'An Application To Ofcom For The FM Independent Local Radio Licence For Swansea By SAfm' by Grant Goddard

An application to Ofcom
for an FM Independent
Radio Licence

Swansea

31st July 2005

Swansea Local Radio Ltd
1A York Street
Swansea
SA1 3LZ

A
New
Sound
For
Swansea

General Information

Description of Applicant

(a) Name of Applicant, Address, Telephone and Fax Nos., E-mail address
Name of Applicant:

Swansea Local Radio Ltd

Address:

1A York Street
Swansea
SA1 3LZ

Telephone:

07721 058404

E-mail:
Company Registration Number:

binda@swansealocalradio.com
4837947 (See Confidential Appendix 6 for
Certificate of Incorporation)

(b) Main Contact (For Public Purposes
Name:

Binda Singh

Address:

1A York Street
Swansea
SA1 3LZ

Telephone:

07721 058404

E-Mail:

binda@swansealocalradio.com

(c) Proposed Station Name (if decided)
SA-FM

(d) Brief Description of Programme Service
SA-FM will offer an intelligent mix of music and
talk for 35-64 year olds. Speech will include
comprehensive local news, interviews and
phone-ins, all focused specifically on Swansea
and the surrounding area.
(e) Main Contact (For Ofcom Purposes)
Please refer to Appendix 1 (Confidential).

A NEW SOUND FOR SWANSEA

Page 01
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SECTION 105(A):
ABILITY TO MAINTAIN
PROPOSED SERVICE

1.

Ownership and control of company
which will operate the licence

a) Board of Directors

The Board of Swansea Radio Limited comprises the full range of skills relevant to the launch and
management of a new local radio station for the city. The company brings together successful media
entrepreneurs and financial experts from the Swansea area, alongside experienced radio managers
from the national broadcast industry. This combination will provide the company with the means to
establish a successful, locally focused broadcast service for the population of Swansea that fully
reflects the needs and desire of people the radio station will serve.
The size of the Board is deliberately designed to be compact in number, but nevertheless be
representative of the many local shareholders who are supporting this application.
Details of the board of directors are on the following pages. There are no firm plans to appoint
further directors after award of the license.

Howard Morgan
(Non-Executive Chairman)
Occupation:

Company Director

Other
Directorships:

Robert Morgan & Sons Ltd; Swansea Porcelain Ltd

Other Media
Interests:

None

Background and
relevant media
experience:

Howard has involvement with all sectors of the community in Swansea. He
has been a Magistrate since 1975 and is currently Chairman of the
Swansea Bench. He has been a District Councillor (1970 – 2004), being
the leader of the Independent Group from 1979 until last year. He was
also a member of the South Wales Police Authority until last year.
He runs his own family farming business, located on Gower, and is the
fifth generation of his family to continue this activity. Howard has, in recent
years, used his business experience to diversify the company from
standard stock rearing into areas as diverse as property renovations/rental
through to woodland plantations. These developments have brought
financial success through a wide spread of business risk management.
Howard was a member of the IBA Welsh Advisory Committee for ten
years prior to1990. Before this he was a member of the Swansea Sound
Advisory Panel.
Howard brings radio experience, local knowledge and most importantly
many years business experience in the area.. His experience of chairing a
wide range of both private and public organisations makes him the ideal
Chairman and he looks forward to fully developing this new exciting
business.


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Nigel Reeve
(Non-Executive Director)

Occupation:

Company Director

Other
Directorships:

Laser Broadcasting Ltd
Ipswich Local Radio Ltd
Banbury Local Radio Ltd
Oxford Local Radio Ltd
Chorley Local Radio Ltd
Shrewsbury Local Radio Ltd
Exeter Local Radio Ltd
Torbay Local Radio Ltd
Hereford Local Radio Ltd
Warwick Local Radio Ltd
Humberside Local Radio Ltd

Other Media
Interests:

Nigel is Chief Executive and a shareholder of Laser Broadcasting Ltd, a
company specialising in helping local groups create local radio stations
that are financially sound with strong local programming. Laser is currently
involved with 14 groups around the UK. Laser Broadcasting Ltd has a 40%
holding in Swansea Local Radio Ltd.

Background and
relevant media
experience:

Nigel Reeve has worked in media for over 35 years firstly in newspapers
and then commercial radio. He is also an experienced media sales trainer.
In 1986 he set up the UK’s first radio sales training company, RSR
Training Ltd and by the end of 1988 had personally trained over 66% of all
local radio sales staff in the UK.
Having worked for some of the largest radio companies in the UK he
decided to set up Laser Broadcasting Ltd in 2002. He has unique
experience running some of the largest radio stations in the UK combined
with outstanding levels of media sales experience.
Nigel began his media career with Eastern Counties Newspapers in
Ipswich in 1969, transferring to the fledgling Radio Orwell in 1975. After six
years he moved to 2CR in Bournemouth as Sales Manager.
In 1983 Nigel became sales director at County Sound before moving to
Kent’s Invicta Sound in 1985, becoming Managing Director three years
later delivering a £1 million profit and a stock market flotation in July 1989.


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During this same period Nigel was Chairman of the Commercial Radio
Advertising Awards, where he championed the improvement in standards
of radio commercials. He was also a member of the industry’s Marketing
Committee.
In 1991 Nigel joined the launch team of Classic FM, the UK’s first national
commercial radio station, with responsibility for all sales and marketing to
both consumers and advertisers. This coincided with Nigel being one of
the launch directors of the fledgling RAB.
In 1996 London News Radio headhunted Nigel as Chief Executive. He
transformed the loss to breakeven by 1999 with a projected £2 million
profit for the year 2000.
At the end of 1999 Nigel established Fusion Radio Holdings, purchasing
two stations in London and one in Oxford. In September 2001 Nigel
merged Fusion with Milestone Radio. This gave the new company a
controlling interest in stations in Newbury, Rugby and Basingstoke and a
major holding in City FM, the new Reading station. Having successfully
merged the company Nigel formed Laser Broadcasting Ltd in 2002, which
is now involved with 14 local radio groups across the UK. Laser
Broadcasting has a 47% holding in the company.
Nigel brings over 30 years radio knowledge to SLR.
Post award Nigel, as part of the Laser Broadcasting team, will
continue to work with SLR in a management capacity. Within the
Laser management agreement, Laser will supply a minimum of one
day per week of director time.


Page 04
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SECTION 105(A):
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1.



