enshrined in the Community Radio Order 2004 (available at www.opsi.gov.uk/si/si2004/20041944.htm) which sets out certain requirements for community radio, including that services are non-profitdistributing, are provided for an identified target community, deliver defined ‘social gain’ objectives, invite access and participation in the service, and are accountable to their target communities.

2.2

Ofcom first invited applications for community radio licences in September 2004, and finished this initial round of licensing in May 2006. There were 194 applicants in the first round and 107 groups were awarded a licence, with the first station launch in November 2005.

2.3

For the second round of community radio licensing, Ofcom invited applications on a region-by-region basis. The UK was split into eight regions, starting with southwest England and south Wales in late 2006 and concluding with London and other areas within the M25 in November 2009.

2.4

There is a severe shortage of available FM frequencies in many urban parts of the country: when Ofcom first issued the invitation to apply for licences in London and other areas within the M25 it was only able to identify two available frequencies, the potential use of which was limited to areas in south London only. However, the decision of the owner of the local commercial radio service for the High Wycombe and Amersham areas of Buckinghamshire to hand back its licence meant that there was the potential for two more FM frequencies to be used by community radio services within the M25. Ofcom therefore decided to reissue its invitation and extended the closing date to 3 November.

2.5

As of November 2009, Ofcom has awarded 107 groups a licence in the second round out of 154 applications considered, and a further 44 applications are under consideration. Of the 198 second round applications received by Ofcom, 169 were from groups in England, 13 from Scotland, nine from Northern Ireland and seven from Wales.

2.6

In total Ofcom has offered licences to 214 community radio stations; of these 159 have been issued – the stations are on air - with 43 preparing to launch (community radio stations have up to two years to launch from the date that they are offered a licence).

4

Community radio annual report 2008/2009

Figure 1 Community radio stations launch dates by year

2.7

Nine stations decided not to launch and a further three handed their licence back after they had commenced broadcasting. In general, the reasons for a community radio service failing relate to funding: a number of groups were hit by unexpected cash flow issues, and others had placed excessive reliance on a single major source of funding that subsequently fell through. One group had a very small core group of participants - which may have impacted upon its ability to attract wider volunteer input and funding – whilst another group suffered from the failure of its parent organisation. Although community stations have up to two years to launch from the point of licence award, both successful and unsuccessful groups have found that this timeframe still requires prompt action and adequate planning in order to launch a valuable and sustainable service.

Licence transfers 2.8

Community radio licences may be transferred from one organisation to another. However, Ofcom must consent to such transfers and in order to give such consent Ofcom must be satisfied that the proposed new licence-holder is in a position to comply with all of the conditions included in the licence such as providing the licensed service and continuing to deliver the station’s existing key commitment. To establish this Ofcom requests information from the proposed new licence-holder including business plans, evidence of available funding to sustain the service and the relevant experience of the proposed directors.

2.9

During the year (2009) to date Ofcom has consented to two licence transfers, for the licences of Radio Cardiff and Skyline Radio in Hedge End, Hampshire.

2.10

Further information on the licensing process for community radio is available on Ofcom’s website at www.ofcom.org.uk/radio/ifi/rbl/commun_radio/.

2.11

As Figure 2 shows, community radio services are dispersed across the UK, with 161 stations licensed in England, 14 in Northern Ireland, 18 in Scotland and nine in Wales (excluding licences handed back).

5

Figure 2: map of community radio in the UK

The Superstation

COMMUNITY RADIO IN THE UK Speysound shmuFM

Mearns FM

Dunoon CR

Bute FM

AM FM

Sunny Govan R Insight R Edinburgh Garrison Leith FM Awaz FM Revival R Black Diamond Celtic Music AM Pulse CR

Brick FM

3TFM

Lionheart R Spice FM

Alive R

NE1 FM Utopia FM Bishop FM

Drive 105

R Hartlepool R Teesdale

Vibe FM

Aldergrove & Antrim FM Holywood FM XLFM Feile FM Radio Failte Blast FM BFBS Lisburn Lisburn City R Down FM Shine FM Ballykinler FM Iur

Cross Rhythms Community Voice

Drystone R

Catterick Garrison FM Diversity Indigo FM Pendle CR Vixen Seaside R BCB JCom Tempo Preston FM West Hull CR Crescent Phoenix FM Asian Fever Branch FM Chorley FM Sine FM KCC Live Oldham CR Redroad FM 7 Waves R Penistone TMCR Gtr Manc. Point FM Burngreave CR Tudno FM R Lindum Sheffield Live & N Ches. Boundary Sd Siren FM Flame CCR Moorlands Halton FM Amber Sd Canalside Cheshire FM Kemet R Takeover Erewash Sd R Dawn Gravity FM Calon FM R Faza R Ikhlas Cross Rhythms Tulip R Hermitage FM Ambur R EAVA The Eye Future R TCR FM WCR Takeover R Big City Raaj FM Wayland R Kohinoor FM SACDA R Huntingdon CR Unity FM Demon FM HFM

Greater Manchester & N Cheshire Salford CR All FM – South central & East Manchester Wythenshawe FM Tameside CR Pure R – Stockport Bolton FM Peace FM – Hulme Rossendale Radio North Manchester FM Gaydio - Manchester Unity Radio – central Manchester

Blyth Valley

Style R Zeta The ‘Bridge Switch New R Corby R The Hillz R W Suffolk BigglesFM Cross Rhythms Inspiration FM Youthcomm R Ipswich CR 209 Radio IntoBeats CAM Diverse FM Felixstowe Forest of Dean CR Radio LaB Gloucester FM Leisure FM Colchester Garrison Inspire R BRFM (Blaenau Gwent) Stroud FM Saint FM R Verulam

Afan FM

GTFM

R Tircoed

R Cardiff Bro R Glastonbury FM 10Radio

Phonic FM

Bristol C FM Ujima FM

Cross Rhythms Plymouth Soundart R

The Source Radio Scilly

Phoenix FM

Asian Star 1 Ummah Somer Valley FM Greater London BGWS Salisbury Plain Sunlight Garrison Aldershot Garrison Castledown R Voice Unity 101 Forest FM The Bay Aspire FM

R St Austell Bay

Swindon 105.5 Marlow FM R Awaaz

Meridian Skyline CR Express FM

Uckfield FM

The Park Angel R Havant R Reverb Seahaven Hope FM Angel R IOW

BRFM

Academy

CSR AHBS

Academy

Rye Greater London Desi R– Southall Hayes CR - Hayes On FM – Hammersmith Bang – Stonebridge & Harlesden Link FM – Havering NuSound R – Newham Resonance FM – C London R Umma – Newham Voice of Africa - Newham Westside CR – Southall

Updated: 26.10.9

6

Community radio annual report 2008/2009

2.12

Each community radio station defines its own target community (or communities) when it applies for a licence. The majority of stations seek to serve a general audience within their broadcast areas, but a sizeable minority are targeted at a specific community within a geographic area (see Figure 3 below).

Figure 3: community radio - types of community served

Type of community served

General audience – town/ rural General audience – 2 urban Minority ethnic group 3 Young people Religious focus Military Other Older people Arts Disability Health promotion Lesbian, Gay, Bisexual and Transgender Scottish music Urban music Total

Number of licences awarded1

Percentage of licences awarded

Number onair (October 2009)

Number completing annual reports 2008/09

93

44%

62

29

36

17%

30

24

29 20 15 9

14% 9% 7% 4%

26 13 11 9

16 7 8 9

4 3 1 1 1

2% 1% >1% >1% >1%

2 3 1 1 0

2 2 1 0 0

1 1 214

>1% >1%

1 0 159

1 0 99

2.13

There is a wide variation within some categories of community of interest stations; for example stations aimed at young people include those specifically for children such as the two Takeover Radio stations (in Leicester and in Sutton-in-Ashfield) and others aimed at students in higher education which may include older people in their target audiences. Stations with a religious theme may also vary greatly in their output – between their religious affiliations, the amount of speech they broadcast and the extent to which their output is explicitly religious or more mainstream whilst informed by a Christian or Islamic ethos (for example).

