An Application for a local radio licence by ... - Ofcom Licensing

An application to
Ofcom for the FM
Independent Local Radio
Licence for Durham
January 2005
Durham FM Limited
37 - 39 West End
Sedgefield
County Durham
TS21 2BW

GENERAL INFORMATION
(a) Name of Applicant, Address, Telephone and Fax Nos., E-mail Address
2
Durham FM
This must be a single legal entity: either a body corporate or a named individual person. If the former, a
copy of the certificate of incorporation must be included with the application.
Durham FM Limited
37 – 39 West End
Sedgefield
County Durham
TS21 2BW
Tel: 07979 853990
Fax: 01740 621849
Email: mail@durhamfm.net
(b) Main Contact (For Public Purposes)
Please nominate at least one individual to deal with any press or public enquiries, stating:
Name: Brian Lister
Telephone (daytime): 07979 853990
Address: Durham FM Limited
37 – 39 West End
Sedgefield
County Durham
TS21 2BW
E-mail address: mail@durhamfm.net
(c) Proposed Station Name (if decided)
DURHAM FM
(d) Brief Description of Programme Service
Provide a one-sentence statement summarising the type of programme service or format proposed.
A friendly, locally involved radio station aimed particularly at 25 to 54 year olds, focussing on
local news, information and issues relevant to life today in the Durham area and featuring the
best music from the past four decades and today.

SECTION 105(A): ABILITY TO MAINTAIN PROPOSED SERVICE
1. Ownership and control of company that will operate the licence
(a) Board of Directors
3
Durham FM
(i) Provide the name, occupation, other directorships, other media interests, background and relevant
media experience of each director (executive and non-executive), including the proposed chairperson.
The board of Durham FM Limited comprises seven directors who between them represent
considerable experience in local business, community activities, the public sector and education,
combined with unparalleled knowledge of the region’s local radio industry.
In alphabetical order they are:
John Anderson (Non-executive Chairman)
Peter Jackson
Brian Lister
Alistair MacKenzie
John Sanderson
Brenda Walker
John Widdowson
The directors met to discuss these proposals formally on six occasions and informally on a further
three occasions in the 18 months since July 2003.

Non-executive Chairman
JOHN N ANDERSON CBE
Occupation: Company Director
Other directorships:
Sun FM Limited
University of Sunderland Limited
Mobility Assist
Gainmanor Fiat
Area Regeneration Company ARC/URC
North East Business & Innovation Centre
Others held during the past five years:
Anderson Mercedes Benz
Sunderland City Partnership
Sunderland Forum (Wider Partnership)
Northern Business Forum (NBF)
University of Sunderland
Age Concern
North Area Health Trust
Princes Trust, Sunderland
TEC National Council (G10)
Wearside Business Education Council
Other media interests: None
4
Durham FM
Anderson Business College
Mercantile Building Society
National Glass Centre
Coutts & Co (Private Banking)
Tyne & Wear Education Business Link Organisation
TEC National Council
Office of Electricity Regulation (OFFER/ECC North)
Careers Service National Association (CSNA)
Rock FM
Sunderland City Training & Enterprise Council
TEC National Council Limited
Sunderland City Careers Service
Tyne & Wear Small Business Service (Business Link)
Tyne & Wear Local Development Partnership
John Anderson was awarded the CBE for his work in training and enterprise in 1996 and has been
Chairman of Sunderland’s Independent Local Radio station Sun FM since 1998.
It is a testament to John’s commitment to local radio that he has remained chairman of Sun FM
through three changes of ownership, working with Border Radio Holdings to move the station to a
new state of the art building in 1998 and then overseeing the company for both Capital Radio and
Radio Investments Limited.
On leaving full time education, John commenced his career in a solicitor’s office. In order to earn
extra income he began working part-time at a garage and his interest in the motor industry
developed from this point to the extent that he left the solicitor’s office and took up a full-time
position at Mill Garages. Sixteen years on he led a management buy-out and by 1990 the company
had grown to become the 30th largest company (based on turnover) in the region. As Managing
Director of Mill Garages group of companies, he was responsible for 14 franchised garages
employing over 500 people locally. John sold his interest in the business in 1992 and until recently
held the Mercedes-Benz franchise in Sunderland.
John was Chairman of Sunderland City Training & Enterprise Council from its inception in 1989.
He was a member of the original TEC steering group and was highly motivated by the challenge
facing the TECs. From 1990 until 1992, John was a founder member of the TEC National Council
(G10) and from 1993 until 1997 was a Director and Board member of the TEC National Council.
Among his other business interests and directorships John Anderson remains Chairman of the
North East Business and Innovation Centre which recently celebrated ten years of supporting new
and innovative businesses in the region and beyond.
John combines considerable experience of operating a local radio company in the region
with unparalleled knowledge of the local economy and strong community involvement.

Non-executive Director
PETER JACKSON
Occupation: Public Relations Consultant
Other directorships:
Managing Director of Benchmark Media (Newcastle) Limited
Other media interests: None other than the above.
5
Durham FM
Peter Jackson operates his own public relations consultancy, Benchmark Media, which has a range
of well known clients across the North East region. A former Business Editor of the regional daily
newspaper The Journal, he has an extensive knowledge of the business and public life of the
region. He lives in Lanchester, County Durham, with his wife and 13-year-old son.
After leaving Oxford University where he read Modern History, Peter worked in the City of London
in accountancy, merchant banking and stockbroking. He returned to his native Lancashire in 1988
where he ran his own contract cleaning business. Then, in 1990, he retrained as a journalist at the
University of Central Lancashire in Preston.
Peter worked on the Chorley Guardian, where he became News Editor, before moving to the North
East in 1995 to become a business reporter on the Journal. In 1999 he became Business Editor,
leaving the paper in 2003 to set up PR consultancy Benchmark Media (Newcastle).
Peter’s wealth of experience in journalism, business and the local media has been
invaluable to Durham FM during the preparation of this application and will be crucially
important to the successful launch of the station.

Non-executive Director
BRIAN LISTER
Occupation: Local Radio Consultant
Other directorships:
Sound Concepts Limited.
Teesdale Community Broadcasting Limited
Others held during the past five years:
Castle Rock FM Dumbarton Limited
Radio for Maidstone Limited
Maid FM Limited
Dee FM Limited
Other media interests: None
6
Durham FM
Brian Lister has been active in local radio in and around the County Durham area for some thirty
years. After successfully holding senior management positions at Metro Radio, TFM, Stray FM,
Alpha103.2 and Sun FM, in 2001 Brian became Group Development Manager for Radio
Investments Limited, now The Local Radio Company plc, working on projects throughout the UK.
After setting-up a hospital radio service while still at school and becoming manager of University
Radio Essex while studying for his BA (Hons) in Telecommunications, Brian trained with BBC
Radio as a Studio Manager, working at Broadcasting House and with the Overseas Services at
Bush House.
In 1974 he joined Metro Radio for the launch of the Newcastle station, later becoming Assistant
Programme Controller. With the acquisition of Radio Tees by Metro in 1986, Brian was appointed
Programme Director and General Manager of the Stockton-on-Tees company, very successfully relaunching
the station as TFM Radio.
From 1985 until 1995 Brian was also a director of Sunderland Community Radio Association Ltd.,
who operated the Sunderland local radio licence as Wear FM. He was part of the A1FM consortium
that won the Darlington licence in 1995, leaving them to become Managing Director of Stray FM in
Harrogate.
In 1997 after successfully developing Stray FM to become the most listened to station in Harrogate,
and into profit, he rejoined A1FM, re-launching the station as Alpha 103.2. In January 1999 he
became Managing Director of Sun FM in Sunderland.
Brian combines his work with The Local Radio Company with consultancy on other projects
throughout the UK and has recently managed a major training scheme for community radio
applicant Radio Teesdale based to the south of the Durham FM area in Barnard Castle, County
Durham.
A former representative of smaller stations on the board of the Commercial Radio Companies
Association, he is a visiting lecturer in radio production at Sunderland University and is an active
member of the Radio Academy. He has lived in the North-East since 1974, for the last 17 within in
the Durham FM area, in Sedgefield.
Brian brings to Durham FM thirty years of experience in the commercial radio business,
most of it in the North-East of England, and first hand understanding of managing
successful radio stations of comparable size and in similar markets to Durham FM.

Non-executive Director
ALISTAIR MACKENZIE
Occupation: Finance Director, The Local Radio Company plc.
Other directorships:
Alpha Radio Limited
Bridlington Radio Limited
Bromley Mencap
Bromley Mencap Enterprises Limited
Bucks Broadcasting Limited
Central FM Limited
Conqueror Broadcasting Limited
Dune FM Limited
Durham FM Limited
Fire Media Limited
First Radio Sales Limited
Huddersfield FM Limited
Isle of Wight Radio Limited
Ivel FM Limited
Katz Television Sales Limited
Katz UK Limited
Minster Sound Radio (York) Limited
Minster Sound Radio Limited
Mix 107 FM Limited
Radio Investments Limited
Others held during the past five years:
Jazz FM plc
London Jazz Radio plc
Jazz FM North West Ltd.
Other media interests: None
7
Radio Services Limited
Silk FM Limited
Solent Regional Radio Limited
South West Sussex Radio Limited
Sovereign Radio Limited
Spire FM Limited
Stonesthrow Media Limited
Stray FM Limited
Sun FM Limited
Swan FM Limited
The Local Radio Company plc
The Quay Radio Limited
Three Towns Radio Limited
Two Boroughs Radio Limited
Vale FM Limited
Wessex Broadcasting Limited
West Country Radio Holdings Limited
Winchester Independent Radio Limited
Yorkshire Coast Radio Limited
MXR Holdings Limited
MXR Limited
Durham FM
Alistair MacKenzie is Finance Director of The Local Radio Company plc which owns 25 local
stations from Arrow FM in Hastings and Ivel FM in Yeovil to Central FM in Scotland. He is proud
that the stations in the group are both commercially successful and full members of their local
communities.
As Finance Director of Jazz FM, from 1992 until its sale in 2002, Alistair was responsible for the
financial, administrative, human resources, legal and regulatory affairs of the business. He was
Jazz FM’s representative on industry committees and a board member of MXR, a company
established to operate regional digital multiplexes consisting of Jazz FM, Chrysalis, Capital, Ford,
Unique and GMG.
Prior to joining Jazz FM Alistair spent five years at Binder Hamlyn Chartered Accountants, where
he gained broad experience of working with a wide range of clients. In his final two years with the
firm he worked in corporate finance specialising in mergers & acquisitions, venture capital
fundraising, working capital reports and flotations.
Alistair was appointed a non-executive director of Stonesthrow Media Ltd in April 2003, a company
created to acquire, via a management buy out, the quoted business of Channelfly plc. The business
currently consists of a number of strands: venue management, band management, publishing and
producer management.
A qualified chartered accountant with a long career in radio, Alistair sees his role as
providing expertise from the centre on matters of finance and administration while allowing
group stations to focus their efforts on local matters and relevant programming.

Non-executive Director
JOHN SANDERSON
Occupation: Managing Director (Radio), The Local Radio Company plc.
Other directorships:
Alpha Radio Limited
Bridlington Radio Limited
Bucks Broadcasting Limited
Central FM Limited
Conqueror Broadcasting Limited
Dune FM Limited
Durham FM Limited
Fire Media Limited
First Radio Sales Limited
Huddersfield FM Limited
Isle Of Wight Radio Limited
Ivel FM Limited
Katz Television Sales Limied
Katz UK Limited
Minster Sound Radio (York) Limited
Minster Sound Radio Limited
Mix 107 FM Limited
Mk Web Limited
Others held during the past five years:
Ashford FM Limited
East Sussex Radio Limited
Eleven Seventy Limited
Fire East Midlands Limited
Gold FM Limited
Great Yorkshire Gold Limited
Great Yorkshire Gold Radio Limited
Independent Radio Sales Limited
Katz Radio Sales Limied
Kingston FM Limited
Other media interests: None
8
Radio Investments Ltd
Radio Services Limited
Silk FM Limited
Solent Regional Radio Limited
Sovereign Radio Limited
Spire FM Limited
Stray FM Limited
Sun FM Limited
Swan FM Limited
The Local Radio Company plc
The Quay Radio Limited
Three Towns Radio Limited
Two Boroughs Radio Limied
Vale FM Limited
Wessex Broadcasting Limited
West Country Radio Holdings Limited
Winchester Independent Radio Limited
Yorkshire Coast Radio Limited
Maid FM Limited
Quay West Radio Limited
Radio For Maidstone Limited
Radio Services Sussex Limited
Radio Wye Limited
Business Training Solutions Limited
Thames Radio Limited
XMK&NBCCTE LIMITED
Tekano Limited
Durham FM
Prior to the formation of The Local Radio Company plc last year, John Sanderson was Chief
Executive of Radio Investments Limited. John joined Radio Investments in July 2001 as Chief
Operating Officer becoming Chief Executive in July 2002. During his time with the company John
has been instrumental in a major restructuring that has resulted in a significant improvement in the
overall performance of the business. John is also Chairman of First Radio Sales Ltd, a national
sales business acquired by Radio Investments in 2003.
He joined Radio Investments from GWR Group plc where he held a number of station management
positions from 1995.
John became involved in radio in the late sixties as a record plugger for a leading record company.
He worked with many famous bands of the day, including Jimi Hendrix and The Animals. His career
later took him into the telecoms and computer industry at a senior level, until he was invited to join
Chiltern Radio Plc as Sales Director, where he was responsible for launching the UK’s first
independent regional radio station Galaxy 101 and also Oasis 96.6. In 1995, Chiltern was acquired
by GWR Group and John stayed with them until 2001.
John brings to the board considerable experience at a senior level in commercial radio. He
now has responsibility for 25 radio stations, employing over 300 people in the UK and has
unparalleled experience of the realities of managing profitable local radio services in
increasingly competitive markets.

Non-executive Director
BRENDA WALKER
Occupation: Proprietor, Brenda Walker School of Dance.
Other directorships: None
Other media interests: None
9
Durham FM
Ever since the days of BBC Radio Durham, which broadcast from studios just round the corner
from the Duke of Wellington public house which she then managed, Brenda Walker has taken an
active interest in local radio. With her ear to the ground Brenda is keen to provide much needed
unbiased feedback on our broadcasts and their relevance to the community.
Brenda is now co-owner of the Court Inn in Durham City and runs the Brenda Walker School of
Dance in Langley Moor, Durham.
A North of England champion clog dancer, Brenda takes groups of local children and adults from
her specialist dance school to participate in International Dance Festivals. She says performing
dance and music from the border region gives the children an awareness of their culture and gives
them an opportunity to experience the cultures of other countries such as Romania, the Ukraine,
Bulgaria, Hungary and Poland. Brenda and her pupils have performed at many shows and local
events to help raise funds for different charities including the Durham University Hospital Children’s
Ward and BBC Children in Need.
Brenda’s close involvement with the local community and local traditional culture,
combined with her experience of running licensed premises in Durham City, gives her a
unique perspective on the tastes and interests of local people. Her understanding will be of
particular value in refining our programme policies.