Susie Hall
Occupation:

Financial Director

Other
Directorships:

Ipswich Local Radio Ltd
Banbury Local Radio Ltd
Oxford Local Radio Ltd
Chorley Local Radio Ltd
Shrewsbury Local Radio Ltd
Exeter Local Radio Ltd
Torbay Local Radio Ltd
Hereford Local Radio Ltd
Warwick Local Radio Ltd
Humberside Local Radio Ltd

Other Media
Interests:
Background and
relevant media
experience:

None

Susie Hall started her career at Bourne Publicity Ltd where she worked for
16 years progressing to the role of Finance Manager before being head
hunted to join an American owned multi national IT company responsible
for reporting the financial statements for the UK operation into the US
Head Office. Susie has over 20 years experience in Media and Marketing
accountancy.
Susie’s radio experience started in December 2001 when she joined
Fusion Radio Holdings Ltd as Group Financial Controller working on the
floatation of the company on the AIM market in June 2003. In January
2004 she joined Laser Broadcasting Ltd as Finance Director overseeing all
aspects of the company business as well as managing the accounts of the
14 applicant groups Laser is working with. Susie has been responsible for
producing all SLR financial projections.
Post Award Susie will be responsible for producing all aspects of the
company’s financial reporting.


Page 05
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SECTION 105(A):
ABILITY TO MAINTAIN
PROPOSED SERVICE

1.



Gary Price

Occupation:

Media Consultant

Other
Directorships:

None

Other Media
Interests:

Sole owner of Big Radio Productions

Background and
relevant media
experience:

After a spell as a Further Education lecturer, Garry was the Welsh Director
of Shelter (1970 – 1973), followed by a spell as Campaign Director for the
Council for the Protection of Rural Wales (1973 – 1974). Whilst working
as a Social Worker for Glamorgan County Council, he became involved
with CBC (ILR station in Cardiff) working to establish the Action Desk
facility. This led to Gary being employed full-time as Community Adviser
for the station. He worked as a presenter across most air-shifts and was
the only day-time presenter to continue with the station when it was relaunched as Red Dragon Radio.
In 1988, Gary joined the BBC, working as a continuity announcer for both
BBC Radio Wales and BBC Wales TV. In 1990 he moved to BBC Radio
Oxford as Senior Producer and Presenter. In this capacity, he oversaw the
weekend output of the station – including Breakfast News, religious
programmes , sport , general and specialist music (including classical, folk
and country) and ethnic minority programming. He also presented
numerous week-day programmes.
In 1995, Gary returned to BBC Radio Wales as Senior Producer. After
overseeing the specialist music strands, he gradually developed an
involvement with the major day-time strands on the station – including the
mid-morning Roy Noble Show (1997) and the Owen Money Afternoon
Show (1998 – 2005). He also produced the Sony Award-winning “Money
for Nothing“ programme (Saturday mornings).
In April 2005, Gary left the BBC and started to develop Big Radio
Productions, of which he is the sole owner. As an independent production
company, programmes have been supplied to BBC Radio Wales , BBC
Radio 2, BBC Radio 4 and BBC Radio Five Live. Gary also operates as a
voice-over artist and media consultant and is looking forward to the
challenge of using his extensive experience to launch SA-FM.


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SECTION 105(A):
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PROPOSED SERVICE

1.



Binda Singh
(Executive Director)
Occupation:

Lecturer and writer

Other
Directorships:

None

Other Media
Interests:

None

Background and
relevant media
experience:

Binda began his broadcasting career at 17, when he joined Swansea
Sound as a weekend presenter. During the summer before enrolling at
university to study Communication Studies he ran the stations ‘Landscape
Project’ which won a Prince of Wales Committee award. It was designed
to encourage listener participation in environmental schemes.
After graduating in 1982 (Honours Degree in Communication Studies),
Binda joined CBC (ILR station in Cardiff) where he presented a number of
programmes and worked closely with groups who produced their own
specialist interest shows for the station. He continued with its successor,
Red Dragon Radio, where he worked as a producer and presenter.
In 1992 Binda was appointed Manager of the West London Media Training
Centre. Based in London’s White City and the centre specialised in
teaching media skills and techniques to individuals who lacked any formal
qualifications. He ran several successful RSL services operated by
students.
In 1995 Binda returned home to Wales and was appointed Media Centre
Manager at the University in Swansea. He continued to work on a
freelance basis for both the AM and FM services in Swansea (The Wave
and Swansea Sound) as well as BBC Radio Wales. He was also part of
the launch team on Real Radio where he presented a wide range of
programmes including the late night phone-in. Since 2002 he has been
increasingly involved with teaching media skills to students at the
University of Swansea. He is proud of his many former students who now
have significant and successful careers in the industry.
More recently, Binda has had critical and commercial success with his
plays “FunkFace!”, “Liberating Archie” , “& Ugly, Lovely Night” in theatres
across the UK. In August this year, filming begins with his adapted
screenplay for “& Ugly, Lovely Night” the Dylan Thomas ghost story.
Binda ran the Swansea Local Radio RSL in February 2005 and will be the
Station Director post award.


Page 07
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SECTION 105(A):
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1.


b) Proposed Investors and
Shareholding Structure

John Evans
Occupation:

Stockbroker

Other
Directorships:

Courtover Investment Management Ltd
Diversified Investment Alliance Ltd
Basfour 2568 (pty) Ltd

Other Media
Interests:

BJB Productions Ltd

Background and
relevant media
experience:

Since 1990, John has worked as Managing Director of Swansea based
Courtover Investment Management Ltd who specialise as private clients
stockbrokers and independent advisors.
In addition he is Chairman of ‘Basfour Limited’ - a UK International
property investment company. John is also a respected financial
correspondent for various media outlets including the South Wales
Evening Post newspaper.
It is in the field of media where he has seen the potential for further
growth. After assembling a team of very experienced media professionals
he has been appointed Chief Executive of BJB Productions Limited. This
is a film production company, based in Swansea, dedicated to supporting
young, up and coming Welsh talent.
John has over 20 years financial experience, which he brings to the board
of SA-FM. He represents 38.04% of the shares issued in the company.


Page 08
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SECTION 105(A):
ABILITY TO MAINTAIN
PROPOSED SERVICE

1.



(i) Names and addresses (the latter may be submitted in confidence) of all existing or proposed
shareholders.
Shareholder

Address

John Evans
Gary Cosgrove
Paul Evans
Saad Jajou
Christopher Kiley
Nigel Lovering
Ronald Marno
Howard Morgan
Gary Price
Andrew Sandbrook
Nazar Shasha
Binda Singh

Crowther Road, Washington, Tyne & Wear, NE38 0BW
156 St Helen's Road, Swansea, SA1 4DG
Uppercroft, 42 Bishopston Road, Bishopston, Swansea, SA3 3EJ
Fairstone Cottage, Killan Road, Dunvant, Swansea, SA3 7TD
7 Alice Street, Swansea, SA5 8HB
Blackhills Lane, Fairwood, Swansea, SA2 7JN
15 Ravens Court, Cimla, Neath, SA11 3SX
19 Northlands Park, Bishopston, SA3 3JW
Sunnyside Farm, Three Crosses, Swansea, SA4 3PU
4 Gibbonsdown Rise, Barry, Vale of Glamorgan, CF63 1DT
Llwynderw House, Sherborne Walk, Black Pill, Swansea, SA3 5DQ
1 The Bryn, Sketty, Swansea, SA2 8DO
99, Saint Helens Avenue, Brynmill, Swansea, SA1 4NN

Wynford Thomas

44 Swansea Road, Llanggfelach, Swansea, SA5 7JA

(ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting,
preference, other etc.).
There are 220,000 ‘A’ Ordinary Voting shares.


