Asian Fx - Ofcom Licensing

 Asian Fx An application for the Wolverhampton FM Commercial Radio Licence March 2015 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence General information (a) Name of Applicant, Address, Telephone and E-­‐mail address Name of Applicant Address Fusion Radio Limited Panjab Radio House Springfield Road Hayes Middlesex UB4 0TH Company Number 09458185 (b) Main Contact (For Public Purposes) Contact Name Telephone (Daytime) Surjit Singh Ghuman MBE 07525 197035 Address Panjab Radio House Springfield Road Hayes Middlesex UB4 0TH E-­‐Mail Address [email protected] (c) Station Name Asian Fx (d) Main Contact (For Ofcom Purposes) 2 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Section 105(A): Ability to maintain proposed service 1. Ownership and control of company that will operate the licence (a) Board of Directors i) Provide the name, occupation, other directorships, other media interests, and, if not a director of an existing Ofcom radio licensee, the relevant media experience, of each director (executive and non-­‐executive), including the proposed chairperson. Harjinder Singh Minhas Role: Chairman & Director Other Directorships: Anjuman Ltd, KSM Holdings Ltd., KSM Industrial Services Ltd., Foleshill Metal Finishing Ltd., CDP Services Industrial Limited and Asian Fx Ltd. Harjinder is currently Chairman of Anjuman Ltd -­‐ a non-­‐profit making organisation providing accommodation and support for socially disadvantaged adults. He is also a serving Magistrate. A former board member and vice chairman of Coventry’s Asian Business Association, Harjinder has also served as an adviser for Business Link. Born in Coventry, the eldest son of north Indian migrants from Panjab, Harjinder studied at the Coventry School Bablake before taking a BSc at Aston University. After becoming a Research Associate at Glaxo Group Research in Greenford, London, Harjinder studied Clinical Pharmacology to Doctorate level at Newcastle University, before taking control of the family engineering business in 1991. In 1995 Harjinder completed his MBA at Aston University and went on to study law at Coventry University. Harjinder restructured the family business, creating KSM Holdings and developing a fabrication subsidiary -­‐ KSM Fabrications in 1996. In 1999, Harjinder further diversified the company into contract cleaning and facilities management through the acquisition of CDP Services. In 2007, a new engineering and metal finishing facility was set up in Estonia to serve the emerging markets of Eastern Europe, Russia and China. Currently the Group of companies has 257 employees based in the UK and Estonia. The Group’s current client base includes Jaguar Land Rover, Scania, Volvo, AQ Lasertool, B&Q, Homebase, Sainsbury’s and Dunlop. Harjinder brings a wealth of business experience and financial governance to the Asian Fx board. Surjit Singh Ghuman MBE Role: Managing Director Other Directorships: Panjab Radio Ltd., Panjab Radio London Ltd. and Asian Fx Ltd. Surjit Singh Ghuman is currently majority shareholder and Managing Director of Panjab Radio. He is also owner of the Panjab Radio North London AM licence. He has been a leading light in Asian broadcasting for over a decade and was awarded an MBE in 2012 in recognition of his services to broadcasting. 3 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Born in the Punjab, Surjit moved to London aged 13. He was active in the community from a young age working with local Sikh temples, supporting the congregation. As he grew up, his community work continued alongside full-­‐time jobs in both local and family businesses before becoming a financial advisor for Prudential. Between 1989 and 1995, Surjit was the UK’s youngest serving Magistrate. Surjit’s time working on the Slough and Southall based RSLs in the late 90s showed him first-­‐hand the strength of Asian broadcasting. However, he still felt that the needs of the Punjabi community were poorly served. He wanted a service to unite Punjabis under one umbrella and give them a forum that they could call their own. In September 2000, Surjit created Panjab Radio which commenced broadcasting on the emerging Sky Digital platform. The response to the service was swift and audiences grew steadily. This listener support gave Surjit the confidence to launch Panjab Radio on DAB Digital Radio in London and West Yorkshire in 2003, in the West Midlands in 2007 and in the North East in 2011. Panjab Radio has, to date, been the only Asian commercial station to broadcast nationally on Digital One. Surjit was a founder member of the Multi-­‐Ethnic Media Owners Association, launched in 2006 at the House of Commons with David Lammy, Keith Vaz and Gordon Brown. Surjit and Panjab Radio have been at the forefront of many charitable endeavours for both local organisations and campaigns in Punjab. Over £200,000 was raised for building 103 homes in two villages in the District of Bhuj in Gujrat for individuals displaced by the 2001 earthquake, as well as donating a mobile medical unit in Jallandhar Punjab through Help the Aged. Every year Panjab Radio makes a financial contribution to help fund the education of 200 underprivileged children in Punjab. In April 2009 Panjab Radio was commended for its work in promoting the Punjabi language through an award by the Punjabis in Britain All Party Parliamentary Group. In April 2014 the Panjab Radio group made a significant investment in purchasing the London Turkish Radio licence and later successfully negotiated a format change. Panjab Radio’s commitment to national broadcasting was further underscored in 2015 by its commitment to service provision with Listen2Digital, one of the two bidders for the second national DAB multiplex. Sandeep Patel Role: Director Other Directorships: Asian Fx Ltd. Sandeep is a qualified Chartered Accountant specialising in treasury and tax. He has been an integral part of the Panjab Radio Group since 2009, as a consultant providing all aspects of financial advice, accounting and tax services. Sandeep is currently VAT Manager at global payments company Worldpay Ltd. He has worked with Worldpay since its formation as an independent company when it was acquired from the RBS Group in 2010, where he was instrumental in 4 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence establishing a new treasury function with a debt portfolio of over £1.3 billion. Sandeep is currently responsible for all indirect taxes for the Worldpay Group. Worldpay is a FTSE 100 calibre company with a turnover over £3.4 billion and EBITDA of £340 million in 2013. Worldpay operates in the global market providing merchant services and is the number one acquirer in Europe. Prior to this Sandeep was employed as Treasury Accountant by A2Dominion, a leading housing provider and property developer in London and the South East. A2Dominion is part of the G15, a group of the largest housing providers in London. Within this role Sandeep was responsible for