Non-executive Director
JOHN WIDDOWSON
Occupation: Principal and Chief Executive, New College Durham
Other directorships:
Further Education National Consortium
NCN Limited
Westfirst Limited
County Durham Ufi Hub Limited
Other media interests: None
10
Durham FM
As Principal of New College Durham, John Widdowson has been keenly interested in developing
the College’s role in the community, extending the range of activities and partnerships through
which the College works. He chairs AimHigher County Durham, which exists to encourage young
people and adults with the aspiration and ability to succeed in Higher Education to pursue their
ambitions.
John joined New College Durham in August 1998, having previously been Vice Principal at
Cambridge Regional College for ten years. Prior to entering Further Education, John worked as a
lawyer in Local Government and has retained some academic interests in legal training.
New College Durham is a mixed economy institution, offering progression opportunities from
academic and vocational Further Education provision into Higher Education courses within the
same institution. With this breadth of provision, the College is a major provider of education and
training within County Durham and beyond. The College also provides educational services in a
number of HM Prisons in the North East.
Recently John has been responsible for a major rebuilding programme, now in its final stages,
designed to bring all College provision in both Further and Higher Education onto the same campus
at Framwellgate Moor.
He is a member of the Board of both the Universities Vocational Awards Council and the Further
Education National Consortium. He is also a member of the Learning and Skills Council for County
Durham and Vice Chair of the County Durham Lifelong Learning Partnership.
John’s work has given him access to an extensive range of contacts throughout the
proposed Durham FM area and an understanding of the aspirations and potential of local
people and organisations which will be extremely valuable to the new radio service.

11
Durham FM
(ii) If there are firm plans to appoint any further directors, provide information (with details of any specific
individuals in mind). This information may be submitted in confidence.
The board will be supplemented with the appointment of a Managing Director following the licence
award. There are no plans to appoint further directors.
(b) Proposed Investors and Shareholding Structure
Full details of the proposed shareholding structure should be provided, including:
(i) Names and addresses (the latter may be submitted in confidence) of all existing or proposed
shareholders.
The Local Radio Company plc
11 Duke Street
High Wycombe
Buckinghamshire
HP13 6EE
(ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting,
preference, other etc.).
Classes of share
capital
Number of shares Par value Issue price
Voting 580,000 £1.00 £1.00
Non-voting - - -
Preference - - -
(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.
The Local Radio Company plc will hold 580,000 ordinary voting shares, 100% of the total issued
share capital of Durham FM Limited.
(iv) Outline any shareholders agreements or arrangements which exist.
There are no shareholder agreements or similar arrangements.
(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.
The Local Radio Company plc is the holder of a number of Ofcom radio licences.
(vi) Ofcom may request additional information (e.g. a banker’s letter, statutory/management accounts)
regarding the shareholders, or any other providers of finance, listed in the application.
The Local Radio Company plc will be happy to provide Ofcom with any additional information it may
require.

(c) Involvement of the Applicant in Specified Activities
12
Durham FM
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).
(a) Advertising agencies;
None
(b) Newspapers;
None
(c) Other broadcasting interests;
The Local Radio Company plc owns and operates, or has the indicated interest in, following
Independent Local Radio services:
Alpha103.2, Darlington;
Arrow FM, Hastings;
The Bee, Blackburn (32.5%);
Central 103.1 FM, Falkirk (64.2%);
Dune FM, Southport;
Fire 107.6 FM, Bournemouth (80%);
Home 107.9 FM, Huddersfield;
Isle of Wight Radio, Newport;
Ivel FM, Yeovil;
Minster FM, York;
Mix 96, Aylesbury;
Mix 107, High Wycombe;
The Quay, Portsmouth;
Silk FM, Macclesfield;
(d) Bodies whose objects are wholly, or mainly, of a religious nature;
None
(e) Bodies whose objects are wholly or mainly of a political nature;
None
(f) Local authorities;
None
(g) Other publicly funded bodies.
Sovereign Radio, Eastbourne;
Spire FM, Salisbury;
Spirit FM, Chichester;
97.2 Stray FM, Harrogate;
Sun FM, Sunderland;
Sunshine 855 (5.8%)
2BR, Burnley;
3TR FM, Warminster;
Vale FM, Shaftesbury;
Wessex FM, Dorchester;
Win FM, Winchester;
Yorkshire Coast Radio, Bridlington; and
Yorkshire Coast Radio, Scarborough.
John Widdowson is Principal and Chief Executive of New College Durham.

2. Financial and business plan
(a) Overall Financial Strategy
13
Durham FM
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.
The Durham FM team combines unrivalled local knowledge with considerable experience in
successfully operating similarly sized radio stations in comparable markets.
In both Sunderland and Darlington stations owned by The Local Radio Company plc (TLRC) are
commercial brand leaders. In Sunderland Sun FM is number one station overall with a 20.4%
share of all listening, almost double that of the nearest competitors BBC Radio 2 and Metro Radio
on 10.9%. In Darlington Alpha 103.2 can boast a 15.8% share of listening and is beaten only by
BBC Radio 2. 1
These are no idle comparisons. Durham FM will face identical broadcast competition to that faced
by Sun FM and Alpha. The only commercial competitors, Galaxy, Century, Magic and Metro/TFM
offer exactly the same service in the Durham area as in Darlington and Sunderland.
In these neighbouring markets a well presented combination of local news and information with
mainstream popular music has made the TLRC owned station the most popular commercial radio
service on the dial. Over time we would expect no less from Durham FM.
Over the past four years we have taken every opportunity to identify the programming which will
particularly appeal to listeners in the Durham FM area. Our extensive programme of consultation
and detailed market research is summarised later in this application. Two trial broadcasts, in 2002
and 2003, were well-supported by local advertisers and sponsors and received a great deal of
positive feedback from listeners.
We have every confidence that Durham FM’s locally focussed programming, backed by a
significant launch budget, will establish a substantial audience within a relatively short period of
time.
While we will have a strong proposition to place before advertisers, we recognise the commercial
realities of our situation. The local press and our commercial radio competitors have been
established for many years and in the early stages can be expected to use every reasonable
technique to retain their share of local business. For us this is not a short-term project, we expect
Durham FM to grow in reputation and income over many years and TLRC has the resources to
support the company throughout the licence period.
We have made certain that we will have sufficient funding to ensure that Durham FM can be fully
staffed from the outset with well trained, experienced, talented and highly motivated individuals, that
they will have the correct tools for the job and a pleasant, modern, working environment.
Our business plan provides for key staff to be in their posts up to three months before our on-air
launch. During this period, as well as preparing Durham FM to go live and talking to key
advertisers, staff and presenters will be able to sharpen their skills at our neighbouring sister
stations and will hit the ground running.
We will always ensure that we have a sufficient size and calibre of local sales team to match the
number of potential clients and level of business in the area. Formal sales training, arranged in
collaboration with TLRC, will form an important part of their development.
1 Source: Rajar/Ipsos-RSL Listening in the Sun FM and Alpha 103.2 areas year ending September 2004.

14
Durham FM
The Local Radio Company plc owns and operates 25 local radio licences across the UK, from
Falkirk in Scotland to the Isle of Wight and from Hastings to Yeovil.
TLRC was formed to purchase the entire share capital of Radio Investments Ltd in May 2004. RIL
was one of the first investors in commercial radio, investing in London's Capital Radio back in 1973.
Since then, it has in various forms specialised in the development of local radio stations.
TLRC also owns and operates the national sales house First Radio Sales in London and
Manchester. First Radio Sales, which will present Durham FM to national advertisers, represents
some 85 radio stations across the UK, reaching over 3.2 million listeners every week.
The investment in Durham FM sits perfectly with the strategy described at the launch of TLRC by
Chief Executive Richard Wheatly: “We intend to grow the business by stepping up the performance
from Radio Investments, identifying and executing further acquisition opportunities, making new
licence applications and driving forward new, non-traditional revenue streams.”
The northern and southern boundaries of the Durham FM area have been chosen to produce a
contiguous area with both Sun FM and Alpha 103.2. Although they will be managed separately as
independent radio services, the combination of Durham FM with two already successful stations in
adjoining areas will offer considerable advantages for listeners, regional advertisers, the company
and its staff.
Digital radio is set to become a significant means of delivery during the period of this licence. We
intend to embrace digital transmission when it becomes economically justifiable to do so. At the
present time the lack of digital transmission would not be expected to impact significantly on
audience or revenue levels.

(b) Funding
Detail the sources of finance that will be used to fund the licence, under the following headings:
(i) Share capital
15
Durham FM
£580,000 will be raised by the subscription for 580,000 new shares in Durham FM Limited by The
Local Radio Company at £1.00 per share (see Section 1 (b) above). Funds will be drawn down as
required following the licence award.
(ii) Loan stock
Not applicable
(iii) Leasing/HP facilities (capital value)
Not applicable
(iv) Bank overdraft
Not applicable
(v) Grants and donations
Not applicable
(vi) Other (please specify)
Not applicable
Where relevant, provide information on:
(i) Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms);
Not applicable
(ii) Assets leased.
Transmission equipment will be provided by NTL under a Total Broadcast Contract, details of which
are supplied in the confidential finance section.
All of the funding identified above should be confirmed to the applicant. Explanation should be provided if
this is not the case.
Confirmation of funding from The Local Radio Company plc is supplied as Appendix 2.

(c) Financial Projections
16
Durham FM
The purpose of this section is to allow the applicant to demonstrate its understanding of the market. The
forecasts should be based on reasonable assumptions, that are logically applied and justifiable.
The applicant should provide financial projections on an annual basis for the licence. The projections must
include:
(i) Profit and loss accounts
(ii) Balance sheets
(iii) Cash-flow forecasts
The period covered is at the discretion of the applicant, but should be justified. The forecasts should be
supplied on an Excel spreadsheet or similar, with any accompanying guidance notes.
This section must include a full listing of the underlying assumptions on which the financial projections are
based, relating such assumptions clearly to other parts of the application (e.g. proposed format, extent of
coverage area).
The applicant should detail how revenue figures were derived, distinguishing between local, national and
sponsorship revenue.
The response to this question may be submitted in confidence.
Our financial projections are supplied separately in confidence together with notes listing the
detailed assumptions used in the preparation of the forecasts.
Forecasts are provided for the pre-operational period and the first three years of the licence. We
anticipate that the company will have achieved financial stability by year three and that year’s
figures will form a model for future performance.
We are able to base Durham FM’s revenue forecasts on the known current performance of a large
number of successful local radio stations of similar scale owned by The Local Radio Company plc.
After preparing these forecasts we established that the projected revenue yield of Durham FM per
thousand hours listened was comparable with the yield currently achieved by the existing TLRC
stations in Sunderland and Darlington.

(d) Audience Projections:
Provide the following information:
17
Durham FM
(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;
(ii) Projections for listenership ratings (e.g. weekly reach, average hours of listening) over the first
three years of the service, with detailed demographic breakdown as appropriate;
(iii) The expected impact of the proposed service on existing services, in listenership terms;
(iv) The basis on which the estimates above have been calculated, and any assumptions taken
into account.
(i) Transmission area
Durham FM will broadcast to an area of 187,000 adults (aged 15+) centred on the City of Durham.
We established this area after careful consideration of social, political and technical factors. The
TSA is expressed as a list of those postcode sectors within which residents will receive an
adequate FM signal and would be expected to be interested in news and information from or about
the Durham area. Preparing this list was not an easy decision.
In a letter to Durham FM dated 17 December 2004, Patrick Conway, Director of Culture and
Leisure for Durham County Council refers to the County’s earlier correspondence with the Radio
Authority in which the County suggested that the proposed licence should cover as much as
possible of the administrative county area. He comments:
“We note that the guidance to applicants states ‘Ofcom is unlikely to approve any transmission
proposals which would deliver unacceptably strong signals to Newcastle-upon-Tyne, Gateshead,
Washington, Sunderland, Billingham, Middlesbrough, Stockton-on-Tees, Newton Aycliffe and
Darlington’. While all of these towns, Newton Aycliffe apart, are outside the administrative county,
we do hope this guidance will not have an adverse affect on reception in the Easington District
area, or south and west Durham.”
In discussion with our transmission provider, NTL, we have attempted to maximise our coverage of
the main conurbations within County Durham. The proposed TSA includes the entirety of the
Durham City and Chester-le-Street districts, together with the most populous parts of the districts of
Sedgefield, Wear Valley and Derwentside.
The projected TSA population of 187,000 adults is a conservative estimate which does not include
any residents of Teesdale or Easington. In practice it is likely that this number may be considerably
increased by including the area around Consett in Derwentside, a further part of Sedgefield and
those parts of Easington away from the coastal strip. However, in line with our prudent approach,
the anticipated signal strength predicted by NTL is not sufficiently robust throughout these areas for
us to feel confident in adding their entire postcode sectors to our survey area at this time.
The potential for greater population coverage within the county of Durham is illustrated by the
predicted population coverage figures provided by NTL. Overall NTL now estimate that some
376,000 adults aged 15+ will receive a signal in excess of 54dB(µV/m) from at least one of the
proposed transmitters. Inevitably, given the hilly terrain, this total includes many patches of good
reception that are not contiguous with the main Durham FM area and cannot be included in our
population totals for marketing purposes.
Given the technical constraints of this licence and local geography we established that full coverage
of Easington District would be possible only at the expense of signal strength in Wear Valley.

18
Durham FM
Throughout our extensive consultation with local bodies, including the County Council, it was
stressed that while many in Easington happily look towards Teesside or Sunderland for their local
media, those living in Wear Valley feel less well served and should be given higher priority by
Durham FM.
Similarly transmission limitations mean that Durham FM will not cover Teesdale. We are aware that
Ofcom has received an application for a Community Radio licence for the Teesdale area from
Teesdale Community Broadcasting Ltd. Durham FM is very supportive of this initiative and our
Brian Lister has considerably assisted Radio Teesdale with training and advice prior to and during
their recent Restricted Service Licence broadcasts.
(ii) Projected listenership
Our market research suggests 21% weekly reach for Durham FM by the end of the first year of
broadcasting. The station's average hours listened have been estimated from the known audience
performances of the neighbouring TLRC services, Alpha 103.2 and Sun FM. From this analysis
(see answer d. (iv) below) we have adopted a prudent estimate of weekly average hours and these
have been set at 9.0 hours per listener per week in year one.
We also used Alpha and Sun's recent Rajar data to forecast our year three weekly reach as 28%.
We estimate year two reach at the mid point between years one and three, at 25%. Average hours
are estimated to rise by 0.5 hours per listener per week in each of the second and third years of
broadcasting, giving year two and three average hours of 9.5 and 10.0 respectively.
Durham FM's Year 1 to Year 3 audience estimates are outlined below.
DURHAM FM AUDIENCE ESTIMATES
ADULTS 15+
YEAR 1 YEAR 2 YEAR 3
Universe (000) 186.6 186.6 186.6
Reach (000) 39.2 46.1 53.0
Reach (%) 21 25 28
Total Hours (000) 352.8 438.2 529.9
Average Hours 9.0 9.5 10.0
Audience estimates based on exact, not rounded, data
All absolute numbers shown to the nearest hundred to match the Rajar convention for stations with a TSA of less
than 300,000 adults 15+
In years one to three of broadcasting it is anticipated that the target age group will outperform the
station's average reach by factors of 1.10, 1.15 and 1.20 respectively. Maintaining a cautious
approach to average hours listened it has been assumed that the average target listener will tune in
for an extra hour per week relative to all adults:
ADULTS AGED 25-54
YEAR 1 YEAR 2 YEAR 3
Reach (%) 23% 28% 34%
Average Hours 10.0 10.5 11.0
We have no doubt that these audience projections are realistic and achievable in the light of our
experience of comparable services throughout Britain.