Page 09
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SECTION 105(A):
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1.



(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.
Shareholders

Total Shares

Percentage

Issue Price

Investment

103400
31167
5392
5392
5392
5392
5392
5392
9167
1833
9167
5606
21162
4314
1833

47.00%
14.17%
2.45%
2.45%
2.45%
2.45%
2.45%
2.45%
4.17%
0.83%
4.17%
2.55%
9.62%
1.96%
0.83%

£2.39
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14
£3.14

£247.313
£151,460
£13,853
£13,853
£13,853
£13,853
£13,853
£13,853
£23,552
£4,710
£23,552
£14,405
£9,421
£11,083
£4,710

220000

100.00%

John Evans
Gary Cosgrove
Ronald Marno
Nigel Lovering
Gareth Thomas
Christopher Kiley
Paul Evans
Nazar Shasha
Saad Jajou
Wynford Thomas

Andrew Sandbrook
Binda Singh
Howard Morgan
Gary Price

Total

£613,141

As a Board member, John Evans represents not only his own interests but also the interests
of the nine smaller shareholders indented beneath his name. This combined consortium holds
45.99% of issued shares.

(iv) Outline any shareholders agreements or arrangements which exist.

A shareholders agreement is in place which ensures that, at some future time, a shareholder
who decides to divest themselves of their holding must offer his/her shares to the other
shareholders. This agreement can be supplied on request.


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SECTION 105(A):
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1.


c) Involvement of the Applicant
in Specified Activities

(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.
Laser Broadcasting Ltd is the only corporate shareholder with a holding of over 30%.
Laser Broadcasting Ltd was established in 2002 to bid for local FM Radio Station licences and
acquire minority holdings in existing commercial radio stations. Ofcom is aware of Laser Broadcasting
and its activities and Swansea Local Radio would be pleased to provide more information upon
request.
Its major shareholders are:
List of Laser Broadcasting Limited Directors and Main Shareholders
Full Name

Address

Capital North East No 1
Ltd Partnership

3 Earls Court
5th Avenue Business Park
Team Valley
Gateshead, NE11 0HF
Cowesby Grange
Cowesby
Thirsk
North Yorkshire YO7 2JL
Swidney Lodge
Melmerby
Leyburn
Yorkshire, DL8 4TW
Wise Speke
Commercial Union House
Pilgrim Street
Newcastle Upon Tyne NE1 6RQ
Summerhayes
Cliff Road
Hythe
Kent CT21 5XQ
30 Hawthorn Street
Walbottle
Newcastle upon Tyne NE15 8JS
2 Lees Farm Barn
Pyrford Road
Pyrford, Woking
Surrey GU22 8UE
Altarnum
Barden Road
Speldhurst
Tunbridge Wells
Kent TN3 0PZ
20 Lawn Crescent
Kew
Richmond
Surrey TW9 3NR

Hugh Morgan Williams

Nigel Reeve

Charles May

Keith Rawlings

Hugh Evans

Susan Hall

Nicholas Jordan

Anthony Vickers

No of shares

Director

Shareholder

110,179

YES

YES

6,000

YES

YES

80,000

YES

YES

44,240

YES

YES

20,000

YES

YES

19,360

YES

YES

8,550

YES

YES

8,547

NO

YES

4,500

YES

YES

(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.
These can be supplied on request.


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SECTION 105(A):
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2.

Financial and Business Plan

a) Overall Financial Strategy

Details are required of the involvement by the applicant and its participants (including shareholders or
other subscribers of more than 5% of the applicant's total funding requirements) in any of the
activities listed below, and the extent of the interest. For these purposes, the applicant includes
associates of the applicant (i.e. directors and their associates and other group companies).

(a) Advertising agencies;

Not applicable

(b) Newspapers;

Not applicable

(c) Other broadcasting interests;

Laser Broadcasting Ltd was established in
2002 to bid for local FM Radio Station
licences and acquire minority holdings in
existing commercial radio stations.
It is involved with 14 applicant groups around
the UK. It is also currently purchasing a 25%
stake in Fresh Radio Ltd, the Yorkshire based
commercial radio station.

(d) Bodies whose objects are wholly or
mainly of a religious nature;

Not applicable

(e) Bodies whose objects are wholly or
mainly of a political nature;

Not applicable

(f) Local authorities;

Not applicable

(g) Other publicly-funded bodies

Not applicable

* 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 12
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SECTION 105(A):
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2.



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.

Financial Strategy
Swansea Local Radio Ltd was formed in 2004 by Laser Broadcasting Ltd, bringing together a team of
radio practitioners, local media entrepreneurs and experienced radio managers to create a new radio
station for the City. Two trial broadcasts were organised to test a variety of possible formats for the
new station, each followed by a comprehensive programme of market research [see answer to
Question 6]. The result is a plan for a new radio station that is supported not only by the Board and
shareholders, but which has also been enthusiastically endorsed by the people of Swansea
themselves. The Board has brought together its own knowledge and experience of the local market,
of the radio industry and of the preferences of local people to produce a comprehensive business
plan. Its strategy can be summarised in these areas:
1.
2.
3.
4.
5.
6.

The Broadcast Area
A Gap in the Market
Stability
Funding
Financial Planning
Investor Strategy

1. The Broadcast Area
The proposed radio station will cover a population of 328,300 adults (15+) within Swansea and part of
the surrounding county. The station’s broadcast signal will reach The Mumbles to the southwest,
Llanelli to the northwest, Neath to the northeast and Port Talbot to the southeast [see answer to
Question 3].
Editorially, the station will concentrate on Swansea, but will also have appeal for those in the
hinterland who commute to the city and/or visit its shopping facilities.
2. A Gap in the Market
The station proposal is based upon empirical evidence that a gap exists in the market for an
emphatically local station with an editorial focus on Swansea offering programming with a wide
appeal to 35-64 year olds. SA-FM will complement the two existing Swansea local stations because,
as its RAJAR analysis shows, the highest proportion of hours listened to The Wave derive from 1524 year olds (32%), while the highest proportion of hours listened to Swansea Sound derive from 65+
year olds (27%). SA-FM will serve the middle ground between the two extremes of the adult
population, taking listeners from BBC radio services that currently serve them.


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SECTION 105(A):
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2.


3.


Stability

The Board is structured in a way that makes it compact in size but able to accommodate the interests
of the number of local shareholders that have become involved with the proposal for a new radio
station. Board member John Evans represents the interests of the majority of local shareholders
which, when combined with his own holding, accounts for 38.04% of the issued share capital. Laser
Broadcasting Ltd holds a further 47% of issued shares.
Such a structure will provide the stability and certainty required to launch a new media business in
Swansea. The use of a “consortium” nominee on the Board is a constructive answer to the Board’s
desire to balance breadth of ownership with the ability to make important business decisions at the
speed that will be required to ensure maximum adherence to the business plan.
If successful with this bid, the investors in Swansea Local Radio Ltd will qualify for Enterprise
Investment Scheme tax relief on their investment. To obtain the full advantage, the shareholders
must retain their holding for at least three years from share issue. In addition, it is the Board’s policy
to aim to pay the first dividends after six years of trading, which will further ensure that long-term
shareholding remains attractive to the investors.

