Rother FM - Ofcom Licensing

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2. Financial and business plan (a) Overall Financial Strategy Section 105 (A): Ability to maintain proposed service Provide a concise 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. Rother FM is part of the Lincs FM Group, which has the proven ability to operate successful, locally-focused radio stations within the competitive Yorkshire marketplace. The Lincs FM Group has built its business on its commitment to distinctive and high-quality local radio, and on its strategy of expanding organically by applying for new radio licences in areas that make commercial sense to the Group as a whole. Formed in 1991, Lincs FM won both the first (Lincoln) and the last (Barnsley) competitively awarded Radio Authority licences. Lincs FM 102.2 launched in March 1992 as the new commercial radio station for Lincolnshire, and has long sustained some of the country’s best RAJAR figures as well as twice being nominated as Sony Station of the Year. Since then the Group has won seven more local radio licences and launched seven successful services in Yorkshire and the Midlands. All have won or been nominated for major industry awards. The Rotherham licence is a perfect fit with our strategy. The borough borders Bassetlaw in North Nottinghamshire, and Barnsley and Doncaster, both in South Yorkshire: three areas in which the Lincs FM Group has already established successful commercial local radio stations. Rotherham is the kind of marketplace we understand, not just from a sales point of view but also in terms of programming and marketing. The borough has, in common with both Barnsley and Doncaster, gone through some very tough times since the 1980s. While Barnsley and Doncaster have suffered from the collapse of the mining industry, Rotherham was even harder hit – as the steel industry went into decline as well. Nearly 50,000 Rotherham jobs were lost in a 25 year period from around 1970 – 22,000 in steel and 26,000 in coal. Like Doncaster and Barnsley, Rotherham is now benefiting from the Objective One funding status given to South Yorkshire at the beginning of this century, with £1.8 billion being spent across the region on development projects. However, while Rotherham does have much in common with both Doncaster and Barnsley – particularly Barnsley, because of its size – we are also very aware of Rotherham’s distinct character and challenges. It has closer ties to Sheffield than either Barnsley or Doncaster, a result of both geography and the heritage of the steel industry. 40% of Rotherham’s population travels outside the borough to work, 22% into Sheffield. The closeness of this giant neighbour means Rotherham has to fight harder to benefit from the new European funding. The council has highlighted in particular the fear of “retail leakage” – local people travelling outside the borough to shop. As a result, Rotherham now has an ambitious new retail development at Parkgate and £3 million has been spent on redeveloping the Centenary Market in the town centre. 10
Section 105 (A): Ability to maintain proposed service Rotherham needs to work hard to establish its own identity, a challenge the local authority has taken up, and one that the Lincs FM Group is keen to support and enable. The Group has been working in Yorkshire for more than ten years and is uniquely well-placed to attract, maintain and grow local, regional and national revenue on a Rotherham station, even in advance of RAJAR figures becoming available. Rother FM will have immediate access to national revenue. Our national sales house First Radio Sales already offers a Yorkshire Group consisting of Trax FM (Bassetlaw and Doncaster), Dearne FM (Barnsley) and Ridings FM (Wakefield), a potential 15+ population of 799,000. Rother FM would be added to this grouping immediately. Additionally, there are already regional sales executives working for our Group dealing with businesses such as the motor trade. Furthermore, sales executives working in Barnsley and Doncaster already sell advertising to a number of Rotherham businesses who are keen to attract customers from outside the borough. Since our trial service in May we have continued to build our relationships with all sectors of business and business support agencies in Rotherham – such as our sponsorship of an award at the Rotherham Chamber Business Awards. This has helped keep the Rother FM name planted firmly at the heart of the community. We believe that for Rother FM the traditional “bedding-in” period at the start of a new station’s life, when revenue can be hard to come by, will be limited or even non-existent. We will have a flying start, as the Group did with Dearne FM. We know from experience that regional and local advertising sales in this part of the world depend less upon RAJAR figures and more on reputation and word of mouth. Because we can point to the success of Lincs FM Group stations in similar marketplaces, advertisers will be able to place great confidence in our audience projections. In fact a number of Rotherham businesses, or advertisers with branches in Rotherham, have already indicated that they are interested in advertising on Rother FM. Please see our answer to Question 7. Evidence of Support for further details. When it comes to establishing and maintaining successful new stations in the crowded South Yorkshire marketplace, no group has more relevant experience than Rother FM’s parent company. Trax FM launched in Doncaster with a year one reach of 24%, in a marketplace that included the heritage station Hallam FM and the very successful regional service Galaxy 105. When Dearne FM launched in 2003 the marketplace had become more crowded due to Real Radio’s launch, but nonetheless Dearne FM achieved an impressive year one reach of 28%. Trax FM’s reach currently stands at 28% and Dearne FM’s at 30%. These figures have been achieved without significant cost to the heritage ILR for South Yorkshire, Hallam FM, which has the highest reach of any of EMAP’s Big City network of stations at 32%.* *RAJAR/IPSOS Media September 2005 The success of Trax FM and Dearne FM (and we hope of Rother FM in the future) is due to the Group’s commitment to genuine localness and the support offered by a strong yet flexible parent company: there is sensible use of Group facilities and expertise, combined with real local decision-making. A launch Managing Director will be appointed soon after the licence award and is expected to remain in place until six months after Rother FM’s launch. 11
Page 1 and 2: An application to Ofcom for the loc
Page 3 and 4: General information (a) Name of App
Page 5 and 6: Executive director - Jeff Harwood S
Page 7 and 8: Executive Director - Matt Jones Occ
Page 9: Lincs FM Group Limited holds the Li
Page 13 and 14: (b) Funding Section 105 (A): Abilit
Page 15 and 16: Section 105 (A): Ability to maintai
Page 17 and 18: 3. Transmission proposals Section 1
Page 19 and 20: Section 105 (A): Ability to maintai
Page 21 and 22: Section 105 (B) and (C): Catering f
Page 23 and 24: Target audience Section 105 (B) and
Page 27 and 28: Weather Section 105 (B) and (C): Ca
Page 37 and 38: ROTHER FM STATION FORMAT Licence ou
Page 39 and 40: Section 105 (D): Evidence of local
Page 41 and 42: Lifestyle Section 105 (D): Evidence
Page 43 and 44: Section 105 (D): Evidence of local
Page 45 and 46: Declaration Rother FM confirms that

Rother FM - Ofcom Licensing

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