(iii) Impact on existing services
Our research indicates that the overall impact of the launch of Durham FM will be as follows:
Durham FM weekly reach 39,200 adults 15+
Listen to the radio for longer 15,100 (38%)
Listen less to one or more current stations 10,000 (26%)
Stop listening to one or more current stations 3,000 (7%)
Undecided 11,200 (29%)
19
Durham FM
Significantly the highest proportion of the potential year one listeners (38%) claim that the launch of
Durham FM will increase the overall amount of time they spend listening to radio. Around a quarter
would listen less often to one or more radio services within their current listening repertoires whilst
just 7% would immediately stop listening to an existing station choice. Almost three in ten,
however, prefer to reserve judgment until such time as they are able to sample the new station.
The following table outlines the likely impact of Durham FM on all major analogue radio services:
LISTEN
LESS
(000)
STOP
LISTENING
(000)
TOTAL
IMPACT
(000)
% WEEKLY
REACH
AFFECTED*
Total Local Commercial Radio 6.8 2.1 8.8 7.1
Total Commercial Radio 7.0 2.1 9.1 6.8
Total BBC Radio 2.9 0.8 3.6 4.7
Alpha 103.2 0.0 0.0 0.0 0.0
Century FM 2.3 0.8 3.1 6.5
Galaxy 105-106 1.8 0.5 2.3 4.2
Magic 1152 or 1170 0.5 0.3 0.8 5.2
Metro Radio 2.3 0.5 2.9 5.8
Sun FM 0.8 0.1 0.8 7.1
TFM 0.5 0.1 0.5 7.4
BBC Radio Cleveland 0.3 0.1 0.3 5.2
BBC Radio Newcastle 1.0 0.3 1.3 5.0
BBC Radio 1 0.8 0.1 0.8 3.5
BBC Radio 2 0.8 0.3 1.0 3.7
BBC Radio 3 0.0 0.1 0.1 7.8
BBC Radio 4 0.1 0.1 0.3 2.4
BBC Radio Five Live 0.3 0.0 0.3 2.9
Classic FM 0.1 0.3 0.3 2.4
Talk Sport 0.1 0.0 0.1 1.6
Virgin Radio 0.3 0.0 0.3 6.5
* Within the proposed Durham FM TSA of 187,000 adults 15+
The dominance of local commercial radio in the Durham radio market (which we discuss more fully
in the section headed Evidence of Demand) makes it inevitable that some, or all, such stations will
be impacted upon by the launch of Durham FM. In total, however, notably fewer than one in ten
(7.1%) of existing local commercial radio weekly listeners will adjust their current ILR listening
patterns to accommodate their new Durham FM listening. Moreover, those who would either listen
less or stop listening to Sun FM would not impact on any official Rajar listening figures given that
the claimed Durham FM TSA is contiguous to, and does not overlap with, the official Sun FM TSA.
As such any Sun FM listening within our Durham FM TSA is classed as 'out of area' listening and is
not attributed to the station by Rajar.

20
Durham FM
The overall impact of a Durham FM launch is greater on commercial services than BBC radio both
in absolute audience terms (9.1 and 3.6 thousand listeners respectively) and in terms of percentage
of weekly reach affected (6.8% and 4.7% respectively). However, the fact that commercial radio
claims a weekly audience three-quarters as large again as the BBC's in this radio market, yet the
differential between the percentage of weekly reach affected is less than 50%, highlights that a
further broadening of the audience gap between commercial and BBC radio will result from the
launch of Durham FM.
We also note that the three BBC radio services that would be most impacted upon in absolute
terms are Radio Newcastle and Radios 1 and 2, the key local or music-based BBC radio services.
Any transfer in allegiance from these stations to Durham FM will contribute directly to the widening
of the gap between commercial and BBC radio in this market.
For all of these reasons we are confident that the launch of our proposed Durham FM radio service
will further add to, rather than dilute, local commercial radio's already significant successes in
Durham City and the surrounding county area.
(iv) Calculating the audience estimates
Year one weekly reach:
Our market research shows that 151,000 (81%) of the potential 187,000 adults in the Durham FM
TSA indicate a likelihood of at least sampling the new Durham FM radio service. Allowing for a
degree of over-statement in the intention to trial, our research consultant, QuestionAir, has
calculated a 'factored' likelihood of listening of 98,000 (53%). This 'factored' likelihood has been
calculated by assuming that 90% of those who claim they are 'extremely likely' to listen will do so,
as will 75% and 50% respectively of those who state they are 'very likely' or 'quite likely' to tune in.
The question employed to derive this information specifically asked about the likelihood of listening
on a regular weekly basis.
Subject to adequate launch marketing and subject to the marketing message being positively
received and understood, we have assumed that, initially, forty percent of the factored likelihood
(station trialists) will become regular weekly listeners by the end of year one of broadcasting. This
gives our year one (adult 15+) weekly reach of 39,200 listeners, 21% of the TSA.
Years two and three weekly reach:
We are unusually fortunate in being able to draw direct comparisons with two co-owned and
geographically contiguous ILR stations which face exactly the same broadcast competition as
Durham FM. The average weekly reach of Alpha 103.2 from Rajar Q4 2003 to Q3 2004 has been
a very creditable 28.4% while over the same period the average weekly reach of Sun FM has been
30.3%.
Assuming the lesser of these two typical weekly reach figures as Durham FM's year three audience
and adopting the mid-point between the year one and year three estimates for year two gives the
following year one to year three reach figures: 21.0%, 24.7% and 28.4%.

Average hours:
21
Durham FM
Again we are able to base these on the actual performances of both Alpha 103.2 and Sun FM over
the past year. The mean average hours of Alpha 103.2 from Rajar Q4 2003 to Q3 2004 were 10.0
per listener per week while those for Sun FM over the same period were 11.8.
Assuming the lesser of these two figures as Durham FM's year three average hours and deducting
0.5 average hours per listener in each of the earlier years gives average hours figures of 9.0, 9.5
and 10.0.
Target Audience:
Our research reveals little difference in the likely initial take-up of Durham FM between the general
adult population and our primary target audience of 25-54 year olds. However, once the levels of
station trial have settled and the programming format of the station has become known we believe
that a 25-54 year old profile will begin to develop. On this basis we assume that the weekly reach
of the target 25-54 year olds will be boosted by a factor of 1.10 in year one, 1.15 in year two and by
1.20 in year three. We have assumed that the average 'target' listener will tune in for one hour
more per week than all listeners generally.

3. Transmission proposals
22
Durham FM
(i) Provide details of the transmission site, or sites, you propose to use, under the following headings:
(a) Name and National Grid Reference of site;
Burnhope
NGR NZ 184 474
Brusselton (relay)
NGR NZ 206 249
Durham City (relay)
To be agreed upon confirmation of studio location (see below).
(b) Height of site above Ordnance datum (in metres);
Burnhope: 240 metres
Brusselton: 215.2 metres
Durham City: Low-lying area to be confirmed
(c) Height of transmitting aerial above ground level (in metres);
Burnhope: 152 metres
Brusselton: 35 metres
Durham City: To be confirmed
(d) Radiated power in either or both planes of polarisation, and aerial radiation pattern (if no aerial
radiation pattern is submitted, it will be assumed without exception to be omnidirectional).
Burnhope: 250 watts vertical + 250 watts horizontal. Antenna pattern attached.
Brusselton: 100 watts vertical + 100 watts horizontal. Antenna pattern attached.
Durham City: 10 watts vertical + 10 watts horizontal. Antenna pattern omni-directional.
The applicant should confirm whether he believes that his intended mast aperture will be available, and
whether, where required, planning permission can be obtained. Where appropriate, evidence to support
this belief should be provided. Details of any negotiations which have been entered into with the site
owner(s) should also be provided.
NTL have informed us they have aperture space and accommodation available at Burnhope and
Brusselton, subject to planning permission. NTL has advised us that these sites have existed for
many years and the addition of a transmitter antenna at Burnhope at a height of 152 metres and
Brussleton at 35 metres, will not materially change the appearance of the structures, for these
reasons they would not expect the applications to be refused.
Predictions of signal strength in Durham City centre suggest that reception from our Burnhope
transmitter may be borderline in a few small areas due to the unique geography of the river valley.
This confirms our experience with the existing ILR services broadcasting (at higher power levels)

23
Durham FM
from the same mast. In the event that this causes significant reception problems for local residents
or vehicles travelling on the A690, a low-power relay may be required to infill small areas within
Durham City. NTL propose that an omni-directional antenna with a low visual impact will be located
at roof level on our studio building to reduce the risk of planning permission refusal.
The information provided above must take into account any requirements set out in Section 2 of this
Notice. In the event of minor non-compliance, Ofcom may revisit an applicant’s proposals with a view to
modest adjustment following award and closer scrutiny. Significant non-compliance may render the
application liable to disqualification.
The proposed transmission site at Burnhope provides good coverage for Durham and surrounding
area, and in the opinion of NTL will meet Ofcom restrictions for this licence.
The second site at Brusselton provides excellent coverage of Bishop Auckland and surrounding
area with the exception of Newton Aycliffe to meet the Ofcom restriction in this direction.
The relay for Durham City may be required to infill small pockets of poor reception adjacent to the
river. Conveniently these areas are close to the North Road area of Durham which is a favoured
location for our studios and NTL have confirmed the suitability of a couple of possible City centre
sites. The studio location will be used for a very low power relay operating on the same frequency
as Brussleton. Signals from Brussleton will not be expected to reach the low lying areas of Durham
and the “mush zone” will be in an area where Burnhope has excellent coverage. For these reasons,
subject to agreement with Ofcom, NTL does not believe it will be necessary to operate these two
transmitters on a synchronised co-channel basis. To avoid timing problems the Durham City
transmitter will relay a signal received from Burnhope.
(ii) Please provide a detailed computer predicted map (in colour) of the coverage anticipated using the
transmission site(s) and parameters described above.
Plots of estimated field strength for each of the two main sites are attached as jpeg files and a map
of the composite coverage is reproduced overleaf.
(iii) Describe proposed arrangements for transmission provision (installation, maintenance and repair).
The transmission system and equipment must comply with the Engineering Code originally published by
the Radio Authority, which represents Ofcom’s current policy and is available at:
www.ofcom.org.uk/codes_guidelines/broadcasting/radio/codes/engineering_code.pdf
Our transmission facilities and services will be provided by NTL on the basis of a Total Broadcast
Contract. NTL is well resourced to install the complete system and subsequently maintain and
monitor the transmission parameters. Telemetry and remote monitoring systems provide
information back to their control centre (e.g. carrier power, lack of modulation etc.) on a 24 hour
basis. Their maintenance personnel are highly trained with the necessary spares and test
equipment to resolve any problem quickly.
(iv) What is the anticipated time-lapse between the award of licence and start of broadcasting? Applicants
should note that failure to commence broadcasting the service within two years of the date on which the
licence is awarded is likely to lead to the offer of a licence to the successful applicant being withdrawn. In
these circumstances the licence would be advertised afresh and a new competition would be held to
award the licence.
Durham FM anticipates it will be ready to begin broadcasting within six months of the licence
award.

DURHAM FM Coverage Predictions
Composite: Burnhope and Brusselton.
24
Durham FM

Aerial radiation patterns
Burnhope:
Brusselton:
25
Durham FM

SECTION 105(B) AND (C): CATERING FOR TASTES AND
INTERESTS/BROADENING CHOICE
4. Programming Philosophy
(i) This sub-section of the application should take the form of a statement setting out the applicant’s
overall programming philosophy and vision for the radio service.
Above all else, Durham FM will be local.
26
Durham FM
Durham must be unique in Britain in that it once had its own local radio station and then had it taken
away. BBC Radio Durham closed down in 1973 when the BBC, then limited to just twenty local
radio services around the country moved the station in its entirety to Carlisle.
It was reasoned that Durham could be adequately served from the north by Radio Newcastle and
from the south by the then Radio Teesside.
The same arguments can be heard today when, despite the proliferation of electronic media over
the past thirty years, all the mass media serving the Durham area are based on Tyneside, on
Teesside, in Darlington or in London. Our research and consultations confirm an almost universal
desire for Durham to have its own radio station - for Durham and from Durham.
It was back in early 1999 that Graham Ledger, then Managing Director of Alpha 103.2 in
Darlington, raised the question of a licence for the Durham and Bishop Auckland areas with Tony
Stoller and David Vick of the Radio Authority. We have the correspondence on file and can make it
available to Ofcom if required. On 15 March 1999 Graham wrote: “Please take this letter as official
notice that Alpha Radio Limited declare an interest in the future advertisement of any such licence.”
On 26 March 1999 we wrote again justifying the need for the station and suggesting a transmission
area closely resembling that now proposed for Durham FM: “….areas like Durham, Bishop
Auckland and Barnard Castle in addition to other population centres such as Consett, Houghton-le-
Spring, Chester-le-Street, Spennymoor and Crook.” David Vick responded saying: “The evidence
of interest from prospective licence applicants, and the location and scale of the service they wish
to provide, is an important factor guiding our local radio development strategy. Your letter of intent
will now contribute to this process.”
In designing the coverage area for Durham FM we considered a lot more than cold technical
constraints such as transmitter power and frequency clearance. We have taken a view on the area
within which local people have traditionally looked towards Durham City. We were considerably
helped in defining this catchment area, during an extensive series of one-to-one interviews, by
representatives of local authorities, voluntary organisations, businesses and Durham Cathedral and
by those responsible for marketing arts and educational initiatives across the region.
It is widely recognised that, in an era of increasing mobility, Durham has failed to maintain its focus.
As we explain later in this application, local people are increasingly drawn to Newcastle, Gateshead
and the Metro Centre for shops and entertainment. There is an unduly low level of contact between
the City of Durham and the many towns and villages which surround it. Those representing the
towns and villages in the Districts away from the City also point to a reluctance to travel between
those towns and villages.
Local people feel marginalised by the existing media. When most local news and information
comes from media dominated by out-of-area conurbations is it surprising that local awareness and
pride starts to suffer? We see this as a major opportunity for Durham FM to provide an entertaining
and informative local radio service which will have wide appeal.