4.

Funding

Pre-award, the shareholders in Swansea Local Radio Ltd have shown their commitment to the
proposal for a new radio station by investing £88,000 into the project through the purchase of
120,000 shares.
Post-award, Swansea Local Radio Ltd will raise a further £525,000 through the sale of an additional
100,000 shares at a price of £5.25 per share. These shares plus the pre award shares will mean that
the shareholders will pay an average price of £3.14 (Laser £2.49). The existing shareholders have
already made firm commitments to fully support this further share issue. Additionally, if unforeseen
circumstances prevent any investor from not taking up their full allowance of new shares, Laser
Broadcasting Ltd is committed to underwriting the issue and, subject to the shares being offered to
the other investors, and will purchase any shares that become available.

5.

Financial Planning

When constructing the financial projections, the Laser Broadcasting Ltd and Swansea Local Radio
Ltd teams have utilised their combined radio experience working for over thirty commercial and BBC
stations in the UK and Europe, plus the group’s local business knowledge, to create realistic and
achievable financial forecasts.


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The Swansea Local Radio Ltd forecasts base their projections on:
•

•

Industry average annual revenue of £31 per 1000 hours listened discounted by 12% in year one,
8% in years two and 5% in Year Three.
The average Year One local airtime advertiser spend is projected to be £206 per week, with an
average 30-second commercial costing £9.82 in Year One rising to £10.58 in Year Three.
An average of 4.5 minutes an hour being sold in Year One, rising to 6.5 minutes in Year Three.
This is based on 0600-2400 hours Monday to Friday and 0800-1400 Saturday and Sunday.
Local revenue being the main source of income.
Limited amounts of national revenue because subscription to RAJAR is not budgeted until postYear Three.
A projected weekly reach of 17% and 7.0 average hours listened in Year One, rising to 18% and
8.0 hours in Year Two, and 19% and 9.0 hours in Year Three.
Realistic but rigorously enforced budgets.
Laser Broadcasting Ltd will supply back-office services, including a complete accounts package,
commercial traffic scheduling, management services and presenter and sales training. This
infrastructure is already in place, with Laser currently supplying these services for 14 applicant
groups and radio licence holder Fresh Radio.
Sensitivity analysis based on a manageable cash flow, even if revenue drops by 5% and costs
increase by 5%.
Dividends being paid to shareholders in Year Six.

6.

Investor Strategy

•
•
•
•
•
•
•

•

The business plan of Swansea Local Radio Ltd plan provides an operating profit in Year Three and
the first dividend return in Year Six. The profit and loss account (as shown in Confidential Appendix
2 - Finance) will deliver these results, based on the assumptions itemised in Point 5 above. The
Board does not intend to win the licence and then sell to an external buyer. In the event that a
shareholder wishes to sell, the available stock will be offered to existing shareholders. It is the
desire of the investors in Swansea Local Radio Ltd to encourage growth of the company through
other licence applications and possible strategic investments.


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2.


b) Funding

Detail the sources of finance that will be used to fund the licence, under the following headings:
(i)

Share capital

Post award 220,00 shares will have been issued in the company raising a total of £613,000.
(ii)

Loan stock

Swansea Local Radio Ltd has no plans to issue any loan stock.

(iii) Leasing/HP facilities (capital value)
Four company vehicles with a capital value of £51,000 will be leased.
(iv) Bank overdraft
Swansea Local Radio Ltd does not anticipate the need for an overdraft, however the company’s
bankers, Lloyds TSB have indicated a facility would be available.

(v)

Grants and donations

None

(vi) Other (please specify)
Where relevant, provide information on:
(i)

Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms);

N/A

(ii)

Assets leased.

Swansea Local Radio Ltd will be leasing four company vehicles over a three-year period. A written
quote is available upon request.


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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, which are logically applied and
justifiable. The applicant should provide financial projections on an annual basis for the licence.

Understanding of the Market
Swansea Local Radio has considered the following facts when formulating its programming plans
and business projections:
1.

The Population

The station’s broadcast area will cover a population of 328,300 adults (15+), of which 52% is female
and 48% is male. The population of Swansea area shows bias towards the under-24’s and the over40’s. Both age groups are, in percentage terms, above the UK average, while the local population of
25-35 year olds is below the UK average.
The proposed coverage area has an average age of 40.3 years, slightly older than the English and
Welsh average of 38.6 years. In common with the country as a whole, the current population is
expected to increase during the course of the licence period. By 2016, the population is predicted to
grow by about 1.5 per cent (source: ONS, 2001 Census, Swansea Council estimates).
2.

The Area’s Demographics

Government data shows that just over 46% of Swansea’s population falls in the ABC1 sociodemographic group. Of the total adult population, close to 60% are between 35-64 years old, the
demographic most likely to appeal to local advertisers.
Of the working population, 83% are either in full- or part-time employment, and just under 10% are
self-employed. 75% of the working population travel to work by car and 8% use public transport. Just
over 71% of all households have at least one car, making it an appealing market for local garages
and car manufacturers.
70% of the population in Swansea own their own homes, made up of 34% owning their homes
outright (higher than the UK average of 29.5%) while 36% own their homes with a mortgage. This is
due, at least in part, to house prices being significantly lower in Swansea and the surrounding area
than in the country as a whole. In 2002, the average dwelling in Swansea area cost £77,692, as
compared with an average in England and Wales of £138,370. Again, the low housing costs provide
consumers with a high disposable income that is of value to advertisers.
41% of households comprise married or cohabitating couples, while 31% are one-person
households.
21% of the population have skills in the Welsh language, compared to an average of 28.4% across
Wales, and just over 15% of the population identify themselves as Welsh (source: ONS, 2001
Census).


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2.