treasury accounting and reporting including debt covenant reporting and managing a £1.4 billion loan book. Born and bred in London, Sandeep is a graduate of the University of Westminster. He qualified as a Chartered Accountant in 2010. As a board member of Asian Fx Ltd, Sandeep will use his years of financial expertise to help and guide the company in achieving its commercial objectives. Herminder Singh Sandhu Role: Director Other Directorships: None Bindi brings extensive experience of working in entertainment, media, arts and community projects dating back to 1981. He has worked in the music entertainment industry for many years specialising in the development of Independent Record Companies and Artists and has a comprehensive understanding of the multi-­‐billion pound industry of music for film, TV, online, ringtones and gaming. He regularly works on multi-­‐media projects with individuals as well as businesses, non-­‐profit organisations and registered charities providing consultancy, advice, training, feasibility studies, research and development, and project management. In 2011, Bindi was the Audio and Visual (AV) Consultant for the new £5 million GNG Community project in the West Midlands. Bindi brings a wealth of experience managing a wide range of events; music, dance, arts, concerts, awards ceremonies, community events and festivals. These have included BBC Mega Mela, BBC Music Live and BBC Comic Relief. He has managed large open-­‐air festivals with over 90,000 people and worked with many leading Asian international artistes such as Asha Bhosle, Adnam Sarni, Gurdas Mann, Hans Raj Hans to name but a few. Bindi has also worked as a Producer, Assistant Director and Cameraman on numerous music video projects with artists such as A R Rahman, the Oscar-­‐winning composer of 'Slum Dog Millionaire'. He also co-­‐ordinated the World Record for the most Dhol drum players playing together at the same time -­‐ 314 in total! This is officially recognised by the Guinness Book of World Records. Asian Fx will benefit from Bindi’s deep knowledge of the music entertainment industry and his unrivalled contacts file. He will advise and assist the executive team on marketing and station events. 5 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Suria Photay Role: Director Other Directorships: None Suria is a qualified Barrister working as an adjudicator for the Financial Ombudsman Service. She is also a prospective parliamentary candidate for the Wolverhampton South East constituency in the 2015 general election. Born in the city she attended Wolverhampton Grammar School and then the University of Wales in Aberystwyth where she earned her Law degree. Before joining the Financial Ombudsman Service, Suria worked at a local law firm Bradical, a not-­‐for-­‐profit company that provides advice on employment and discrimination rights to people who live or work in Birmingham. Suria spent time working voluntarily alongside the Citizens Advice Bureau on Employment Law cases, working with people from all backgrounds and represented them in Tribunal Hearings. In 2005 Suria climbed Mt Kilimanjaro in Tanzania. She also participated in a social action project in Rwanda and Sierra Leone where she held workshops to help equip individuals with the skills they needed to improve businesses and assess legal cases. As well as her unparalleled local knowledge, Suria brings passion and vitality to the board. She will become an ambassador for the brand and fulfil an essential role in building awareness and understanding of the Asian Fx mission. John Evington Role: Director Other Directorships: None John's entire 35-­‐year career has been in radio, starting out as a presenter at Manchester's Piccadilly Radio. Following a spell as Head of Music and Features at Leicestershire’s first commercial station, Centre Radio, John joined Signal Radio in Stoke-­‐on-­‐Trent in 1983, presenting the 'flagship' Breakfast Show. After a three-­‐
month sabbatical, hosting the Early Show on BBC Radio 2, John returned to Signal where he was promoted to Programme Director -­‐ a post he held for 22 years. When Signal Radio was acquired by Wireless Group plc in 1999 John took on a senior group role and was subsequently promoted to Director of Programmes with responsibility for devising and executing all programme strategy across the group’s 15 local and regional radio stations in the UK, including Wolverhampton’s 107.7 The Wolf. TWG was acquired by UTV Media in July 2005. In 2006 John joined Canadian media giant, CanWest, to launch a new adult rock radio station for the Solent region of the UK. The station was launched to industry acclaim – on time and on budget. Promoted to Managing Director in 2007, John took on responsibility for the day-­‐to-­‐day management of all aspects of the station’s operation. 6 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Following Celador’s acquisition of the Solent licence in 2008, John was invited to oversee the re-­‐launch of 96.2fm Revolution Radio in north Manchester by the new owner, former Piccadilly Radio colleague, Steve Penk. The global recession hit the station hard and as part of a development strategy John introduced several online brand extensions, the most successful of which was a youth-­‐focused Asian service, ‘Revolution Plus’. John’s trademark passion for locally-­‐focused radio, and working knowledge of the Wolverhampton radio market, will reinforce the board’s commitment to delivery of a targeted, strongly local radio station. 7 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence (b) Investors and Shareholding Structure i) Names and addresses (the latter may be submitted in confidence) of all existing or proposed shareholders. Surjit Singh Ghuman MBE Panjab Radio House, Springfield Road, Hayes, London UB4 0TH. ii) Total number, class/classes of shares and issue price of shares (specify voting, non-­‐voting, preference, other etc.). 250 ordinary shares of £1.00 (voting) iii) All voting shareholders and holders of 5% or more of non-­‐voting shares and loan stock should be named. State the number, class/classes and price of shares to be issued to each investor. Surjit Singh Ghuman MBE: 250 ordinary shares of £1.00 (voting) iv) Outline any shareholders agreements or arrangements that exist. None v) Where a corporate body other than a current Ofcom licensee will be providing 30% or more of the required funding, details should be given of its directors and main shareholders, and of its activities. Not Applicable (c) Involvement of the Applicant in Specified Activities Details are required of the involvement by the applicant and its participants (including shareholders or other subscribers of more than 5% of the applicant's total funding requirements) in any of the activities listed below, and the extent of the interest. For these purposes, the applicant includes associates of the applicant (i.e. directors and their associates and other group companies). vii) Advertising agencies; None viii) Newspapers; None ix) Other broadcasting interests; • Surjit Singh Ghuman MBE owns 86.2% of Panjab Radio Ltd., an existing Ofcom licensee. •