27
Durham FM
In 2003 Durham City and County Councils, One North East, the University of Durham and the Dean
and Chapter of Durham Cathedral came together in a partnership to explore ways that Durham City
could develop a more visionary and integrated approach to regeneration and development. It was
anticipated that, as the various stages to this unfolded, the city would become established as a key
driver in the economic development of the region.
This partnership (known as the Durham City Steering Group) has commissioned a series of
interrelated studies with a view to fundamentally transforming the city as a visitor destination. The
aim is to build on the many existing attributes that Durham possesses to create a unique visitor
destination offering a high quality shopping, leisure and cultural experience.
As a first stage, the consultants looked at the issues and potential within the City. One of their key
recommendations concerned the improvement of local communications:
“Local communications are currently poor – rumours spread fast, but good news is seldom heard.
Improved communications is vital in order to:
• create a sense of local pride, through promoting local achievements
• get local people tapped into activities, whether it’s computer courses, concerts, clubs or
competitions.
• make connections, so avoiding social exclusion
• generate new ideas, which can help to drive change in the local area
The launch of a radio station for Durham provides a fresh opportunity to connect with the community
– a fact that should be built into the franchisee selection criteria. In addition we recommend that
Durham City Steering Group commission a communications audit/strategy, to understand and
enhance local communications across all media.” 2
We were delighted to see the significance of local radio recognised so clearly in such a report and
have entered detailed discussions with Susan Williamson, one of the authors of the report, on how
the launch of Durham FM might become part of the regeneration strategy.
Durham FM will place great emphasis on local news and information. Our research and
consultation identified great demand for local what’s-on and community information, locally relevant
sports news, weather, traffic and City-centre car parking reports.
Experience at nearby Sun FM and Alpha 103.2 gives us every confidence in our ability to merge
this constant flow of local information into entertaining and fun programming which will win and hold
a large and appreciative audience.
In the North East we face strong competition from well-established and well-presented commercial
radio services. Our output must exhibit the same standards of quality and therefore our presenters
will be appointed on the basis of their experience in local radio, their appreciation of the music we
play, their knowledge of the area and their understanding of the target audience.
While being broadly appealing, Durham FM will be particularly appreciated by men and women
aged between 25 and 54. Our music will be carefully selected to appeal to this age range, a
combination of high calibre hits from the past four decades with the best songs of the moment. We
will avoid current songs which do not sit comfortably alongside tuneful classic hits just as we will
avoid “oldies” which have not stood the test of time.
2 Source: Planning for the future of the City of Durham. The Chambers/Donaldsons. April 2004. Page 88

(ii) The strategies which the applicant proposes to implement in regard to:
• catering for the tastes and interests, general or particular, of
persons living in the area;
• broadening the range of local commercial services available in the area;
• the provision of local material, if any;
• the proportion of locally-made programming, if any
should be set out in this section
Catering for local tastes and interests
28
Durham FM
We have undertaken a considerable amount of research and consultation over a period of several
years to establish the tastes and interests of people living in the Durham area
We undertook two Restricted Service Licence broadcasts in November/December 2002 and
June/July 2003. These were deliberately chosen to coincide with the Durham City Christmas and
Summer Festivals during which we were able to cement our relationships with a wide range of local
organisations and individuals. The Festivals also offered a unique opportunity to demonstrate the
value of a locally-involved radio service. Media students from New College Durham provided daily
what’s-on material, including interviews and features. Durham City Council freely provided
excellent accommodation for our studios with a shop-window in the historic Market Place and we
were able to discuss our programming with a great number of listeners as they passed through the
centre of the City.
Earlier in 2002 we joined the Durham City Forum Marketing Committee and, as a result of our role
on that committee, we joined local businesses in funding a major survey of the shopping and social
habits of people living in the districts surrounding Durham City (The illuminating results of Durham
City Visitor and Shopping Survey September 2002 are summarised later in this application).
The temporary broadcasts also afforded an opportunity to test different music formats and speech
styles. During the broadcast periods all visitors to our studios were invited to give their comments
on our programming in a guest book provided for the purpose and we undertook a simple survey of
people passing by in the Market Place. Such feedback enabled us to refine the trial offering and
produced the basic template for the service which we are offering today.
Finally, in October 2004 we commissioned formal research in Durham and the surrounding area to
measure radio listening behaviour and confirm preferences for a new radio station in the Durham
Area. NOP Research Group organised 540 in-home face-to-face interviews across the proposed
Durham FM TSA.
A full summary of the results of this major piece of research is included later in this application, but
overall it confirmed that most people would prefer the new station to be ‘mostly music mixed with
some speech' with an emphasis on local news for the Durham County area, North-East news, local
weather forecasts and travel news for the area.
Musically there was support for a station playing a broad range of music ranging from popular hits
from the 60s, 70s, 80s and 90s to hits from the last few years.
88% of those interviewed felt it was important that presenters should be knowledgeable about the
local area and what is happening here.
Similarly, our consultation meetings with representatives of local businesses, community groups
and local authorities have all indicated a strong desire for a new radio station with a local focus.

29
Durham FM
We can honestly say that not once, of the hundreds of people with whom we have discussed the
project during the years of preparation of this application, has anyone doubted the need for a truly
local radio station for the Durham area.
Our strategies to cater for these clearly stated tastes and interests will be as follows:
News and information
Durham FM will provide local news coverage in a quantity and of a quality which is not
available elsewhere and thus become recognised by local people as THE dependable and
up-to-the-minute source for information about what’s happening in their own town, village or
community.
Our three Durham based journalists will not wait until the top of the hour to tell our listeners
when a big story breaks. It is crucial to our commitment to local listeners that they will feel
constantly in touch with their local area.
News bulletins will be locally compiled and presented hourly on weekdays from 6 am to 6
pm, with additional headlines at 6.30, 7.30 and 8.30 am, 4.30 and 5.30 pm. At weekends
we will include locally produced bulletins from 7 am on Saturday and 8 am on Sunday until 1
pm each day. Main bulletins will be three to five minutes in duration plus a 15 minute roundup
on weekdays at 6 pm.
News staff will be on call to cover important stories outside these hours, reporting live into
programmes as appropriate.
While the news team at Durham FM will be autonomous and largely self-sufficient, they will
be able to call on journalists based at nearby Sun FM in Sunderland and Alpha in Darlington
for additional help when a major story breaks. There is frequently considerable interest in
stories from these areas and the interchange of suitable copy and audio will be encouraged.
By way of example, on one Sunday during our RSL broadcast in 2003 the temporary
Durham FM newsroom supplied both neighbouring stations with major audio reports on the
Durham Miners Gala and the sudden resignation of the Chairman of Durham County
Cricket Club.
In addition to comprehensive news coverage of the area, all our programme staff will give
the highest priority to gathering and broadcasting topical local information.
Important traffic and travel news will be included whenever conditions require it, and there
will be regular scheduled bulletins at around 6.50, 7.20, 7.50, 8.20, 8.50 and 9.20 am in our
weekday breakfast sequence and again in the afternoon at 12.50, 1.50, 3.50, 4.20, 4.50,
5.20 and 5.50 pm. Bulletins will be compiled using customised information supplied by
Trafficlink and supplemented with material from our own local contacts.
Durham is an area with an important history and proud traditions which Durham FM will be
pleased to support. A particular example of this is the number of long-established minor
league football clubs. There is currently no national league side within the proposed TSA
and we see this as a positive opportunity to give greater emphasis to the many teams
playing in other leagues.
In West Auckland they still remember how in 1910 the village made history, when its miners’
football team travelled to Italy to represent England in the first ever soccer World Cup,
reaching the final and defeating the mighty Italian giants Juventus, by two goals to nil.

30
Durham FM
Today West Auckland are joined in the Northern League by many similar teams
representing proud local communities in the Durham FM area, like Durham City, Chester-le-
Street, Esh Winning, Shildon, Brandon United, Consett, Crook Town and Tow Law.
Meanwhile local rivals Bishop Auckland and Spennymoor play in the Unibond League
Premier Division.
Durham FM will provide score flashes and reports from fixtures involving these teams
whenever they are playing, with a full score round-up each Saturday afternoon after fulltime.
Perhaps more importantly we build interest and support with frequent pre-match
coverage of news from the clubs in our regularly scheduled peak time sports bulletins.
Other programmes will also contain outside broadcast reports from around the Durham FM
area. It is becoming increasingly straightforward to include high-quality material from
locations throughout the county as broadband technology is rolled out to more and more
communities, including new digital initiatives by public bodies in the former coalfield and
rural areas. Our journalists and presenters will make full use of these new opportunities to
reflect happenings in other centres across our area.
Local involvement
Our presenters will be expected to reflect the world from the perspective of a listener in the
Durham area. They will be required to become part of the everyday life of the County,
becoming personally involved in at least some of the events and happenings which will form
the backbone of our programming.
Free publicity for local events and activities will be a feature of all programmes and our
Community Desk will work proactively with local charities, voluntary organisations and other
non-profit making bodies to enable them to make best use of the great new publicity
opportunities offered by Durham FM. We have already started to work with Durham and
District Council for Voluntary Service to ensure we maximise the benefit to a wide range of
organisations, indeed Durham FM was delighted to be invited to assist them with
promotional activity during the city-centre Volunteers Fayre in June 2004.
We see this as the key difference between our approach and that of the existing local
media, not content with simply disseminating facts in ‘What’s On’ summaries and news
bulletins, we will become a part of the community, helping local initiatives not simply
reporting them.
Media students from New College Durham contributed daily material to our trial broadcasts
and will be given every opportunity to gain experience at Durham FM. A formal programme
of work experience attachments will be agreed with Further and Higher Education
institutions in the region.
Music
Durham FM will broadcast the music which a broad section of the population find attractive
on the radio while avoiding those tracks that would cause otherwise engaged and
entertained listeners to switch off. To this end we have already undertaken detailed music
research and will continue to track changing musical tastes throughout the period of the
licence.

31
Durham FM
In the quantitative research detailed later in this application we asked respondents to
register their opinions on ten music categories spanning the range of popular music taste.
Six rated especially well, with five of the six categories generating a positive response from
three-quarters or more of the target age group: popular hits from the sixties, seventies,
eighties and nineties, and hits from the last few years. Popular current hits also rated
positively with 73% of our potential target audience. Notably all six of these music
categories rated even more highly amongst the 25-54's than amongst all adults generally.
Durham FM will play a broad mix of timeless classic hits drawn from the past four decades,
mixed with some of the more popular and melodic hits from the current and recent charts.
Following the stated preferences of our target audience, in 2005 tracks will be played from
each decade in approximately the following proportions.
1960s 10%
1970s 15%
1980s 25%
1990s 20%
2000-2005 10%
Current 20%.
Individual programme features will focus on a particular era or genre from within the overall
music mix, but these will be balanced by other material within the same daypart. Clearly
defined themed music days, which focus on a genre or era from the main music mix, may
occasionally be broadcast.
There was insufficient demand for individual specialist music strands away from the
mainstream to justify regular specialist programmes, but individual tracks of such music may
be included as illustrative material to support interviews and other features.
Advisory Committee
In order to further ensure our output, particularly our local news and information, remains
relevant to our potential listeners we will establish an Advisory Group which will assist the
launch director in steering the station through its crucial early years. The committee will
include representatives drawn from the business, retail, public, charity and voluntary sectors
across the breadth of our TSA.
A number of prominent local individuals have already confirmed their willingness to serve on
this committee following the award of the licence to Durham FM. These include: Andrew
Bradley, the Centre Director at Millburngate Shopping Centre, Durham City; John Cowey, a
prominent Director of Bishop Auckland Football Club; John Jennings, currently Director of
Environmental Services at Durham City Council; Rhianne Jones, the Volunteer Bureau Coordinator
for Durham City District Council for Voluntary Service; and Steve McCormack,
Commercial Manager for Chester-le-Street and Sacriston at Chester-le-Street District
Council.

Broadening the range of local commercial services in the area
32
Durham FM
Durham FM will broaden the range of local commercial radio services by offering the only
programming to focus exclusively on Durham City and the surrounding districts.
In addition to the full range of national services, the proposed TSA is served by local radio stations
based around Tyneside and Teesside. From the BBC there are BBC Radio Newcastle and BBC
Radio Cleveland, while from commercial radio Metro Radio, Magic 1152, Century FM and Galaxy
105-106 all broadcast from Tyneside with TFM and Magic 1170 having their studios in Stockton-on-
Tees.
Century and Galaxy cover the entirety of the Durham FM area. The TSAs of Metro and Magic 1152
include the northern areas around Chester-le-Street, Consett, Durham City and Spennymoor while
their sister stations TFM and Magic 1170 cover the southern portion including Brandon,
Spennymoor, Bishop Auckland, and Sedgefield.
In advertising this licence, Ofcom specifically identified the following ILR services which are
available within the majority of the area: Metro Radio, Magic 1152, 100-102 Century FM and
Galaxy 105-106.
As the programming of TFM and Magic 1170 is substantially similar to that of Metro FM and Magic
1152 respectively, and as our own research showed relatively little listening within the proposed
TSA to the Teesside-based stations, we will here concentrate on the programme offerings of the
four stations identified by Ofcom.
In order to quantify the differences between the programming offered by Durham FM and that of the
existing ILR services, we commissioned Intelligent Media to monitor their programmes between 6
am and 7 pm on Wednesday 24 November 2004. Detailed reports on the output of the four
stations are supplied separately with this application to Ofcom.
Where appropriate, percentages are expressed as a proportion of programming time, i.e. after
deduction of commercial minuteage.
Metro Radio
A fast-paced, young-sounding radio station aimed at young adults in a large section of the
North East stretching from Durham up to the Scottish borders. During the weekday daytime
period monitored two-thirds of the music played was drawn from the last few years with 21%
of tracks from the 1990s and 12% from the 1980s. The station did not feature any music
from earlier than 1980.
During the daytime hour monitored Metro was carrying a relatively heavy advertising load,
on average 12 minutes in each hour were devoted to advertisements.
Hourly news bulletins were typically of two to three minutes duration at breakfast, lunchtime
and afternoon drive time, with one minute bulletins at other times. Short news headlines
appeared in some hours at breakfast and drive time.
On the day monitored 58% of the total news bulletin time was occupied by national and
international news stories with a further 34% spent on material from the North East region
outside Durham. Only 8% of total news time on Metro Radio was devoted to stories drawn
from the proposed Durham FM editorial area.
Outside news bulletins the Durham area was mentioned infrequently, with no references at
all in programmes other than the breakfast show.

Magic 1152
33
Durham FM
Aimed at an over 30 year-old audience centred on Tyneside, Magic features soft ‘easylistening’
style pop hits. During the thirteen daytime hours monitored 64% of the tracks
played were taken from the charts of the 1970s and 1980s and a further 19% from the
1950s and 1960s. Only 15% of total music was material released since 1990.
News bulletins were typically between 2 and 3 minutes in duration on the hour throughout
the day, again with brief news headlines on the half-hour at breakfast and drive time. With
slightly more time devoted to news bulletins than on Metro, local news about the Durham
area featured a little more frequently, but still only 10% of news bulletin time was devoted to
material directly relevant to the Durham FM TSA. The remainder of bulletin time was split
equally between regional and national/international news.
Other than in local news, only three programme references to places within our TSA were
identified during the thirteen hours monitored: one brief item in the Nick Wright breakfast
show, one in a ‘phone call to Scott Makin’s afternoon show and a further reference during
traffic news in the 5 pm hour.
100-102 Century FM
Century is a regional station covering the Tyneside, Wearside and Teesside conurbations
as well as much of rural Northumberland, Durham and parts of North Yorkshire. Although
on the day monitored some 48% of programme time was occupied by speech, an interest in
the larger centres of Newcastle, Gateshead, Sunderland, Middlesbrough, Stockton and
Darlington tended to predominate.
During the period monitored on 24 November 2004 our independent monitoring agency
failed to identify a single reference to anywhere within the proposed Durham FM TSA.
Although carrying a considerably greater duration of news than the other existing ILR
stations, including a half-hour sequence at 5.30 pm, there were no stories directly relating to
the Durham area at any time. Century’s focus on soccer, with an hour long soccer ‘phone-in
at 6 pm, further emphasised the station’s relationship with listeners supporting
Middlesbrough, Newcastle, and Sunderland.
Music from the 1980s shapes the image of Century FM, 42% of the tracks used were from
this era, the remainder being mainly current and recent hits (32% from 2000 onwards) and
from the 1990s (19%). There was no music from earlier than 1970.
Galaxy 105-106
A regional station covering the same large area as 100-102 Century FM, Galaxy boasts a
TSA totalling over two million adults. Century and Galaxy are currently vying to be the top
commercial radio service in Rajar reports for this larger area. In the period ending
September 2004 Galaxy was narrowly ahead with a 10.5% share of all listening to 10% for
Century. Of course EMAP would point out that their audience is split between Metro and
TFM and, if these two are added together, they can claim a combined share of 12.6%.
As a station playing rhythmic-based music Galaxy’s strong market position is built on its
popularity with the 15-24 year old audience. In the most recent Rajar results (to September
2004) 53% of males and a phenomenal 69% of females aged 15-24 across the region listen
to Galaxy each week.

