FOX Gold - Ofcom Licensing

An application by
First Oxfordshire Radio Company Ltd
for the
Oxford and South Oxfordshire FM Licence
June 2006
Public Document

FOX Gold
Broadening choice for listeners and advertisers across South Oxfordshire
FOX Gold is an exciting new radio station that will significantly broaden choice across South
Oxfordshire, with a format demanded by both listeners and advertisers.
FOX Gold will be a distinctive commercial radio station for listeners aged 35 plus, with a
core audience aged 45 to 64 offering older listeners a new and distinctive service catering
for their particular tastes and interests.
FOX Gold will seek to attract both lapsed listeners to Fox FM and those in the community
who have out-grown the Fox FM format across its 17 year history.
FOX Gold’s format comprises a broad mix of gold and easy listening music which no existing
ILR service plays, alongside significant local speech content, with hourly news 24 hours per
day, 7 days per week providing comprehensive local news coverage, and with extended
news bulletins during lunchtime and drivetime.
FOX Gold will provide a comprehensive service of other key information elements, including
local weather, traffic and travel, what’s on and coverage of issues affecting the local
community.
FOX Gold is a natural strategic extension to GCap Media, designed to deliver a strong
service that will attract an audience back to commercial radio from the BBC through local
programming, and with the ability to share well known and well funded programming with
the Capital Gold network rather than automate overnight.
FOX Gold is owned by GCap Media, one of the UK’s strongest and innovative radio groups,
who has the financial and management credibility to successfully launch FOX Gold within
budget and on time, and to maintain the service over the licence term.
FOX Gold will be a sister service to GCap’s successful contemporary and chart hits station,
Fox FM, which has served Oxfordshire since 1989. FOX Gold will help enable Fox FM to refocus
and become more engaging to Radio 1 listeners, knowing that older listeners will be
served by FOX Gold.
FOX Gold will benefit from the experienced management at Fox FM and GCap’s regional
management structure, and both FOX Gold and Fox FM will also benefit from economies of
scale by sharing existing operations.
FOX Gold is formulated on solid research undertaken with listeners and advertisers, and on
a comprehensive knowledge of the local market.
FOX Gold will benefit from existing relationships with advertisers across Oxfordshire, and
will enable local businesses to utilise a combined advertising opportunity with Fox FM.
FOX Gold’s relationship with Fox FM and by bringing back ‘Freddie the Fox’, will rekindle
fond memories and the station will have instantaneous awareness in the market with the
target audience.
Page 2

General information
(a)
Name of Applicant, Address, Telephone and Fax Nos., E-mail address
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.
First Oxfordshire Radio Company Ltd
Registered office:
30 Leicester Square
London
WC2H 7LA
020 7054 8000
A copy of the Certificate of Incorporation is attached
(b)
Main Contact (For Public Purposes)
Please nominate at least one individual to deal with any press or public enquiries, stating:
Name:
Sarah Smithard
Regional Managing Director
Telephone (daytime): 02476 868200
Address:
E-mail address:
Brush House
Pony Road
Oxford
OX4 2XR
sarah.smithard@gcapmedia.com
(c)
Proposed Station Name (if decided)
FOX Gold
(d)
Main Contact (For Ofcom Purposes)
This information is submitted in confidence in the excel workbook ‘Fox Gold - Excel Business
Model’.
Page 3

Section 105(A): Ability to maintain proposed service
1. Ownership and control of company which will operate the licence
(a)
Board of Directors
(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.
Details of the directors are attached on the following pages.
Please also see the Confidential Appendix.
(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.
FOX Gold would seek to appoint a number of local directors on a fixed term basis. There
are no firm appointments in mind at this stage.
Page 4

Ralph Bernard CBE
Chief Executive, GCap Media plc
Other directorships
Amber Radio Ltd, Arfon (FM) Ltd, Beacon Broadcasting Ltd, Belfast Radio Ltd, Bristol Broadcasting Co. Ltd, Buzz FM Ltd,
Cambridge and Newmarket FM Radio Ltd, Castleform Ltd, Central European Broadcasting Ltd, Central Region News Radio Ltd,
Champion FM Ltd, Children’s Radio UK Ltd, Chill Radio Ltd, Chiltern Radio PLC, Classic FM plc, Commercial Radio Companies
Association, Cotswold Broadcasting Co. Ltd, Devonair Radio Ltd, Diamond FM Ltd, Digital One Ltd, Digital Radio Development
Bureau Ltd, East Anglian Radio PLC, Essex Radio Ltd, GCap Local Data Co. Ltd, GCap Media Digital Ltd, GCap Media PLC, GCap
Media Services Ltd, Gemini Radio Ltd, GWR (West) Ltd, GWR Group PLC, GWR International Investments Ltd, GWR International
Ltd, GWR Radio (Hungary) Ltd, Harlow FM Ltd, Hereward Radio Ltd, Independent Radio News Ltd, iradio Ltd, Lantern Radio Ltd,
Leicester Sound Ltd, Livetime Ltd, Love FM Ltd, Marcher Radio Group Ltd, Mercia Sound Ltd, Mid Anglia Radio PLC,
Newsradio.com Ltd, North East News Radio Ltd, North West News Radio Ltd, Opus Radio Sales Ltd, Orchard FM Ltd, Orchard
Media Ltd, Oval (709) Ltd, Plymouth Sound Ltd, Radio Broadland Ltd, Radio Investments Ltd, Radio Mercury Ltd, Radio Orwell Ltd,
Radio Trent Ltd, Radio Wyvern PLC, RAM FM Ltd, Riviera Radio Ltd, Saxon Radio Ltd, Suffolk Group Radio PLC, Swindon Railway
Heritage Centre, Thames Valley Broadcasting Group plc, Thames Valley Broadcasting PLC, The Milton Keynes Broadcasting Co.
Ltd, The Northamptonshire Broadcasting Co. Ltd, The Storm (West Midlands) Ltd, Two Counties Radio Ltd, Warrington Runcorn
Broadcasting Co. Ltd, Watermill Theatre Ltd, West Country Broadcasting Ltd, Westward Radio Ltd, Westward Television Ltd,
Wiltshire Radio PLC, Wirral FM Ltd
Ralph is acknowledged as one of the biggest names in the radio industry and a key architect
of the UK commercial radio scene. He is widely respected for his management skills and
ability to bring ground-breaking ideas to profitable fruition. These include formulating the
proposal which led to Classic FM winning the INR1 licence and managing the project during
its launch phase.
Ralph’s career has encompassed all aspects of radio – from news gathering to
programming, from single station management to running one of the world’s most
successful radio groups.
After training as a journalist and a period working for news agencies and newspapers, Ralph
moved to radio in 1975 and the Radio Hallam newsroom in Sheffield. A job with Hereward
Radio as Head of News and Programme Controller in 1980 was followed by his appointment
to Programme Controller at Wiltshire Radio in 1982 and promotion to Managing Director just
three months after the station went on air. Ralph then became Chief Executive before
Wiltshire Radio merged with Radio West in 1985 - ultimately to be re-launched in Bristol
and Wiltshire as GWR.
A radical thinker and early forecaster of industry trends, Ralph has been busy building on
his huge success with Classic FM as a pioneer of digital radio, promoting the new technology
as the industry’s future at a time when others had yet to recognise the significant
opportunities it presents. Ralph was instrumental in GCap winning the national digital radio
multiplex which launched as Digital One in November 1999. He remains Chairman.
Over the last 18 months, Ralph has been pivotal in the discussions that led to the merger of
GWR Group and Capital Radio plc in May 2005 to form GCap Media plc. Upon the merger,
Ralph was appointed Executive Chairman, before becoming Chief Executive in September
2005.
A long-standing director of the Commercial Radio Companies Association and of IRN, Ralph
is a Fellow of the Radio Academy. In 2000 he was awarded the Sony Gold award for
Services to the Radio Industry followed by a CBE in 2002 in recognition of his services to
the radio industry.
Ralph remains committed to the concept of commercial radio providing a range of popular,
distinctive and high quality radio services.
Page 5

Wendy Pallot
Finance Director, GCap Media plc
Other directorships
Amber Radio Ltd, Angels In Radio Ltd, Arfon (Fm) Ltd, Beacon Broadcasting Ltd, Beat Fm Ltd, Belfast Radio Ltd, Birmingham
Broadcasting Ltd, Border Plc, Bristol Broadcasting Company Ltd, Brmb Ltd, Buzz Fm Ltd, Cambridge And Newmarket Fm Radio
Ltd, Capital Disney (West Midlands) Ltd, Capital Gold Birmingham Ltd, Capital Gold Hampshire Ltd, Capital Gold Kent Ltd, Capital
Gold Manchester Ltd, Capital Gold Sussex Ltd, Capital Interactive Ltd, Capital Online Ltd, Capital Radio (London) Ltd, Capital
Radio Fun Ltd, Capital Radio Investments Ltd, Capital Radio Ltd, Capital Radio North East Ltd, Capital Radio Restaurants Group
Ltd, Capital Radio Restaurants Ltd, Capital Radio Trustee Ltd, Capital Television Ltd, Cardiff Broadcasting Company Ltd,
Castleform Ltd, Central European Broadcasting Ltd, Century Radio 105 Ltd, Century Radio Ltd, Champion Fm Ltd, Cheerdale Ltd,
Chill Radio Ltd, Chiltern Radio Plc, Choice Fm London Ltd, Choice Fm North London Ltd, Classic Fm Plc, Core Digital Radio Ltd,
Cotswold Broadcasting Company Ltd, Devonair Radio Ltd, Diamond Fm Ltd, Digital Four Ltd, Digital Three Ltd, Digital Two Ltd,
East Anglian Radio Plc, Ecast Ventures Ltd, Essex Radio Ltd, Expressway Ltd, First Oxfordshire Radio Company Ltd, GCap
Charities (Trading) Ltd, GCap Local Data Company Ltd, GCap Media Digital Ltd, GCap Media Management Ltd, GCap Media Plc,
GCap Media Services Ltd, Gemini Radio Ltd, Glasgow Gold Ltd, Gwent Area Broadcasting Ltd, GWR (Local Area) Ltd, GWR
(Trustee Company) Ltd, GWR (West) Ltd, GWR East Holdings Ltd, GWR Group Plc, GWR Hungary (Investments) Ltd, GWR
International Investments Ltd, GWR International Ltd, GWR Radio (Hungary) Ltd, GWR Radio (South East) Ltd, GWR Radio Ltd,
Harlow Fm Ltd, Healthbuild Ltd, Hereward Radio Ltd, Investors In Radio Ltd, Invicta Concerts & Promotions Ltd, Iradio Ltd, Jams
Of London Ltd, Lantern Radio Ltd, Leicester Sound Ltd, Livetime Ltd, Love Fm Ltd, Marcher Radio Group Ltd, Mercia Sound Ltd,
Mid Anglia Radio Plc, Midlands Radio Plc, Mwah Mwah Ltd, My Kinda Bath Ltd, My Kinda Bones Ltd, My Kinda Shacks Ltd, My
Kinda Square Ltd, Neal Street Blues Ltd, Newsradio.Com Ltd, Now Digital (Southern) Ltd, Now Digital Ltd, Ocean Fm Ltd, Opus
Radio Sales Ltd, Orchard Fm Ltd, Orchard Media Ltd, Oval (709) Ltd, Planet Rock Ltd, Plymouth Sound Ltd, Power Fm Ltd, Radio
Breeze Am Ltd, Radio Broadland Ltd, Radio Invicta Ltd, Radio Mercury Ltd, Radio Orwell Ltd, Radio South Ltd, Radio Trent Ltd,
Radio Wyvern PLC, Ram Fm Ltd, Rib Shack Ltd, Riviera Radio Ltd, Saxon Radio Ltd, Soul Media Ltd, Southern Radio Group Ltd,
Southern Radio Ltd, Storm (Gwr) Ltd, Storm Broadcasting Ltd, Suffolk Group Radio Plc, T S Holdings Ltd, Tainside Ltd, Thames
Valley Broadcasting Group Plc, Thames Valley Broadcasting Plc, Thamesquote Ltd, The Chicago Rib Shack Ltd, The Milton Keynes
Broadcasting Company Ltd, The Northamptonshire Broadcasting Company Ltd, The Ocean Radio Group Ltd, The Storm (Digital
Radio) Ltd, Two Counties Radio Ltd, Vibe Fm Ltd, Warrington Runcorn Broadcasting Company Ltd, West & South Yorkshire Radio
Ltd, West Country Broadcasting Ltd, West Midlands Radio Ltd, Westward Radio Ltd, Westward Television Ltd, Wiltshire Radio Plc,
Wirral Fm Ltd, World Television Productions Ltd, Xfm Ltd, Xfm Manchester Ltd, Xfm Scotland Ltd, GWR New Zealand Ltd
Wendy Pallot qualified as a chartered accountant with Coopers & Lybrand in 1989, joining
GWR Group as Group Financial Accountant in 1994.
Wendy was GWR Company Secretary from December 1997 to November 2001 and became
Group Finance Director in September 2001. She became Group Finance Director of GCap
Media plc on the merger of Capital Radio plc and GWR Group plc in May 2005.
Wendy’s skills, whilst firmly rooted in finance, also encompass the wider business remit and
over the last 15 years she has made a key contribution to the business strategy for GWR
Group and now GCap Media. Her creative and financial flair has enabled GCap to establish
interesting new business opportunities.
Page 6