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Surjit Singh Ghuman MBE owns 100% of Panjab Radio London Ltd., an existing Ofcom Licensee. Surjit Singh Ghuman MBE owns 100% of Asian Fx Ltd. an applicant for the Greater London 963/972 AM licence. 8 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence x) Bodies whose objects are wholly or mainly of a religious nature; None xi) Bodies whose objects are wholly or mainly of a political nature; None xii) Local authorities; None xiii) Other publicly-­‐funded bodies. None 9 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 2. Financial and business plan (a) Overall Financial Strategy Provide a concise (maximum 500 words) summary of how the applicant considers it is able to establish and maintain, throughout the licence period, its proposed service, and how this licence fits in with the investors' strategy. Establishing and Maintaining the Service The Asian Fx financial strategy is based on the principle that it is better, in order to satisfy advertisers, to generate a well-­‐defined and cohesive Asian audience -­‐ even if this audience becomes smaller in overall terms. Asian Fx will offer advertisers a tightly-­‐defined Asian audience with little wastage. This well-­‐
established, affluent population sector comprises active and influential players on Wolverhampton’s economic and social front. Traditionally this sector has been very difficult to reach via broadcast media. Wolverhampton’s demographics, the demand for an Asian-­‐focused format and support for the proposed service are the essential building blocks for establishing and sustaining the service. Experience -­‐ Leveraging Existing Operations and Relationships Asian Fx has access to a first class radio management team with a proven record of launching and operating successful stations. The team launched Panjab Radio on satellite in 2000. Today, Panjab Radio broadcasts on satellite, DAB and AM and is a highly successful business, growing audiences and revenues to support significant investment and expansion in radio licences across the country. Panjab Radio Group will provide central service functions that will underpin the economic viability of Asian Fx. The station will also benefit from Panjab Radio’s existing advertiser relationships. The group has strong links with the West Midland’s business community and already has access to multiple revenue streams from Asian-­‐specific advertisers, UK multi-­‐
nationals and event revenues to create a sustainable business. Proposed Service -­‐ Serving a Market Gap The radio marketplace has changed significantly since the Wolverhampton licence was first awarded. There has been an explosion of radio choice and wholesale ownership change. Small local stations have been squeezed out by either larger mainstream stations or specialist broadcasters. This explains UTV Media’s decision to try a different approach by combining the Wolverhampton licence with other group assets to create a much larger broadcast area. As a specialist broadcaster, Asian Fx has identified a lack of current provision for Asians in Wolverhampton and a clear opportunity to provide a local service for Wolverhampton’s Asian listeners and advertisers. 10 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Strengths • The team has proven commercial and operational expertise and is led by a long-­‐time radio investor who provides financial support and stability. • Research that clearly proves the demand for the proposed service amongst British Asians. • Resources to deliver these proposals. • A programme service that clearly broadens choice in the Wolverhampton marketplace. • Commitment to the West Midlands’ radio market and knowledge of the TSA. • Experience and success operating stations in other challenging markets. • Support from advertisers and the Asian business community. Investors’ Strategy -­‐ Experience, Financial Stability and Propriety Surjit Singh Ghuman MBE is a long-­‐time radio investor with a successful track record of running stations across the UK. His radio strategy is to grow a portfolio of profitable stations through licence award and acquisition. He currently owns 86.2% of Panjab Radio Limited, which operates five DAB stations – London, Coventry, Wolverhampton, Birmingham and Bradford/Huddersfield. Surjit also owns 100% of Panjab Radio London Limited and 100% of Asian Fx Ltd. (b) Funding i) Share capital See confidential Appendix B ii) Loan stock See confidential Appendix B iii) Leasing/HP facilities (capital value) None iv) Bank overdraft Fusion Radio Limited will have its own facility in place in addition to the support of Panjab Radio Group. v) Grants and donations None vi) Other (please specify) Where relevant, provide information on: None vii) Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms); See confidential Appendix B viii) Assets leased. All of the funding identified above should be confirmed to the applicant. Explanation should be provided if this is not the case. None 11 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence (c) Financial Projections Fusion Radio Limited’s detailed financial forecasts are provided in the confidential Appendix B. The assumptions are based on existing market metrics and projections from nearly 15 years of operating radio stations across the UK. Also included is economic forecast data provided by the Bank of England. All have been logically applied, are justifiable and can be fully substantiated. The detailed financial projections include Profit and Loss, Balance Sheet and Cash Flow Forecasts together with underlying assumptions, covering the first five years of the new licence period. They are provided in the confidential Appendix B together with the Ofcom financial summary template. An accompanying narrative describes how the underlying assumptions, on which the financial projections are based, are linked to other sections of the application. (d) Audience Projections i) The projected adult (aged 15+) population of the Total Survey Area (TSA) within which it is intended to measure the listenership of the service; It is the intention to enter into the RAJAR survey as soon as possible after launch. The station will market to, and measure audience levels, in a new TSA (Total Survey Area), based on the area served by 107.7 The Wolf before it was merged into the present quasi-­‐regional structure. The TSA will contain an adult 15+ population of around 435,000. ii) Projections for listenership ratings (e.g. weekly reach, average weekly hours of listening) over the first three years of the service, with detailed demographic breakdowns as appropriate; Asian Fx Wolverhampton Audience Projections iii) The expected impact of the proposed service on existing services, in listenership terms; The proposed service will be completely