34
Durham FM
As would be expected on such a youth-centred radio station, music is mainly drawn from
the last few years. During the 13 daytime hours monitored in detail only ten tracks released
prior to the year 2000 were featured, all of them drawn from the late 1990s.
News is of less significance in the programme mix of Galaxy, averaging less than one
minute per hour across the period monitored. News bulletins do not appear at all in most
hours and where they do they are dominated by national stories. There was no locally
relevant news for the Durham FM area.
Local places within our proposed TSA were mentioned on five separate occasions in
general DJ chat and in response to competitions prior to 2 pm but there were no further
local references identified during the period monitored up to 7 pm.
Durham FM will focus entirely on Durham and the districts surrounding it. Our programmes
will be locally produced and presented from studios in Durham by people who know and
understand the area.
This independent monitoring of the existing services shows that no other ILR station in the area
provides anything approaching the level of relevant local news and information which are
demanded by the local population and will be offered by Durham FM. During the period monitored
very few local news stories were included and there were very few locally relevant programme
items on any of the four ILR services.
Durham FM will become established as the only dependable, independent and up-to-theminute
source of information about what’s happening in the towns and villages of the
Durham area.
For example, while recognising that our listeners may well be equally interested in the progress of
Newcastle United, Sunderland AFC, Middlesbrough FC or Darlington FC, soccer coverage on
Durham FM will also feature the large number of long-established County Durham clubs playing in
other leagues. Our sports programming will not be dominated by one or two Premiership or
Championship clubs as is the case with the existing stations.
Durham FM music will be much broader in both style and age than any one of the existing
offerings. Our combination of music from the last four decades with the best of today’s hits
is not currently available from local commercial radio in this area.

Local material and locally-made programming
35
Durham FM
Local material is vitally important to the success of Durham FM. Our detailed quantitative research,
detailed later in this application, confirms that a gap exists in the Durham radio market for a greater
quantity of Durham city and county news and local information. Whether expressed in terms of
speech items that listeners would like to hear or those that they consider 'essential' listening it is
local Durham and North East regional news, along with local weather forecasts and traffic and
travel news for the Durham county area, that head the list of requirements.
Our strategy for the provision of local material involves three important strands of station activity:
news gathering, information supply and local involvement.
News gathering
Durham FM will employ a team of three qualified radio journalists who will be based in our
Durham newsroom. They will research, prepare and present news bulletins consisting of
local, national and international news throughout weekday daytimes and during the morning
and early afternoon at weekends. While the exact proportions of local and
national/international news will be a daily editorial decision bulletins will always give priority
to local events and issues.
Information
Our programmes will always contain a wide range of topical information reflecting local life,
happenings and issues. Regular features running throughout all main programmes will
include What’s On information, local entertainment guides and reviews, information from
local charity and community organisations, details of job opportunities and traffic, travel and
city-centre car parking reports.
During our extensive discussions with local organisations detailed later in this application,
many people stressed the need for easy access to the airwaves for local voluntary
organisations, campaigning groups and individuals, suggesting a single point of contact, a
person who would understand their needs and difficulties and help them to develop their
ideas for broadcast. As a result one experienced presenter will also be given the
responsibility of Community Producer and be the well publicised contact for local individuals
and organisations who want to promote local events and initiatives or who wish to stimulate
debate on local issues.
Working closely with various agencies including the Durham City and District Council for
Voluntary Service the Community Producer will generate the Durham FM Community Desk
features which will be broadcast throughout all main programmes (see sample programme
schedule) and will also be included as a pre-recorded feature in the Durham by Night
sequence.
Local Involvement
Perhaps the most significant difference between Durham FM and the existing services is
that, while they may from time to time promote or report on local events and initiatives, we
will be much more closely connected to what’s going on in our area. Where appropriate
Durham FM will seek to become actively involved in local events at an early stage. Staff
and presenters will be encouraged to join local committees and to take a personal helpful
interest in community activities.
In order to ensure a steady flow of useful information and programme material from the
grass roots of our area our Community Producer will encourage and assist local people to
make the best use of the medium of local radio by talking to groups, clubs and organisations
and arranging simple training if required.

36
Durham FM
Durham FM Chairman John Anderson and Project Director Brian Lister are deeply
committed to the radio station becoming an integral part of its local area. This is perhaps
best illustrated by the expressions of support received by Sun FM at the time of its reapplication
for the Sunderland radio licence in 2001. A wide range of strongly favourable
and supportive comments were included with the application to the Radio Authority. John
Anderson was, and remains, Chairman of Sun FM Limited and Brian Lister was Managing
Director of Sun FM during the period leading up to the re-application.
“Sun FM has become very much part of the community in Sunderland and provides us with
an excellent channel for communicating with the City’s residents.”
Colin Sinclair, Chief Executive, City of Sunderland Council.
“They are also excellent supporters of, and help with the promotion of, local events run by
community organisations …they are very valued by the community.”
Stan Cudlip, Town Clerk, Seaham Town Council.
“Sun FM is very much in, of and for the City… your involvement in a great range of activities
and initiatives in the City is very creditable.”
Peter Fidler, Vice-Chancellor & Chief Executive, University of Sunderland.
“Having worked closely with Sun FM staff I have always found them to be extremely
cheerful, friendly and accommodating. Their terrific support helped to raise over £40,000”
Lindsay Kay, Area Fund Raising Manager, Imperial Cancer Research Fund.
“It gives me great pleasure to be able to acknowledge the great contribution you have made
towards enhancing the growing reputation of the City of Sunderland.”
Marjorie Atkinson MBE, Ford & Pennywell Legal Centre.
“I believe Sun FM has made a full contribution to strengthening the identity and reinforcing
the positive drive to make Sunderland a better place to live and work.”
Kevin B Curran, Regional Secretary, G.M.B.
“We have over the years developed an important and successful relationship which we
hope to continue to build on and grow even further…Sun FM continues to focus on
Sunderland and local issues, serving the community very well – an overriding factor which
we ourselves fully appreciate and commend.”
Bob Murray, Chairman, Sunderland Football Club.
“I have always been impressed with the professionalism in which your station works, and
believe Sun FM gives the City an unrivalled level of service.”
Chris Whitman, Reg Vardy PLC
“Sun FM plays an important part in the daily life here at Nissan in Sunderland”
Paul Harrison, Nissan Motor Manufacturing (UK) Ltd
“Over the past few years we have formed a close and productive working relationship,
particularly on important community projects, not only to improve the Sunderland
marketplace, but also to improve the perception of the people of Sunderland and their City”
Anne Blood, Managing Director, North East Press Ltd (Sunderland Echo)
“I have worked with Sun FM in a variety of ways and have always found Sun to be a truly
community focussed station offering support to our organisation in a professional and
innovative manner.”
Wendy Middleton, Marketing Manager, Sunderland Empire Theatre.

37
Durham FM
All programmes on Durham FM will be locally produced and presented with the exception of a
nationally networked chart show during three hours on a Sunday afternoon/evening and one latenight
‘phone-in of three hours duration each week. A limited further amount of appropriate network
programming may be added outside weekday daytime once our local audience is established, after
the second year on-air, but a minimum of 18 hours per day will always be locally produced and
presented.
(iii) If appropriate, the applicant may also provide a typical programme-by-programme weekday schedule,
to give a flavour for the direction of the station.
WEEKDAYS ON DURHAM FM
0600 – 1000
BREAKFAST SHOW
Fast paced and entertaining with the emphasis on the
Durham area. The morning news editor is an integral
part of the show. Competitions, fun and quality music.
What’s On features.
1000 – 1400
MORNING SHOW
Great music, information and conversation aimed at the
Durham area. Interviews and outside broadcasts when
appropriate. Including lunchtime workplace requests.
What’s On and Community Desk features.
1400 – 1800
AFTERNOON SHOW
A lively sequence of music, features and studio guests.
With extra information after 1600 for those travelling
home.
What’s On and Community Desk features.
1800 – 2200
EVENING SHOW
Live and local, the best music, features and news of the
local entertainment scene. Coverage of local sport when
appropriate.
2200 – 0000 MONDAY-THURSDAY
CHILL-OUT ZONE
Music to wind-down after a busy day. A relaxed and
romantic feel.
2200 – 0100 FRIDAY ONLY
MIKE THE MOUTH ‘PHONE-IN
With Mike Elliott
A networked TLRC programme
0000 – 0600
DURHAM BY NIGHT
A music-led sequence with specially pre-recorded
features including What’s On, the Community Desk and
local weather forecasts.
Durham FM News: 0600 (3 mins),
0700, 0800 (5 mins), 0900 (3 mins).
Headlines and sport: 0630, 0730, 0830
Weather forecasts hourly
Traffic & Travel news every 30 minutes from
0650 onwards.
Durham FM News: 1000, 1100, 1200 (3 mins),
1300 (5 mins).
Headlines and sport: 1230.
Weather forecasts hourly, travel news and
Durham City parking reports as required.
Durham FM News: 1400, 1500, 1600 (3 mins),
1700 (5 mins).
Headlines and sport: 1630, 1730.
Weather forecasts hourly.
Traffic & Travel news every 30 minutes from
1550 onwards.
Durham FM News and sport: 1800 (15 mins)
Including local business news.
IRN News: 1900, 2000, 2100 (3 mins)
IRN News: 2200 (3 mins)
IRN News 2200 (3 mins)
IRN News: 0000 – 0500 on the hour (3 mins)

SATURDAYS ON DURHAM FM
0600 – 1000
SATURDAY BREAKFAST
A lively start to the weekend, reflecting the busy weekend
lifestyle of today’s listener. What’s On features and
Community Desk throughout the programme.
1000 – 1400
SATURDAY SHOW
A bright and busy programme with plenty of interest and
listener involvement through competitions, requests and
dedications. What’s On features. Outside broadcasts
when appropriate.
1400 – 1800
SATURDAY MUSIC AND SPORT
Lively music combined with up to the minute coverage of
local sports teams. Particularly following local football and
cricket. Plus coverage of national sporting events.
1800 – 2200
THE PARTY ZONE
The big party tunes – from the sixties to today - to get
Saturday night going.
2200 – 0000
CHILL-OUT ZONE
As weekdays
0000 – 0600
DURHAM BY NIGHT
As weekdays
SUNDAYS ON DURHAM FM
0600 – 0800
SUNDAY MORNING
A relaxed start with softer music.
0800 - 1200
SUNDAY SHOW
Fun and participation for a Sunday morning presented
with style, wit and humour. With competitions,
dedications and lots of listener participation.
1200 – 1600
AFTERNOON LIVE
A full range of Durham FM features, including What’s On,
Community Desk and local sports coverage.
1600 – 1900
HIT40UK
The UK's biggest chart show
A networked programme
1900 – 2200
EVENING SHOW
As weekdays
2200 – 0000
CHILL-OUT ZONE
As weekdays
0000 – 0600
DURHAM BY NIGHT
As weekdays
38
Durham FM
IRN News: 0600 (3 mins)
Durham FM News: 0700, 0800, 0900 (3 mins).
Headlines and sport: 0730, 0830
Weather and Traffic & Travel news hourly
Durham FM News: 1000, 1100, 1200, 1300
(3 mins),
Headlines and sport: 1230.
Weather, Traffic & Travel and Durham City
parking news hourly.
IRN News: 1400, 1500, 1600, 1700 (3 mins)
Full sports updates twice each hour.
Classified pools check at full-time.
Local soccer league results.
Weather forecasts hourly, Traffic & Travel news
IRN News: 1800, 1900, 2000, 2100 (3 mins)
Weather forecasts hourly.
IRN News: 2200 (3 mins)
IRN News: 0000 – 0500 on the hour (3 mins)
IRN News: 0600, 0700 (3 mins)
Durham FM News: 0800, 0900, 1000, 1100
(3 mins),
Headlines and sport: 0830, 0930 (3 mins).
Weather and Traffic & Travel news hourly
Durham FM News: 1200, 1300 (3 mins)
Headlines and sport: 1230 (3 mins).
IRN News: 1400, 1500 (3 mins)
Weather forecasts hourly.
IRN News: 1600
IRN News: 1900, 2000, 2100 (3 mins).
IRN News: 2200 (3 mins)
IRN News: 0000 – 0500 on the hour (3 mins)

5. Proposed Format
39
Durham FM
A blank Format is attached at Appendix 3. Fill it in, ensuring that each of the following criteria are
addressed within, where it is felt appropriate to do so. It should follow the style of Ofcom Formats, which
can be viewed at: www.ofcom.org.uk/static/radiolicensing/amfm/analogue-main. Reasons for omission of
any particular criteria (and it is accepted that not all criteria will be relevant to all applications) should be
set out separately. The Format will form part of the licence. Therefore, questions of clarification may be
asked prior to licence award and the wording amended to reflect this, if necessary.
(a) Station Name (working titles accepted);
(b) Service Duration. This is the number of hours you will broadcast each day. It should also include the
maximum extent to which you plan to automate programming, or the minimum level of live presentation
(daytime/non-daytime).
(c) Locally-made programming. The level and type of locally-made programming (i.e. programming made
within the licence area) promised. It should also reflect a likely level of networked/syndicated material, and
news-gathering arrangements.
(d) Character of Service. This is a clear, one or two sentence, description of the output and target
audience.
(e) Detail. This should address, where appropriate:
• A clear description of the type/range of music.
• Specialist music programmes.
• A level of speech content (peak/non-peak)
• Any specific plans for local material.
• News obligations, local and national (weekdays and weekends, peak-time, non-peak, etc.)
• Other character-defining elements of programming.