3.


c) Financial Projections (cont)

The Local Economy

The city and council of Swansea covers an area of 37,800 hectares and is an area of contrasts,
encompassing both traditional manufacturing sites and the world-famous Gower Peninsula – Britain’s
first designated Area of Outstanding Natural Beauty .
Swansea is Wales’ second largest city and is the regional shopping, leisure, cultural, education and
administrative capital of southwest Wales. An estimated 1.5 million people live within one hour’s drive
of Swansea, while the City has easy access to the whole of the UK, thanks to the M4 motorway and
the Fishguard to Paddington railway.
Recent years have seen high levels of investment in the area, as it has benefited from a range of
European funding schemes. The thriving 470 acre, award-winning Swansea Vale – a joint venture
between the City and Council of Swansea and the Welsh Development Agency – has provided a
prestigious location for residential and business use.
Other projects that have benefited from European funding under Objective 2, the Industrial South
Wales Programme, between 1997 and 1999, include the River Tawe Barrage, the Dylan Thomas
Centre and pedestrianisation of the High Street.
Swansea now qualifies for Objective 1 European funding, from 2000 to 2006. Objective 1 status is
intended to contribute to the transformation of Swansea, by helping it to achieve a high quality, job
creating, diversified, innovative and knowledge-driven economy; a skilled, enterprising and adaptable
workforce; and prosperity and a high quality of life across the region. Swansea is the largest
commercial and retail centre in the Objective 1 programme.
Using Objective 1 support, more than 80 projects have been approved, utilising grants of more than
£40 million. These projects include improvements to the transport infrastructure, several community
re-generation schemes, the development of quality business premises at Swansea Vale, the SA1
Waterfront development and development of the National Waterfront Museum. Another significant
result of this funding is the new £27 million Morfa Stadium, which gives the area a world class
sporting venue.
Another aspect of improving the area is investment in people and, with its higher and further
education facilities, Swansea is well placed to provide education and training.
The Swansea Bay Economic Study (1999) noted the need to shift from large-scale assembly and
basic manufacturing activities to smaller scale, higher value-added activities. The Study said, “The
future for the Swansea economy is to have a strong nucleus of firms that are producing goods and
services that others will find difficult to replicate.”
As part of this, the ‘Swansea Bay Arc of Opportunity’ has been established. The Arc is a group of
development sites, including Swansea Strategic Waterfront, Swansea Vale Mixed Use Area,
Llandarcy Urban Village and the Baglan Bay development.


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2.



The Swansea Strategic Waterfront is at the core of this concept whose aim is to integrate waterfront
development opportunities with the adjacent city centre to create a single, unified sector of the city,
thus creating a primary investment location and visitor destination. Port Tawe is particularly
important, as it is the site of the knowledge-based employment sector – Technium 1 and 2 – and it
will link the east side of the City with the centre.
Such investment in the area has seen it become more attractive to both business and tourists and
has resulted in a sharp reduction in people claiming work-related benefits. In September 2004, 12.4
per cent of claimants had been claiming for more than 12 months, as compared to 22 per cent in
September 1999. Similarly, over the same period, the number of young people aged 18 to 24 years
claiming work-related benefits fell by 33.3 per cent, as compared to a British average of 30.7 per
cent.
Tourism, meanwhile, is thriving, with more than 3 million visitors to the area in 2001 contributing more
than £179 million to the local economy.
In 2002, there were 6,300 businesses in Swansea, 80 per cent of which employed 10 or fewer
people. By sector, some 83 per cent of the workforce are employed in the service sector. Distribution,
hotels and restaurants account for more than 30 per cent – reflecting Swansea’s role as a regional
shopping and service centre, while the largest single employer is the council, with 12,000 employees.
Looking further ahead, the Swansea Community Plan, ‘Making A Better Swansea’, envisages that by
2020 “Swansea will be a distinctive European city”.
To summarise Swansea has gone through a massive change over the last 10 years and looks
forward to ongoing prosperity over the next 20 years. Its economy can easily support a new exciting
radio station that reflects the area.
4.

The Local Media Environment

There is undoubtedly an appetite for radio in Swansea, as analysis of RAJAR data [see answer to
Question 6] shows that hours listened to all radio stations have increased by 26% over the last five
years (compared to no increase across the whole UK, when indexed for population changes).
However, most of this substantial increase has accrued to the BBC, whose hours listened have
increased by 31%, whilst commercial radio has seen its hours listened grow by only 18%, despite
the launch of new regional station Real Radio in 2000.
Hours listened to local (excluding regional) commercial radio have fallen by 10% over the last five
years, driven by a substantial drop in listening to local heritage station The Wave (formerly the FM
service of Swansea Sound). The station’s share of radio listening amongst 25-34 year olds has
fallen by more than a half over the last five years (from 35% to 16%), while the share of listening
amongst 35-44 year olds has fallen by more than two-thirds (from 30% to 9%).
Both of these age groups have switched substantial amounts of their radio listening away from local
commercial radio and towards regional radio and the BBC. Two years ago, The Wave was still the
market leader in Swansea. Now it has fallen to sixth place, and its current share of listening (10%) is
almost half what it was five years ago (19%).


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2.



Across most of the UK, it has been BBC Radio Two that has benefited from local commercial radio’s
declining audience. But, in Swansea, the story is slightly different. Whilst Radio Two is ranked
number one in the market, its hours listened have remained steady over the last five years. The
BBC’s growth in Swansea has been derived from the phenomenal success of Radio Wales, Radio
Four and, to a lesser extent, Welsh-language service Radio Cymru.
Since 2000, hours listened to BBC Radio Wales have increased by 78%, hours listened to BBC
Radio Four have increased by 73%, and hours listened to BBC Radio Cymru have more than
doubled (though listening to the latter station is still at a relatively low level). All of these stations
provide an output dominated by speech programming, an important factor in our decision to include
substantial amounts of speech in the programming of the proposed station [see answer to Question
6].
While Radio Four is a national service, Radio Wales and Radio Cymru both cover the whole of
Wales, and Real Radio is regional, with its studios based in Cardiff. What is lacking from the local
media environment is a genuinely local station for Swansea that offers listeners a more substantial
speech content than the city’s existing local commercial stations. This is the gap in the market that
the RAJAR analysis has demonstrated to us exists in Swansea.

(i) Profit and loss accounts
(ii) Balance sheets
(iii) Cash-flow forecasts

All financial projections plus the “Financial Template” are included in Appendix 2 (Finance).
In addition to profit and loss accounts, balance sheets and cash flow forecasts for the first
three years, also included are full details of all workings, the sensitivity analysis, depreciation,
staff costs, revenue calculations and pre-operational expenditure.
The projections are based on the first three years of trading, including the first year of projected
profit.


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2.



Underlying Assumptions
•
•
•
•
•
•
•
•
•
•
•
•
•

SA-FM will broadcast to an adult population of 328,300.
SA-FM has a target audience aged 35-64.
The weekly reach will be 17% in Year One with 7.0 hours average listening per person. By Year
Three, this will have risen to 19% and 9.0 hours per person.
Revenue projections have been based upon rationale acquired through trial broadcasts, detailed
market research, industry standards and knowledge of existing advertising rates in the
marketplace (see section below).
Sales commissions are based on 7.5% of total revenue achieved.
Bad debt provision is based on 1% of total revenue achieved.
SA-FM will launch no later than six months post-award.
Staffing levels are detailed in the confidential appendix and salaries are in line with local market
rates.
Laser Broadcasting Ltd will supply back-office services, including a complete accounts package,
commercial traffic scheduling, management services and presenter and sales training.
Tangible assets will be purchased outright prior to first broadcast. The depreciation policy is
included in the financial data provided.
VAT is calculated at 17.5%.
Suppliers are paid within 45 days throughout.
Debtors are given 45 days, which will be adhered to strictly. Initially, all new business will based
on 50% payment on order.