different to that of the incumbent, Signal 107. Whilst there is every confidence in the new station’s capacity to grow a substantial and loyal Asian audience over time, it is expected to inherit very little of the existing Signal 107 audience. The change from a generic, regional music service to a predominantly Asian format will inevitably bring about a re-­‐dispersal of the disenfranchised Signal 107 listenership. In forecasting the behaviour of these listeners, consideration was given to the following criteria: 12 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence a) The likely appeal of remaining formats to former Signal 107 listeners. b) The perceived enhanced value of stations focused on Wolverhampton. Audience assumptions based on last available RAJAR for 107.7 The Wolf TSA – Q3 2012 Asian Fx will engage in a major PR and marketing drive prior to, and post-­‐launch, including cross promotion on Panjab Radio’s DAB service. This campaign will be overseen by board member Herminder Singh Sandhu. Because Wolverhampton’s Asian population has never had its own FM station, a substantial level of interest in Asian Fx is assured. In forecasting the size and origin of Asian Fx listeners the following criteria were examined: a) Availability of, and current listenership to, Asian-­‐orientated services in Wolverhampton. b) The likely appeal of Asian Fx to Wolverhampton’s existing Asian radio audience. Source: RAJAR Q3 2012 107.7 The Wolf TSA * Estimated audience in the absence of RAJAR iv) In what way(s) do you expect to achieve an audience that is different in size and/or composition from that attracted by the existing service provided under the licence now being re-­‐advertised? To what extent, and in what ways, do you believe that existing audience figures can be improved upon? Wolverhampton is being seriously short-­‐changed by Commercial Radio. The small-­‐scale city licence that was intended for a dedicated Wolverhampton service has become little more than a relay facility for a large, generic regional brand. Furthermore, monitoring exposed disturbing parallels between Signal 107 and the heritage station, Free Radio. Signal 107 is largely duplicating a service that is provided far more successfully by Free Radio. RAJAR scrutiny suggests a disproportionately high level of listening to Signal 107 outside Wolverhampton within the enlarged station footprint, suggesting that any previous strength in Wolverhampton has been eroded by the constraints imposed by regionalisation. 13 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Station Positioning Asian Fx will be distinctive and markedly different from other stations targeting Asians. It will be a radio station that Asians find compelling and engaging. Output will be Wolverhampton-­‐
centric and delivered with energy, passion, care and a deep understanding of the target group. The Asian Fx formula is geared to achieve success in growing reach and hours across the defined 15-­‐54 target market. The station’s appeal will be strongest in the core 25-­‐34 demographic. Focusing on the core will facilitate delivery of strong audiences in the adjacent demographics with a natural decline in listenership amongst the over 45s. Asian Fx offers a clear alternative to the generic pop music-­‐focused output that dominates commercial radio in the West Midlands. The main stations broadcasting to Wolverhampton currently provide a highly repetitive, lowest common denominator output with minimal speech -­‐ hardly any of it meaningful. Stations are no longer dedicated to the city, broadcasting instead to a range of diverse communities in disparate population centres spanning hundreds of square miles. • Asian Fx will provide Wolverhampton’s growing Asian population with a station they can call their own. • Asian Fx will restore truly local radio to Wolverhampton. • Asian Fx will bring genuine diversity of choice to Wolverhampton listeners. v) The basis on which the estimates above have been calculated, and any assumptions taken into account. Projected weekly reach was calculated using data gathered during the street research survey in Wolverhampton. A weighting of 60% was applied to the number of Asian respondents who said they were “very likely” to listen, and a 30% weighting to the number who declared themselves “quite likely” to listen. Using these weightings against an estimated TSA of 435,000 comprising 47,000 Asians, a weekly reach of around 15,510 (33%) is achievable by the end of year one, rising to 21,150 (45%) in year three. Non-­‐Asian audiences were also taken into account in these projections. Low retention and conversion rates are anticipated due to the specialised nature of output and the station name – ‘Asian Fx’ which sends out a clear signal about the target listener. Notwithstanding 14 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence these obvious barriers, the personality-­‐based Breakfast Show and sporadic inclusion of Western popular music during the day is likely to play a part in stimulating higher levels of non-­‐Asian patronage than those achieved by the more traditional Asian stations in Bradford, Leicester, Birmingham and London. As the Programme Schedule in confidential Appendix H testifies, the proposed weekday Breakfast Show will be geared towards Wolverhampton first and foremost, with all the standard benchmark features essential for success in this key daypart. Music will be a unique blend of popular Asian and western hits delivered by a presentation team representative of Wolverhampton’s multi-­‐cultural society. Accordingly, it is anticipated that the year one Asian reach of 15,510 will be augmented by around 7,500 non-­‐Asians, rising to 9,500 in year three. Total projected reach in year one, therefore, is 23,010 (5.3%). Asian Fx is a fresh, vibrant music-­‐intensive radio station aimed at younger Asians and the format will be designed to achieve higher average hours than more traditional Asian stations. The listening hours projection was, nevertheless, benchmarked against the historic achievements of other Asian stations around the UK with a nominal uplift to reflect the brand’s perceived unique potential. Asian Fx is, therefore, expected to achieve average hours of 7.5 in year one rising to 9.5 in year three. The impact on other commercial stations has been calculated using a combination of data from RAJAR, bespoke market research and the applicant team’s extensive knowledge of the Wolverhampton market. Whilst no RAJAR information is available for Wolverhampton’s community station, WCR, it is not expected that Asian Fx will make a noticeable impact as there is little in common between the two formats. 15 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 3. Transmission proposals a) Have you entered into negotiations with the owner/operator of the site(s) regarding arrangements for the new licence period? If so, provide details; if not, state what arrangements are anticipated. Negotiations are in progress with DTZ Property Management, the Managing Agent for Mander House, with a view to taking over tenancy of the existing studios and transmission facility. Provision has been made in the Business Plan to replace with new equipment should the current licensee retain its equipment. 