Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

Outsourcing and group services
Through the shareholders’ experience of running small but profitable media businesses, we recognise
the importance of keeping fixed overheads down, and ensuring scaleable costs. As such we plan to
outsource a number of aspects of the company’s operation to partners and certain back-office functions
to IMD Group.
As well as major marketing support, IMD will support the station with company registration matters and
have access to IMD’s experienced in-house creative design team, currently responsible for the design
and production of over 40 separate regional publications with a total print run of just under 1 million
books a year. This will ensure we have high quality visual branding for the station across the county,
whether in print or outdoor media.
Financial support (payroll, preparation of management accounts, analysis of debtor days etc) will come
from E-Financial Management Ltd, an outsourced financial management specialist. EFM is lead by
Gary Jesson, former Ernst & Young Auditor to Chiltern Radio PLC, and is currently retained by IMD
Group. Annual audit work will be undertaken by Grant Thornton, and prepared on a Group basis.
Outside Broadcasts and Promotions
Itchy FM will sub-contract the management of any outside broadcast, promotion or live music event to IMD
Group’s events marketing unit. Targeted support and events management expertise will be made
available to the bid at cost through the provision of experienced promoter Ben Hylands, IMD’s Head of
Events Marketing in an advisory role as necessary.
Web, IT & SMS partner
Itchy FM has contracted out website design and hosting and all IT matters to Carbon Chip, a West Country
based digital and new media consultancy which has supported our radio ambitions since we shared
premises with them for the 1999 RSL. Carbon Chip has provided digital development for youth
brands including Glastonbury Festival and Bacardi Breezer. Their experience and local know-how will
ensure we are competitively advantaged against national music stations.
Elsewhere, IMD Group’s digital and data unit, ‘Mindset’, manages a range of interlinked and crosspromoted
niche youth websites (“Digital Youth Network”) and Itchy FM will benefit from shared content
(listings, competitions etc) enhancing our audience’s use of the station site plus national online advertising
sales.
Commercial Production
Itchy FM will employ its own producer with dedicated production facilities. High quality production is critical
to the success and fast-moving young sound of our station and our budget provides for studio equipment
for the production of station imaging and commercial production. Our in-house producer will play a vital
role in the creative selling process and will have the opportunity to understand the brands from a local
perspective. Commercial Production income is based on 7% of local revenue. We have assumed costs of
30% to voiceover artists and scriptwriters. This makes commercial production a profitable operation, even
taking into consideration the costs of our in-house producer and some additional production resources.
Transmission facilities
NTL are Itchy FM’s preferred provider of engineering facilities. It is anticipated that we will reach an
agreement with NTL for the provision of these services through a Total Broadcast Contract, the provision
for which has been included in the business model, allowing for dual transmitters and separate feeds to
both to enable the option of split advertising breaks.
Sales training
Ian Merricks has exceptional radio and media sales skills, having sold across RSL, ILR and INR
stations, and within national radio sales agencies. He has trained more than 20 local radio sales staff
in ways to sell commercial airtime, programme sponsorship, on-air promotions and off-air activity. He
worked as a commercial consultant to the Student Radio Association and has spoken at Radio
Academy events on commercial activity for small-scale stations. His 1998 Operations Manual on
‘Maintaining Commercial Youth Radio’ played an important part in Ian’s commercial radio consultancy
10