2.14

It is also important to note that the boundaries between different types of community of interest may be fluid; the urban music station Intobeats FM in Bedford will be principally focussed on urban music but consequently its target community will be mostly comprised of younger people, whereas some youth stations such as Unity in Manchester have urban music at the core of their programming.

2.15

Furthermore, many of the stations serving broad geographic communities have a particular remit to serve subgroups within those communities – the Community Radio Order 2004 requires that community radio stations seek to serve ‘underserved’

1

Including licences that have been handed back. We have defined an urban station as one based in a town/ city of more than 175,000 people and / or one that is contiguous to a large conurbation. 3 Includes services aimed at children and those in further or higher education, as well as young people more generally. 2

7

communities – and we would estimate that at least half of the ‘geographic’ stations have some programming specifically aimed at one or more minority or disadvantaged group. Generally speaking, the more urban a station the more likely it is to have output aimed at specific sub-groups within the community (reflecting the greater diversity within their broadcast areas) – that said, a number of the rural stations broadcast output for groups such as migrant farm workers. 2.16

Indeed, with some ‘general audience’ stations, much of the output is split between different interest groups. Therefore the headline numbers for community of interest stations given above underestimates the true amount of programming and off-air activity aimed at people who fall into one or more of the sub-groups identified in Figure 3, or other groups, particularly the economically disadvantaged.

2.17

For example, RadioReverb in Brighton has an eclectic schedule including ‘Up and Out’ (a breakfast show for the LGBT community), ‘Refugee Radio’, ‘Songs from the Ark’ (an alternative country music programme), ‘Business as Usual’ (for Brighton’s small and medium-sized businesses) and ‘Chilli Beat Science’ – which combines science news with recent dance music.

2.18

For those general audience stations that don’t explicitly divide the schedule between different communities of interest, a common approach is to have daytime weekday programming centred around mainstream music and speech with plenty of community information, but then moving to specialist music programmes in the evening (usually in recognition of the fact that mainstream audiences tends to move towards television in the evening). Anecdotally, it appears that this approach is common amongst those stations serving general audiences in towns or rural areas.

2.19

Similarly, many community of interest stations offer programming that has a broad appeal beyond their main target community.

The population served by community radio 2.20

Based on our computer modelling of population data and signal reception, Ofcom estimates that around 7.5m adults (9.4m people) are able to receive a community radio station broadly aimed at them – that is, either a general audience service or one that appeals to a particular community of interest of which they are a member. We must stress that this is an approximate figure, as there is a wide variation in the concentration of spectrum use across the UK and figures for the size of communities of interest are estimates only.

2.21

Therefore around 15% of the population is able to receive a community radio service on FM or AM aimed at them; this, combined with the fact that Ofcom has had to restrict FM applications in a number of urban areas because of a shortage of suitable frequencies, suggests that demand may still be a long way from being fulfilled.

2.22

The exact parameters for assessing the coverage of community radio services are set out in Ofcom’s document ‘The licensing of community radio’ (www.ofcom.org.uk/radio/ifi/rbl/commun_radio/prsandl/l_cr_state/). Further details of how Ofcom defines technical coverage can be found in “Coverage: Planning Policy, Definitions and Assessment”, which is available on our web site at: www.ofcom.org.uk/radio/ifi/rbl/car/coverage/pp_def/.

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Community radio annual report 2008/2009

Community radio reporting requirements 2.23

Each community radio station has a set of ‘key commitments’ which forms part of its licence. This is the equivalent of the ‘Format’ included in every analogue commercial radio licence, but is far more detailed, including, as well as the nature of the programme service to be provided and its core aims, details of the licensee's commitments in respect of the delivery of social gain, training, access and accountability.

2.24

Community radio licensees are required to submit an annual report on progress and delivery against their key commitments. We have a template for the annual report which licensees complete and a separate pro forma for financial information.

2.25

Licensees must submit the pro forma financial report each year, so that we can judge whether they have stayed within the funding limits set by the legislation and set out in their licence (see below). The report includes information such as major sources of income and expenditure. A failure to adhere to the funding limits may be a breach of a licence condition. For the period April 2008-March 2009 Ofcom received reports from 99 stations. At the time of publication of this report, seven stations had not completed their return 4. Failure to provide a report is a potential breach of a station’s licence, Ofcom has written to each of these stations offering them the opportunity to make comments before we consider further action.

2.26

Most community radio services are allowed under their licence to generate up to 50% of their funding from on-air commercial sources (spot-advertising and sponsorship opportunities taken together). At the time of licensing, Ofcom can set a lower proportion of the amount of income that can be derived from on-air advertising or sponsorship. Ofcom does this when it believes that licensing a service may prejudice unduly the economic viability of another local service. Currently two stations have such restrictions in their licences (Garrison FM in Catterick with a 25% limit, and Radio Sunlight in Gillingham with a 10% limit). KCC Live in Knowsley also had a lower (15%) limit imposed, however, after the licence for the local commercial radio service with which it overlapped was revoked by Ofcom the restriction was increased to the standard 50% limit.

2.27

A small number of community radio services (18 in total, of which 14 are on-air) are prohibited under their licence from obtaining any income from advertising or sponsorship where there is an overlap with another local station serving between 50,000 and 150,000 adults (aged 15+) within their measured coverage area (MCA). It is possible that, were this restriction not in place, other community groups would consider applying for a licence in the areas affected. There are currently 66 local commercial stations which benefit from this prohibition.

2.28

A further legislative restriction, implemented to protect very small-scale commercial stations, is a prohibition from licensing any community radio services which overlap with another local station serving 50,000 adults (aged 15+) or fewer within their MCA. There are 24 such commercial services of this size broadcasting at present. (This prohibition may be removed in the near future, see paragraph 2.30 below.)

2.29

It is important to note that during the licence application process Ofcom must assess whether, more generally, a community radio service is likely to prejudice unduly the

4

Therefore the response rate was around 92%. We do not believe that the seven stations who did not submit a report will have significantly affected the findings (by, for example, having very high or low total incomes in relation to the rest of the sector).

9

economic viability of any other existing local service. It is possible therefore that in some cases, even if the absolute prohibition on a community radio service overlapping a small commercial service were removed, Ofcom may still decide not to license a community radio service because of the serious potential economic harm it might cause to an existing radio service.

The Community Radio (Amendment) Order 2009 2.30

The Community Radio (Amendment) Order 2009 (the 2009 Order) is expected to be laid before Parliament shortly. On the basis of the Department for Culture Media and Sport consultation on amendments to the community radio licensing regime, Ofcom anticipates that the 2009 Order will remove the restriction which prohibits Ofcom from licensing community services that may overlap with local commercial radio stations which serve a potential audience of fewer than 50,000 adults. If enacted, Ofcom would be allowed to license a community radio service in such an area in future. However, such community radio services would not be able to take any income from the sale of on-air advertising and sponsorship (as with those stations that overlap with commercial radio services serving a potential audience of between 50,000 and 150,000 adults).

2.31

The 2009 Order is expected to implement two other notable changes to the legislation: 1) Licence extension The 2009 Order is expected to set out a process by which existing community radio services may have their licences extended once for a further five years. Ofcom expects that over 60 stations may seek to have their licences extended in 2010. 2) Removal of the 50% limit on funding from any single source The 2009 Order is expected to propose removing the current legislative restriction whereby Ofcom cannot grant a licence where an applicant proposes to receive more than 50% of its funding from any one source (this refers to a single organisation rather than a type of funding such as advertising or grants).

2.32

The DCMS consultation (now closed) and statement on Amendments to the Community Radio Licensing Regime is available at www.culture.gov.uk.

Third round of licensing 2.33

10

The application window for the last region in the second round of licensing is now closed. Ofcom is aware of continued demand for community radio services across the UK and we expect in the next few months to consider whether to conduct a third round of community radio licensing, and if so, how and when to do this. Ofcom remains committed to enabling any community that wants such a service to have one, subject to the legislative requirements and frequency availability.