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.

The revenue figures are based on the following:
•
•
•
•
•
•

A weekly audience in Year One of 17% of the population with 7.0 average hours per person. By
Year Three, this will rise to 19% reach and 9.0 hours per person.
Total weekly listening hours of 390,677 in Year One, rising to 472,752 in Year Two, and to
561,393 hours in Year Three.
Industry average annual revenue per 1000 hours listened is £31. However, this has been
discounted by 12% in Year One, 8% in Year Two and 5% in Year Three.
The average Year One local airtime advertiser spend is projected to be £206 per week, with an
average 30-second commercial costing £9.82 in Year One, rising to £10.58 in Year Three.
An average of 4.5 minutes an hour being sold in Year One, rising to 6.5 minutes in Year Three.
This is based on 0600-2400 hours Monday to Friday and 0800-1400 Saturday and Sunday.
National airtime will account for just under 3% of all income (excluding commercial production
income), while sponsorship and promotional income will account for just over 12%. Local airtime
sales will be at 85%, due to the large number of potential local businesses that cannot use the
medium due to current cost levels of competitors.


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2.


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;
The projected adult population (aged 15+) is 328,300. This has been derived the 2001 census and
the coverage prediction supplied by Arqiva. The population count against a signal strength of 54
dBuV/m is 328,300. Whilst it is expected that there will be additional listeners further afield, for the
purpose of the business plan we are working to this figure.
(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;
The projected reach and hours are set out in the table below:
REACH (15+)

AVERAGE HOURS (15+)

Year 1

17%

7.0

Year 2

18%

8.0

Year 3

19%

9.0

(iii) The expected impact of the proposed service on existing services, in listenership terms;
The expected impact of the station in Year One will reduce listening hours to these stations by these
amounts within our Total Survey Area:
•
•
•
•

The Wave 96.4 FM (97,044 hours per week less)
BBC Radio One (67,392 hours per week less)
Real Radio (67,392 hours per week less)
BBC Radio Two (64,696 hours per week less)

(iv) The basis on which the estimates above have been calculated, and any assumptions taken into
account.
Our projections for the performance of the station in its first three years have been derived from
statistical analysis of empirical data from RAJAR ratings reports. We analysed the start-up
performances of all 19 local (not regional) commercial radio stations with Total Survey Areas of
between 100,000 and 400,000 that had commenced broadcasting since 1999 and had participated in
RAJAR. Their average performance at the end of each of their first three years on-air was as follows:

Reach %
Average Hours

YEAR ONE
17.2%

YEAR TWO
18.4

YEAR THREE
18.6

9.4

8.7

9.7


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SECTION 105(A):
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PROPOSED SERVICE

2. Financial and Business Plan
d) Audience Projections
(iv) The basis on which the estimates above have been calculated, and any assumptions taken into
account.

We rounded these figures and implemented a more natural progression to arrive at our projections for
the station’s performance in the first three years. The year-on-year increase in hours listened was
approximated to 20% for Year Two and Year Three, a rate of growth observed in start-up station in
similar sized markets.
Our projections for the impact of the new station on existing broadcasters have been derived from
quantitative market research [see answer to Question 6]. Of those respondents who said they would
be “very likely” or “likely” to listen to the new station:
•
•
•

31% said they would listen to the radio for longer
64% said they would listen less to existing stations;
5% said they would stop listening to another station(s) altogether.

Asked which stations they were likely to listen to less (or stop listening to completely), respondents
said:
•
•
•
•

The Wave 96.4 FM (36%)
BBC Radio One (25%)
Real Radio (25%)
BBC Radio Two (24%)

The hours reduced from these stations’ listening in Year One have been calculated by assuming that
59% of SA-FM’s total hours would be replaced on a one-for-one basis in proportion to respondents’
preferences.


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3.

Transmission Proposals

(i) Provide details of the transmission site you propose to use, under the following headings:
(a) Name and National Grid Reference of site;
Kilvey Hill
ngr SS 672 940
(b) Height of site above Ordnance datum (in metres);
193 metres
(c) Height of transmitting aerial above ground level (in metres);
18 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 omni directional).

1000 watts vertical + 250 watts horizontal
Antenna pattern will be directional see below
The applicant should confirm whether he believes that his intended mast aperture will be available,
and whether, where required, planning permission can be obtained. Where appropriate, evidence to
support this belief should be provided. Details of any Negotiations which have been entered into
with the site owner(s) should also be provided.
Arqiva have offered us site-sharing facilities at Kilvey Hill using the existing 02 tower. They have an
offer, subject to mast analysis, to share this tower and the existing O2 accommodation. Planning
permission is required for the antenna, but Arqiva do not expect that this will be a problem with the
planning authorities for this established transmission 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.

Kilvey Hill by virtue of its location provides excellent coverage of Swansea and surrounding area.


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3.

Transmission Proposals

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

Please see Appendix 3 (Technical) for jpeq files of Arqiva Coverage Predictions for the area.

(iii) Describe proposed arrangements for transmission provision (installation, maintenance and
repair).

Our Transmission provider Arqiva is well resourced to install the complete system and subsequently
maintain and monitor the Transmission parameters. Telemetry and remote monitoring systems relay
information back to their control centre (e.g. carrier power, lack of modulation, etc) on a 24-hr basis.
Their maintenance personnel are highly trained, and have the necessary spares and test equipment
to resolve any problem quickly.

(iv) What is the anticipated time-lapse between the award of licence and start of broadcasting?
We plan to start broadcasting on Wednesday 1st March 2006 (St. David’s Day).


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SECTION 105(B) AND (C):
CATERING FOR TASTES AND
INTERESTS/BROADENING CHOICE

4.

Programming Philosophy

(i) This sub-section of the application should take the form of a statement setting out the applicant's
overall programming philosophy and vision for the radio service.

Overall Aims and Objectives
SA-FM is the radio station that will bring Swansea alive for the people who live in and around the city.
It will become a focal point for news, information, discussion and talk about the issues and topics that
really matter to the people who live here. SA-FM will take full advantage of the rich language and
heritage of the area. It will be an inclusive service, accurately reflecting the character and people of
the area through active participation.
Speech
The programme content will touch the lives of all listeners in and around Swansea with information
vital for everyday living. Our news and sport programmes will keep the audience up-to-date with the
latest events in the area, in Wales and in the rest of the world. News and sports summaries, as well
as travel and weather information, will appear regularly throughout the day.
Music
Our target audience will span a wide enough range of ages to include those who grew up with
Merseybeat, Motown, glam rock, reggae and the music of the post-punk era as the soundtrack to
their lives. Our music policy aims to reflect the tastes of the target audience whilst being unafraid to
introduce to the core audience a sprinkling of contemporary sounds which they will find equally
palatable.

(ii) The strategies which the applicant proposes to implement in regard to:
• catering for the tastes and interests, general or particular, of persons living in the area;

SA-FM has undertaken a range of research and consultation activities to help us determine the tastes
and interests of potential listeners in Swansea and the surrounding area. In this way, SA-FM will be
equipped to focus precisely on the interests of Swansea residents with a music format carefully
chosen to attract the target 35-64 age group.