Sarah Smithard
Regional Managing Director - Midlands, GCap Media plc
Other directorships
None
Sarah Smithard was born in Chester and is the youngest of a family of eight. From
negotiating with her siblings at the family dinner table to her current position as GCap’s
Regional Managing Director (West Midlands), her passion has always been in
communications.
Sarah graduated from the College of St Mark and St John with an Honours degree in
Humanities (History and Theology). Whilst at college she served as the External Vice
President in charge of Charity Week.
Sarah’s media career began in London selling ad space in a suite of specialist alternative
health publications in the days before anyone had even heard of acupuncture. After three
years selling consumer magazines to London agencies, she left the capital to join Trent FM
in Nottingham.
From Advertising Account Manager, Sarah was promoted to Sales Manager and then went
on to manage her own station as Sales Director at Q103 in Cambridge. A three year stint at
Leceister Sound was the prelude to her return to home ground in the North West when she
was appointed Managing Director of the Marcher Radio Group following GWR’s acquisition of
the group.
Whilst at Marcher, Sarah led an astonishing business turnaround and honed the style and
skills that she brought to the West Midlands stations for GCap when she was appointed in
December 2005.
Sarah is passionate about local radio and the development of strong links within the
community, recognising the benefits for radio not only in terms of audience but
commercially as well. Sarah, and her team at Fox FM, are enthusiastic about the
opportunity to bring back a key section of Oxfordshire’s population to local commercial
radio.
Page 7

(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.
First Oxfordshire Radio Company Ltd is a wholly owned subsidiary of GCap Media plc, 30
Leicester Square, London, WC2H 7LA.
(ii)
Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference,
other etc.).
Number
Par
Value
Issue price
(if different)
Voting: 375 £1 £1
Non-voting: 0 £0 £0
Preference: 0 £0 £0
Other (specify): 0 £0 £0
(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.
See (i) above.
(iv)
Outline any shareholders agreements or arrangements which exist.
Not applicable
(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.
GCap Media is an existing licensee of Ofcom
(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.
GCap is happy to provide further information which may be requested by Ofcom.
Page 8

(c)
Involvement of the Applicant in Specified Activities
Details are required of the involvement by the applicant and its participants (including shareholders or other
subscribers of more than 5% of the applicant's total funding requirements) in any of the activities listed below, and
the extent of the interest. For these purposes, the applicant includes associates of the applicant (i.e. directors and
their associates and other group companies).
(i) Advertising agencies
(ii) Newspapers
(iii) Other broadcasting interests
(iv) Bodies whose objects are wholly or
mainly of a religious nature
(v) Bodies whose objects are wholly or
mainly of a political nature
(vi) Local authorities
(vii) Other publicly-funded bodies
None
None
GCap has interests in a number of licensed radio services,
details of which are held by Ofcom
None
None
None
None
* Applicants should note that this information is required for the purposes of checking compliance with the
ownership rules, and is not relevant to an applicant's ability to maintain its proposed service. If none of the
categories above apply to the application this should be clearly stated.
Page 9

2. Financial and business plan
(a)
Overall Financial Strategy
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.
GCap Media has considerable knowledge of the local market having operated in Oxfordshire
since 1989 when First Oxfordshire Radio Company Ltd launched Fox FM. Since its launch,
Fox FM has been a key part of everyday Oxfordshire’s lives. It has been the commercial
market leading station in the county for many years, although it has seen its share decline
over recent years as older listeners, many of whom grew up with the station, finding that
the music that they love is more likely to be played on Radio 2 rather than Fox FM with its
format focus on contemporary and chart hit music, and with its music programming
predominantly (up to 70%) current chart hits, new releases or hits up to a year old.
FOX Gold will provide an opportunity to re-attract an older audience back to local
commercial radio, playing the best hit music from the last forty years – the music that our
lost listeners love and crave and currently find on BBC Radio 2. In addition, our
comprehensive local news and information service will be attractive to current BBC Oxford
listeners.
It is widely evident that many second tier local commercial services have not fared well over
recent years, especially where there high levels of commercial audience duplication exist -
one such local example is Passion 107.9. This fact helps demonstrates that the Oxfordshire
market is relatively marginal for commercial radio and that a new entrant to the market will
face a wider range of challenges than a new service provided by an operator with existing
infrastructure in the TSA. In addition, given the marginal nature of the market, to
maximise his commercial success, a new entrant is likely to seek the broadest appeal by
providing a service that will duplicate existing services to a greater degree than GCap will
provide with FOX Gold.
It is for this reason that GCap Media is applying to operate FOX Gold as a sister service to
its successful Fox FM, providing a service that caters for an older audience and an audience
who wish to hear music from a wider repertoire of artists and decades. From its existing
studio base in Oxford, GCap will need to invest less in infrastructure and administration, and
therefore be able to invest more in programme content.
FOX Gold will appeal to an audience underserved by commercial radio. It is also a format
with strong revenue growth opportunities, as demonstrated by GCap’s knowledge from the
Capital Gold network. Fox Gold will benefit from being sold locally alongside Fox FM, and
nationally as part of the Capital Gold network.
Establishing the Proposed Service
GCap is best placed to establish and launch the new FM licence:
• We have a board of directors and a senior management team with experience in running
radio in the market having operated Fox FM in the market for over 16 years
• We have an established staff base who will work alongside the incremental staff that will
be employed for FOX Gold
• We have established studio premises in Oxford, with capacity to accommodate new
studios and additional staff
• We have considerable knowledge of the Oxfordshire marketplace
Page 10

• We undertake regular research with all our consumers, both listeners and advertisers, to
gauge their views on existing radio services and what is missing
• We have substantial knowledge and experience in marketing radio services in the county
and of Gold formatted services
• We have a well resourced and highly regarded technology department who will oversee
the construction of the new studios and the arrangements with our transmission partner
to launch within budget and on time
• Our personnel department will oversee the recruitment of all management and staff
positions
Maintaining the proposed service
We believe that GCap’s track record in operating radio services, plus the support services
that underpin its stations, will ensure that we are able to maintain the service throughout
the licence period:
• We will undertake on-going research through our internal research unit based in Bristol
to ensure that FOX Gold remains fresh and meets the needs of existing and new
listeners, and to ensure that we meet our audience and listening hour growth targets
• We have a well respected local sales team that understands the needs of our local
advertisers
• National sales will be managed by our national team based in London
• Our personnel department will co-ordinate suitable training for all members of staff
Investor Strategy
GCap’s strategy for applying to launch FOX Gold is:
• To launch a format with which we have considerable experience in a market where it
does not currently exist
• To attract back to commercial radio an audience that has grown up with the sector but
who have moved away because local commercial radio has not evolved to meet their
tastes and interests
• To provide this lucrative audience to local and national advertisers
• To maximise value for our shareholders by using existing and under-utilised assets at
our Oxford studios
• To provide a second service on which existing as well as new staff can work, thereby
enhancing career opportunities
• To provide the best possible solution to commercial radio
GCap Media is a long term radio operator and a safe pair of hands to hold the new licence.
Whilst we would own two of the three local commercial services in the market, we will
ensure that our services complement each other, with minimal duplication. It is unlikely
that a new entrant proposing a ‘gold / classic hits’ service would similarly work to minimise
duplication between Fox FM and their service; the result being a more marginal increase in
choice for listeners.
Page 11

(b)
Funding
Detail the sources of finance that will be used to fund the licence, under the following headings:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Share capital
Loan stock
Leasing/HP facilities (capital value)
Bank overdraft
Grants and donations
Other (please specify)
Where relevant, provide information on:
(i)
(ii)
Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms);
Assets leased.
All of the funding identified above should be confirmed to the applicant. Explanation should be provided if this is
not the case.
FOX Gold will be a new service provided by the existing Ofcom licensee, First Oxfordshire
Radio Company Ltd, with all financing provided by GCap Media. Operating from an
established studio base and sharing the existing staff complement, there are relatively
limited incremental costs which GCap will incur in establishing the new service. The
business model details these incremental costs, plus the revenues which would be
generated through FOX Gold.
(i) Share capital £0
(ii) Loan stock/medium term borrowing £500,000
(iii) Leasing/HP facilities (capital value) £73,000
(iv) Bank overdraft £0
(v) Grants and donations £0
(vi) Other (please specify) £0
TOTAL £573,000
Page 12