Community radio annual report 2008/2009

Section 3

3 Community radio stations’ income 3.1

Community radio stations receive income from a wide range of sources: as noted earlier the legislation specifically requires diversity of income, with rules that currently prevent Ofcom from granting licences to applicants who intend to receive more than 50% of their income from any one source. The legislation also provides for Ofcom to set limits on the amount of income received from on-air advertising or sponsorship. For most stations this limit has been at 50% of all relevant income 5. “Relevant income” means any payment or financial benefit, whether direct or indirect, which is attributable to the services provided under a station’s licence.

3.2

Again, as discussed earlier, some stations – those that overlap with small-scale commercial services serving between 50,000 and 150,000 adults – are forbidden through conditions in their licences from taking such on-air advertising (18 at present). Ofcom also has the power to impose a limit of less than 50% on a community radio service if it believes the standard 50% limit would prejudice unduly the economic viability of another local service - two stations have such restrictions, one with a limit of 10% and the other at 25% (one of these stations, Catterick Garrison, is broadcasting and completed a report this year).

3.3

Community radio services must also operate on a non-profit distributing basis, ploughing any excess revenues back into the operation of the service.

3.4

Ofcom asked each station completing an annual report to report on its total income, broken down by category. Figure 5 below shows the average income across the sector for the period April 2008-March 2009. It is important to note that there are variations depending on the type of station and its location, and these variations are discussed later.

Average income 3.5

The average (mean) income for the sector was around £79,000. However, there was a very wide range of incomes as illustrated in Figure 4 below. Income ranged from £3,000 to over £415,000. The median income (i.e. the value at the mid-point in the distribution of incomes) in the sector was substantially lower than the mean, at £50,000, suggesting a small number of stations generate a significant proportion of the sector’s income – for example, the four richest stations earn as much income as the bottom 50 combined (around £1.4 million). If we exclude the four highest earning stations the average income declines to around £67,000, although the median is not significantly different (£48,000).

5

As noted in paragraph 2.32 above, the rule limiting funding from any one source to no more than 50% of total income may be removed in the near future. The restrictions on income derived from advertising or sponsorship are likely to remain in place.

11

Figure 4: distribution of total income levels across the sector

3.6

Last year Ofcom found that station’s average income was just over £100,000 with a median of around £62,000. Therefore the reported level of decline for both average (mean) and median incomes was around 20% 6 indicating a consistent impact across the income spectrum.

3.7

Ofcom observes that newer stations have lower incomes and considers that this is because they have yet to establish themselves in their communities; indeed the average income of those stations that have been on air for more than 18 months was around £89,000 for this reporting period whereas for those who have been broadcasting for less than 18 months the average income was lower at around £42,000 7. However, around a quarter of the stations reporting this year had been onair for less than 18 months, whereas last year around half of reporting stations had been on-air for less than 18 months.

3.8

In the absence of other changes we would have expected the average income to have risen - we consider it likely that the recession has had an impact on community radio stations’ finances. The only other significant variable that we have found to affect income is the type of community served. However, when Ofcom considered the distribution of the types of station by community served, we found that the range of stations submitting reports this year was not significantly different from last year 8. The average incomes of the largest stations (by income) and others have all fallen in

6

If we exclude the four highest earning stations from the calculations for last year and this year, there is still a decline of around 20% for both mean and median incomes. 7 In the last reporting period, the average income for the 32 stations that had been on air from more than 18 months was £117,000, whilst the 35 stations that had been on air for less than 18 months it was £86,000. 8 As noted previously, the return rate for annual reports this year was around 92% (99 out of 106); last year the return rate was even higher (69 out of 70).

12

Community radio annual report 2008/2009

comparison to last year. The income of those on air for less than 18 months is lower than those over 18 months, but both have fallen in comparison to last year. There are clear indications therefore, supported by comments from stations themselves (see paragraph 5.51), that the recession has had an impact. 3.9

As shown in Figure 5 below, and consistent with last year, the most important types of income for the sector continue to be grants (41%), on-air advertising and sponsorship (22%), ‘Service Level Agreements’ (SLAs) or service contracts (12%) and donations (9%). (SLAs allow community radio stations to engage with relevant statutory organisations for the delivery of output of social benefit, in return for funding.)

Figure 5: average income across the community sector

3.10

Although Ofcom provides guidance notes, we acknowledge that different stations might take different approaches to the allocation of particular types of income in specific categories. This is particularly the case for grants, SLAs and funding for education/ training, where one payment could conceivably be classified in any of these categories and therefore we consider the figures within these categories to be close approximates (however, we are confident that the figures for overall income are robust).

13

3.11

Where stations are part of a larger community organisation – stations may be part of a further education establishment for example – Ofcom has asked that only the income and expenses incurred in the operation of the radio station are included. However, we do recognise that different stations might have taken different approaches in apportioning income or costs to the community radio service.

3.12

Similarly, another important factor to note in considering both income and expenditure is that most stations broadcast online with a smaller number also broadcasting on other licensed platforms (for example as a satellite radio channel on Sky TV). In these cases stations have often included the income (through advertising) and expenditure within their financial returns, although we have asked that these are appropriately categorised (for example any advertising income or proportion of advertising income for websites or other radio platforms should be reported as ‘off-air advertising’). In the case of advertising income this should be relatively straightforward to apportion: however, other types of income (e.g. a grant) or expenditure (e.g. staff) may be more difficult to apportion to the community radio licence as opposed to other broadcast types and readers should bear this in mind when considering the figures. (From a regulatory perspective the key factor for Ofcom is the proportion of income received from on-air advertising or sponsorship.)

3.13

Figure 6 below provides a more detailed breakdown of the various income types that stations reported this year. It is important to note that no single type of income is received by all stations. We highlight the particular issues around advertising below (paragraphs 3.14-3.21), but it is worth noting that some of the less frequently used sources of income do actually generate more than the average for those stations that use them. For example, the sector average for membership schemes is only £500, yet the 19 stations that have membership schemes report an average income from this source of around £3,000.

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Community radio annual report 2008/2009

Figure 6: detailed breakdown of income in the community radio sector 2008/09 Income type

Sample totals

% of sector income

Sector average

Total income Combined on-air commercial income Grants

£7.78m £1.75m

100% 23%

£79k £18k

£3.23m

41%

£33k

Service contracts/SLAs Donations

£0.90m

12%

£9k

£0.72m

9%

£7k

£288k

4%

£3k

£148k

2%

£1k

£347k

4%

£3k

£53k

1%

£0.5k

£12k (29 stations) £3k (19 stations)

£52k

1%

£0.5k

£6k (9 stations)

£279k

4%

£3k

£6k (48 stations)

Other Off-air advertising and sponsorship Fundraising, events and merchandising Education and training Membership schemes Broadcast access fees All other income

Average for stations in receipt of income type n/a £23k (76 stations) £38k (85 stations) £34k (27 stations) £13k (57 stations) 9 £13k (22 stations) 10 £3k (46 stations)

The impact of community radio legislation – on-air commercial income 3.14

There is little reported difference between the average income of those stations that do take advertising (£81,000) and those that don’t (£73,000). Of the 23 stations that don’t take advertising, seven are prohibited under their licence from doing so. The seven stations that are prohibited from taking advertising had a lower reported average income (£21,000) – however, the small number of stations of this type that completed a report this year mean that we cannot draw definitive conclusions.

3.15

The remaining 16 stations which did not take advertising and sponsorship in the reporting period choose not to do so for internal policy or other reasons, despite the licence permitting the station to take up to 50% of its revenue from such income. This includes a number that are supported by financially strong parent organisations – thus reducing their need for commercial income. It should also be noted that within the community radio movement there has been a historic debate about the role of income from advertising; consequently a number of stations prefer not to take such commercial income for fear of deflecting from their core purpose. Similarly, some

9

This average includes two exceptionally large donations in excess of £100,000. If these were removed the average income from donations for the remaining 55 stations that had donations would be around £8,000. 10 This average includes one station that receives a large amount of advertising from its broadcasts via satellite. It this is removed the average income from donations for the remaining 21 stations that reported off-air advertising would be around £7,000.