Licence Outline
DURHAM FM STATION FORMAT
40
Durham FM
Station Name DURHAM FM
Licence Area The City of Durham and the surrounding area (as defined in
Ofcom’s Measured Coverage Area map)
Frequency To be confirmed
Service Duration 24 hours a day (a maximum of eight hours automated in nondaytime
Monday-Saturday and ten hours on Sunday).
Definitions
Speech
Peaktime(s)
Daytime
Locally produced/presented
Character of Service
Detail
“Speech” excludes advertising, programme/promotional trails & sponsor
credits, and may be calculated across daytime or non-daytime
“Peaktime(s)” refers to Weekday Breakfast and Afternoon Drivetime output,
and Weekend Late Breakfast.
“Daytime” refers to 0600 to 1900 weekdays, and weekend output from
0800 to 1400.
Production and presentation from within the licence area. All requirements
for locally produced/presented output must include peaktime.
A friendly, locally involved radio station aimed particularly at 25 to 54 year olds, focussing on
local news, information and issues relevant to life today in and around Durham and featuring
the best music from the past four decades and today.
Durham FM will be a truly local radio station, aimed at local people with an emphasis on local
news and information. Hourly news bulletins giving priority to local stories will be broadcast
seven days a week during daytime with national news featured at other times. An extended local
bulletin will be featured during each weekday.
Speech will never fall below 20% of the output during daytime and 5% at other times and will
cater for the tastes and interests of listeners in the area, including what’s-on information, a local
entertainment guide, community action features, traffic, travel, weather and sports news,
features and interviews.
Music will be a broad mix of timeless classic hits from the last four decades and today with no
decade dominating the output.
All programmes will be locally produced and presented with the exception of a nationally
networked chart show during three hours on a Sunday afternoon/evening and one late-night
‘phone-in of three hours duration each week. A limited further amount of appropriate network
programming may be added outside weekday daytime after the second year on-air but a
minimum of 18 hours per day will be locally produced and presented.
Presentation will be live with the exception of overnight programming starting at 10 pm daily until
6 am Monday-to-Saturday and 8 am on Sunday.

SECTION 105(D): EVIDENCE OF LOCAL DEMAND OR SUPPORT
6. Evidence of Demand
41
Durham FM
This section should provide an analysis of the reasons as to why it is considered that there is a demand
for the type of service proposed, with reference to the size and nature of the proposed target audience.
If original market research has been undertaken, please provide the following information:
(i) A statement of the key objectives of the research;
(ii) The specific questions that the research sought to answer;
(iii) How the research was conducted;
(iv) The size and composition of the sample(s);
(v) When and where the research was conducted;
(vi) A summary of the main findings from the research, showing how these demonstrate evidence of
demand for the service proposed;
(vii) Full data tables for any quantitative research undertaken (these may be submitted in confidence).
PRELIMINARY RESEARCH AND CONSULTATION
At an early stage we identified a need to quantify the extent to which people in surrounding areas
would look towards the City of Durham as a centre of their working, social, cultural and commercial
life.
Before undertaking our first temporary broadcast in 2002 we contributed financially towards a major
survey of the shopping and social habits of people living in the districts surrounding Durham City
undertaken for members of the Durham City Forum. The Durham City Visitor and Shopping Survey
September 2002 was undertaken by NWA Social & Market Research of Stockton-on-Tees to assist
the City of Durham and its partners in developing a strategy to increase Durham City’s share of the
non-food shopping and leisure markets.
704 in-street interviews were completed in six neighbouring shopping areas and in residential areas
surrounding the City. All interviewing took place during September 2002. The shopping areas
were Bishop Auckland, Chester-le-Street, Spennymoor, Consett, Hartlepool and Sunderland, while
the Durham City residential areas were Cheveley Park, Belmont, Meadowfield and Newton Hall.
Asked how they obtained information on events and happenings in the Durham area 48% of
respondents said they would look in a newspaper, whilst only 26% would listen to the radio for this
information. The most popular radio stations for information on events in Durham were Metro FM,
mentioned by just 8.1% of the sample, and Century FM, mentioned by 5.8%.
The lack of a single source of information was further highlighted by the readership of regional/local
newspapers, which varied significantly dependent on the area of residence.
Area of residence (Postcode): Most popular local/regional newspaper:
DH Durham Advertiser (31.1%) (Weekly free)
DL Northern Echo (64.9%) (Daily morning)
TS Hartlepool Mail (39.8%) (Daily evening)
SR Sunderland Echo (53.3%) (Daily evening)
NE Evening Chronicle (34.4%) (Daily evening)
Many questions provided valuable insights into current shopping habits and perceptions of the
different centres in and around County Durham, but of particular interest to Durham FM in
anticipating the optimum TSA for this licence was the response to the question “About how often do
you visit Durham City Centre nowadays – for any reason?”

42
Durham FM
Few of those resident in the neighbouring postcode areas, TS (Teesside), SR (Sunderland) or NE
(Tyneside), visited Durham City more frequently than once a month, the vast majority visiting less
often than once every two or three months, or not visiting Durham at all. However the picture was
reversed in those postcode areas which are now included in the proposed Durham FM TSA. 39%
of those resident in DH (Durham area) and 37% of those from DL (Darlington area) postcode areas
visited at least two or three times a month and well over half of respondents from both areas went
into Durham City centre at least once a month. We concluded that all DH postcodes and those DL
areas around Bishop Auckland and Spennymoor could be expected to generate a high level of
demand for a Durham City based radio station.
A copy of the Durham City Visitor and Shopping Survey report can be made available to Ofcom on
request.
To establish demand for our proposed service, throughout our two temporary broadcasts in
Durham City we maintained a record of feedback received from listeners. All visitors to our studios
were invited to give their comments on our programming in a guest book provided for the purpose
and we undertook a simple survey of people passing through the Market Place. Such feedback
enabled us to refine the trial offering and produced the basic template for the service which we are
offering today
201 individuals completed the Market Place survey during Durham FM’s second temporary
(Restricted Service Licence) broadcast, between 7 and 18 July 2003. All respondents were
residents of the area, not visitors to the region, and interviews were conducted by students attached
to the radio station. This street survey showed a high level of recognition of Durham FM, over half
those interviewed said they had heard Durham FM at some time, while 28% reported listening to
the station during the previous seven days.
We took the opportunity to identify the music preferences of this sample of our potential audience.
Over 50% of those taking part in the survey identified music from each of the eras from the 1960s
onwards as one of the categories of music they would ‘most like to hear on the radio’. 56% wanted
to hear music from 2000 to today, 54% from the 1980s and 1990s and 51% from the 1960s and
1970s.
In order to refine the offering to be formally researched prior to this application we also asked how
important various speech features on Durham FM would be for the respondent. The key element
was plainly Durham’s local news, with 72% saying it was very important and only 3% saying it was
not important. Similarly local ‘what’s on’ information and local traffic and travel news were seen as
very important by the great majority of respondents (64% and 57% respectively).
Weather forecasts for Durham, local people taking part in programmes, outside broadcasts from
around Durham and information on local good causes were all seen as quite or very important by
around two-thirds of people questioned.
QUANTITATIVE MARKET RESEARCH
(i) Following the publication of Ofcom's 'Planned Timetable for Advertisement of New Analogue
Local Commercial Radio Licences' in June 2004, Durham FM commissioned the long-established
radio researcher, Rachel Steel of QuestionAir Marketing Research Ltd (QuestionAir), to design
research that would help refine the programming plans established during the two Durham FM RSL
broadcasts.
The overall objective of our bespoke research was to identify the programming requirements that
will combine to maximise the listener appeal of Durham FM amongst the potential Durham radio
audience generally and the target 25-54 year old audience specifically.

43
Durham FM
(ii) A copy of the survey questionnaire is included in the Technical Appendix supplied with this
licence application. In brief the questions were designed to establish current, weekly and core
listening patterns, determine how well personal listening requirements are met, identify potential
gaps in the provision of core radio stations, the preferred format of a new Durham radio service,
detailed music, news & speech and presenter requirements, reactions to the Durham FM concept
and the geographical spheres of influence relating to the proposed Durham FM TSA.
(iii) Utilising a survey and analysis design provided by QuestionAir, the NOP Research Group
undertook project management and analysis of the survey. The Independent Fieldwork Company
conducted the fieldwork on behalf of NOP. To ensure the best possible quality of research the
survey was based on personal, in-home interviews.
(iv) The opinions of all individuals aged 15 and over were sought to gauge an accurate indication of
how the intended station format would impact on all sectors of the radio industry’s accepted ‘adult’
universe.
540 interviews were conducted with adults selected to be representative of the Durham area's 15+
population. Quota controls were set on four age groups (15-24, 25-34, 35-54, 55+) with further
interlocking quotas between gender and working status (Male working full-time, Male working parttime/not
working, Female working full/part-time, Female not working). Each of these controls was
imposed on a postcode sector basis to be representative of the specific postcode sector to which it
pertained.
At the analysis stage weights were applied to the data in terms of age within gender and working
status within gender and grossed up to the known adult 15+ population of the area: 187,000. All
population data were sourced from the 2001 Census estimates for the postcode sectors comprising
the Durham FM TSA.
(v) Fieldwork took place over the two-week period 18 - 31 October 2004 across 43 geographically
representative postcode sectors selected with probability proportionate to population. The Total
Survey Area was drawn around the city of Durham and the surrounding area, as detailed in
Ofcom's radio licence advertisement.
(vi) The main findings from our quantitative research are summarised below:
Durham FM is designed to meet the radio listening requirements of those adults in Durham and the
surrounding area who require a bespoke Durham-based and Durham-orientated local radio station.
We accept that existing North East regional and, in the main, Tyneside-based services have fulfilled
many of the area's radio requirements more than adequately but all our on-ground the activity,
whether anecdotal or research-based, confirms our intuition that the Durham area population will,
subject to quality programming, very much welcome a truly local station that is able to devote its
editorial content first and foremost to the city of Durham and, just as importantly, the surrounding
county area.
Our research indicates that a broad cross-section of the population will find our proposed style of
radio service appealing. However, we are mindful that to maximise the appeal of the station we
must adopt a target audience and focus our output on this group's specific requirements. In line
with TLRC's neighbouring radio services, Alpha and Sun FM, Durham FM will be targeted at adults
aged 25-54 years old. This group comprises half the adult population of our claimed 187,000 adult
15+ TSA.

Geographical spheres of influence
44
Durham FM
The proposed Durham FM TSA definitely comprises a distinct area with Durham City as its focal
point.
To demonstrate how the adult population we aim to serve relates to its local area we asked
questions concerning three key lifestyle activities (work, shopping for major items and
entertainment) along with interest in local media coverage.
From the resulting analysis we found that:
• Of the 55% who work, 42% work within Durham FM's proposed TSA (27% in Durham City)
and 17% outside the area (a small number of adults have more than one work base)
• Of the 99% who make major purchases, 79% do so within the TSA (48% in Durham City)
and 55% outside
• Of the 88% who go out for entertainment or a night out, 71% do so within the TSA (44% in
Durham City) and a further 44% outside
• Of the 87% who use local media, 78% are interested in reading or hearing about the
Durham area (63% about Durham City) and 48% about the broader North East region
Not only are the majority of these four activities concentrated in or on the proposed Durham FM
TSA but, more especially, on Durham City itself. That said the fact that fewer than half the TSA
population uses the city for work, major shopping purchases or entertainment means that whilst
Durham FM must be Durham-orientated this is not to the exclusion of other towns within the county
area. Indeed any undue emphasis on Durham and Durham alone will likely alienate a proportion of
our potential audience and keep this group wedded to other less local and/or region-wide radio
services.
We also recognise from this analysis that our potential audience is not so introspective that it has
no associations with, or interest in, locations outside of the Durham FM TSA. With the exception of
workplace, Newcastle (along with Gateshead's Metro Centre for shopping) features prominently
indicating that the main pull from outside of the area is northwards. However, we also recognise
that the level of interest in media coverage of Newcastle and, more especially other 'out-of-area'
locations is not so intense as to require a significant proportion of our editorial coverage to be
devoted to news and information of these areas. Rather we will consider any 'regional' news story
on merit and will not impose any spurious regional story count in our news policy. The minority who
do prefer more out-of-area coverage are more likely to find their needs met by the choice of local
media currently available to them leaving Durham FM to concentrate on the majority that requires,
but currently cannot source, consistent home-based news and information.
Current radio listening
In the absence of Rajar data specifically relating to the proposed Durham FM TSA all radio listening
data have been sourced from our quantitative research. Methodologically considerable differences
exist between the radio industry's official diary-based Rajar survey and our research that relies on
aided-recall questions, requiring a respondent to remember their listening occasions over any given
time period. Whilst such a methodology will capture principal listening occasions it is likely that
some more casual listening events that would be recorded via a diary-based methodology will be
omitted from this research.

45
Durham FM
With the above in mind our research sought to identify 'current' radio listening patterns (listened in
the past four weeks), weekly reach (listened in the past seven days) and core listening (station
listened to most often). Not only did we identify the overall core radio station but also the core
station in respect of both music radio listening and listening for local news & local information.
Regardless of whether looking at current, weekly or core radio listening patterns five common
themes emerge from these Durham radio listening data:
• There is a high acceptance of the radio medium
• Commercial radio is more popular than BBC radio
• Local commercial radio is dominant
• This radio market primarily looks to Tyneside-based services
• There is a market gap for local news & local information
Acceptance of radio
Aware that an agreement to take part in research relating to radio listening might be dependent, at
least in part, in listening to the radio it is nevertheless a fact that a very high number of adults in the
Durham radio market claim usage of the medium. 97% claim to be current listeners and 94%
weekly listeners, with 95% naming a 'most listened to' (core) radio service.
We are encouraged by this fact as this high level of general interest in radio is likely to extend to at
least trial of a new station whose unique selling point is that it specifically caters for the local
Durham and County Durham area.
Commercial radio is more popular than BBC radio
Regardless of the audience measure Durham radio listening is biased towards commercial radio:
Commercial Radio BBC Radio
% Av. No. of % Av. No. of
Stations
Stations
Current Listening 78 1.6 51 0.8
Weekly Reach 72 1.1 41 0.6
Core Station (Overall) 64 31
Core Station (Music) 65 28
Core Station (Local News &
Local Information)
53 32
The differences between the two sectors are stark at all listening levels but especially so in terms of
core station where commercial radio rates twice as highly as BBC radio (64% vs. 31%) and most
especially for music (65% vs. 28%). Although a gap is also evident in respect of the core station
selected for local news & local information there is a notably lesser margin now separating the two
sectors. This point is expanded upon below.
Not only is commercial radio favoured in the number of listeners it attracts but also in terms of the
number of such stations used. Over a four-week period the average adult tunes to twice the
number of commercial radio services as BBC (1.6 vs. 0.8) with this same pattern near-repeated
over the more critical past seven days.

Local commercial radio is dominant
46
Durham FM
Not only is the Durham radio market commercial radio-orientated it is biased to local commercial
radio.
The market leader positions are as follows:
Total ILR Galaxy
105-106
Metro Radio Century FM
% % % %
Current Listening 73 39 37 35
Weekly Reach 66 30 26 26
Core Station (Overall)* 61 21 14 17
Core Station (Music)* 61 23 13 15
Core Station (Local News &
Local Information)*
51 15 13 13
* BBC Radio 2 rates at 13% on each of these measures (see commentary below)
The market leadership position achieved by the second of the North East's 'regional' local
commercial radio stations is of particular note because of all the radio services broadcasting in the
Durham radio market Galaxy is the station that has launched most recently. Although now a little
over five years old the regional service demonstrates very clearly how a new radio station can,
subject to quality output, impact, and impact very strongly, in what is a very competitive
environment. This lends added support to the earlier assertion that a new radio station is likely to
attract, at the very least, high levels of station trial.
In contrast it is relevant to note that, in terms of current and weekly listening, no single BBC station
comes close to matching the performance of any of the top-three local commercial radio stations in
this Durham radio market. Even allowing for the fact that aided-recall methodology does tend to
understate the performance of network BBC radio due to possible confusion between the services it
is clear that the success of local commercial per se dwarfs all BBC services, national and local.
BBC Radio 2 BBC Radio
Newcastle
BBC Radio 1
% % %
Current Listening 21 18 17
Weekly Reach 15 14 12
Core Station (Overall) 13 6 5
Core Station (Music) 13 5 6
Core Station (Local News &
Local Information)
13 7 6
As a core radio station, however, Radio 2 holds its ground relatively well. 13% of Radio 2's weekly
audience nominate it as their most listened to station overall, for music and for local news & local
information. This demonstrates that despite attracting a smaller audience it is, nevertheless, a very
loyal audience. From Durham FM's perspective, however, it is of great interest to note that the
general listening public is just as likely to nominate Radio 2 as Metro or Century as the source of
their local news and local information. Clearly this cannot be the case but does indicate that no
radio service is currently winning the battle as the provider of truly local news and information in
Durham. We see this as the angle required for a new Durham radio station to impact quickly in this
radio market.