(c)
Financial Projections
The purpose of this question 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. The applicant must also complete and
submit the spreadsheet entitled “Financial Template” located at www.ofcom.org.uk/radio/ifi/rbl/car/lapr/ftap.xls
using information from its business model.
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 business plan and the underlying assumptions are provided in the confidential
appendix. This plan is based on our considerable knowledge of running the market leading
commercial radio service in the Oxfordshire market, our experience in running ‘gold’
formatted services, our desk research, research with advertisers and independent consumer
research. This quantum of knowledge gives us confidence that FOX Gold is the best format
to be licensed and that GCap Media is the best placed operator placed to run a new service
in this economic marketplace.
The Oxfordshire Marketplace
Oxfordshire is the South East’s most rural county, with over 75% of land devoted to
agriculture and almost 40 per cent of the county, including the Chiltern Hills, the Cotswolds
and the North Wessex Downs, designated as an 'Area of Outstanding Natural Beauty' or an
'Area of High Landscape Value'. It is a popular tourist destination not only for this rural
beauty but also the attraction of the numerous market towns and the spires of Oxford, with
over 7m visitors to the City every year.
The City of Oxford is home to 2 universities - Oxford University, the oldest university in the
English-speaking world, and Oxford Brookes University, one of the countries best new
universities. Not only are the Universities the major employers in the City, they are also the
focal point of the city’s tourism and spin-off publishing industries.
Key industries in Oxfordshire include:
• publishing (the county has the largest concentration of printing and publishing
companies outside London),
• high tech business and biotechnology,
• car manufacture (BMW, which has invested more than £0.7bn since 2000 in modernising
its Cowley plant for production of the new Mini, is the county’s largest employer despite
employing only a fifth of the number it did when the automotive industry was at its
peak), and
• motorsport (with Harley Davidson’s European headquarters in Oxford).
Page 13

However, despite its apparent prosperity, Oxford’s economy is worth less (per capita) than
neighbouring Reading and Milton Keynes. In part, as a consequence, the City is actively
growing its high tech industries, attracting software companies such as Software 2000 and
Accelrys and supporting projects such as the Oxford Business Park and the Oxford Science
Park.
The following table, which details how Oxford and South Oxfordshire rank in the UK’s
Quality of Life Index – a method of measuring the relative levels of health and education
services, and crime rates in 408 communities, confirms that the licence area is a deriable
place to live.
Quality of Life Index % Rank
Oxford 106 172
South Oxfordshire 113 49
UK average 100 204
Source: Experian 2003
The following table, which details the 2005 UK Competitiveness Index, shows how the local
economy has changed over the past eight years, relative to the 434 largest communities in
the UK.
1997 Rank 2005 Rank
Change
in index
Change
in rank
Oxford 107.1 85 108.2 81 1.1 4
South Oxfordshire 115.8 35 116.2 38 0.4 -3
Source: Robert Huggins & Associates 2005
The population of Oxfordshire is forecast to grow by 5.5% in the decade to 2011. As a
result of this growth, the Oxfordshire Structure Plan proposes that 37,300 new houses be
build in Oxfordshire between 2001 and 2016, at least 50% of which will be aimed at first
home buyers.
Whilst the average journey to work is longer than for the UK as a whole, a relatively low
41.9% travel to work by car (against 61.5% for the UK), and this is one of the lowest areas
of car usage in the country, a function of the employment focus within the City and its
universities. Therefore, in addition to traditional road reports, regular bus and rail
information will be very pertinent.
Existing Media
In addition to GCap’s Fox FM, only one other local commercial operator services broadcasts
in South Oxfordshire, the Absolute Radio owned Passion 107.9 which targets a youth
audience. Until early June, Passion was owned by Milestone and formed part of its a
Oxfordshire based multi-media business with five print titles, an analogue radio station and
its own local television channel, ‘Six TV’ which broadcasts 17 hours a day. The market is
not currently served by a local digital radio multiplex, although Oxfordshire is one of the
first ten areas identified by Ofcom and it is anticipated that a local multiplex will be
operational by the end of 2008.
In regard to newspapers, the main competitors are the daily ‘Oxford Mail’ (published by
Newsquest), with a number of weekly titles including Newsquest’s ‘Abingdon Herald’,
‘Oxford Star’, ‘Witney Gazette’, ‘Wantage and Grove Herald’, ‘Wallingford Herald’, ‘Oxford
Times’, ‘Didcot Herald’ and ‘Bicester Advertiser’, as well as Milestone’s ‘Oxford Courier’,
‘Oxford Journal’, ‘Oxfordshire Living’, ‘Property Weekly’, ‘South Oxfordshire Courier’ and
‘Villarum’.
Page 14

(d)
Audience Projections
Provide the following information:
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;
Our projected adult population of 292,622 is derived from the FOX Gold coverage area
based on the 54db level generated by the Boars Hill and Bicester transmitters (per Arqiva).
ii)
Projections for listenership ratings (e.g. weekly reach, average weekly hours of listening) over the first
three years of the service, with detailed demographic breakdowns as appropriate;
Year One Year Two Year Three
15+ Population 292,622 292,622 292,622
Reach 000s 43,893 52,672 55,598
Reach % 15 18 19
Ave Hours 8.9 9.5 10.0
Total Hours 390,648 500,384 555,980
Market Share % 6.2% 7.9% 8.8%
Audience Profile
The age and sex profile of the population is derived from the Census 2001 data, with class
profiles drawn from Q1 2006 RAJAR data for the Passion 107.9 TSA (whilst the proposed
coverage area will be larger than that of Passion, we believe that this is a more prudent
approach).
The likely audience profile for FOX Gold is described in the table below. It has been
generated from our consumer research study carried out with a representative sample of
adults in the planned TSA. It is based upon those who said that they would be at least ‘very
likely’ to listen to the station. We have compared this with the population profile to
highlight areas of potential audience strength.
Population
Profile
000s*
Population
Profile
%
Audience
Profile
%
Audience
000s
Reach
%
Audience
Profile Index
on
Population
Sex 292,622 100.0% 100.0% 43,893 15.00% 100
Male
Female 143,385 49.0% 48.6% 21,332 14.88% 99
Age 149,237 51.0% 51.4% 22,561 15.12% 101
15-24
25-34 57,061 19.5% 23.4% 10,271 18.00% 120
35-44 53,842 18.4% 18.9% 8,296 15.41% 103
45-54 52,087 17.8% 15.3% 6,716 12.89% 86
55+ 44,186 15.1% 20.8% 9,129 20.66% 137
35+ 85,446 29.2% 21.6% 9,481 11.09% 74
45+ 181,718 62.1% 57.6% 25,282 13.91% 93
Class 129,631 44.3% 42.4% 18,611 14.36% 96
ABC1
C2DE 174,110 59.5% 51.3% 22,517 12.93% 86
118,512 40.5% 48.7% 21,376 18.04% 120
* Source - CACI Census 2001
Page 15

iii)
The expected impact of the proposed service on existing services, in listenership terms;
We believe that FOX Gold will have a positive benefit on radio listening in Oxford and across
South Oxfordshire.
Given the limited range of local commercial services currently available in this market, FOX
Gold will broaden programming choice and serve a demographic group which currently is
less likely than on average to listen to commercial radio.
Fox FM is a popular contemporary hit service, and as such is a strong market leading
service. Its market share, however, has declined over recent years, mainly as a result of
competition from Passion 107.9 but also from Radio 2, and this has resulted in Fox FM
defending its youth position, whilst also broadening its base to capture 35 to 44s.
A new service run by a new operator in the market will need to have reasonably broad
appeal in order to generate commercially viable audience levels. This will bring about
strong competition resulting in commercial radio yet again competing with itself rather than
the BBC by offering just more of the same. A sister service to Fox FM, operated by the
same owner, will ensure that maximum choice operates in order that collectively the two
services will deliver the highest net audience.
GCap is able to offer such a service that will broaden choice to a greater extent than other
applicants, whilst at the same time complementing existing services.
Our consumer research highlighted very strong demand for FOX Gold from both potential
listeners and advertisers.
Reach Impact
• 30% of the group ‘most likely’ to listen said that they would substitute the new station
for an existing station in their repertoire. This is a significantly higher number than we
usually find in such surveys
o Among the 30% who would stop listening, 45% would stop listening to a BBC station
and 64% to an ILR station. Fox FM was mentioned by 55% as the station most likely
to lose listeners, with Passion 107.9 and BBC Oxford equally mentioned by 21%. It
should be noted that the actual impact on Fox FM will be less since FOX Gold covers
just 54% of Fox FM’s TSA.
o Looking at those in the broad FOX Gold target (those aged 35 plus), 68% would stop
listening to a BBC station, compared with 42% to ILR.
o Amongst 45 pluses the picture is even stronger, with 74% stop listening to the BBC
and 43% to ILR
Our findings suggest that for some respondents, the new station would impact on listening
to more than one station.
Page 16

Hours Impact
• 46% claimed that they will listen less to one or more existing stations, thereby
impacting on hours listened rather than reach.
o ILR and BBC stations would be impacted equally, with 59% overall of those in the
high propensity to listen group listening less. Some would listen less to more than
one station. Radio 2, Radio 1 and BBC Oxford would all be listened less by 24%,
22% and 18% respectively.
o Again, Fox FM would be the station most negatively impacted by the new service.
51% of the group ‘most likely’ to listen said that they would listen less – this
represents just under a quarter of the weekly audience. Again, across its wider TSA,
the impact on Fox FM would in reality be more than halved.
Growth in All Radio Hours
o 20% said that the prospect of a new station would stimulate the amount of time they
spend listening to the radio in order to tune into a new station and thus help to grow
the total radio listening market as a whole. We have not taken into account this
benefit in calculating the total size of the market and therefore our market share.
iv)
The basis on which the estimates above have been calculated, and any assumptions taken into account.
Reach
Reach projections are based on the consumer research. In total, 72% claimed that they
would be at least ‘quite likely’ to listen, with 35% at least ‘very likely’ to listen. A high 18%
said that they would ‘definitely’ listen. We have downweighted the numbers claiming that
they would either ‘definitely’, ‘extremely’ or ‘very likely’ to listen in order to allow time to
build awareness and trial of the station.
On the basis of our downweighting, we estimate a reach potential of 21%, which we have
set as our target for year 5. We forecast achieving reach of 15% in year 1, rising to 19%
by year three. We are confident that our projections are prudent and attainable.
Average Hours
Average hours of listening have also been calculated using information from our consumer
research which showed that those ‘most likely’ to listen would spend 37.4% of their total
hours of listening to FOX Gold.
Based on existing total average hours of 23.8 (Q1 2006; Passion 107.9 TSA), this equates
to average hours of 8.9 in year 1. We predict that average hours will rise to 10.0 by year 3.
Market Share
On the basis of our reach and average hour forecasts, we predict that FOX Gold will
generate total hours of 390,648 in year 1, rising to 555,980 by year 3.
By assuming the same all adult radio reach and average hours for all radio listening as
derived within the Passion TSA (91% x 23.8 average hours) generates total hours of
6,337,607. We believe therefore that FOX Gold would achieve a market share of 6.2% in
year 1.
Page 17