15

stations that target younger people have particular concerns about advertising towards this community, especially if the station is supported by one or more formal education institutions. 3.16

On average, for those stations that do take on-air advertising and sponsorship, such income forms around 29% of total income (excluding ‘in-kind’ support – see below).

3.17

As shown in Figure 8 below, some types of station reported receiving advertising income shares that vary from the sector average. For example, stations serving minority ethnic communities received 36% of their income from advertising. Because some categories of station had relatively few reports submitted we have not included their data in Figure 8 below as the sample size was too small to robustly report an average. Of these, we note that the seven stations serving young people reported taking less of their income from advertising, with three of these taking none at all.

3.18

There was no material observed variation in the proportion of income taken by on-air advertising relative to the length of time a station has been on air.

3.19

17 stations received more than 50% of their cash income from on-air advertising and sponsorship. However, as explained above, the restrictions on income from advertising and sponsorship apply to ‘relevant income’ which may be higher than ‘cash income’. This is because, in calculating ‘relevant income’, indirect financial benefits may be taken into account. Such benefits may include items that have been provided ‘in kind’ or voluntarily, for which the station would otherwise have to pay. Examples may include premises which have been provided at ‘peppercorn’ rates, services such as free marketing, or volunteer input. In June 2008 Ofcom published its guidelines for stations wishing to use volunteer time as part of station turnover – see www.ofcom.org.uk/radio/ifi/rbl/commun_radio/volunteerinput.pdf - this valued an hour’s volunteering from senior volunteers at £13.13 and for standard volunteers at £9.38.

3.20

The average value of voluntary or ‘in-kind’ support provided to stations in the reporting period was £56,000 (74 stations reported in-kind support), the majority of which was in the form of volunteer support. Support through the provision of premises and professional services was also common. (The average above excludes those stations which did not report their in-kind support.) The total value to the sector was around £4.1 million for this sample. However, as not all stations are required to report in kind support and therefore some choose not to - particularly those stations that did not need to offset any volunteer support against advertising income (see paragraph 3.19 above) - the real level of in-kind support in the sector is likely to be higher. Figure 12 (page 27) shows that the average number of volunteer hours per week is 222; in theory this could value the support the average station receives inkind from volunteers at over £100,000 each year.

3.21

The only stations to report significant variations on the average level of in-kind support were military stations, which have a low number of volunteers and therefore little reported in-kind support, and stations in London, which reported much higher support than the average.

Public funding 3.22

16

Ofcom also asked stations to report on their major funders, regardless of the type of income. From this we have calculated the approximate value of public funding towards community radio – just under 44% of the sector’s income comes directly from public sources (see Figure 7 below). Last year’s report found that public funding

Community radio annual report 2008/2009

accounted for around 53% of the sector’s income. We noted that last year those stations that had been on air for longer tended to attract a greater proportion of their income from non-public sources. Compared to last year, a greater proportion of stations completing a report this year have been on air for more than two years. 3.23

The most significant individual source of public funding is the Community Radio Fund (the Fund), administered by Ofcom on behalf of DCMS. The Fund is worth up to £500,000 11 per year and is designed to support the core costs of community radio services, such as fundraising and management. The typical grant per successful applicant is around £15,000, and it is now rare for a station to receive more than one grant from the Fund in successive years. Further information on the Fund is available on Ofcom’s website at www.ofcom.org.uk/radio/ifi/rbl/commun_radio/Communityfund/. In the period under review the Fund accounted for around 4% of the sector’s total income. (There were a small number of other individual funders who made grants or SLAs of more than £100,000 in the year under review.)

3.24

Local authorities are significant funders of community radio, usually in the form of grants but increasingly through SLAs, and they often pay for advertising their services.

3.25

Other major sources of public funding include the Welsh Assembly Community Radio Fund, grants from central government bodies such as the Arts Council, the Ministry of Defence (for those stations serving military communities of interest), health providers, educational establishments and grants from various national lottery award schemes.

3.26

Because Ofcom asked stations to identify the 10 most significant funders by value, it is possible that some public funds are not included in this total; however, the majority of stations have fewer than 10 funders – excluding advertisers and in-kind support from volunteers – and by definition the sums excluded from these totals will be lower in value.

3.27

We have categorised the source of funding according to the body that makes the decision on payment of the fund type: therefore funds administered by local authorities on behalf of central Government are classified as being from local authorities, whereas money from charities that may have Government support are not classified as public funds.

3.28

It is also important to note that we have not included in-kind support, for example through the provision of staff (which some university-run stations benefit from, for example) or premises from a local authority.

11

Not all stations that received a grant from the Fund in 2008/09 were due to complete an annual report. Therefore, the total reported income from the Fund is lower than the actual total paid out to stations.

17

Figure 7: Public funding of community radio stations

Income by type of community served: 3.29

18

As shown in Figure 3 earlier, community radio serves a diverse range of audiences. Figure 8 below shows how different types of station can have quite marked variations in both their total average income and the sources of that income.

Community radio annual report 2008/2009

Figure 8: income by type of community served

3.30

Some significant differences in the value of different types of income to different types of station are highlighted in Figure 8 above. Stations serving general audiences in urban areas and those serving minority ethnic communities (which also tend to be in urban areas) have incomes noticeably higher than the sector average at £92,000 and £106,000 respectively. Stations in towns or rural areas have lower incomes (£57,000).

3.31

The data for military stations (not included in Figure 8 above) are mixed: their average income (£70,000) is not particularly representative of this group as one station receives more income than the other eight combined. The average income for these eight stations is around £35,000. The average for religious stations is also quite significantly affected by one high income station – without this station, the average for the remaining seven stations would be closer to £57,000 as opposed to the £79,000 average shown in Figure 8. The seven stations serving young people that reported this year had an average income substantially lower than the average for the sector, at around £51,000 (two of the seven stations that did not complete their returns in time to be included in this report serve young people).

3.32

Stations serving general audiences in towns / rural areas take a higher proportion of their income from grants (53% or £30,000 in absolute terms) than the sector average (which is 41%), whilst religious stations take significantly less (17% - or £13,000). However, religious stations get significantly more of their income from donations – 34% on average (£27,000).

3.33

Some types of station reported receiving significantly less public funding than other types - stations serving minority ethnic communities received only 27% of their income from public sources whilst stations serving religious communities received only 14% of their income from public sources compared to the sector average of 44%.

19

Income by length of time a station has been on air 3.34

As we found in 2007/08, there appears to be a correlation between the length of time a station has been on air and its total income. 58 of the 99 stations that completed a report for 2008/09 had been on air for more than two years; their average total income was around £92,000. Their 41 more recently launched peers had an average total income of around £62,000. However – and again reinforcing our findings from last year – there appears to be little significant difference in the relative importance of different types of funding as a proportion of total income for stations of different ages. The two notable areas of difference are in SLAs which accounts for around 16% (£15,000) of established stations income but only 2% (£1,000) of newer stations income and also donations, which account for around 11% (£10,000) of established stations’ income but only 5% (£3,000) of newer stations’ income.

3.35

Similarly, whilst established stations tended to receive more public money in absolute terms than the newer stations, there was little difference in the percentage of income that came from such sources. Newer stations were more likely to have received a grant from the Fund (this is in line with the Community Radio Fund Panel’s stated intention of supporting stations that have not previously received a grant from the Fund).

Income by nation and region 3.36

20

Although community radio stations are dispersed across the UK, some nations and regions have more stations than others. Because some nations / regions had comparatively few stations, it is difficult to robustly report national or regional trends. We have identified the significant variations on the average in the table below (we have not included the findings for the east of England (5 stations reporting), north east England (3) or Wales (5) as there were too few stations submitting a report for the period in question to robustly report on trends). (See Figure 9 overleaf.)

Community radio annual report 2008/2009

Figure 9: variations in income in the nations and regions12 Significant variation on the average

Nation/ region

Percentage of total stations broadcasting

East Midlands

9%

Higher proportion of income from advertising

London

8%

Higher than average total income and higher than average income from ’other’ sources 13.

