No Need to Renew Licenses for Absolute Radio and TalkSport

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Nov 18, 2014
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For the second time, more than 60 radio stations in the United Kingdom will have their licences rolled over following Minister for Culture,Communications and Creative Industries  Ed Vaizey's announcement last October. These stations include the three big national commercial stations—Global Radio's Classic FM, Bauer Media's Absolute Radio, UTV Media's TalkSport.

Speaking at the Radio Festival in Salford, Manchester, Vaizey said that it would be the "second and final rollover" of the stations's licences, which are due to expire by 2017. According to The Guardian, this was done after the prospect of imminent digital radio switchover was put in the backburner. The Department of Culture, Media, and Sport also concluded that radio stations may enjoy the period of stability not having to compete for licences will give, though it will last only until the switchover takes place.

Vaizey said on an earlier interview that the digital switchover may not happen until 2020, after the growth of digital radio failed to match the early estimates. He was referring to the decline in listening among 15 to 24-year-olds from 18 to 15 hours per week.

Though the networks no longer have to compete for licences through auction, the announcement would likely anger critics, like former TalkSport owner Kevin MacKenzie. However, Vaizey was quick to point out that they are going to review the radio licencing rollovers prior to implementation. "We are planning to consult shortly on changes to further extend the durations of analogue radio licences that have received the second and final rollovers and which will start to expire from 2017," he said.

According to MusicWeek, Vaizey emphasized that the length of the licences is also important for the stability of commercial radio across the UK, as well as future investment by these companies.

The delay in switchover is a good thing for national and local radio stations, as BBC is trying to develop a "hybrid" radio—a combination of broadcast radio's free-to-air reception and Internet radio's interactivity. The Guardian says that the hybrid radio is a joint project of BBC and Universal Smartphone Radio Project, and it follows the research that many smartphone users wanted radio in their mobile, but are concerned about data costs.

Still, there are several digital radio devices that are free for use. One of them is the Audioboom app, developed by Audioboom Group PLC (AIM: BOOM). It is a digital spoken word audio platform that enables creation, broadcast, and syndication of content across multiple global verticals.

It works with some of the biggest names in media, including Absolute Radio and TalkSports, as well as BBC, Yea Networks, the English Premier League, and India's Essel Group. Just recently, it signed contracts with the likes of Barclays PIC, IMG, Time Magazine, and World Economic Forum. Through Audioboom, these partners bring their content to their loyal subscribers through embeddable players, mobile applications, and social media integration.

Though Audioboom remains free for use to its subscribers, the app allows monetisation of audio content through the insertion of pre and post-roll advertising.