3. Transmission proposals
We recognise that Ofcom is offering the licence for a service designed to cover the city of
Oxford and some parts of southern Oxfordshire, and that depending on the implemented
transmission parameters, coverage may also include all or some parts of Kidlington,
Abingdon, Wantage, Didcot and Wallingford. Ofcom also identifies that the licensed area will
also include Witney, Bicester and Thame, but that initial coverage potentially may not reach
these locations.
GCap proposes to operate with the widest possible geographical and largest potential
audience. The technical plans therefore propose basing a main transmitter at Boars Hill
from launch (with an adult population of 265,000 at 54dB) and establishing a relay
transmitter at Bicester (increasing the adult potential population to 292,000) as soon as
practical. The audience projections used in the business plan reflect the audience potential
from Boar Hills and Bicester (and the associated costs).
It is our proposal to seek carriage on the Oxfordshire multiplex. We note that this multiplex
is one of the first ten that Ofcom proposes to advertise and as such should be on air by late
2008.
a) Provide details of the transmission site you propose to use, under the following headings:
i) Name and National Grid Reference of site;
ii) Height of site above Ordnance datum (in metres);
iii) Height of transmitting aerial above ground level (in metres);
iv) 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 omni-directional).
(a) Name and
National Grid
Reference of site
(b) Height of
site above
Ordnance
datum (in
metres)
(c) Height of
transmitting aerial
above ground level
(in metres)
(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)
Boars Hill
NGR - SP 484029
Bicester
NGR SP 581227
163 metres 28 metres above ground
level (a new antenna
system)
73 metres 15 metres above ground
level (a new antenna
system)
250 W vertical + 250 W horizontal
50 W vertical + 50 W horizontal
Omni-directional pattern
Page 18

Page 19

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 should also be provided.
Regarding Boars Hill, Arqiva has informed us they own the site and that accommodation and
aperture space is available. Planning permission will be required but as this is an
established site Arqiva do not envisage any planning issues. Arqiva have offered us site
sharing facilities and will be pleased to confirm this to Ofcom if required.
Regarding Bicester, Arqiva have informed us that they have had discussions with the site
owner and have established that suitable accommodation and aperture space is currently
available. Planning permission will be required but Arqiva do not expect this to be a
problem as this is an established communications site.
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.
Arqiva has noted the requirements set out in Section 2 of the notice and confirm that, in
their opinion, the existing antenna system that we propose to share meets the Ofcom
requirements.
Page 20

) Please provide a detailed computer predicted map (in colour) of the coverage anticipated using the
transmission site and parameters described above.
Page 21

c) 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:
http://www.ofcom.org.uk/radio/ifi/rbl/car/
We intend to contract with Arqiva who will install, commission and maintain the
transmission system on a Total Broadcast Contract basis. The service will include telemetry
and remote monitoring which reports on a 24 hour basis to the Arqiva control centre at
Emley Moor. Arqiva have trained personnel who will regularly check transmission
parameters. Arqiva work to the Engineering Code originally published by the Radio
Authority.
d) 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.
We would expect to be able to commence broadcasting within 6 to 9 months of award.
Page 22

Section 105(B) and (C): Catering for tastes and interests / broadening
choice
4. Proposed Format
Fox Gold
Format Outline
Station Name
Licence Area
Frequency
Hours of Broadcast
Definitions
Speech
Music
Peak time(s)
Daytime
Locally made
Fox Gold
Oxford & South Oxfordshire (as defined in the licence
advertisement)
TBC
24 hours a day (at least 15 Mon to Thur, 13 Fri & Sat, 8 Sun to
be locally made)
excludes advertising, trails, sponsor credits and the like and will be
calculated over the period specified.
percentages are calculated as a percentage of the total tracks
broadcast in the specified period.
refers to weekday breakfast and afternoon drive output, and weekend
late breakfast.
is 0600 to 1900 weekdays and 0800 to 1400 weekends.
refers to output produced and presented from within the licence area
and must include peak time where required.
Character of Service
A CLASSIC POP HIT MUSIC LED SERVICE TARGETED AT 35 PLUSES, AND
PRIMARILY AT 45 PLUSES, WITH A STRONG COMMITMENT TO LOCAL
NEWS AND INFORMATION
Detail
The programming will feature a distinctive mix of classic pop hits (ex top 40) and album
tracks selected predominantly from the period 15 to 40 years prior to broadcast. Hits less
than 15 years old will not account for more than 20% of each day’s output. Specialist
music programming, featuring a particular genre such as soul, rock and easy, may be
broadcast during off-peak programming. Clearly defined themed music days, which focus
on a genre from the main music mix (i.e. 60s, 70s etc), may occasionally be broadcast.
Speech will account for at least 25% of weekday daytime output and other than news will
include peaktime travel news, weather forecasts, ‘what’s on’ information and other local
information of appeal to the target audience. News bulletins of between 2 and 4 minutes
and including local and national news, will be broadcast hourly between 06.00 and 20.00
weekdays (19.00 Fridays) and between 07.00 and 14.00 weekends, with half hourly
headlines during weekday peaktime. Extended news bulletins of between 8 and 10
minutes to be broadcast during weekday lunchtime and weekday early evening. National
news bulletins will be carried at other times. In addition, a weekly sports focused
programme will be broadcast.
Page 23

5. Programming Philosophy
a) 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.
FOX Gold is a natural selection for a new service for the City of Oxford and South
Oxfordshire.
FOX Gold has been created to broaden local choice by satisfying the tastes and interests of
local consumers aged 35 plus, and in particular those aged 45 plus.
‘Gold’ and ‘classic hit’ formats have proven popularity – Capital Gold in London continues to
reach over 7% of London’s population – a figure higher than some other London-wide
services broadcasting on FM currently achieve. However, in the main ‘gold’ services have
been relegated to the poorer quality AM frequency, and as such have experienced long term
decline in audience levels as listeners switch to services on FM and DAB where the sound
quality, especially overnight, is much clearer.
There is nothing wrong with the music – it is just that on commercial radio, the music is
relegated to medium wave. In addition, in many parts of the country, the only place to find
this choice of musically currently is with the BBC, particularly Radio 2. This is the position
in South Oxfordshire.
FOX Gold will be a locally focused, music led, full service playing the best classic pop hits
and album tracks from the last 40 years. It will be original, creative and relevant. It will
provide an original local news service and a higher level of speech and information than
existing ILR services in this market.
FOX Gold will be a sister service to Fox FM, and will complement its contemporary and chart
hit music position, as well as Passion 107.9’s youth format. As a result, local commercial
radio in South Oxfordshire will serve a broad range of age groups, with a wide range of
music choice. We anticipate some cross-over with Fox FM in the 35 to 44 age group, but
view this as an improvement in the range of services to this age group. In addition, FOX
Gold will permit Fox FM to better focus on its core under 35 audience.
Rather than automate overnight, FOX Gold will share programming with Capital Gold,
delivering the best specialist music programming presented by well known personalities
overnight and weekend evenings, and enabling listeners interaction with the station on a 24
/ 7 basis.
FOX Gold will deliver the best proposal for South Oxfordshire. A locally produced and
presented service from studios at Brush House in Oxford between 6am and 10pm (earlier at
weekends), with considerable investment to deliver programming that is creative,
interesting and imaginative, as well as valid and welcome public service programming
including high quality and regular local news and information, community news and local
what’s on information.
Page 24

) The strategies which the applicant proposes to implement in regard to:
i) catering for the tastes and interests, general or particular, of persons living in the area;
ii) broadening the range of local commercial services available in the area;
iii) the provision of local material, if any;
iv) the proportion of locally-made programming, if any should be set out in this section.
i) Catering for the tastes and interests, general or particular, of persons living
in the area
• Catering for tastes and interests through music
FOX Gold will broaden choice by playing a range of music that caters for tastes and interests
that are currently underserved by local commercial radio.
Through our consumer research, we looked to gauge interest in an overall proposal of “a
radio station primarily focused on the most popular hits from the 60s, 70s, 80s and 90s but
including some of the most popular hits of today and the past 5 years”. We noted a high
level of interest in this proposal.
FOX Gold will play a broad mix of music from the 60s to the 90s, with an equal proportion of
music from each decade between the 60s and the 80s. There will be less emphasis on
music from the 90s and more recent material, with an overall cap that music less than 15
years old will not account for more than 20% of each day’s output. Our playlist will range
from artists such as Petula Clark and The Beatles, Abba and The Eagles, Tina Turner and
George Benson, U2 and Sting, to Will Young and Katie Melua.
We also gauged reaction to music on a per decade basis, as well as specialist music genres
(such as music from a specific year or decade), for which there was strong interest:
o 39% of all adults and 46% of our core target group identified an interest in
hearing soul music
o 42% of all adults and 46% of our core target group identified an interest in
hearing rock music
o 68% of the core target group identified an interest in hearing programming
focusing on music of the 60s
o Over 50% of all adults (and 59% of core consumers) identified an interest in
classic album tracks
We propose to include specialist and themed music at weekends and during the evenings
with specialist shows shared with the Capital Gold network. In addition, short form
features, such as triple-plays from a particular year, will feature during daytime
programming.
Our research highlights that FOX Gold will broaden choice and cater for tastes and interests
currently under served by local commercial radio. As detailed later, it was felt that neither
Fox FM nor Passion 107.9 dominated music from any decade or indeed from the last five
years (although obviously music from more recent years became more dominant on these
services). Chart music from the 60s and 70s were deemed poorly provided, with just under
a third feeling that music from the 80s was dominant on Fox FM.
Page 25

Our playlist will be extensive, with over 9,000 tracks, i.e. without the usual excessive
reliance being placed on a small number of ‘currently popular’ tracks. This combined with a
rotation policy which minimises track duplication within daypart and from the same daypart,
day to day, will greatly enhance listener enjoyment by eliminating excessive repetition.
• Catering for tastes and interests through speech
Information is an important aspect of the day-to-day lives of everyone – what is the local
news and what is happening in other parts of the UK as well as overseas, what will the
weather be like, will I get to work without problems, what is on at the local cinema and on
television tonight? In addition, how that information is accessed and how often, is also
important.
Our knowledge of running radio stations across the UK and from consumer research
undertaken for this application, reinforces our commitment to provide a comprehensive
news and information service. Alongside our music mix, they are features which will
encourage trial and help build a strong audience base.
The following table summarises the relative share of music to speech content across an
average weekday. Speech content will account for at least 20% of non-commercial airtime
across the day, and a higher 29% during daytime.
Music programming
%
News and
Information %
Other Speech based
Content %
Advertisements
6am to 10am 53% 10% 27% 10%
10am to 3pm 73% 7% 10% 10%
3pm to 7pm 62% 11% 17% 10%
7pm to 10pm 78% 3% 8% 10%
10pm to 1am 82% 3% 8% 6%
1am to 6am 88% 3% 8% 0%
TOTAL 73% 6% 13% 7%
Through the consumer research, we sought interest in 13 specific speech features. We did
not include news, traffic and travel or weather as these are regular features which formed
part of our overall proposal – a station broadcasting “the most popular hits from the 60s,
70s, 80s and 90s but also include some of the most popular hits of today and the past 5
years. The station will provide a broad range of local news, information and sport relevant
to the City of Oxford and South Oxfordshire”.
Weather
Regular updates will be broadcast throughout the day as part of our news bulletins, with
more detailed reports provided during breakfast to assist listeners as they get ready for the
day. Weather updates will be extended in length and frequency during extreme weather
conditions, and will include snow lines, details of school closures and services affected by
adverse weather.
Traffic & Travel
In addition to the usual sources of traffic and travel news, we will enrol our listeners to help
us provide timely and accurate bulletins. Traffic and travel news will be broadcast regularly
during peaktime programmes and, where appropriate, at other times. As highlighted
earlier, whilst road travel news is important, a significant percentage of local residents use
public transport, and our reports will therefore cover bus and rail issues in depth.
Page 26