Northern Ireland

8%

Low proportion of income from advertising and higher than average income from SLAs 14.

North west England

12%

Higher than average proportion of income from advertising 15.

Scotland

10%

Grant income low proportion of total income, income from SLAs relatively high as were donations 16.

South east England

8%

Total income lower than average, with advertising forming a higher than average proportion.

South west England

11%

Total income lower than average.

West Midlands

6%

Grants represent a lower than average proportion of total income, whilst donations are higher than average total income.

Yorkshire & Humberside

8%

Less advertising than the average.

12

Number of stations reporting: east midlands 8, London 7, Northern Ireland 8, north west England 13, Scotland 11, south east England 11, south west England 13, west midlands 7, Yorkshire & Humberside 7. 13 Two stations are responsible for London’s high level of income from ‘other’ sources. 14 Half of the NI stations reporting are also military stations and two NI stations did not complete a report. 15 NW stations tend to serve urban or BME communities. 16 One Scottish station received exceptionally large SLA and donation income.

21

Section 4

4 Community radio stations’ costs 4.1

The average community radio station costs just over £81,000 a year to run. This represents a 20% decline in reported average costs between 2008/09 and 2007/08. It seems likely that this reduction in expenditure was in large measure driven by the decrease in average income discussed earlier. As with the sector’s income, average expenditure disguises a wide range from around £3,000 to just over £510,000. Again, the median figure is much lower at £52,000, suggesting a small number of high cost stations significantly increase the average.

4.2

Year-on-year the reported average expenditure on staff declined by just under 20% (£42,000 this year versus £51,000 last year). However, staffing remained the most significant cost incurred by community radio stations, accounting for 52% of the sector’s total costs.

Figure 10: sector average expenditure Sample total

Total expenditure Staff Premises Technical costs Other Volunteer Costs Marketing Admin All other expenditure

% of sector total

Sector average

£8.0m £4.2m £781k £806k

100% 52% 10% 10%

£81k £42k £8k £8k

Average for those stations with specific cost type n/a £51k (81 stations) £12k (66 stations) £9k (87 stations)

£181k £181k £518k £1.4m

2% 2% 6% 17%

£2k £2k £5k £14k

£4k (62 stations) £3k (62 stations) £7k (73 stations) £16k (87 stations)

Variation in expenditure by type of community served 4.3

As was the case in the previous reporting period, those stations with higher than average incomes (general audience stations in urban areas and stations serving minority ethnic communities) also had higher than average costs in the year to April 2009. Conversely, categories of stations with lower than average incomes had lower than average costs (for example stations targeted at young people and general audience stations in town/ rural areas). This is shown in Figure 11 below. However, there continues to be a wide range in station costs within most types of station by community served.

4.4

The allocation of costs was once again reasonably consistent across the different types of communities served. The most notable differences were the higher than average staff costs of general audience stations in urban areas (64% versus the 52% sector average) and the lower than average cost of staff as a proportion of their overall cost base for stations serving minority ethnic and military communities (42% and 34% of their costs respectively). Military stations were also notable by allocating a significantly higher than average proportion of expenditure to technical costs (24% versus the 10% sector average). The seven stations serving young people that completed a report this year spent around twice the average proportion of their expenditure on premises (20%).

22

Community radio annual report 2008/2009

Figure 11: community radio stations’ expenditure by type of community served (notable variations highlighted)

Variation in expenditure by length of time on air 4.5

As we noted earlier, the 58 stations in this report that have been on air for more than two years once again had a substantially greater average income than the sector as a whole; correspondingly, they also have higher average costs, spending an average of around £95,000 compared to the sector average of £81,000 (and only £63,000 for the more recently launched stations). However, there is not a significant variation in the proportion spent on different expenditure types. These patterns broadly speaking replicate those observed in last year’s annual report.

Variation in expenditure by nation / region 4.6

As explained previously, due to the small number of stations reporting in each nation or English region, caution must be exercised when assessing national/ regional trends. The limited data available suggest that, at present, stations in London and the north west of England generally spend notably more than the sector average, whereas stations in the north east of England generally spend notably less than the sector average. These disparities in expenditure may in part reflect regional differences in station income.

4.7

There were some marked regional variations in the distribution of station expenditure. For example, mean staffing costs of stations in north west England constituted an appreciably higher than average proportion of these stations’ total expenditure, whilst mean staffing costs of stations in the south east constituted an appreciably lower than average proportion of total expenditure. Similarly, the proportion of total expenditure which the average Northern Irish station spent on technical costs was significantly higher than the average for the sector. This appears to be a reflection of

23

the fact that four of the eight Northern Ireland community radio stations that returned reports were military stations with significantly higher than average technical costs.

Are stations meeting their costs? 4.8

As can be seen from the sector’s average income (£79,000) and expenditure (£82,000), on average the community radio sector as a whole is broadly meeting its costs. However, there is a wide range contained within these averages, with the highest surplus at £83,000 and the greatest deficit at £133,000. Moreover, 40% of all community stations which have returned annual reports were in deficit and 23% of stations had deficits in excess of £10,000. These proportions are similar to those observable in last year’s returns.

4.9

In general, surpluses appear to have been reinvested in the station; deficits are generally funded through parent organisations or from previous years’ surpluses.

4.10

Not only is there a wide range within the surplus/deficit levels of the sector as a whole, but levels of surplus/deficit vary significantly within each of the main categories of station.

4.11

It should be noted that stations’ financial years were not always equivalent to the Ofcom reporting period, and that, for example, grants may have been received outside of this period – suggesting a deficit when in fact the station is reasonably secure.

24

Community radio annual report 2008/2009

Section 5

5 Community radio stations’ key commitments and social gain 5.1

Community radio services are licensed under the terms of the Community Radio Order 2004 (the 2004 Order) which modifies some sections of the Broadcasting Act 1990 (the Broadcasting Act) as amended by the Communications Act 2003 (together "the Legislation"). The 2004 Order sets out a wide range of requirements which broadcasters must comply with in order to be awarded and subsequently to retain a community radio licence.

5.2

At the heart of the 2004 Order are the ‘characteristics of community radio services’ which define the nature of community radio, as well as various more detailed specific requirements which Ofcom must take into account when assessing an application for a community radio licence.

5.3

The specific characteristics of community radio service imposed upon community radio stations by Article 3 of the 2004 Order require that such services are operated:

5.4

5.5

•

for the good of the public;

•

to deliver social gain (community benefit);

•

to serve specific communities;

•

to operate on a non-profit-distributing basis;

•

to provide operational and managerial opportunities for members of the

•

target a community (or communities); and

•

whereby the organisation providing the service is accountable to the community concerned.

The term ‘social gain’ is further defined by the Legislation, and includes four mandatory social gain objectives, as well as allowing services to define further social gain objectives themselves. The mandatory requirements are: •

a service for underserved groups;

•

the facilitation of discussion and the expression of opinion;

•

the provision of education or training (to non-employees); and

•

facilitating the better understanding of the particular community and the strengthening of links within it.

The Legislation requires Ofcom to include in each community radio licence such conditions as are appropriate for securing that the character of service, as proposed in the application, is maintained. As a result each station has specific ‘key

25

commitments’ which form part of the licence. They are based on the promises made in the application, and agreed with each station before it commences broadcasting. 5.6

The ‘key commitments’ is the equivalent of the ‘Format’ included in every commercial radio licence. However, commercial radio services are not expected to adhere to such a wide range of requirements as community radio services, and as a result their ‘Formats’ relate primarily to their broadcast output (i.e. what the listener hears) rather than off-air activities that they may undertake.

5.7

The ‘key commitments’ include:

5.8

26

•

a description of the community to be served;

•

a summary of the character of service (a short description of the station’s aims);

•

a description of the programme service;

•

social gain objectives (including how the station will satisfy the four mandatory social gain requirements set out above, and any other social gain objectives of the service);

•

access and participation arrangements; and

•

mechanisms to ensure accountability to the target community.