16 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 17 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 4. Format Asian Fx Service Name Licence Number AL000199 Licenced Area Wolverhampton MCA Population 329,122 Frequencies 107.7FM Character of Service A lively, contemporary Asian/urban music-­‐led service targeting Wolverhampton’s Asian population aged 15-­‐54 Service Duration 24 Hours a day 7 days a week Studio location Wolverhampton Locally-­‐made hours All programming will be locally produced Programme sharing No arrangements Local News Local, UK and international news will be broadcast at regular intervals during peak times Definitions Speech Peak-­‐Time Daytime Excludes advertising, programme/promotional trails & sponsor credits Weekday breakfast and drive-­‐time, + weekend late breakfast 06:00 to 19:00 weekdays and weekends 18 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 5. Programming Philosophy a) Explain (in no more than 500 words) how your proposed Format will cater for the tastes and interests, general or particular, of persons living in this local area; Asian Fx will bring truly local radio back to Wolverhampton providing the growing Asian population with its own commercial radio voice for the first time. The population of the Wolverhampton city council area comprises 44,960 Asians making it by far the largest minority ethnic group at more than 18% of the total population. This huge sector of Wolverhampton’s population has always been excluded from local broadcast media. Now is the time to return the local commercial radio licence to the city of Wolverhampton from where it will be used to its fullest potential as a valued entertainment and information source. Asian Fx is the shared vision of a team of prominent local individuals from a variety of backgrounds, including radio professionals, brought together by Surjit Singh Ghuman MBE, the Founder of Panjab Radio. Their unifying ambition is to provide Wolverhampton’s growing Asian population with a station it can call its own. Asian Fx aims to promote and represent the unique spirit of Wolverhampton’s Asian sub-­‐
culture by providing innovative and relevant programming. It will be a lively, music-­‐led radio station playing the best in Bollywood, Bhangra, Urban Desi, Soul, R&B and western crossover pop genres. The station will target British-­‐born Asians aged 15-­‐54; a group that makes a vital contribution to social and economic life, enriching Wolverhampton’s cultural landscape. At present, however, this community lacks a radio voice of its own. Although heavily integrated into the fabric of Wolverhampton, this community is also very conscious of its cultural roots, enjoying Bollywood movies, Asian food, clothing and music. The single most important defining characteristic of the proposed target audience of young South Asians is that the vast majority of them were born and raised in the United Kingdom and, for the most part, consider themselves British first and foremost while at the same time maintaining deep respect for their family and its origins. Unlike previous generations they speak English as a first language and Asian Fx will reflect this. British Asians have created a lifestyle by adopting favourite aspects of both Eastern and Western culture and whilst they still remain close to and respectful of the older members of their communities, the British Asian experience encourages them to adopt a more pro-­‐active and questioning attitude to the traditional aspects of their own communities. The huge generation gap makes it all the more obvious why younger Asians feel in desperate need of their own radio voice. Somewhere they can hear the best new Asian music alongside the western crossover songs they enjoy -­‐ and above all somewhere their needs and aspirations are understood, reflected and encouraged. Asian Fx will be committed to quality, innovation and originality. The station aims to become Wolverhampton’s trusted provider of news and information as well as a valued entertainment source. As well as becoming a stylish and vibrant new listening option, Asian Fx plans to organise and participate in a wide variety of entertainment and social events in Wolverhampton and across the West Midlands. 19 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence b) Explain (in no more than 600 words) how your proposed Format will cater for tastes and interests different from those catered for by other existing local commercial and community radio services available in this local area, apart from the service currently being provided under the re-­‐advertised licence you are applying for. Wolverhampton listeners are being poorly served by existing commercial radio stations. Recent ownership and operational changes by Orion Media and UTV Media have resulted in a convergence of ideologies and, as a consequence, the creation of two very similar sounding radio stations. This undermines Ofcom’s remit to ensure “diversity of programming on commercial radio, catering for different tastes and interests”. Existing Commercial and Community Radio Output Free Radio’s FM and AM services target a general audience across the Black Country and Shropshire. Free Radio FM is aimed at people under 44 and plays contemporary and chart music with local news and information. Free Radio 80s, on AM, is aimed at people aged 35-­‐
54 playing classic hits with local news, information and occasional football commentaries. There is no content aimed specifically at the Asian population. At a regional level Wolverhampton sits within the broadcast area of Global Radio’s 100.7 Heart FM and Smooth Radio, Planet Rock from Bauer and Radio XL owned by Central Air Radio Ltd. All these stations are based in, and centred upon, Birmingham. Wolverhampton’s community station was established in 1986 as the Wolverhampton Community Radio Association and has broadcast under a variety of names over the years. Now known as 101.8WCRfm the station currently broadcasts entirely in English and there are no regularly scheduled programmes aimed at Wolverhampton’s Asians. Free Radio is Top 40-­‐orientated, Heart plays ‘Adult Contemporary’ music, Smooth is a national easy-­‐listening brand and Planet Rock is aimed at rock music fans. Radio XL, which broadcasts on medium wave, is targeted towards an older Asian audience and focused editorially on its home city of Birmingham. The Asian Fx Difference Asian Fx will be entirely different from the other commercial and community radio services available in Wolverhampton. It will be targeted unambiguously at Wolverhampton’s Asian communities. Asian Fx will be presented almost entirely in English with just a sprinkling of the