Interviews and Studio Guests
Associated with the desire to know what is happening around where they live, our consumer
research highlighted strong interest (68%) in hearing from the people involved in local
organisations, business and government directly. We will have regular interviews with local
people during our daytime programming. Our specialist programmes will also feature
regular personality interviews.
Local Lifestyle Information
Lifestyle information that will assist listeners to maximise their leisure time is an important
component of our proposals. Our consumer research highlighted that 76% of all
respondents had an interest in having regular information on local events and
entertainment news, 73% had interest in hearing information on helping local charities and
good causes, whilst 60% highlighted interest in hearing community information. Local
what’s on information, entertainment news and information on and from local community
groups and charities will form an integral part of our day-to-day general output. In
addition, we will create a daily opportunity for local groups to publicise events which they
are organising.
Sport
Sports news, whether national or locally focused, is an important constituent for a new
service. Over 50% of all respondents and over 60% of those ‘most likely’ to listen to FOX
Gold highlighted sport as an important feature. In addition to coverage through our news
bulletins and short features across the week, sport will feature strongly in our Saturday
Afternoon Sports show, a programme produced and presented locally, but linking with the
Capital Gold network’s sports programme to ensure all the important national games and
fixtures are covered. In addition, local sports results from Oxford United, Thame United,
The Oxford Bulls, Oxford Cavaliers RLFC, Oxford Harlequins RFC, amongst others, will be
included. Sports news from the University, as well as other local amateur clubs will also
feature.
Open Access
People have always loved the opportunity to talk and pass on their point of view, whether
on the recent performance of their favourite football team or the number of water pipes that
have burst and the time taken to mend them. 55% of all respondents, and 66% of those
most likely to listen to FOX Gold, highlighted an interest in having the ability to speak about
local topics. We will therefore provide opportunities at various times of the week for
listeners to voice their views on both serious and light-hearted topics in an engaging
manner during our evening programmes. In addition, and in relation to sport, the phone
lines will be available during Saturday afternoons for listener reaction and feedback.
• Catering for tastes and interests through news
FOX Gold will provide news 24 hours a day, 7 days a week. Our research identified strong
interest from listeners in having the ability to listen to locally produced bulletins, featuring
local and national news of between 2 and 4 minutes in duration.
Locally produced bulletins will be broadcast hourly between 6am and 8pm weekdays (7pm
on Fridays) and between 7am and 2pm at weekends. At other times, news will be taken
live from IRN. If and when required, additional local new bulletins will be produced and
broadcast. In addition, half hourly headlines will be broadcast during weekday peaktime
programming.
Page 27

Again, reflecting high interest from potential listeners, we will provide extended news
bulletins of between 8 and 10 minutes during weekday lunchtimes and weekday early
evenings. These extended bulletins will be magazine in style, and will feature local and
national news stories in greater depth, as well as covering local business news, local and
national sports news and local interest features, including local events, arts and culture.
There will be a regular theme for certain days of the week, such as health on Monday,
environment on Tuesday and a review of weekend events and an entertainment update
each Friday.
FOX Gold news bulletins will be specific to the service, reflecting its older target audience.
Bulletins will not be shared with Fox FM. FOX Gold and Fox FM will share a common
newsroom, and two additional journalists will be employed specifically for FOX Gold to
complement the existing news resource. To maximise news content, news stories will be
shared between the two services, and FOX Gold’s journalists will have access to GCap’s
London newsroom, which is staffed 24/7, and to GCap’s UK News Desk which provides
specially commissioned material across the UK, as well as having specialist political and
sports staff based in London. Overall, this gives FOX Gold news a number of unique
resources to draw upon providing the most diverse material for any commercial radio
station.
ii)
Broadening the range of local commercial services available in the area
FOX Gold will significantly broaden choice, providing a service playing the best classic pop
hits and album tracks from the last 40 years which will complement existing local
commercial choice provided by Fox FM and Passion 107.9.
Fox FM is a “contemporary and chart music and information station for 15 to 44 year-olds”
serving a wider Oxfordshire market, i.e. its editorial focus covers Banbury and North
Oxfordshire as well as South Oxfordshire. The majority of its music comprises chart hits,
new releases or hits up to a year old.
Passion 107.9 is a service targeting 15 to 29 year olds in the City of Oxford. Music
comprises new and ‘cutting edge’ urban, dance, alternative and credible chart music, with
specialist music programmes focusing on new music/tracks from outside the mainstream.
By the nature of its TSA, speech focuses on the City, and with its target audience on ‘youth
culture’.
Our research highlighted high duplication of listening between Passion 107.9 and Fox FM
listeners. A new, older targeted service will allow Fox FM to review its contemporary and
chart hit service to better serve the under 35 audience, many of whom currently choose
Radio 1 as their favourite service.
iii)
The provision of local material and the proportion of locally-made
programming, if any should be set out in this section
FOX Gold will be based at Brush House in Oxford, the existing studio base for Fox FM.
As detailed in the programme schedule provided below, daytime and weekday evening
programming will be produced and presented from Oxford.
At other times, programming will be shared with the Capital Gold network. During these
programmes, there will be regular FOX Gold idents and opportunities will be created for
local information to be broadcast, as well as local advertising. Through the judicious use of
technology, from the listeners’ perspective, all programmes will sound local.
Page 28

c) If appropriate, the applicant may also provide a typical programme-by-programme weekday schedule, to
give a flavour for the direction of the station.
Breakfast
Monday to Friday – 6am to 10am
Weekends – 6am to 9am
A locally produced and presented breakfast show, featuring the latest local and national
news, weather and traffic and travel information, and providing an entertaining and lively
start to the day. On Friday, Saturday and Sunday, the focus is more on entertainment and
what’s on to provide a great start to the weekend and to make the most of the weekend’s
leisure time. News bulletins of between 2 and 4 minutes, including local and national news,
will be broadcast hourly, with half hourly headlines.
Daytime
Monday to Friday – 10am to 3pm
Weekends – 9am to 2pm (Saturday) and 4pm (Sundays; presenters change at 1pm)
Gold and easy listening classic hits, with the latest news and information, combined with
regular studio guests. A programme that will be popular whether listened to at work or in
home. Regular competitions and features, and listener requests. On the hour news
bulletins of between 2 and 4 minutes, with an extended news bulletins of between 8 and 10
minutes during weekday lunchtime presenting local stories in more depth and presented in
an authoritative but friendly style. Interviews and local lifestyle information will be regular
features, with a daily diary of local what’s on information. A locally produced programme.
Drivetime
Monday to Friday – 3pm to 7pm
Helping the family get home from school and work with the best music and the latest news
and traffic and travel information. Competitions, entertainment reviews and what’s on
information. Hourly news bulletins and half hourly headlines, with an extended news
bulletin in the early evening rounding up all of days local and national news, as well as local
business news. A locally produced programme.
Evenings
Monday to Thursday – 7pm to 10pm
A great way to wind down the day with the best mix of music. On the other hand, our
regular phone-ins may build up the tensions as people discuss local topics. Each night will
feature an hour of a specialist music genre. A locally produced programme.
Late Evenings
Monday to Thursday – 10pm to 1am
Sam Hughes livens up your late nights with requests and the best classic hits. A
programme shared with Capital Gold.
Page 29

Overnights
Daily – 1am to 6am
Keith Butler presents the best classic songs plus your requests. A programme shared with
Capital Gold.
Soul Spectrum with Greg Edwards
Fridays – 7pm to 10pm
Saturdays – 6pm 9pm
The pioneering soul and dance DJ Greg Edwards injects funk and soul into your Friday and
Saturday night playing out a selection of infectious grooves. Creating the perfect mix of
dancefloor fillers and eclectic sounds, Greg celebrates the finest voices and musicians who
shaped the scene and continue to inspire - Aretha Franklin, Chaka Khan, James Brown,
Luther Vandross, Al Green, The Staple Singers, Deee-Lite, Loose Ends, Macy Gray,
Alexander O' Neal, Earth, Wind & Fire, Stevie Wonder and more. A programme shared with
Capital Gold.
The Rock Show
Friday – 10pm to 1am
Mike Sweeney explores the rockier side of pop with three hours of musical anthems. From
the pioneers of rock 'n' roll through to psychedelia, prog rock, metal, glam, new wave and
Britpop, enjoy music from the likes of Aerosmith, Chuck Berry, Iggy Pop, Led Zeppelin, Bon
Jovi, Guns N Roses, The Rolling Stones and The Doors. Mike also invites star names in to
the studio to talk about their life and career, influences and latest projects plus gives you
the chance to win top rock prizes with a selection of competitions and giveaways. A
programme shared with Capital Gold.
Sport Saturday
Saturday – 2pm to 7pm
All the latest news, views and updates from football, cricket, Formula 1 and all major
sporting events around the world and in Oxford, plus your favourite music. Regular
feedback from listeners on the pros or cons of their favourite teams recent performance. A
programme produced and presented locally, but sharing content with Capital Gold.
Mike Sweeney's 60s Classics
Saturday – 9pm to 11pm
Mike Sweeney takes you back to the 60s. Two hours of the classic 60s hits from Elvis to the
Beatles. Mike Sweeney explores the artists, sounds, events and influences that shaped the
1960s as politics, social awareness and experimentation took music to the next level.
From Motown to psychedelia, Merseybeat to The Summer Of Love via Swinging London,
Woodstock, Detroit and Monterey, join Mike for a selection of tracks from the 60s music
scene from acts such as Jimi Hendrix, The Beatles, The Rolling Stones, Small Faces, The
Kinks, Donovan, Otis Redding, The Who, PJ Proby, The Supremes, The Ronettes, and The
Animals. A programme shared with Capital Gold.
Page 30