As part of its annual report process, Ofcom asks all stations that have been on-air for more than a year to report back on progress against their key commitments; these reports are then published by each station on its website and will also be published by Ofcom at www.ofcom.org.uk/radio/ifi/rbl/commun_radio/. By the nature of key commitments, not all of the feedback Ofcom receives is quantifiable; however, there are some elements that we can usefully summarise to report on for the sector as a whole. Figure 12 below shows some of the key elements that we are able to quantify, along with notable variations on the average.

Community radio annual report 2008/2009

Figure 12: selected key commitments data

Total live / 18 original hours per week

Sector average 77 hours / 87 hours

Notable variations on the average • •

Number of volunteers

75

• •

Total volunteer hours per week

222 hours

• •

Speech output as a percentage of total daytime output

32%

•

17

Stations serving minority ethnic communities, general audiences in urban areas and those in the northwest of England and London typically broadcast more live/ original output than average. Stations serving military communities and those in Yorkshire & Humberside, the south west of England and Northern Ireland tend to broadcast less than the average. Stations serving minority ethnic communities, general audiences in urban areas and those in London and the south west of England tend to have more volunteers than the average. Stations serving religious communities, military communities and those in Scotland tend to have fewer. Stations serving minority ethnic communities, general audiences in urban areas and those in the east midlands and London tend to have more volunteer hours per week. Stations serving religious communities, military communities and those in Northern Ireland, Scotland, south west England and Yorkshire & Humberside have fewer. Military stations tend to have less speech output than the average.

5.9

Ofcom found no significant difference in the delivery of these key commitments between stations that had been on air for more than two years compared to those that had been on for less than this.

5.10

The vast majority of stations submitting a report have met the bulk of their key commitments. We have written to one station with respect to its ‘key commitments’ where we consider that the station has not provided enough information to allow us to assess whether it is meeting its commitments. If we are not satisfied with the information provided then we will consider regulatory action, as set out in our document ‘regulation of community radio services’ available at www.ofcom.org.uk/radio/ifi/rbl/commun_radio/crri/crregulation/.

Programming: original output 5.11

Due to their reliance on volunteers, community radio services are very rarely live for 24 hours a day, seven days a week (networking or overnight automation is not unusual in the radio sector more generally).

5.12

The sector average is 87 hours of original programming each week. The vast majority is produced locally and most of this output is live (77 hours). However, stations may broadcast ‘as live’ for a number of reasons; work with inexperienced and / or vulnerable volunteer broadcasters may demand greater monitoring of output,

17

It is important to note that there were too few stations reporting from the east of England (5), north east England (3) and Wales (5) to robustly report their regional/ national trends. It is also important to note that half of the reporting stations in Northern Ireland (four of eight) serve military communities and that therefore this sub-group is likely to have significantly altered the findings for Northern Ireland as a whole. 18 ‘Original hours’ includes live output and also pre-recorded material that has not previously been broadcast.

27

and volunteer availability can have an impact on the hours at which material can be broadcast. 5.13

Stations serving general audiences in urban areas and minority ethnic communities (which also tend to be in urban areas) generally broadcast more live or original material, military stations broadcast much less than the average. The regional trends reflect this also, regions with the most live and original output were London and the northwest of England (both regions where all or most stations are in urban areas). Regions with less live output than the average included the southwest of England, Yorkshire & Humberside and Northern Ireland (although half of the Northern Irish stations reporting this year were military services which reduced the average considerably for this small group).

Programming: speech and music 5.14

When licensing community radio stations, Ofcom must ensure that the proposed service offers distinctive output compared to other local alternatives. This in turn means that music and speech output on community radio is exceptionally diverse.

5.15

Many stations specialise in particular genres of music: the two Angel Radio stations in Havant and on the Isle of Wight target older people and have a focus on popular music from 1900-1959, the Cross Rhythms stations (in Stoke-on-Trent, Plymouth, Teesside and Coventry) are aimed at young Christians and feature Christian-themed hip hop, indie and rock amongst others whilst Celtic Music AM in Glasgow plays contemporary and traditional Celtic music.

5.16

Stations serving a general audience often have a mainstream approach during the daytime but then move to specialist output in the evening. Aston FM in Birmingham has a focus on urban music every night from 9pm to 3am; it says it has persuaded many presenters who were formally on illegal stations to come over to Aston FM, and several of the previously unemployed presenters are now in full-time employment.

5.17

Speech programming forms a significant component of community radio’s live output; on average speech formed 32% of stations’ live daytime output during the reporting period.

5.18

The type of speech output varies within and between stations: those serving general audiences often have highly localised and relevant information for the community, for example Radio Scilly 19 has in-depth weather reports specific to the islands and not available in other broadcast services.

5.19

Wythenshawe FM, serving an urban population in Greater Manchester, features general magazine style programmes alongside specialist programmes including the weekly ‘Healthy Living Show’, ‘On the Beat’, ‘Out and About’ and ‘Fire Safety Matters’ shows. It also features issue led ‘Focus Weeks’ on subjects such as domestic abuse – including a dramatised account of a woman’s experience of domestic abuse refugee awareness and a local regeneration consultation.

5.20

Community radio stations feature many local organisations in their output, both public bodies and private / third sector organisations. Ipswich Community Radio has ‘Cop That’ presented by a police sergeant with 30 years’ service, who invites a different colleague each week onto the show. Guests have included the Chief Constable of

19

Radio Scilly won Radio Academy Station of the Year, for fewer than 300,000 people, for the South West and was one of the three finalists for the national Sony Awards

28

Community radio annual report 2008/2009

Suffolk, a member of the diplomatic protection squad, the Head of Ipswich CID and female officers talking about the role of women in policing. The style is irreverent – guests talk about their musical tastes and are sometimes asked to read out comments from their school reports- and the station believes it is doing a great deal to break down people’s stereotypical view of the police. It has also had comments from junior police officers, who enjoy seeing their bosses as real people and not just as authority figures. 5.21

Stations serving particular communities of interest may also feature a wide range of local organisations, and will also often carry unique programming specific to their target communities. Radio Dawn, serving Nottingham’s Muslim community, broadcast a series of radio shows with live links to pilgrims in Mecca, Madina (Saudi Arabia) and Pakistan. The station also held a ‘Hajj Camp’ which more than 150 pilgrims attended. The aim was to explain to them the various aspects of Hajj and the regulations of the country they were to visit.

5.22

Community radio stations carry programming in a wide range of languages. A number of Scottish and Welsh stations feature Gaelic and Welsh respectively and in Northern Ireland Raidió Fáilte broadcasts in Irish (Irish Gaelic). Stations serving minority ethnic communities often broadcast in a range of community languages – Radio Asian Fever in Leeds has had broadcasts in Urdu, Urdu Punjabi, Gurumukhi Punjabi, Mirpuri / Kashmiri and Hindi. Importantly, such programming is often mixed with English output - Radio Asian Fever says that it does this to maintain the interest and participation of young people who tend to have English as their first language.

5.23

Stations serving general audiences can also broadcast output in many languages: Aberdeen’s shmuFM has broadcast shows in Polish, Spanish, French, German, Slovakian, Hindi, Marathi, Bengali, Tamil, Telugu, Kannada, Malyalam, Oriya, Urdu, Punjabi, & Gujrati. Furthermore it features and supports local languages and dialects including Doric, Scots and Gaelic.

Social gain - serving the underserved 5.24

All community radio stations are expected to serve the ‘underserved’, that is people who do not have local radio services currently aimed at them.

5.25

For many stations this mission is implicit in their target community - stations targeting minority ethnic communities are generally aimed at a community that is underserved by definition. Others, serving general audiences, often target specific underserved groups within their general community.

5.26

For example Hayes FM, which serves a general audience in Hayes in West London, has a range of programmes targeting particularly underserved people; for those over 60 it has a programme sponsored by Age Concern on Sundays and on Saturdays a youth-led programme features children from different schools in the area looking at issues that interest young people, be it entertainment or something with greater depth. It also has programmes for the Tamil and Polish communities.