Speech
At present, the main spoken word programming for listeners in the area is provided by UK-wide
national radio – BBC Radio 4, BBC Radio 5 Live and talkSPORT. The national regional station BBC
Radio Wales, which includes a highly eclectic mix of music in its output, is aimed, by definition, at all
of Wales and attracts an audience primarily aged 55+. Real Radio includes some speech
programming but is a music-led, regional service for the whole of South Wales.


Page 26
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4.


As part of our research phase in the area, eight separate consultation exercises were conducted
during April and May 2005 at the Dylan Thomas Centre in Swansea. Full details are set out in Section
6 (Evidence of Local Support or Demand). At these gatherings representatives from local
organisations, groups and bodies were invited to express their opinions, to an independent
researcher, on what they felt was required on a new local radio service.
The data generated by these sessions was invaluable in gauging which areas of interest were not
being served at present by the commercial radio providers currently available to the local audience.
Our programme plans are based in large measure on these findings. Groups invited to attend these
meetings were varied and are listed in Appendix 4 (Research)
In addition, quantitative research undertake by MIP illustrates that local news, weather, travel, sport,
what’s on features and phone-ins are key speech items. (Taken from MIP June 2005 research – very
interested/interested speech items. Full details are in Appendix 4 – Research.)
News will be a core element of our speech output. Throughout the day, news and information will
provide the foundations and the supporting structure to a programme schedule that listeners will find
both entertaining and engaging. It will be fun without being trivial, but serious when it needs to be,
balancing lightness of touch with consistent credibility.
The content of news bulletins will concentrate on local stories or regional stories viewed from a local
perspective. National and international stories will be covered according to their newsworthiness and
relevance to Swansea. Major stories such as the recent London bombings will be covered in full due
to their importance, but London based stories that appear on national or regional bulletins elsewhere
will be treated on their merit, because what may be important to listeners in the Southeast of England
may have no relevance to the audience in Swansea.
Locally produced and presented bulletins will be broadcast hourly from 0600 to 2200. Additionally,
headlines will be broadcast on the half hour during weekday peak hours. During the weekday
afternoon show, news stories will be featured within the music-led programme (between 1700 and
1800). This is in place of an extended bulletin and will enable this hour of the show to be presented
jointly by the programme presenter and the station’s journalist on that shift. It will give more time to
develop stories, with the journalist having the opportunity to expand the story and look at it in context.
This will offer a more conversational style that is not possible with a shorter, more confined news
programme. The schedule for news bulletins is set out below:


Page 27
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4.


Weekday News Schedule.
0600
0700
0730
0800
0830
0900
1000
1100
1200
1300
1400
1500
1600
1630
1700
1730
1800
1900
2000
2100
2200

Bulletin
Bulletin
Headlines/sport
Bulletin
Headlines/sport
Bulletin
Bulletin
Bulletin
Bulletin
Extended
News/sport
bulletin
Bulletin
Bulletin
Bulletin
Headlines/sport
Bulletin
Headlines/sport
Bulletin
Bulletin
Bulletin
Bulletin
Bulletin

3 minutes
3 minutes
2 minutes
3 minutes
2 minutes
3 minutes
3 minutes
3 minutes
3 minutes

Locally produced and presented

10 minutes


3 minutes
3 minutes
3 minutes
2 minutes
3 minutes
2 minutes
3 minutes
3 minutes
3 minutes
3 minutes
3 minutes


At other times, externally sourced news bulletins from IRN will be broadcast hourly.
SA-FM will have a news team comprising a News Editor and three full-time journalists. The shift
pattern will ensure that a core staff of three journalists are available during the day (0900 to 1800)
with one journalist starting at 0530 and another working through to 2200. All news staff will work
additional sixth shifts that will enable duty cover at weekends from 0530 to 2200.
The speech content is clearly important to our audience but, from the research conducted [see
answer to Question 6], there is insufficient demand for a speech-led service. Therefore, the ‘SA-FM
Through The Day’ programme will feature a daily live interview with the opportunity for listeners to
contribute to the discussion by phone-in. The programme will also feature a daily phone-in on local,
topical issues. The aim is to provide a light-hearted opportunity for listener involvement, although the
tone may change depending on which subject is in the news and the opinions expressed.
The breakfast show will clearly set the agenda for the day - with travel news, weather, time-checks,
news and sports updates, combining with music, competitions and listener involvement to provide a
well balanced diet with which to start the day.


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4.


The post-breakfast sequence, moving from mid-morning to early afternoon will be more relaxed in
style, but without losing the sharpness of focus on local issues. Listener involvement will be key at
this time of day, with an ‘over-the-garden wall’ neighbourly flavour sitting alongside regular input from
lifestyle experts and guests.
The mid to late afternoon sequence will reflect the leisure and cultural aspects of the area while
moving seamlessly into drive-time as a tighter, brisker pace returns to the output.
Evening and weekend programmes will include the opportunity for more specialist and specific
programming, with Access, Sports, Arts and Specialist music genres catered for.
Sports programming will be a vital and integral part of the SA-FM output covering Neath-Swansea
Ospreys and Swansea rugby clubs, Swansea City Football Club and Glamorgan County Cricket Club,
as well as news of local and junior sports clubs – both amateur and semi-professional.
Alongside the SA-FM sports coverage, Saturday and Sunday afternoon programming will see the
radio station covering major events in the area, participating where appropriate and taking a flavour of
Swansea life.
Throughout the year, through a series of carefully targeted campaigns, SA-FM will work with social
action agencies to prompt interest in a variety of community groups, as well as active citizenship and
civic renewal. SA-FM will move beyond the rather tired, bulletin-board or Action Line type-format used
by so many local stations. While a flow of regular community information will be included in the
output, SA-FM will also run 3 or 4 campaigns across the year, to focus on issues that our audience
cares about and that encourage people to become actively involved with civic and community affairs.
The SA-FM presenters will have excellent local knowledge and links. A number of key presenters
have already been identified and, for contractual reasons, they are named in the Appendix 1
(Confidential).
To encourage access to the service and to create a wealth of original, local programming and talent,
SA-FM has teamed up with (DACE) The Department of Adult and Continuing Education of Swansea
University to run weekly radio production workshops at venues in and around Swansea starting this
September. Material generated from these workshops will be made available to SA-FM for inclusion
in its programming, as above.
The objective of these sessions is to increase the number and range of local voices heard on the
station.
Welsh Language
SA-FM does not propose to broadcast any specific Welsh language programmes. The research
conducted showed there was no great appetite for such programming (75.4% stating they were not
interested in such programmes). However the area is fiercely proud of its culture and heritage.


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4.