At The Hop
Saturday – 11pm to 1am
It's party night as Mike Sweeney takes you to the Capital Cavern and pays homage to the
best rock 'n' roll from the 50s and 60s. A programme shared with Capital Gold.
Non Stop No 1s
Sunday – 7pm to 10pm
The greatest No 1s of all time with Keith Butler. A programme shared with Capital Gold.
Nicky Horne's Classic Album Show
Sunday – 4pm to 7pm
Join Nicky Horne as he guides you through all those fantastic album tracks that you hardly
ever hear on the radio. Nicky delves though a variety of interesting debuts, smashing
comebacks, must-hear masterpieces, re-issues and more, giving you the chance
hear fantastic album tracks that you rarely, if ever hear on the radio. From David Bowie to
the Doobie Brothers, Elton John to Oasis, Joan Armatrading to ZZ Top, The Classic Album
Show has it covered. A programme shared with Capital Gold.
The Quiet Fire with Greg Edwards
Sunday – 10pm to 1am
The sexier side of Soul with the legendary Greg Edwards - a celebration of love featuring
the most heartfelt romantic anthems and passionate, soulful ballads from the likes of Barry
White, Otis Redding, Marvin Gaye, Simply Red, Anita Baker, George Benson, The Isley
Brothers, Ray Charles, Roberta Flack, Barbara Streisand, Lionel Ritchie and Whitney
Houston. A programme shared with Capital Gold.
Page 31

Section 105(D): Evidence of local demand or support
6. Evidence of Demand
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 for each piece of
research:
a) A statement of the key objectives of the research;
b) The specific questions that the research sought to answer;
c) How the research was conducted;
d) The size and composition of the sample(s);
e) When and where the research was conducted;
f) A summary of the main findings from the research, showing how these demonstrate evidence of demand
for the service proposed;
g) Full data tables for any quantitative research undertaken (these may be submitted in confidence).
Please provide your responses to (a) – (e) in tabular format.
The chart over includes all the information requested in points (i) to (v).
Page 32

Census
Data
Key Objectives Specific Questions How Conducted, Size and Composition
When and Where
• To obtain information • To quantify target audiences • CACI Census data
on the size of the
and to evaluate how these • Undertaken May 2006
target audience
might change across the
term of the licence period
RAJAR
• To identify current
radio listening habits
of our target
audience
• To get a clear picture of
current listening habits in
the with a particular view to
listener loyalty and the
comparative strengths of
the BBC versus commercial
services
• Using Octagon software accessing
RAJAR’s respondent level data within
the Passion 107.9 TSA.
• Conducted for the period from 2000 to
Q1 2006 on a ‘rolled’ annual basis.
• Undertaken in May 2006
Consumer Study
• To gain a better
understanding of
current radio
listening habits
• To quantify the level
of demand for the
proposed format
• To test reaction to
the proposed format
• To gather data to
help flesh out the
station in terms of its
news and information
content and
presentation style
• To get a clear picture of
existing radio listening
habits
• To quantify interest in
listening to a classic hits
service
• The types of news service
wanted on the new service
and frequency
• Interest in hearing specific
information and
entertainment features
• Likelihood of listening
• Effect of the new service on
current radio listening
habits
• 300 face to face interviews
• Interviews carried out by fully trained
members of the George Street
fieldforce to MRS standards
• Undertaken in May 2006
Advertiser Study
• To establish the interest
in and level of support
from the local and
national advertising
community towards the
proposed format.
• Extent to which the format
would:
o Increase choice for
listeners and advertisers
o Grow the market
o Receive advertising
support
o Impact on the existing
advertising market
• Face to face interviews conducted by
Fox FM with local advertisers.
• A total of 20 interviews were
conducted.
Page 33

Introduction
In preparing for this licence application, market gap analysis, including anecdotal evidence
of existing commercial choice, and a review of audience trends was undertaken to
determine the appropriate format gap that would offer the greatest additional radio choice
to the majority.
We noted Passion 107.9’s strong duplication with the Fox FM audience, and whilst we also
believe that FOX Gold will have some shared audience with Fox FM, our objective is to
enfranchise new listeners to ILR, and to re-enfranchise lapsed ILR listeners who have
become dissatisfied with its youth dominance in the market, in this way encouraging ex Fox
FM listeners back into the ILR fold.
Census Data
Analysis of Population Trends
Projected proportion of adult population aged 35 plus and 45 plus
70.0%
60.0%
50.0%
45+ 35+
62% 61% 62% 63%
44% 45% 46% 48%
40.0%
30.0%
20.0%
10.0%
0.0%
%
2001 2010 2015 2020
Source Census 2001, projections through to 2020
As the table demonstrates, by 2020 the 35 plus age group will comprise 63% of the adult
population, with 45 pluses almost half (a high 48%) of total adults.
POINT
• The population is ageing
• A new service targeting 35 pluses, and 45 pluses in particular, will ensure maximum
listener choice exists in the market
• By complementing the output of Fox FM, an opportunity will exist to broaden the ILR
market
Page 34

2. RAJAR - An analysis of the existing radio landscape
RAJAR analysis has been undertaken for the period 2002 through 2006, and is based on 12
months data ending Q1 in each year. In this way we have been able to look at 5 years
worth of data which encompasses the period from when Fusion (pre Passion 107.9)
commenced its new format following on from the more student focused service operated by
Oxygen. We included all stations which broadcast in the TSA but have focused only on the
results of analogue services.
The Passion 107.9 TSA, whilst marginally smaller than that proposed by FOX Gold, has been
used as the basis for our examination of the market since this is a closer proxy than the
larger Fox FM TSA, which is some 1.9 times greater than FOX Gold
Table 1 - Market Overview ILR V BBC - Market Shares – All Adults
2002 2003 2004 2005 2006
All ILR 22.0% 21.8% 21.8% 22.0% 20.6%
All INR 8.5% 9.3% 7.3% 6.9% 6.7%
All Commercial 30.5% 31.1% 29.1% 28.9% 27.3%
All BBC 68.6% 68.0% 70.2% 70.6% 71.2%
BBC Networks 58.2% 54.8% 59.7% 57.6% 64.3%
BBC Local 10.4% 13.0% 10.5% 13.0% 6.9%
The overall picture shows that the BBC collectively continues to outperform commercial
radio in this comparatively under-developed ILR market. In fact, over the past 3 years the
BBC has grown its share at the expense of INR, with ILR performance remaining remarkably
stable up until 2005. However, over the last 15 months, ILR has experienced a significant
audience decline loss (with INR continuing its downward trend).
Table 2 - ILR’s Performance Compared with the UK (Market Share)
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
52.4%
46.1%
41.2%
44.5%
24.9%
28.6%
Oxford
UK
36.2%
29.3%
24.1%
13.9% 11.9%
13.7% 15.2%
4.0% 3.5%
9.0%
15-24 25-34 35-44 45-54 55-64 65+ 35+ 45+
Source RAJAR Year ending Q1 2006
Table 2 clearly demonstrates that ILR’s performance decreases as consumers get older. It
is highest with 15 to 24 year olds (41.2%), then with 35 to 44s (28.6%), followed by 25 to
34 year olds (24.9%). The 45 plus age groups are collectively very poorly served by ILR,
with ILR accounting for just 13.9% of 45 to 54s and 11.9% of 55 to 64s. With 65 pluses
the situation is even more dire, ILR delivers a share of just 3.5%.
POINT
• It is evident that both within the TSA, and when compared with the UK, those aged 45
plus are poorly served in Oxford and poorly served when compared with the UK average
for ILR.
Page 35

Table 3 - Audience Profiles of Existing Services (reach)
45
40
35
30
25
20
15
10
5
0
41
30.6
26.9
23.8
19
FOX FM
Passion 107.9
16
11.3
13.1
9.1
6.2
1.7 1.2
15-24 25-34 35-44 45-54 55-64 65+
Source: RAJAR Year Ending Q1 2006
Table 3 demonstrates that the audience profiles for both Fox FM and Passion 107.9 are
biased in favour of those aged under 45. 73.4% of Fox FM’s audience is under 45; with
Passion 107.9 the comparable figure is a higher 83.9%.
POINT
• It is evident that the service offering of both existing ILR stations are biased in favour of
under 45s.
Table 4 - Proportion of audience aged 45 plus among key services
90
80
70
60
50
40
30
20
10
0
FOX FM Passion 107.9 Radio 2 Radio 4 BBC Local
2002 2003 2004 2005 2006
Source: RAJAR Year Ending Q1 2006
Table 4 shows the proportions that 45s have comprised of the audience of the key
performing stations in the FOX Gold market over the past 5 years.
As is seen, both existing local commercial services deliver below 30% market share for this
demographic, whilst Radio 2, Radio 4 and BBC Local all deliver significantly higher levels,
ranging from around 50% for Radio 2 to 60% for Radio 4, and higher still for BBC Local
where it is nearer to 70%, suggesting that these services, individually and collectively, are
better serving the needs of this demographic.
POINT
• The BBC is collectively and individually super-serving the 45 plus age groups through
Radio 2, Radio 4 and BBC local.
Page 36

Table 5 - Fox FM Trends (% Market Share) By Age Q1 2002 to Q1 2006
2002 2003 2004 2005 2006
15-24 36.2 28.9 29.8 26.1 28.7
25-34 24.1 27.6 30.3 23.1 19.9
35-44 35.0 32.8 31.5 25.1 23.7
45-54 18.9 24.5 14.5 13.5 10.4
55-64 13.2 11.0 11.2 4.8 8.3
65+
45+
4.6
11.7
1.6
10.8
4.2
9.3
3.6
7.1
2.7
6.6
35+ 17.5 17.7 14.4 12.0 11.9
Source: RAJAR
The overall trend on market share highlights that Fox FM is losing share in all
demographics, although its performance is most consistent in the 15 to 24 where its share
achievement eclipses all other age groups. Overall, Fox FM achieves a good share
performance with all age groups under 45. Looking at the core target audience for FOX
Gold, we see that Fox FM is currently delivering a 6.6% share.
Table 6 - Passion 107.9 Trends (% Market Share) By Age Q1 2002 to Q1 2006
2002 2003 2004 2005 2006
15-24 1.6 1.0 5.8 14.2 5.5
25-34 0.1 0.6 1.6 1.8 3.9
35-44 0.4 0.4 1.5 2.0 1.5
45-54 0.1 0.3 0.1 0.2 2.0
55-64 0.1 0 0 0.1 2.0
65+ 0 0 0 0 0.1
45+ 0.1 0.1 0 0.1 1.2
35+ 0.1 0.2 0.4 0.6 1.3
Source: RAJAR
Passion 107.9’s highest share performance is in the 15 to 24 age group where it achieves
5.5% of all listening. Whilst this reflects a significant drop on 2005, it is consistent with
2004 and suggests that 2005 might have been an atypical performance. 2006 shows that
Passion has improved its appeal with 25 to 34s, where share is more than double the levels
of 2005. The growth in share for 45 to 54s and 55 to 64s, which are both significant, are
outside of what would be expected for the format. We would view these findings sceptically
POINT
• Fox FM is overall declining in the market although the last two years shows that the
position is stabilising a little.
• For Passion it is trending positively with younger listeners although the share growth is
erratic.
Page 37