Social gain - facilitating discussion and the expression of opinion 5.27

Community radio stations provide many opportunities for local people to take part in discussions and express their views, often via their usual speech programming, sometimes in the form of regular discussion programmes and also through one-off features tied to special events.

29

5.28

BC FM, serving a general audience in Bristol, has a Somali show that often features discussion with agencies such as the police, council and the local Primary Care Trust - local councillors and MPs are regular contributors too. They offer translations into Somali and receive many phone calls from the community during these programmes.

5.29

CSR, based at the University of Canterbury, broadcast student election hustings, AGM and NUS debates and actively encouraged listeners to voice opinions. University and Student Union officials have often been invited on air along with local MPs and other public figures.

Social gain - training for people not employed by the station 5.30

In addition to the training provided to volunteers, many stations also offer a wide range of training opportunities to their target communities, from informal drop-ins, through short courses and up to fully accredited training programmes (often in partnership with educational institutions). Work experience placements offer another way of providing training to members of the community.

5.31

BRFM on the Isle of Sheppey has built up strong links with three local further education providers and has successfully run training courses for all three, providing 40 places per academic term as part of their media studies courses. In addition it has provided work experience for students aged 15-18. The station also offers up to 60 places per year during term-time as part of the colleges’ humanities syllabus. Other work with children includes a partnership with the island’s ‘Healthy Living Centre’ to offer training courses for deprived school-aged children throughout the summer, to learn about radio and media technology and to improve their motivational skills.

5.32

The station also works with local agencies to offer other types of training: through its relationship with local training and volunteering charity the ‘Island Partnership’ it provides five places per month for volunteers, focussing on the unemployed members of its community so they can learn about media and technology skills. The ‘Island Partnership’ offers free courses in these subjects and liaises closely with the station. The local ‘Business Link’ also partners with the station to provide free courses in core skills and advise on how to set up a business and supports return to work programmes. The station also partners with ‘Job Centre Plus’ and ‘Employ Swale’ to encourage and motivate the unemployed.

5.33

A number of stations have built partnerships with other local media organisations. For example, Siren FM, based at the University of Lincoln, works closely with the BBC and commercial radio stations in the area and many of its student volunteers have enjoyed work placements at these outlets. Desi Radio in Southall has a good relationship with BBC London, three of its volunteers have gone on to paid employment with BBC London, others have had work experience and the station has also hosted a BBC journalist. Stroud FM brought in guest speakers from both local commercial and BBC stations to give Saturday ‘master classes’ for its volunteer presenters.

Social gain - the better understanding of the particular community and the strengthening of the links within it 5.34

Community radio stations seek to better understand and strengthen links within their community through a wide range of mechanisms.

5.35

For example, GFM broadcasts in Gloucester with a particular focus on black and minority ethnic communities. Its ‘Community Link’ show (Monday-Friday) tackles

30

Community radio annual report 2008/2009

various issues and GFM managed to secure funding from Gloucester City Council to employ a part-time Community Link co-ordinator to aid the development of this important programme. On the day of US President Obama’s inauguration this show incorporated a live link from WKYS FM in Washington DC and “enabled GFM listeners to feel a part of the celebrations on an historic day for black people around the world”.

Additional social gain objectives 5.36

In addition to the statutory social gain objectives, many stations commit to further social gain goals.

5.37

This can include a very wide range of activity, common objectives include increasing awareness of local authority services, the promotion of employment, social inclusion and promoting and taking part in community events.

5.38

Link FM in Havering, London has formed a strong partnership with its local authority, which has provided volunteer presenters, interviewees and speakers on a range of community interest issues. The Leader of the Council presents a ‘Community LINK’ programme on Fridays, giving exposure to Council plans and activities and encouraging interaction with the community.

5.39

Phoenix FM in Halifax has provided public address systems for a wide range of events in the community including for a ‘Mental Health Day’ event, a ‘Summer University’ which involved several local schools from Calderdale, it linked with a support group for the over-80s and held a Sunday afternoon tea party which included giving participants the opportunity to do a live broadcast, and over the Christmas period it had West Yorkshire’s Fire Safety team broadcast on the 12 ‘fire safety days of Christmas’ and a Christmas Day message from the Mayor Of Calderdale

5.40

Black Diamond in Midlothian encourages its presenters to broadcast in their ‘natural accent’ thus helping to promote linguistic diversity, whilst Diverse FM in Luton has been an active participant in the ‘Kick Racism out of Music’ and the ‘No More Knives’ national campaigns – its young volunteers interviewed representatives from the organisations and participated in several competitions to bring its communities together with a common interest in mind.

Access and participation 5.41

Volunteering plays a key role in all community radio services – the legislation makes it clear that access to, and participation in, the operation of community radio is a key characteristic of the sector. Volunteers take on all types of roles at community stations, from back office support staff such as receptionists and cleaners, through presenting, training other volunteers and up to board members and station managers. Consequently the time given by volunteers can vary dramatically, from a couple of hours a month to 80+ hours a week. Similarly, some volunteers may participate for a short period of time – perhaps over a couple of weeks assisting with the production of a programme – whilst others have been involved with their station for many years.

5.42

This wide variation in commitment needs to be borne in mind when looking at averages across the sector, where we find that the average number of volunteers is 75 (with a range from 1 to 287), and the average number of hours given by volunteers per station in total each week is 222 (with a range from 1 to over 1,000 hours per week in the case of specialist arts station Resonance Radio in central

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London, whose artist participants may spend many hours preparing for their broadcasts). 5.43

As an example, 7 Waves Community Radio in the Wirral has 64 active volunteers, 61 of whom do at least some presenting, 11 are news reporters, eight are technicians, eight work in admin, four volunteer as receptionists and four help with sales (some volunteers take on more than one role). The radio station is based in a purpose-built media centre alongside a community centre. It has a shared entrance so people can access both facilities. The radio station features many of the user groups of the community centre including a local art club for the over-50s, a luncheon club, a men’s healthy eating club, a men’s keep-fit club, and a youth dance group. Other community groups that it has featured include Irish Community Care, Wirral Cultural Diversity and Wirral’s ‘Extended Schools’ project.

Accountability 5.44

All community radio stations must be accountable to the community which they serve. For some this can mean democratically elected boards; others seek to ensure accountability through other means.

5.45

Membership of 10Radio, based in rural Somerset, costs £1 and is open to anyone in the 10 parishes it serves. The station directors are elected by its membership and directors hold bi-monthly board meetings which are open to anyone to attend. These meeting are publicised by the station and regularly attract 30-40 people and have proved a valuable means of encouraging wider debate about 10Radio’s operations.

5.46

Although not all stations have direct elections for directors, many have sub-groups or other forums which are open to members of the community or particular sub-sections of the community.

5.47

HFM in Market Harborough has a listener panel, meeting every three months to discuss all aspects of the station’s output whilst Kemet FM, aimed at the AfricanCaribbean community in Nottingham, has set up a Youth Forum which consists of six members of the community between the ages of 14 to 16 who meet monthly to discuss the current output and offer feedback.

5.48

Many stations are finding that new communications technologies offer increased opportunities to connect with their audiences and consequently can offer more opportunities to promote accountability. For example, the website of Radio Teesdale, serving a general audience in Teesdale, was winner of ‘Best Website’ for a not-forprofit group in the Digital 08 Awards ,whilst Indigo 106.6fm, serving a general audience in Kirkby Lonsdale and the south Lakes area of the Lake District, has proactively sought out opportunities in new social media such as MySpace, Bebo, Facebook and Twitter. It said that: “All of these mediums bring new meaning to accountability and responsiveness that perhaps was not envisaged at the time that the original licence was applied for. Indeed the speed of advance in these networks is such that many were not on the scene at that time. Consequently given people’s lifestyles, these mediums have been identified as accessible means of accountability and feedback for many listeners.”