Durham primarily looks to Tyneside-based services
47
Durham FM
As we have outlined above the population's association with, and usage of, Newcastle and the
Metro Centre goes a long way in explaining why local Tyneside-based radio services and
Newcastle-related content currently prove to be far more of an audience winner in the Durham radio
market than local stations and content that relate more specifically to other adjoining areas across
the North East region.
Like for like comparisons can be made between the region's two commonly owned heritage ILR FM
services, Tyneside-based Metro Radio and Teesside-based TFM and the two local BBC stations,
Radio Newcastle and Radio Cleveland.
Tyneside Stations Teesside Stations
Metro Radio BBC Radio TFM BBC Radio
Newcastle
Cleveland
Current Listening 37 18 8 4
Weekly Reach 26 14 4 3
Core Station (Overall) 14 6 1 1
Core Station (Music) 13 5 1 1
Core Station (Local News &
Local Information)
13 7 2 1
Market gap for local news & local information
Previous commentary has highlighted the market gap for local news and local information in this
Durham radio market.
Fewer adults nominate any radio station as their core service for local news & local information than
for music (85% and 94% respectively). Moreover notably fewer adults name any local commercial
radio service as fulfilling the role as a local news & local information provider (51% compared with
61% for music). Add to this the fact that the younger, 15-29 year old, targeted Galaxy regional
station is the highest rating of all the area's radio services on this measure and it becomes clear
that a very real gap exists for a local Durham radio station that will devote sufficient resources to
creating quality local news & local information output to serve an adult audience. TLRC stations
have a proven track record in delivering just this style of output, not least Alpha and Sun FM in the
two adjacent radio markets to Durham. This same commitment and experience will be brought to
bear in the Durham radio market.
Target 25-54 Year Old Audience
Durham FM's target 25-54 year old age group is even more wedded to local commercial radio than
average. Five out of six 25-54's have tuned in to some such station in the past four weeks, in
excess of three-quarters in the past week with almost three-quarters electing an ILR station as that
they listen to most often overall and for music. Although a lesser six out of ten nominate such a
station as that which they listen to most often for local news & local information this is still ten
percentage points ahead of the corresponding all-adult rating. Local commercial radio, therefore, is
a concept that Durham's 25-54 year olds are aware of, receptive to and supportive of, giving
Durham FM the opportunity to build further on this close relationship through its truly local and
bespoke Durham-orientated programming proposition.

48
Durham FM
With the exception of being a core music station, Century FM rates ahead of Galaxy and Metro
Radio as the target 25-54 year olds' top-rating radio station. In contrast local BBC radio and, to a
lesser degree, Radio 2 are less well supported by Durham FM's potential target audience. Radio 1,
however, finds increased support from this age group in terms of four and one-week listening but
falls off the scale quite dramatically when considered as a 'most listened to' service.
CURRENT
LISTENING
Adults
15+
Target
25-54
WEEKLY
REACH
Adults
15+
Target
25-54
MOST OFTEN
OVERALL
Adults
15+
Target
25-54
MOST OFTEN
FOR MUSIC
Adults
15+
Target
25-54
MOST OFTEN
FOR NEWS &
LOCAL
INFORMATION
Adults
15+
% % % % % % % % % %
Alpha 103.2 1 2 1 1 1 1 * 1 * 1
Century FM 35 46 26 34 17 23 15 20 13 17
Galaxy 105-106 39 45 30 31 21 20 23 23 15 15
Magic 12 14 8 11 6 8 6 9 5 8
Metro Radio 37 43 26 31 14 17 13 17 13 15
Sun FM 10 12 6 7 2 2 1 2 1 1
TFM 8 10 4 6 1 2 1 2 2 3
Radio Cleveland 4 1 3 1 1 * 1 * 1 1
Radio Newcastle 18 12 14 9 6 3 5 2 7 4
BBC Radio 1 17 20 12 14 5 4 6 5 6 5
BBC Radio 2 21 18 15 14 13 11 13 11 13 12
Total ILR 73 84 66 77 61 73 61 74 51 61
Personal listening requirements
Target
25-54
When asked how well each of nine local radio services meet personal listening requirements in
respect of music and local news & local information the following 'very' and 'quite well' combined
responses were recorded.
Music:
Metro Radio (50%), Century FM & Galaxy 105-106 (each 45%)
Local News & Local Information:
Metro Radio (46%), Century FM (40%), Galaxy 105-106 (36%), Radio Newcastle (30%)
On neither measure does any station gain a majority 'well' rating highlighting that, despite the
considerable audience successes of Metro, Century and Galaxy in particular, none dominates the
market in overall terms. This provides clear evidence that a gap exists both for a further suitably
targeted music radio service and, especially, for a station that provides bespoke local news & local
information in this Durham radio market.
Changes required to core radio station
Having identified a potential gap for both music and local news & local information we used our
research to tease out any currently unsatisfied radio requirements. To ensure that the most
pertinent of demands were recorded this question was asked in relation to the current core radio
station.

49
Durham FM
Aside from the 'no changes required' responses three of the top five rating requests relate either
directly or indirectly to music: more music (9%); less talking/chit chat (7%); more variety/different
music (also 7%). The importance of local commercial radio in this market no doubt accounts for
why 6% request fewer adverts with a further 6% requesting a greater focus on local areas, issues
and news. Durham FM is ideally suited to meeting all of these demands through a carefully crafted
music policy and more locally relevant and targeted speech content. Not only does this relate to
the editorial content of the station but also to its commercials. We would argue that one of the
reasons why many listeners are dismissive of commercials is that they do not relate to products or
suppliers that are local and/or relevant to them. Subject to meeting the required quality threshold,
locally relevant advertisements are more likely to engage the audience and prove less of a listener
irritant.
Our target 25-54 year olds are more likely than average to suggest each of these same top-five
rating reasons as changes that would enhance their listening enjoyment. This is especially true of
the demand for more music (11%) and more focus on local areas, issues and news (8%) - the two
central tenets of our station format. We are mindful that we must pay careful attention to our
editorial content as the target audience does register a 6% demand for more chat, talking and
discussion programmes - a format that many have become familiar with, especially through the
North East's focus on late night phone-ins. Merely providing more of the same, however, is not the
key to unlocking Durham FM's true audience potential and we consider that this request is perhaps
better interpreted as a demand for truly local and relevant content.
Preferred format
The overall requirement of both the target 25-54's and all adults generally is for Durham FM to be
music-led. Around two-thirds of both key groups favour the new station format to either be 'all
music' or, more especially, 'mostly music mixed with some speech'. On balance, the preferred
format is one that comes close to being 'mostly music mixed with some speech'.
Our research indicates that the importance of music must not be under-estimated. Both all adults
and our target 25-54's require the new Durham station to broadcast slightly less speech than their
current core (most listened to) radio station. The same is also true of all major weekly and core
listener groups except, understandably, Radio Newcastle's audience (who require the same music
to speech ratio as they are currently receiving). As such the overall demand is for slightly less
speech than key audiences currently hear on their favoured radio services. Whilst relevant and
targeted speech is clearly important in developing the correct programming mix we understand that
such content should not be so onerous as to cause listener irritation or, at worst, switch-off.
Based on this lesser demand for speech the general consensus is that Durham FM should adopt
an 80%:20% music to speech ratio during daytime (peak) hours of broadcasting.
Music
As Durham FM is to be music-led then it follows that the choice of music played is central to the
station's audience success. With this in mind it is essential that the music be targeted directly to a
focal demographic group - those who are expected to form the mainstay of the station's audience.
In Durham FM's case this is the target 25-54 year olds.
When asked to register their opinions on ten music categories spanning the range of popular music
taste six rate especially well. Five of the six generate a positive response from three-quarters or
more of the target age group: Popular hits from the 80s (84%); Popular hits from the 90s (81%);
Popular hits from the 70s (80%); Hits from the last few years (77%); Popular hits from the 60s
(75%). Popular current hits also rate positively with 73% of our potential target audience.

50
Durham FM
Notably all six of these music categories rate more highly amongst the 25-54's than amongst all
adults generally. This points to a requirement for a broad-based popular music station that focuses
on music from the 80s mixed with equal, or near equal amounts of 70s and 90s tracks and a lesser
injection of older 60s and more contemporary, suitably selected, recurrent and current music. This
key selection also dictates that Durham FM's music policy must be era, as opposed to genre, based
with Easy Listening, Rock, Soul/Motown/R'n'B and Country music especially all proving less
attractive options.
To confirm or refute this suggested music policy the combined first and second music choices were
used as a cross check. This analysis corroborates the initial music findings that Durham FM should
adopt a broad music format spanning all eras from the 60s to the current day. We are aware that
caution should be exercised in the use of current and re-current material as the target males are
notably less won over by this style of music than the target females. However, we consider it
essential that Durham FM's music policy incorporates recent, but not necessarily current, hits if the
station is not to sound dated and be perceived as 'old'. We will be equally careful in our choice of
60s music. Back catalogue material is an audience winner providing that it relates to a period in the
listeners' lives when it evokes memories. For many in the target age group 60s music is too old to
generate this personal nostalgia. Therefore, all 60s and current and recurrent tracks will be
carefully selected to ensure that they blend with the choice of 70s to 90s music played and
contribute towards the overall adult station sound that Durham FM seeks to achieve.
News and speech content
Our research has consistently highlighted the fact that a gap exists in the Durham radio market for
a more bespoke level of Durham City and Durham county news and local information. The findings
relating to specific news and speech features further support this view because whether in terms of
speech items that listeners would like to hear or those that they consider 'essential' listening it is
local Durham county and North East regional news, along with local weather forecasts and traffic
and travel news for the Durham county area that head the list of requirements. This view is shared
by all adults and our target 25-54 year olds indicating that by super-serving the target age group the
resulting station output will have considerable cross-over appeal to the more general listening
public.
All of the above top-rating speech items might best be grouped under the heading 'essential
local/regional news and local information services'. Interestingly, however, national and
international news rates notably less well (37% against 70% requesting to hear local news and 65%
regional news with 'essential' ratings of 26%, 59% and 48% respectively). Whilst not suggesting
that national news should be omitted from Durham FM's news broadcasts its relative importance
suggests the need for carefully constructed news bulletins that prioritise key local and even regional
news stories ahead of national and international news and, whenever possible, to find local angles
on non-local news stories.
A considerable breadth of news and speech content exists that would attract a notable positive net
requirement from our all-important target 25-54 year olds. (The net requirement equals those who
consider an item essential minus those who would switch it off).

NET REQUIREMENT
(ESSENTIAL minus SWITCH OFF)
Adults Target
15+
25-54
% %
Local news for the Durham County area +57 +60
North-East news +46 +45
Local weather forecasts +37 +36
Traffic and travel news for the Durham County area +30 +33
Humour and comedy +23 +24
National and international news +22 +24
What's on information +18 +22
Local sports news +18 +18
Competitions +16 +17
Phone ins +14 +16
North-East sports news +12 +15
Entertainment and show business news +10 +13
Outside broadcasts from outside events +10 +12
Requests and dedications +13 +11
Interviews with celebrities and personalities + 8 +11
Film and theatre and arts reviews + 7 +10
51
Durham FM
The primary tier of requirements is for all essential local and regional news and information
services, scoring the most highly not only amongst Durham FM's target 25-54 year olds but also all
adults generally. The second tier also contains news and information-based content or features
along with humour and comedy. Collectively these two groups of output will provide the mainstay
of Durham FM's speech policy.
As for music, however, a variety of speech is required if the station's content is to sound fresh and
in touch. To this end there is a wealth of speech features to tap into with the third tier of
requirements largely focused on local and regional sports news, arts and entertainment-related
features and listener participation - requests, competitions and phone-ins.
Reconciling this rich seam of possible speech content to the agreed 80%:20% music:speech format
requires Durham FM's emphasis always to be on the quality and not the quantity of speech
broadcast. We are very aware that a requirement for a broad cross-section of speech should not
be interpreted as a demand for more speech overall. The findings relating to the preferred format
of a new Durham radio station are very clear and this is further reinforced by the findings relating to
the preferred style of news format.
The favoured style of news coverage for Durham FM is for something that proves a little less newsintensive
than the option: 'concise bulletins of 2-3 minutes most of the time with more detailed 5 to
10 minute bulletins at breakfast, lunch and teatime on weekdays'. Not only will this style of news
specifically meet the needs of our target 25-54 year olds but it will also find favour amongst the
wider all-adult population. On this basis Durham FM’s news policy will ensure maximum listener
satisfaction across a broad constituency of the Durham area's potential listening public.

Presenters
52
Durham FM
Happily there is once again a consensus on the style of presentation required. Presenters should
be friendly, witty/humorous and lively. Scoring in target at 56%, 50% and 43% respectively no
other presentation quality comes close to matching these levels of requirement. It is very clear,
therefore, that our focus must be on a warm and up-beat style of delivery.
In a second, two-part question relating to presenters there is widespread importance attached to a
presenter being knowledgeable both about the local area and what is happening there and about
the music he/she is playing. More than half of both all adults and the target 25-54's consider it 'very
important' that a presenter has a good local knowledge and, overall, 88% and 89% respectively
attach some importance to this attribute. Indeed this is considered more important than even a
good knowledge of the music played (total importance ratings of 79% and 83% respectively).
Based on the requirements of our target 25-54 year olds specifically and all adults generally
Durham FM will be an era-based music-led radio station programmed around a variety of
music tracks from the 1960s to the present day. Our speech content will be concise and
always locally orientated and relevant. Presenters who demonstrate both knowledge of the
local area and the music they play will relate to their audience in a warm and upbeat
manner.
(vii) Full data tables relating to our quantitative research, together with the related Technical
Appendix (including survey questionnaire), are forwarded electronically along with this application.
A hard copy of our interpretative research summary can also be supplied to Ofcom, confidentially,
on request.