Table 7 - Performance of Individual Services
Fox FM Passion Radio 4 Radio 2 BBC Local Radio 1
Reach Share Reach Share Reach Share Reach Share Reach Share Reach Share
15-24 41.7 28.7 16.4 5.5 8.8 3.2 13.7 3.8 5.5 2.1 61.8 37.5
25-34 32.4 19.9 13.4 3.9 28.3 13.6 21.9 10.6 8.1 1.1 49.2 34.1
35-44 41.5 23.7 8.2 1.5 29.4 10.6 45.0 30.9 16.6 2.5 21.4 11.9
45-54 25.2 10.4 8.5 2.0 42.2 26.9 44.2 28.4 18.2 6.2 13.8 4.2
55-64 24.0 8.3 1.3 2.0 54.3 33.6 44.3 22.9 29.5 9.0 5.5 0.9
65+ 11.5 2.7 0.7 0.1 51.3 40.2 25.7 16.4 36.5 18.5 4.1 1.3
45+ 19.5 6.6 3.4 1.2 49.1 34.3 37.0 21.8 28.5 12.1 7.7 2.0
35+ 26.0 11.9 4.8 1.3 43.3 26.9 39.3 24.7 25.0 9.1 11.7 5.1
Source: RAJAR
Table 7 details the reach and market shares achieved by each of the key services in the
Passion 107.9 TSA.
Amongst 15 to 24s, Radio 1 attracts both the highest reach and share. Fox FM ranks
second, with Passion achieving a low 16.4% reach and 5.5% share.
With 25 to 34 year olds, Radio 1 still attracts a higher proportion than Fox FM - 49.2%
compared with 32.4%, and shares of 34.1% and 19.9% respectively. In this age group
there is also strong competition from Radio 4, to whom 28.3% listen, generating a 13.6%
share.
Among 35 to 44s, Radio 2 achieves a leading 45% reach and 30.9% share, with Fox FM
second in both measurements. Again, there is strong competition for audience from Radio
4, which achieves 29.4% reach and a 10.6% share. Radio 1 still reaches a fifth (21.1%)
and almost 12% share.
With those aged 45 to 54, the BBC become much more dominant. Radio 2 delivers 44.2%
reach and 28.4% share, with Radio 4 almost identical with 42.2% reach and 26.9% share.
Collectively, these two stations deliver around half of all the listening from this age group.
Strong performances are also seen for BBC Local.
A similar pattern is seen for 55 to 64 year olds, although it is Radio 4 that achieves number
one status, followed by Radio 2. Again BBC Local is a strong performer. These three
services combined, the BBC attracts 65.5% of all listening.
65 pluses also demonstrate strong loyalty to the BBC, with BBC Local ranked second after
Radio 4, and with Radio 2 in third place. This finding underpins the importance of speech to
this age group.
POINT
• Looking at the target audience for FOX Gold, we can see that the competition for
audience is greatest with Radio 4, Radio 2 and BBC Local.
Page 38

Consumer Research
The following findings were highlighted from our consumer research with listeners.
Radio Listening Patterns
A little under three quarters, 74%, had listened to an ILR station, with a high 60% having
claimed to listen to a national commercial station.
The performance for Fox FM at 72% is strong and suggests that the launch of Passion 107.9
has done little to improve the overall picture for ILR. Fox FM ranked second overall after
Radio 1, but ahead of Radio 2. Those aged 35 plus were found to have lower levels of
listening to ILR (64%), with 45 pluses substantially lower at 59%
Those most likely to listen to FOX Gold were perhaps not surprisingly more likely to already
listen to ILR (89% v the sample average of 74%) and this we believe is a reflection of the
maturing audience in this market.
POINT
• Whilst the BBC is extremely dominant in this market, experience of listening to ILR is
high at 74%, largely created by Fox FM. The addition of Passion 107.9 only served to
increase ILR’s listener portfolio by 2% points.
i) Radio stations listened to in the last 7 days
On a weekly basis, we find that BBC Radio has an even greater dominance in the market -
84% listen to the BBC, with 47% to ILR and 58% to commercial radio in total. Those most
likely to listen to FOX Gold again display a higher propensity to listen to ILR at 69% - 47%
higher than the sample average.
In total, Fox FM is the most listened to station recalled by 42%, 2% points ahead of Radio 1
and 5% points ahead of Radio 2. Radio 4 is a strong performer in this market, reaching
30%. BBC Local ranks fifth overall but performs better with those most likely to listen to
FOX Gold - 23% v 18%.
Among those aged 35 plus and 45 plus, we noted again the very significant difference in the
levels of listenership to ILR, 24% and 36% lower respectively than the sample average.
Table 8 - The top three performing stations by age
1 2 3
15-24 Radio 1 77% Fox FM 59% Passion 26%
25-34 Radio 1 55% Fox FM 50% Radio 2 36%
35-44 Radio 2 / Fox FM 46% Radio 1 29% Radio 4 27%
45-54 Radio 2 45% Fox FM 43% Radio 4 49%
55-64 Radio 2 48% Radio 4 45% Radio Oxford 38%
65+ Radio 4 48% Radio Oxford 36% Radio 2 28%
The analysis in Table 8 shows that even among those aged under 25 to 34, Radio 2 has
resonance, being the third most listened to station, and listened to by just over a third in
this age group. Radio 2 is key for the 35 to 44 and 45 to 64 age groups. However, with the
younger group, it vies with Fox FM for pole position. As respondents get older, the
importance of speech becomes more evident – whilst for 55 to 64s speech ranks second and
third, for 65 pluses it ranks first and second.
Page 39

POINT
• The BBC dominates the listening behaviour of those aged 45 plus, with no ILR service
featuring in the top three of any age group aged 45 and over.
• Fox FM was found to be key with 35 to 44s, and performed strongly with under 35s
where it is second to Radio 1
• The overall patterns of radio listenership noted in the RAJAR analysis for the Passion TSA
and the consumer research in the FOX Gold TSA were very similar. The only exception
being the consumer research showing a stronger interest for Fox FM in the 45 to 54 age
group.
ii) Duplication of Listening
Among Fox FM listeners almost three quarters, 74%, listen to a BBC service - the most
popular being Radio 1 (50%), followed by Radio 2 (39%). A strong interest in speech was
also noted, 16% claim to listen to Radio 4, Radio 5 Live and BBC Radio Oxford. Among Fox
FM listeners, duplication levels with Passion 107.9 were 27%
Among listeners to Passion 107.9, a high 75% also include Fox FM in their repertoire,
similar to the 69% claiming also to listen to Radio 2. These duplication patterns would
indicate a comparatively strong lack of satisfaction with Passion. It should be noted that as
a proportion of the Fox FM audience, these duplicating listeners represent a comparatively
low percentage.
POINT
• There is high duplication of listening between those who listen to Passion and FOX FM.
• Generally duplication levels were high suggesting an overall lack of satisfaction with
services provided.
iii) Radio Station Spend Most Time Listening To
The lack of satisfaction with ILR overall is confirmed by the ratio of listening to ILR for most
of the time (21%) compared with the BBC which collectively scores 68%, more than 3 times
greater.
Table 9 – The top three performing stations by age
1 2 3
15-24 Radio 1 55% Fox FM 19% Radio 2 9%
25-34 Radio 1 34% Fox FM 23% Radio 2 11%
35-44 Fox FM 21% Radio 2 20% Radio 1 / Radio 4 16%
45-54 Radio 2 30% Fox FM 25% Radio 4 16%
55-64 Radio 2 33% Radio 4 23% Classic FM 13%
65+ Radio 4 40% Radio Oxford 20% Radio2 / Fox FM 10%
BBC services are key in all but the 35 to 44 age group where Fox FM is the most listened to
station, marginally ahead of Radio 2. Indeed, Radio 2 features in the top 3 amongst 15 to
24 year olds and would suggest that even listeners in this age group are looking from more
musical breadth in their radio programming.
In all groups under 35, Fox FM is second to Radio 1, highlighting that Passion 107.9 is not
impacting on its intended youth market.
Page 40

Types of music would like to hear on a new radio station
In total, 90% said that they would be interested in hearing at least one of the types of
music that might be heard on FOX Gold. The average number of types out of six being
mentioned was a high 4.0, whilst among those ‘at least very likely’ to listen the average
increased to 4.4, indicating that listeners in Oxford most interested in a new radio station
would like to hear a wide range of types of music.
In the sample of those at least ‘very likely’ to listen, we found that all types were scored by
a minimum of 68% of the group, with ‘80s hits’ the highest (mentioned by 78%). Those
aged 35 plus and 45 plus scored ‘70s hits’ highest, followed by ‘60s hits’ and then ‘80s hits’.
Of least interest, and scoring below 50%, were all eras from the 90s onwards, indicating
that the types of music wanted most would be complementary to both Fox FM and Passion.
POINT
• All musical eras from the 60s to today are desired on the new station, with on average
respondents wanting a wide range of music. Whilst 60s, 70s and 80s music scored
highly with the core target groups, interest was also found for music from later eras.
i) Types of music dominant on Fox FM or Passion
Just under a third, 31%, felt that ‘80s hits’ was dominant on Fox FM, rising to 38% for ‘90s
hits’. A higher 45% felt that Fox FM played chart hits from the last 5 years, whilst the only
music that the majority felt was dominant was ‘Today’s Top 40’, mentioned by 55%. A
similar pattern was noted for Passion 107.9, albeit with lower scores, primarily perhaps
because of the lack of exposure to the station by the public at large.
ii) Perception of music dominant on Fox FM and Passion
The research indicated a perception that no one era dominates, although the perception of
Fox FM is biased to music from the 90s onwards. No era scored higher than 20% for
Passion again underpinning the lack of knowledge about this station in the market.
POINT
• Generally respondents found that both Fox FM and Passion tended to play younger
music than that anticipated will be heard on FOX Gold.
iii) Types of music interested in hearing as specialist music shows
84% claimed to be interested in the idea of hearing specialist music shows on the new
station. Highest scoring were ‘Classic Album tracks’ and ‘Easy listening’, scoring 53% and
51% respectively. In the high propensity to listen group, these types again scored highly,
as did ‘70s/80s disco’ and ‘Soul & Motown’. These three types also scored highly among
those that listen to Fox FM.
iv) Specialist music shows currently available on Fox FM or Passion
Of those who were interested in specialist music shows, we found that few, no more than
31%, considered that such shows were already available on Fox FM - this score being for
‘70s/80s disco’. Fewer still felt that any such shows were currently available on Passion.
POINT
• There was strong interest in hearing specialist music shows on the new station, and this
would largely be viewed as broadening choice since few, less than a third believed that
Fox FM and Passion offered such a service.
Page 41