kind of Anglo-­‐Asian ‘buzz words’ and phrases used by Wolverhampton’s young Asians in everyday life. Asian Fx aims to become a part of the fabric of everyday life for Wolverhampton’s Asian population and will be fully committed to the involvement and engagement of listeners via programming, interaction over the phone, text and email. It will also establish a prominent social media presence. Asian Fx Music There is a very clear vision for the musical tone and feel of Asian Fx. These original proposals are fully endorsed by the research undertaken as part of the application process. A range of genres and styles was tested, with respondents rating them according to their likes and dislikes. From this, a set of station ‘clocks’ was designed, optimising the music to reflect the 20 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence preferences of changing audiences through the day. The station will be upbeat at Breakfast and Drivetime, slightly more ‘chilled’ through the working day and from 7pm the emphasis switches to a younger, 15-­‐24, target group with a more contemporary blend of Asian and Western styles. Asian Fx Speech Content Asian Fx will carry all the staple ingredients that are commonplace on radio; that’s a given. It is the additional speech elements that will give Asian Fx its unique appeal. ‘Help and Advice for Young People’ was considered “Very Important” by 75.5 per cent of respondents to the online survey. This will feature heavily in output but specific provision for social action programming comes in the form of the ‘Morning Phone-­‐in’ show with Sanyya Gardez. Asian Fx Personalities Asian Fx presenters will be bright, interesting people who know how to engage and connect with young Asians in Wolverhampton. 21 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Section 105(D): Evidence of local demand or support 6. Evidence of Demand Summarise the main findings of any original market research undertaken, or any analysis of existing audience research information, which demonstrates a demand for the type of programme service you are proposing to provide. If original market research has been undertaken, please provide the following information for each piece of research: f) A summary of the main findings from the research, showing how these demonstrate evidence of demand for the service proposed; BACKGROUND The Wolverhampton radio landscape has undergone wholesale change in recent years: •
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Wolverhampton’s heritage station, Beacon Radio was acquired by Orion Media in 2009 and re-­‐launched in March 2012 as ‘Free Radio FM’ (‘Free Radio 80s’ on the AM frequencies). The output of Wolverhampton’s Free Radio FM is also broadcast across Shropshire. Weekday programming between 10am and 4pm and everything from 7pm until 6am is simulcast with Free Radio stations in Coventry, Hereford & Worcester and Birmingham. Wolverhampton’s small-­‐scale commercial radio licence is held by UTV Media. Having operated as ‘The Wolf’, a locally focused service for Wolverhampton from launch, the licence became part of a quasi-­‐regional service in March 2012. Now broadcasting as ‘Signal 107’, transmitters in Oswestry, Telford, Shrewsbury and Kidderminster all carry exactly the same output other than ‘split’ news and commercials. 22 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence These are very significant changes and it was considered essential to investigate the scale of their impact on local listeners. The Wolverhampton street survey, therefore, set out to gauge awareness of the new station identities and establish perceptions towards all the commercial services available in Wolverhampton. It was also felt important to explore affinity levels shown by Wolverhampton people to the main towns in the wider catchment areas of the two enlarged local stations. Awareness and Listenership The most recognised commercial radio station was Heart FM at 82% followed by Free Radio which was recognised by 65% of the sample. Significantly, more people were aware of ‘The Wolf’ (59%) than Signal 107 (50%), despite the fact that the name ‘The Wolf’ hasn’t been used for almost three years. Radio XL, the long-­‐established AM station targeting Asians was recognised by just 28% of the sample, although the station was better known by Asian respondents of whom 45% said they were aware of it. When looking at stations ‘ever listened to’ some significant disparities emerged between Asian and Non-­‐Asian respondents: 23 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Amongst Asian listeners some of the more specialised stations, only available on digital platforms, out-­‐performed many of the established analogue stations. Panjab Radio, BBC Asian Network and Radio XL had all been listened to by a greater percentage of Asian respondents than Signal 107. This suggests that existing FM commercial radio is failing to cater adequately for the tastes and interests of Asian listeners in Wolverhampton. Paradoxically the Asian audience consumes a great deal of radio. However, Radio XL performs poorly considering it launched in 1995. Two factors are at play here; the station’s Birmingham focus and the general decline in AM listening. Local Affinities The Wolverhampton licence held by UTV Media was intended to serve the people of the city. However, in March 2012 it was annexed to form part of a much larger broadcast area comprising five disparate and discrete locations. The move was commercially driven and rationalised at the time as a means of growing national revenue for the group. It was, UTV Media explained to the trade press at the time, “an easy way for national buyers to place their advertising across a large region with just one phone call”. It is questionable whether due consideration was given to the needs and opinions of listeners in this process. The enlarged broadcast area incorporates a mismatch of urban and rural areas rendering it impossible for presenters to properly engage with listeners: Signal 107 TSA Wolverhampton is a large, densely populated city. Oswestry, by comparison, is a quiet market town some 51 miles away not far from the Welsh border. It is difficult to imagine Wolverhampton, Oswestry, Kidderminster, Telford and Shrewsbury as comfortable ‘bedfellows’. There is no homogeneity to the artificial region created by UTV Media. In the real world, Wolverhampton considers itself part of the West Midlands region, centred on Birmingham. 24 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence In an effort to establish the level of affinity between Wolverhampton and the other parts of the wider Signal 107 footprint, respondents were asked how often they visit the named towns: 93 % of respondents said they would “never” visit Oswestry. A very high proportion also indicated that they would never visit Kidderminster or Shrewsbury. There was more interest in Telford with some 51% saying they would be likely to visit at least once a year. Conversely, 54% of respondents said that they visit Birmingham at least monthly. Respondents were also asked how interested they were in hearing about each area: Again, it became clear that there is considerably more interest in Birmingham than any of the towns forming part of the Signal 107 area. This convincingly supports the argument to restore the Wolverhampton licence to its original purpose – a stand-­‐alone local radio service for the city of Wolverhampton. 25 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Format Test Finally, the idea of a new radio station aimed at Wolverhampton’s Asian population was tested. 73% of Asian respondents said that they would be either “likely” or “very likely” to listen to the new station. Results were broadly consistent across the demographic sub-­‐