5.49

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Ofcom has noted an increasing number of complaints regarding accountability, typically from volunteers who have disagreed with some element of how a station has been run – and in some cases have had their membership terminated. It is clear that different people can have very different expectations about how volunteers may

Community radio annual report 2008/2009

participate in community radio and therefore it is vital that all parties are aware of the respective roles and responsibilities of volunteers and management (who are often volunteers themselves); those stations that are best placed to deal with such complaints tend to have detailed and thought-through complaints and disciplinary procedures. They also often have clear volunteer agreements which set out how the station will interact with volunteers and vice versa.

Major difficulties 5.50

Ofcom also asked stations to report, in confidence if they wished, on major difficulties that they had faced. As this feedback was mostly given in confidence we cannot name the stations concerned, however, a number of key trends were clear.

5.51

The most critical and commonly mentioned issue was the lack of funding available. As we discussed earlier, the reported average income for stations is down on last year and many stations attribute this to the recession.

5.52

A number of stations commented on the size of the Fund relative to the number of stations now broadcasting and did not consider it nearly sufficient to support the sector.

5.53

The difficulties associated with limited funding include the need for staff to focus on securing funding rather than developing other aspects of the station, and in turn the reliance on senior volunteers and directors can lead to burn-out amongst those people and a high turn-over, resulting in a loss of knowledge and skills. Reliance on volunteers who often themselves have full time commitments elsewhere means that it can be difficult to schedule work. Some stations also noted difficulties with recruiting volunteers to undertake tasks other than presenting.

5.54

Many stations are trimming back in some areas of operation to stay within the limits of their reduced income, and some stations commented that, as a result, they are not able to deliver as much community benefit as they would like, or as they have done in previous years.

5.55

Community radio stations do not participate in the RAJAR radio audience survey scheme, nor do many have alternative robust audience research figures. Consequently they can find it hard to attract advertisers – particularly those advertisers who use RAJAR data to plan campaigns. (However, once they have been persuaded to advertise, many local businesses find community radio works well for them. Radio Verulam reported that twenty-five local businesses advertised with them during the year, with several repeating their contracts because of the good level of response they received.)

5.56

A number of stations reported reception problems, and often consider that they are not permitted to broadcast at a sufficient power level to adequately serve their communities. Community radio stations are generally licensed for a transmission area of up to a 5km radius, typically at a power level of 25 watts (in each plane). In some areas – particularly sparsely populated rural areas, where there are more suitable frequencies available – Ofcom has been able to license a larger coverage area. However, in many urban environments the limited availability of suitable frequencies mean it is not possible to license a higher power output.

5.57

Illegal ‘pirate’ broadcasters continue to present problems for licensed community radio stations in urban areas, particularly London, usually by broadcasting at high power on or near the community station’s frequency and also on occasion by

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targeting advertisers and therefore depriving the community station of revenue. Some stations in London report that the interference they suffer from illegal broadcasters makes potential funders or advertisers reluctant to get involved with the station.

Listener figures 5.58

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Ofcom asked stations to provide details of any audience research they had carried out. Many had kept a log of contact data and some had undertaken more sophisticated research. As noted in paragraph 5.55 above the industry standard for measuring listener figures is known as RAJAR (Radio Joint Audience Research). However, the cost of RAJAR is prohibitive for most community radio stations and no community radio stations have used it to date.

Community radio annual report 2008/2009

Annex 1

1 Stations completing an annual report in 2008/09 Station name

Location

Target community

10Radio 7 Waves Radio Afan FM

Wiveliscombe, Somerset The Wirral Port Talbot (south Wales) Aldergrove (Northern Ireland) Aldershot Levenshulme, Manchester Havant Isle of Wight Slough Aston, Birmingham Central Glasgow Ballykinler (Northern Ireland) Harlesden, London Bradford Lisburn Midlothian Dewsbury, Yorkshire Brynmawr, Blaenau Gwent Isle of Sheppey St Boswells, Borders Bristol Wrexham Tidworth, Wiltshire Catterick Glasgow Mid-Cheshire Chorley (Lancashire) Colchester Rochdale Stoke on Trent Plymouth Canterbury Southall, west London Luton

Geographic - town/rural Geographic - urban Young people

Aldergrove & Antrim FM Aldershot Garrison FM ALL FM Angel Radio Havant Angel Radio Isle of Wight Asian Star Aston FM Awaz FM Ballykinler FM BANG Radio BCB 106.6FM BFBS Lisburn Black Diamond FM Branch FM BRfm BRFM (Bridge FM) Brick FM Bristol Community FM Calon FM Castledown Radio Catterick Garrison Celtic Music Radio Cheshire FM Chorley FM Colchester Garrison FM Crescent Radio Cross Rhythms City Radio Cross Rhythms Plymouth CSR Desi Radio Diverse FM

Military Military Geographic - urban Older people Older people BME Geographic - urban BME Military Geographic - urban Geographic - urban Military Geographic - urban Religious Geographic - town/rural Geographic - town/rural Geographic - town/rural Geographic - urban Geographic - town/rural Geographic - town/rural Military Music - Scottish Geographic - town/rural Young people Military BME Religious Religious Young people BME Geographic - urban

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Diversity FM Edinburgh Garrison FM Express FM Feile FM Forest FM Forest of Dean Community Radio Future Radio Gloucester FM GTFM Pontypridd Harborough FM Hayes FM Holywood FM Hope FM IndigoFM Insight Radio Ipswich Community Radio Iúr FM Kemet Radio Leith FM Link FM Lionheart Radio NE1FM New Style Radio 98.7 FM NuSound Radio Oldham Community Radio Pendle Community Radio Phoenix FM Phoenix FM Phonic FM Pure Radio Radio Asian Fever Radio Cardiff Radio Dawn Radio Faza 97.1 fm Radio Ikhlas Radio Reverb Radio Scilly Radio Teesdale Radio Verulam Raidió Fáilte Resonance FM Revival Radio Saint FM Salford City Radio

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Lancaster Edinburgh Portsmouth Belfast, Northern Ireland Verwood, East Dorset

Geographic - town/rural Military Young people Geographic - urban Geographic - town/rural

Forest of Dean Norwich Gloucester Pontypridd Market Harborough Hayes, west London Holywood (Northern Ireland) Bournemouth Kirkby Londsdale, Cumbria West Glasgow Ipswich Newry Nottingham Leith Harold Wood Alnwick, Northumberland Newcastle upon Tyne Birmingham Newham, London Oldham Pendle Halifax Brentwood, Essex Exeter Stockport Leeds Cardiff Nottingham Nottingham Derby Brighton Scilly Isles Teesdale St Albans Belfast Central London Cumbernauld Burnham on Crouch Salford

Geographic - town/rural Geographic - town/rural BME Geographic - town/rural Geographic - town/rural Geographic - urban Military Religious Geographic - town/rural Disability group Geographic - town/rural Geographic - town/rural BME Geographic - urban Geographic - urban Geographic - town/rural Geographic - urban BME BME Geographic - urban BME Geographic - town/rural Geographic - town/rural Arts & Music Geographic - urban BME BME Religious BME BME Geographic - urban Geographic - town/rural Geographic - town/rural Geographic - town/rural BME Arts & Music Religious Geographic - town/rural Geographic - urban

Community radio annual report 2008/2009

Salisbury Plain Garrison FM Shine FM shmuFM Siren FM Skyline Community Radio Stroud FM Sunny Govan Radio Super Station Orkney Swindon 105.5 Takeover Radio Tameside Radio Tempo 107.4 FM The 'Bridge The Eye Unity 101 Unity FM WCR FM West Hull Community Radio Westside 89.6 FM Wythenshawe FM Youthcomm Radio

Bulford Banbridge, Northern Ireland Aberdeen Lincoln Hedge End, Southampton Stroud Govan, Glasgow Orkney Swindon Leicester Tameside Wetherby Stourbridge Vale of Belvoir Southampton East Birmingham Wolverhampton Hull Southall, west London Wythenshawe, Greater Manchester Worcester

Military Religious Geographic - urban Young people Geographic - town/rural Geographic - town/rural Geographic - urban Geographic - town/rural Geographic - town/rural Young people Geographic - urban Geographic - town/rural Geographic - urban Geographic - town/rural BME Religious Geographic - urban Geographic - urban BME Geographic - urban Young people

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