News bulletins
When asked to consider the length and frequency of hearing news bulletins on the new
service, 70% of respondents stated that they would be satisfied by hearing news broadcast
hourly in bulletins of 2 to 4 minute duration. This very positive score was found to be even
higher at 80% among the core propensity to listen group.
i) Interest In Extended Local News Magazine Programme
A similar, if slightly lower 65%, said that they were interested in the idea of hearing
extended news bulletins of around 10 minute duration at both lunchtimes and early
evenings. Again, the high propensity to listen group showed even greater favourability,
with 77% saying this was a feature they would enjoy.
POINT
• Consumers would be satisfied with a news service from the new station of bulletins
broadcast on an hourly basis.
• Interest was high for the idea of an extended news bulletin at both lunchtimes and early
evening was extremely high, mentioned by 77% of those in the core target listener
group.
Information and speech based features
When asked to say what types of information and speech features they might enjoy, the
highest scores were for types of information which aimed primarily to enhance life and living
in the local community - local what’s on scored highest (76%), followed by helping charities
and local causes (73%) and more standard community information (60%). Respondents
also liked the idea of interviews with local people, phone-ins on local topics, as well as
national and local sports – with all four items mentioned by more than 50%.
In the ‘high propensity’ to listen group, scores for all types of news and speech features
were found to be higher than average with the exception of local politics. In most cases,
this group scored at least 10% points higher on their interest in what’s on, information,
national and local sport, interviews with local people, phone ins on local topics and helping
charities and good causes.
The higher scores noted among listeners to both Fox FM and Passion also indicates that
there is scope for improvement on the existing service provided.
POINT
• Key speech features consumers wanted to hear were What’s On information, to be able
to help charities and local causes, to hear community information and interviews with
local people.
• The focus was very much community oriented where consumers clearly want to get
more out of life in their locality.
Page 42

i) Coverage of speech item on Fox FM
Among those wanting to hear certain information and speech items, we looked to verify the
extent to which these were perceived to be well covered by existing ILRs. Those proposed
by the new station and not felt to be already well covered would then clearly be viewed as
offering consumer choice whilst at the same time satisfying demand for the information and
features requested.
The majority of respondents felt that none of the features that scored strongly were well
covered by either Fox FM or Passion.
POINT
• Generally the types of speech and information features wanted were not currently felt to
be well covered. Their inclusion on a new radio station would serve to satisfy demand
and thereby broaden choice.
Propensity to listen to a new radio station
Overall, 72% said that they would be at least quite likely to listen to a new station
broadcasting “the most popular hits from the 60s, 70s, 80s and 90s but also include some
of the most popular hits of today and the past 5 years. The station will provide a broad
range of local news, information and sport relevant to the City of Oxford and South
Oxfordshire”. Only 10% said they would definitely not listen.
35% declared themselves very likely to listen and 22% extremely likely to listen.
A very high 18% said that they would definitely listen, with 27% of 45 to 54 year olds
stating this commitment. Overall, 45 pluses showed the strongest commitment with 21%
claiming they would definitely listen.
Other applicants applying for this format are likely to have the same impact on existing ILR
services, FOX Gold with its sister station Fox FM is best placed to handle the opportunity to
maximise the service offering over two services and avoided conflicts of formats and
generate a service most likely to offer the maximum number of listeners the chance to
benefit from increased local radio choice.
POINT
• We were extremely heartened by the very strong propensity to listen scores received.
In particular the high 18% who said that they would definitely listen.
• As a result, we are extremely confident of our audience projections, with year 1 reach of
15% rising to 19% over three years.
i) Frequency of listening to a new radio station like this
An extremely high 41% said that they would tune in daily, indicating that for many, this
station is set to become an alternative listen. On average, respondents would listen for
5.04 days a week, with this rising in the higher propensity to listen groups to 5.37.
ii) Hours Out Of 10 Would Spend Listening To This New Radio Station
In order to estimate the likely market share that FOX Gold might generate, we asked those
who were at least quite likely to listen for how many hours out of 10 they would listen to
the new station. The score generated was 3.40 and 3.74 with those ‘at least very likely’ to
listen - in other words 34.0% and 37.4% of all listening hours.
Based on current hours of 23.8 (RAJAR Q1 2006), we estimate that among those most likely
to listen to FOX Gold, that we would generate average hours of 8.9.
Page 43

We believe that this is a conservative figure given the very strong difference in performance
among those most likely to listen.
Thus in the FOX Gold TSA and assuming the same average hours of listening as derived in
the Passion TSA, FOX Gold would command a market share of 6.2%.
POINT
• The research underpins not just high propensity to listen but also a strong indication
that FOX Gold will become a primary station in the market, with strong daily listening
levels.
• Time spent listening also highlighted that the station would get off to a good start with
the high potential listener group stating that they would commit more than a third,
37.4% of their hours to the new station.
iii) Impact of new station in the market
Just under a third, 30% of the group most likely to listen, said that they would substitute
the new station for an existing station in their repertoire. This is a significantly higher
number than we usually find in such surveys. The largest group (46%) claim that they will
listen less to one or other existing station, thereby impacts on hours listened not reach. A
fifth, 20% said that the prospect of a new station would stimulate the amount of time they
spend listening to the radio in order to tune in.
iv) Station would stop listening to in order to incorporate new station into
listening repertoire
Among those who would stop listening in the high propensity to listen group, we found that
45% would stop listening to a BBC station(s) and 64% to an ILR station.
Whilst Fox FM was mentioned by 55% as the station most likely to lose listeners, with
Passion and BBC Oxford equally mentioned by 21%, it is important to note that this figure
represents just 6% of the total population and thus half this in the wider Fox FM TSA.
Looking at those aged 35 plus, 68% would stop listening to a BBC station compared with
42% to an ILR. Among 45 pluses, the picture is even stronger with 74% to the BBC and
43% to ILR.
This finding suggests that for some respondents the new station would impact on listening
to more than one station.
v) Station would listen less to in order to incorporate new station into
listening repertoire
Of the 44% of those in the group at least quite likely to listen to FOX Gold, we found that
51% would listen less to Fox FM. This figure accounts for 8% of the adult population and
again just half in the wider Fox FM TSA. Furthermore not all hours would be lost. We would
anticipate a maximum impact of 50% hours might be so lost by these 4%.
ILR and BBC stations would be equally impacted, with an overall 59% of those in the ‘high
propensity’ to listen group would listen less. Thus, some people would listen less to more
than one station. Radio 2, Radio 1 and BBC Oxford would all be listened less by 24%, 22%
and 18% respectively.
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Again the impact for the BBC compared with ILR is greater with those aged either 35 plus or
45 plus
POINT
• FOX Gold will bring about a significant change in the radio listening habits in the market.
It will result in many current radio listeners choosing to swap an existing service in their
repertoire for FOX Gold. Whilst it would be Fox FM that would be most negatively
impacted by this, as the sister station to FOX Gold it would be best placed to adjust its
market position in order to mitigate against the loss.
• Loss of hours is most likely to affect the BBC more than ILR, although Fox FM will be the
individual station to lose the most.
• The losses of both listeners and listening hours to FOX FM in particular needs to be
evaluated against the fact that the FOX Gold TSA represents just 54% of the larger
sister station. In this way all losses discussed above can be more than halved.
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7. Evidence of Support
This section should provide evidence of support, where appropriate, from the applicant's potential audience or from
prospective local advertisers.
First Oxfordshire Radio Company is an established company in the marketplace, Fox FM
having launched in 1989. As a highly regarded and successful operation, we have an
excellent working knowledge of the market, its consumers and the businesses within it. In
particular, staff on the ground interact with the local organisations and the business
community on a daily basis. Therefore, apart from business to business research, we did
not consider a need to duplicate this activity or our existing knowledge by undertaking more
formal consultation
We believe that support for FOX Gold is best evidenced through the findings of the various
research studies which we have undertaken, in particular our consumer and advertiser
studies.
• Our consumer and qualitative studies have highlighted a very strong interest in the
format underpinned by a high intention to listen to such a radio station.
• Our advertiser study highlighted a strong positive reaction to our programme
concepts, and the propensity to support the station from the advertising community,
particularly the local market, gives us confidence as to our viability.
Business to Business
Small scale Business to Business research was undertaken primarily to assess the extent to
which local advertisers would support FOX Gold.
52% claimed to use Fox FM, with 24% doing so on a regular basis. By comparison, Passion
had been used by 10% and was not claimed to be regularly used by any of the local
advertisers we spoke to. Other key media used was direct mail, with press also highly
rated.
Whilst direct mail was reported as being the most effective media, mentioned by 43%,
websites and Fox FM scored joint second being mentioned by 38%. Websites were voted
highest for offering the best value for money (38%), with Fox FM ranked second at 19%.
In addition, 67% of respondents identified that their ‘Own Websites’ was the medium they
were most likely to use currently.
76% of respondents felt that under 35s were easy to reach on radio, with a perception that
consumers were more difficult to reach as they get older. The most difficult group to reach
was felt to be those aged over 55, being mentioned by 52%, with 29% also claiming this
was true of those aged 35 to 55.
Advertisers showed a strong interest in reaching people in all age groups - 86% were keen
to reach 35 to 55s, with a high 76% also interested in 55 pluses. Of least interest (although
highly rated) were under 35s (62%).
Advertisers reacted positively to the concept of FOX Gold, with all respondents identifying it
as a radio station that would increase commercial choice in Oxford and South Oxfordshire,
and almost all, 90%, also said that this format would increase choice for advertisers.
Slightly fewer, although still an extremely high 76%, believed that FOX Gold would help
grow the local radio market as a whole. Whilst the majority 62% said that revenue would
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come from existing budgets, 5% felt new budgets would be created thereby growing the
value of the local advertising market.
POINT
• We believe that ample evidence exists from our knowledge of the market and from this
consultative exercise that FOX Gold is a service that would both increase listener and
advertiser choice. In addition we believe it demonstrates that the station would receive
support from the advertising community helping it to reach a valued target audience.
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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:
a) 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);
b) no director or person concerned directly or indirectly in the management of the company or the applicant group
is the subject of a disqualification order as defined by section 145(1) of the Broadcasting Act 1996;
c) no person involved in the application has been convicted within the past five years of an unlicensed broadcasting
offence and that the applicant will do all it can to ensure that no person so convicted will be concerned in the
provision of the service, the making of programmes included in it, or the operation of a radio station if the
applicant is granted a licence; and
d) any matters which might influence Ofcom's judgement as to whether the directors and substantial shareholders
involved in the application are fit and proper persons to participate in a radio licence have been made known to
Ofcom?
Applicants should note that Ofcom reserves the right to revoke a licence if at any time any material statement
made is found to be false and to have been made by the applicant or any member or officer thereof knowing it to
be false, and that in the circumstances of section 144 of the Broadcasting Act 1996, the provision of false
information or the withholding of relevant information with the intention of misleading Ofcom could incur a criminal
conviction and a disqualification from the holding of a licence.
GCap Media confirm that the applicant and its Directors comply with the points detailed and
that they are fit and proper persons.
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