groups but the appeal was marginally stronger amongst over 25s. Only 14% of Asian respondents said they would be “unlikely” or “very unlikely” to listen. ASIAN MUSIC PREFERENCES Nine main music genres of Asian-­‐appeal were identified and respondents were asked to rate each one according to the following options: ‘Love It’ -­‐ ‘Like It’ -­‐ ‘It’s OK’ -­‐ ‘Don’t Like’ or ‘Hate It’ •
•
•
Bhangra was confirmed as the most popular genre amongst British Asians. This upbeat music style was developed in Britain in the 1980s by first and second-­‐
generation immigrants from the Punjab region of India and Pakistan forming the Punjabi diaspora. Bollywood also received a strong positive rating from respondents. Bollywood is the popular term of reference for the music produced by the Hindi language film industry, based in Mumbai India. Urban Desi is a relatively new genre of music formed by the fusion of traditional Indian and Western urban music. It received a high rating by younger respondents. This was balanced by lower appreciation amongst older people suggesting that this genre should be scheduled with caution during daytime. This is just a snapshot of today’s musical preferences as tastes are constantly changing. Asian Fx intends to run online research to ensure that musical appeal is continually refreshed and optimised. 26 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence STATION MONITORING The monitoring process focused on daytime output of the following analogue stations: •
•
•
•
Signal 107 Free Radio FM (Black Country) 100.7 Heart FM Radio XL NON-­‐ASIAN RADIO A key objective was to establish the stylistic and editorial distinctions between Wolverhampton’s existing commercial radio services. Particular emphasis was given to local content such as news, information and presenter-­‐generated input. It was also considered essential to establish how the stations differ musically and check present delivery against the letter and spirit of their respective Formats: 1) Local Content a) 100.7 Heart FM is licenced to serve the entire West Midlands region and, as such, has the freedom to adopt a broad geographical posture centred on Birmingham but also including the region’s other population centres such as Coventry, Hereford & Worcester, Birmingham and the Black Country. b) Free Radio’s programming, other than at Breakfast and Drivetime, is originated from Birmingham and simulcast by all the Orion Group’s FM stations across the West Midlands. During the ‘local’ hours, Free Radio FM’s Wolverhampton transmitter carries identical programming to the Shropshire transmitter. Monitoring at Breakfast and Drivetime showed that presenters freely talk about and engage with listeners across the entire area. During Breakfast there was a considerable amount of interaction with listeners over the phone. On the morning monitored there were also prominent and repeated references to school closures in Shropshire and the Black Country. Traffic news was detailed, appeared to be frequently updated and was succinctly delivered by an impressively ‘area savvy’ reporter. c) Signal 107 approaches localisation very differently during general output. There is far less presenter input than on Heart and Free Radio, and what there is tends to be generic and non-­‐specific to any particular location. There is a sense that the station could be broadcasting from and to anywhere. The only significant local feature within general programming was the ‘School of the Week’ which included brief recordings of children in Telford. Traffic news was more a list of roads than a meaningful guide to delays and troublespots. Unlike the other commercial stations, Signal 107 uses computer playout capability to ‘split’ pre-­‐recorded presenter links specific to each sub-­‐division of the broadcast area, giving listeners the impression that the station is local to them. However, on the day monitored this ‘localisation’ amounted to little more than the inclusion of the word “Wolverhampton” or local frequency, “107.7”. e.g. “…waking up Wolverhampton this is Signal 107…”; or “…the weather for Wolverhampton…”; and “…on 107.7 FM this is Wolverhampton’s station – Signal 107…”, etc. 27 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 2) News On the day of monitoring there was a degree of commonality between the stations – especially Free Radio and Signal 107. Most notable, however, was the limited news commitment on Signal 107 which ‘sells’ its top of the hour bulletin as “Signal 107’s 90-­‐
second News”. These brief bulletins are pre-­‐recorded and locally editorialised for each licence area. Coverage was far more detailed on Free Radio with bespoke audio clips accompanying the key local stories. 3) Music The degree of musical overlap between Wolverhampton’s two commercial stations was quite enlightening. During the week of analysis, commencing 12th January 2015, the 20 most played artists were common to both stations. These are the ‘core’ artists, i.e. the artists that define a station’s musical character and identity. Heart FM also shared many of these artists resulting in a very similar initial impression of the three stations. 28 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence The other regional commercial stations, Smooth Radio and Planet Rock, are more specialised brands with quite distinctive individual identities. In terms of the hourly composition of Signal 107 and Free Radio both stations are heavily skewed in favour of current and recent hits: To the casual ear Signal 107 and Free Radio are virtual clones of each other – at least in terms of music. However, given that music accounts for the vast majority of output, there is compelling evidence that the licences are not being used in the best interests of Wolverhampton listeners. Asian Fx will be entirely different and the level of duplication with existing general music stations will be minimal. 29 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence ASIAN RADIO Radio XL is the Birmingham-­‐based music and information service for the Asian communities of the West Midlands. Launched in May 1995 the station broadcasts across the region on 1296 AM. Radio XL was monitored on Tuesday 9th February 2015. The main observations are as follows: •