7. Evidence of Support
This section should provide evidence of support, where appropriate, from the applicant’s potential
audience or from prospective local advertisers.
Support for radio for and from Durham
53
Durham FM
Perhaps the earliest concrete example of support for this licence is a letter supplied to us by
Durham County Council. Dated 26 November 1997 and sent to the Radio Authority by Kingsley
Smith, Chief Executive of Durham County Council, it refers to the then proposed second regional
licence for North East England and clearly sets out the case for a radio station for and from
Durham:
“Sandwiched as it is between the major conurbations of Tyneside and Wearside to the
north and Teesside to the south, County Durham is not served by a radio station which
either reflects the County’s identity or which identifies with its residents.
“Its position, very much at the fringes of existing radio stations based in those
conurbations, is reflected in the poor coverage of news and events within County Durham.
“…..this is a vibrant County, changing more rapidly perhaps than any other part of the
region in which, geographically, it lies at the very heart. I feel it more than justifies a local
radio station of its own.”
In the seven years since this was written the same sentiments have been reflected throughout our
consultations and planning for the Durham FM service.
Support for our trial broadcasts
Our two trial broadcasts, from 10 November to 6 December 2002 and from 28 June to and 18 July
2003, generated a great deal of public interest and press coverage. We have full records of the
feedback received which can be made available to Ofcom.
Recognising that Ofcom has specified that applications should be clear, concise and simple in
layout and style, we have not included any illustrations of our substantial Restricted Service Licence
activity, nor any examples of our press cuttings or publicity materials. These can, of course, be
provided if required.
Our temporary broadcasts were largely supported by the sale of advertising and programme
sponsorship and attracted a wide range of enthusiastic advertisers. An indication of the high level
of commercial support likely for a permanent service is that a large proportion of the clients who
advertised during our first trial period were keen to support the second broadcast. Key advertisers
and sponsors included Prince Bishops Shopping Centre, Durham Markets Company, Hays Travel,
Gala Theatre, Bramwell Jewellers, Langley Insurance, North-East Mobility, Connexions County
Durham, Parkhead Hotel, Lumley Castle Hotel, Hollathans Restaurant and New College Durham.
Motor dealers included Stoneacre, Bristol Street, ABC Motor Company, S.G. Petch, VW Pullman,
GMD Fiat, Dutton Forshaw and Mill Garages.
Support from the community
Following the two Restricted Service Licence broadcasts, Durham FM kept in touch with listeners
and contributors. A website was established and regular newsletters were distributed to over one
thousand individuals and organisations across the area. Newsletters were published in June 2003,
October 2003, May 2004 and November 2004 and copies will be made available to Ofcom on
request.

54
Durham FM
The website invited comments on and suggestions for our service but in particular the October
2003 and May 2004 editions of our newsletter included a full-page User Survey. This simple survey
asked what the recipient wanted to hear on Durham’s own radio station and, if appropriate, in what
ways we might be able to help their organisation or business. Respondents were given the
opportunity to indicate if they wanted someone from Durham FM to discuss local radio in Durham
with them or their group.
We have been collating and sifting these responses for insights into the particular tastes and needs
of the Durham area for over three years. Overall we have literally hundreds of pieces of valuable
feedback from a wide range of individuals and organisations on file. We are particularly grateful for
the written submissions from significant local organisations such as Durham County Cricket Club;
Durham Musical Theatre Company; Durham City Jobcentre; North of England Reserve Forces and
Cadets Association; Durham Cathedral Choir Association; Durham & Darlington Fire and Rescue
Service and the Workers’ Educational Association in County Durham.
Charitable organisations were keen to contribute to our proposals and our plans have benefited
from feedback from, among others, the Alzheimers Society; Durham & Cheste-le-Street Branch,
County Durham Society for the Blind and Partially Sighted; CSV Action, Chester-le-Street; Durham
Action on Single Housing; Durham City District Council for Voluntary Service; Durham City
Shopmobility; Housing Action North East; Relate North East and St Cuthbert’s Hospice.
Other community organisations to respond in writing include Belmont Parish Hall Association;
Bowburn Community Association; Gilesgate Community and Welfare Association and Waterhouses
Community Association. User Survey forms were also returned by Durham City Councillors Colin
W. Beswick (who received the MBE in the New Year’s Honours list announced last week) and Ron
Dickie, and from County Councillor Peter Thompson.
Support for our proposals
The need for our service and support for our proposals has been established at over one hundred
face-to-face consultations or meetings of local groups where we have discussed our plans for
Durham FM.
We have records of these meetings going back to the summer of 2002, when we met with, among
many others, the then Durham City Centre Manager Chris Rawlinson; Durham County Council’s
Director of Culture & Leisure Patrick Conway; the City of Durham Director of Environmental
Services John Jennings and Chief Executive Colin Shearsmith; George English, Radio Tutor, and
Paul Ryder, Marketing Manager, at New College Durham; Stephen Naylor, Editor, Palatinate,
Durham University’s student newspaper; Andrea Eland, Young People’s Development Worker,
Connexions County Durham; senior staff at Forum Marketing, the advertising agency for the Prince
Bishops Shopping Centre; Colin Wilkes, Managing Director of Durham Markets Company, and the
Centre Managers of both of the city’s major shopping centres. We joined the Durham City Forum
Marketing Strategy Group and the Durham Christmas Festival co-ordinating committee.
Our consultation activity continued during 2003. Contact was maintained with those we had met in
previous years and we additionally discussed our proposals with a number of potential advertisers
and, among others: Martin Boulton and Christina O’Neill of Durham City Tourism; Andrew Jarvis,
Marketing Executive and Tom Moffat, Director, Durham County Cricket Club; June Gowland,
Manager, and Geoff Pratt, Open Learning and Cyberskills Officer, Clayport Library; Christine
Wood, Community Resource Manager, Sherburn Road Community Action Partnership; Rhianne
Jones, Durham Volunteer Bureau Co-ordinator; Mandy Taylor, Director, Durham Young People’s
Centre; Kate Lawrie, Chair of Production Committee, Durham Dramatic Society; Janice Marthen,
Manager, Gala Theatre; Jan Doherty, Director, Durham City Arts; David Haswell, Manager,
Durham Hospital Radio; Amy Farquhar, Volunteer Co-ordinator, St. Cuthberts Hospice and Ann

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Heywood, Chapter Steward, Durham Cathedral. We gave formal presentations to the Rotary Club
of Durham, Sedgefield Development Partnership and a meeting of the Student Radio Association at
Durham University. We became members of the Durham Summer Festival co-ordinating
committee and joined Durham Business Club.
As our plans became more concrete during the past twelve months we have discussed them with
our previous contacts wherever appropriate and sought guidance and approval from many others,
including: Craig Hudson, Divisional Manager, Durham County Trading Standards Department;
Rachel Lumsden, Corporate Communications Officer, Sedgefield Borough Council; Patrick
Conway, Director of Culture and Leisure, Durham County Council; Jo-Anne Mason, Arts Officer,
Chester-le-Street District Council; Steve McCormack, Commercial Manager for Chester-le-Street
and Sacriston; Tracey Ingle, Head of Cultural Services, Durham City Council; Gillian Wales, Centre
Manager, Bishop Auckland Town Hall; Susan Williamson, consultant to Durham City Steering
Group and John Cowey, Director, Bishop Auckland Football Club.
We manned a stall and hosted performances at the Durham CVS Volunteers Fair in Durham
Market Place during which we discussed our plans with number of local voluntary organisations
and members of the public. We gave formal presentations to Nevilles Cross over 60’s club, Durham
Business Club and a meeting of Durham City Council.
Letters of support
We are providing Ofcom with a small cross section of the many letters of support which we have
received from local organisations and individuals since we started actively promoting our
application in 2002.
Many organisations have written to indicate the demand for our service from the people they
represent. These include Andrew Jarvis from Durham County Cricket Club:
“During the trial broadcast the work Durham FM conducted with Durham CCC was first class and extremely
professional. They were enthusiastic, knowledgeable and well organised…. I would have no hesitation in
working with Durham FM again in the future should they be granted the Durham local radio licence.”
Councillor Alex Watson, Leader of Derwentside District Council:
“I wish Durham FM the best of support that I can in achieving the company’s objectives.”
Councillor David Newell, Cabinet Member, Sedgefield Borough Council:
“I would like to express my support for your bid to Ofcom for a broadcasting licence….. Durham FM
will certainly be a new voice speaking up for Durham. This can only be a positive step for us and the
people in our County….”
Mary Reid, Campaign Director, St. Cuthbert’s Hospice, Durham:
“I am happy to add my support to your campaign to secure the licence for the new radio station to
broadcast in Durham.”
Rhianne Jones, Volunteer Bureau Co-ordinator, Durham City District Council for Voluntary Service:
“I am writing to thank you for attending our Volunteers Fayre in June this year and helping to promote
our organisation, and to offer my support to your project…. A local station serving the city has been
sadly lacking for many years, and we are very excited about proposals for a commercial radio licence
for Durham….We found your trial broadcasts informative and entertaining, but also relevant to local
people….”

Angela Foster, Retired and Senior Volunteer Programme, CSV, Chester-le-Street:
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Durham FM
“We would like to advertise on your station to highlight volunteer opportunities across the county…. I
personally would listen to Durham FM as it is my local area… I look forward to hearing from you in the
future, good luck with your bid.”
David Lindley, Vice Chairman, Durham Community Association:
“I strongly believe that the proposed radio station could widen the network in both cultural, community
and social links, therefore on behalf of Durham Community Association I give you my support.”
Steve Johnson, Administrator, Gilesgate Community and Welfare Association:
“I would like to pledge the support of the following user groups from our recent management meeting
held at The Vane Tempest Hall, Gilesgate, Durham:
Chinese Association North East Region
Women’s Institute Belmont
Karate Northern Association
Durham Spiritualists
The Prince’sTrust, Durham
Durham Wargames”
Sean McDonnell, Team Leader, Durham Action on Single Housing Ltd.:
“There is a considerable population in County Durham who do not readily identify with the priorities of
Radio Newcastle, Metro, Sunderland FM or Teesside FM. Durham FM is long overdue in giving
those people the opportunity for their voice to be heard.”
Sue Blackbird, Administrator, Housing Action North East, Ushaw College, Durham:
“Housing Action North East would very much like to support Durham FM’s application for the Durham
Radio licence.”
Janet Kelly, Durham Jobcentre:
“I would like to take the opportunity to thank you and your terrific crew in the second trial broadcast of
Durham FM…. Not only has your staff delivered a professional service to our jobseekers and
employers…. The community approach to the delivery of your service is a credit to your whole team.
May I wish you success in your bid for Durham FM.”
Advertisers have also written to confirm their support for Durham FM, these are some comments
from a cross-section of potential advertisers whose letters we are forwarding to Ofcom:
Paul Ashley, Sales Manager of Holiways Ltd. (Ford dealers) made a frequently heard point about
the limited choice of advertising outlets in the Durham area:
“We were obviously concerned that Newsquest also have made an application; in that, with their
publications The Northern Echo as well as the Advertiser series this will provide them with a
monopoly in the area….we appreciate that this may have no bearing on the licensing authority but it
does cause us some concerns.”
John Khan, Proprietor, The Park Head Hotel, New Coundon, Bishop Auckland:
“I have recently purchased a hotel on the outskirts of Durham City and I am looking for a suitable
radio station to fit the area I will be doing business in. Due to my good experience with Alpha103.2 it
would be beneficial for me to continue my relationship with the group.”

Geoffrey Dow, Dealer Principal, GMD (Fiat, Subaru and Daewoo dealers):
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Durham FM
“We are currently advertising on Sun FM…. We have been very impressed by both the level of
response we have received and also with the professional service from the sales team…. Should The
Local Radio Company win the licence for the Durham area we would without question advertise on
Durham FM as we have three dealerships within that transmission area.”
Wendy Buttleman, Manager, Toni&Guy Hairdressing, Durham:
“You really understand the challenges and opportunities of doing business in the Durham area and
are plainly experienced in producing high quality entertaining and informative radio… I have no
hesitation in recommending that the licence be awarded to Durham FM.”
Paul Laidlaw, Managing Director, McGurk Sports:
“We would certainly include Durham FM in our marketing plans, especially for our Bishop Auckland
and Durham stores …..I wish you a successful application, and look forward to the launch of Durham
FM.”
Terry Jones, Director, Forsyth Communications (one of the North East’s longest established
advertising, design and marketing agencies):
“I sincerely hope that this bid is successful as it would provide the ideal sister station to Sun FM and
make radio usage even more viable for a number of our clients south of the Tyne.”
Peter Robinson, Managing Director, Kitchen World Ltd., Durham:
“It will be brilliant to have a permanent local radio station for Durham again…. It can also help local
companies like ours to get more business for less cost than newspaper advertising, you certainly
have our support.”
Of course we have a great deal of written support on file from the most important people to any
radio station - ordinary listeners. We are attaching just two typical examples.
Becky Hunter is a student spending half her time in Durham and half in London:
“I first heard about Durham FM when a representative was doing market research in Durham City
market place…. It is so important that a small area has something like this to help locals remember
what a fantastic place Durham is… The national media is very south-focussed, and even regional
programming doesn’t have much time to deal with our own area… Thank you for planning Durham
FM. I definitely would listen to it myself, and encourage my friends to.”
Jean Woodward of High Shincliffe is also secretary of Durham Cathedral Choir Association:
“I would like to recommend that Durham FM be given a local radio licence. I have found the
organisation to be very focussed on local issues and organisations, and moreover (unusually
nowadays) very efficient and user-friendly.”
Finally we would like to draw Ofcom’s attention to Durham County Council’s intention to arrange a
discussion individually with each of the applicants following publication of our full proposals. We
will of course hope to gain the County’s support at that time. For information we attach a copy of a
letter dated 17 December 2004 from Patrick Conway, Director of Culture and Leisure to our
Chairman John Anderson.

Support confirmed by research
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Durham FM
The undoubted success of local commercial radio to date in the Durham radio market might
suggest that very many of the radio listening requirements of the area are currently being met more
than satisfactorily. To an extent we concur with this theory yet when we asked how likely they
might be to listen to a radio service matching the Durham FM concept a massive 81%, and an
increased 85% of our target 25-54 year olds, expressed some likelihood of listening on a regular
weekly basis (see our quantitative research). Even after factoring these numbers quite harshly to
allow for any degree of overstatement the factored likelihood of listening remains high, at 53%
overall and 56% of our target audience. Therefore, despite the current success of local commercial
radio well over half the Durham population is very much won over by the concept of a truly local
music-led radio service that is always able to maintain a focus on the Durham area.
Not only is there is significant support for Durham FM from its potential audience in terms of likely
station trial but also in terms of the listener loyalty that the station can expect to command. Of the
likely listeners 50% of the 56% who offered an opinion claim they would immediately position
Durham FM as their first or second choice radio service. Should this likely audience consider
Durham FM to offer merely 'more of the same' then it is unlikely that it would rate so well on either
listening measure. Clearly, our potential listeners recognise Durham FM's very real point of
difference, confirming the station's ability to broaden the choice of local commercial radio amongst
those who are most important to us - our potential listening public.
It is from the above factored levels of station trial that we have estimated our initial year one weekly
audience at 39,200 or 21% of all adults (aged 15+) with conservative average hours of 9.0 per
listener (see our audience projections).

DECLARATION
Applicants are required to conclude their submission by responding to the following question:
Do you confirm that, to the best of your knowledge and belief:
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Durham FM
(i) the applicant is 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);
(ii) 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;
(iii) 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
(iv) 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.
We are happy to confirm the above points and certify that all directors of the company are
considered fit and proper persons to participate in a radio licence.
John Anderson CBE
Chairman

Appendix 1: Certificate of Incorporation
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Durham FM

Appendix 2: Confirmation of funding
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Durham FM