•
•
•
•
•
The station appears to be positioning itself as a Birmingham station. Presenters repeatedly talked about being in Birmingham and most of the station jingles and IDs made reference to Radio XL as “Birmingham’s station for the Asian community”. Paradoxically there were also mentions throughout the day for online listeners in far-­‐flung places including Tanzania, Dubai and the US. Hourly news was taken direct from IRN. The only Asian news from the Indian sub-­‐
continent was broadcast at 1pm. There was hardly any locally relevant information during the Breakfast Show. Only one traffic news update was detected during the busy 7 – 9 period. The station sounds dated. Many of the jingles date back to the launch 20 years go. Technical delivery can be quite ‘clunky’ and unprofessional. There were several long gaps between songs and, during Drivetine, on more than one occasion the presenter somehow managed to play the same song twice in close proximity. Output during Breakfast and Drivetime was mainly in English punctuated with occasional bursts of Hindi. During the day (9am – 3pm) the dominant language was Urdu: Asian Fx will be highly distinctive and entirely different from Radio XL and the BBC Asian Network, unequivocally broadening the range of programmes available to Wolverhampton listeners. It will be youthful, lively and presented almost entirely in English. Fundamentally, however, it will be a Wolverhampton station, focusing on the editorial needs of the city, which the regional and national stations can’t do. 30 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence RAJAR ANALYSIS Historically the performance of Wolverhampton’s small-­‐scale station was measured across a survey area that matched the coverage of its single transmitter. With an adult population of around 430,000 this was slightly larger than the station’s MCA (329,122). In 2012, when the station was annexed to become a part of a much larger regional service, the TSA was massively expanded to take in Telford, Oswestry, Shrewsbury and Kidderminster. At the time of Signal 107’s area extension, UTV Media announced that it had become the “second largest TSA in the group”. The revised survey area contains just over one million adults. BBC Radio 2 is far and away the market leader with a share of 18.5%. Heart FM is the best performing commercial station at 8.5% although, as anticipated, the TSA extension had an adverse effect on the station’s share which, previously, had consistently exceeded 11%. The other regional stations, Smooth Radio, Planet Rock and BBC WM all experienced a similar decline in share following the change. However, Free Radio FM’s coverage area is better matched to the revised TSA and, accordingly, market share has remained consistent – 8.4% in Q4 2014. In the latest RAJAR Signal 107 languishes at 2.3% ranking it 142 out of 156 FM commercial radio stations in the UK. The best market share ever achieved by 107.7 The Wolf was 7.2% suggesting that the licence has greater audience-­‐delivery potential as a stand-­‐
alone local station than as a part of a quasi-­‐regional service. 31 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence The graph above shows the dramatic effect of the TSA extension on the measured weekly reach achieved by stations covering the entire area. It also highlights the obvious strength of BBC Radio Shropshire in its largely rural core area. Looking at listening patterns amongst Asians aged 15-­‐54 the BBC Asian Network, available on DAB and on 1458 AM across the West Midlands, out-­‐performs all other stations. Neither Radio XL nor Panjab Radio participate in RAJAR but the street survey suggested broadly similar levels of performance so the total reach of Asian targeted stations is estimated to be in the region of 40,000. BBC Radio 1, Heart FM and Free Radio also attract significant numbers of Asian listeners. Census data shows that the Asian population is distributed unevenly across the Signal 107 TSA. The vast majority is concentrated around Wolverhampton and the neighbouring Black Country towns. The Asian listening reported by RAJAR is, therefore, largely derived from the original Wolverhampton MCA. 32 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence g) Full data tables for any quantitative research undertaken (these may be submitted in confidence). These are attached within confidential Appendix D 33 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence 7. Evidence of Support Summarise (in no more than 500 words) any evidence of support for your application from your potential audience or from prospective local advertisers. The proposals for Asian Fx were circulated to a large selection of key individuals and organisations in Wolverhampton and across the West Midlands. They were also personally presented to selected individuals and organisations in the area by Surjit Singh Ghuman MBE. The team has been heartened and energised by the overwhelmingly positive response: proposed Asian Fx rt your application. The
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All the letters of support received are included at Appendix E. 35 Asian Fx Application for the Wolverhampton FM Commercial Radio Licence Declaration Applicants are required to conclude their submission by responding as follows: I confirm that, to the best of my knowledge and belief: a) I am not a disqualified person in relation to the licence by virtue of the provisions of section 143(5) of the Broadcasting Act 1996 (relating to political objects); b) No director or person concerned directly or indirectly in the management of the company or the applicant group is the subject of a disqualification order as defined by section 145(1) of the Broadcasting Act 1996; c) No person involved in the application has been convicted within the past five years of an unlicensed broadcasting offence and that the applicant will do all it can to ensure that no person so convicted will be concerned in the provision of the service, the making of programmes included in it, or the operation of a radio station if the applicant is granted a licence; and d) Any matters which might influence Ofcom's judgement as to whether the directors and substantial shareholders involved in the application are fit and proper persons to participate in a radio licence have been made known to Ofcom? Applicants should note that Ofcom reserves the right to revoke a licence if at any time any material statement made is found to be false and to have been made by the applicant or any member or officer thereof knowing it to be false, and that in the circumstances of section 144 of the Broadcasting Act 1996, the provision of false information or the withholding of relevant information with the intention of misleading Ofcom could incur a criminal conviction and a disqualification from the holding of a licence. Signed Surjit Singh Ghuman MBE Dated: 36