Welsh expressions and phrases are a part of the every day language usage in the area in the same
way as those in Newcastle or Birmingham have local expressions and sayings that are part of their
everyday language. In additional to using presenters who will have knowledge of such phrases, SAFM will also be running a short ‘phrase of the day’ type feature, linked to the station’s website for
those who wish to pursue Welsh language and culture in more depth.
The feature was introduced on the second RSL run by the group. This extremely light-hearted item
was popular and was used as a means of introducing listeners to useful phrases and sayings in the
Welsh Language. The item itself ran for no more than a couple of minutes a day but proved highly
entertaining and educational.
Music
SA-FM’s policy is to move away from restrictive playlists, so that the listener will hear a greater
variety of tracks, both classic and current. Classic tracks will be scheduled to ensure that at least six
weeks elapses between repeat plays. This will offer listeners a wider choice of tracks heard during
average listening hours. In addition, tracks featured on the SA-FM playlist will be reviewed every
three months, so that song selection can be refreshed, thus keeping the overall music output
sounding distinctive. Whilst SA-FM will play classic tracks familiar to its listeners, it will not be bound
by chart positions. There is a wealth of music, whether classic album tracks or ‘turntable’ hits, that are
worthy of playing and have survived the test of time.
Current and recent music will also be played, but will not account for more than a quarter of the music
output. There are many tracks of today, both from singles and albums, that SA-FM’s target audience
can relate to. The use of songs such as the Stereophonics cover of the Rod Stewart album track (TV
theme to ‘The Office’) justifies the use of current songs and artists where they can be heard fitting into
the context of older, classic tracks.
• broadening the range of local commercial services available in the area;
Our radio market analysis [see answer to Question 6] shows that the five most listened to stations in
Swansea are (in rank order): BBC Radio Two, BBC Radio Wales, Real Radio, BBC Radio One and
BBC Radio Four. In terms of the Swansea market:
• All five stations are regional or national, rather than local;
• Four of these five stations have significant speech content;
• Two of the five stations are specifically for Wales.
Evidence shows that what is lacking is a “local” station for Swansea that includes significant amounts
of speech. The two existing local commercial stations – The Wave and Swansea Sound – are both
music-centred and are ranked only sixth and seventh in the market.


Page 30
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4.


We have studied the output of local commercial radio services currently covering Swansea, and we
have developed the programming plans of SA-FM to ensure that it will be distinctive from the content
on existing commercial services:
Swansea Sound
Swansea Sound was monitored on 25 May. A predominantly music-led station, Swansea Sound
played songs from the 1970’s to the present. The speech, whilst minimal, included features such as a
‘job swop’ and a Wireless Group promotion to win a car. The news output was shared with sister
station Wave 96.4, although the bulletins on Swansea Sound were longer. Specific Swansea stories
were featured in the news, together with more general stories of relevance to the whole Principality.
•

SA-FM will broaden choice by offering a significantly different local news service for Swansea
that is in-depth and extends beyond daytime hours. Whilst being music-led, SA-FM will
include more substantial speech items and features that reflect the area.

Wave 96.4
Wave 96.4 was also monitored on 25 May. This music-led station broadcasts little speech outside
news bulletins. As set out in its Ofcom Format, the music is dominated by tracks from the 1990s to
the present, making this station attractive to the younger (15-24 year olds) age group. The news
bulletins are shared with Swansea Sound, but are shorter versions.
• SA-FM will play a significantly broader range of music than Wave 96.4, and will include
substantially more speech elements in its programming, appealing to a considerably wider
age range of listeners.
Real Radio
Monitoring of Real Radio on 1 June and 25 July suggests that, while a regional station serving a wide
geographic area, much of the content is very Cardiff-orientated. Travel bulletins focused on traffic
conditions in Cardiff, while sports news featured Cardiff City FootballClub at the expense of other
local teams in South Wales. News bulletins on 25 July were dominated by the events in London of
the previous Thursday, and newsreaders referred to places such as Moorgate and Tulse Hill without
qualifying that they are London districts. Whilst obviously of national importance, local news
comprised only three stories throughout the day. News bulletins on 1 June featured two regional
stories and a further two regional sport stories.
Apart from news bulletins, speech content (usually pre-recorded) included job vacancies, Crime
Stopper Appeal, Local Heroes and a What’s On Diary. Most of these comprised one or two items
and referred listeners to specific internet sites for more information. On 25 July, there was a
telephone interview with the Editor of the South Wales Echo, the regional newspaper based in
Cardiff.
Musically, Real Radio played a broad range of songs from the 1960’s to the present day, with no one
specific genre prevalent but including a mix of well known hits.
SA-FM will broaden choice by broadcasting a news service that is very specific for Swansea and the
surrounding area, covering stories that will be of direct interest or relevance to the local audience.
There will be a wider range of speech content in daytime programmes with live and pre-recorded
interviews, discussions and phone-ins.


Page 31
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4.


SA-FM will broaden choice by broadcasting a news service that is very specifically for Swansea and
the surrounding area, covering stories that are of direct interest or relevance to the local audience.
These will be accompanied by a considerably wider range of speech content in daytime
programmes, including live and pre-recorded interviews, discussions and phone-ins.

Conclusion
SA-FM will broaden listening choices available by offering a lively, entertaining and provocative mix of
music and speech, focused on Swansea, and balanced to maximise the station’s audience appeal.
News and information, features and interviews, listener phone-in’s, studio discussions and live
coverage of local events will feature alongside a clearly defined music mix. As set out above, SA-FM
will be a full service radio station that will offer the audience significantly more local content than the
existing music-led local commercial stations in Swansea.

• the provision of local material, if any;
All SA-FM programmes will be locally produced and presented. However, these programmes will
include material produced outside the area, such as Independent Radio News bulletins and news
interviews.

• the proportion of locally-made programming, if any should be set out in this section
The vast majority of SA-FM programmes will be live and local. We want to encourage live interaction
between the presenter and audience. Local automation will be used only for the overnight
programmes (2am – 6am) although, in the long term, we would hope to make this a live programme
too. SA-FM may broadcast occasional syndicated or networked programmes where appropriate
(such as the nationally networked Tsunami Appeal).


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Page 32


(iii) If appropriate, the
5. Proposed Format applicant may also provide a typical programme by- programme weekday
schedule, to give a flavour for the direction of the station.

Monday-Friday:
02.00-06.00:

The Late & Early Show (Automated Programme): music through the early hours
of the morning to see home those who have been out overnight, whether at work or
play, and to ease listeners with an early start into the day ahead.

06.00-10.00:

SA-FM Breakfast: the very best in music laced with lively talk to start the day,
featuring the big stories of the day from Swansea and district, the rest of Wales
and the rest of the world. Plus regular news and sports bulletins, travel updates
and business news, as well as weather and coastal forecasts. Hourly news
bulletins will be complemented by headlines on the half-hour from 07.30-09.30.
Audience participation will be a key element through competitions, phone-call’s,
texts and e-mail’s. The daily SA-FM Big Vote will run throughout the show,
helping to gauge public opinion.
SA-FM Through The Day: From mid-morning to early afternoon, more great
music will link lifestyle experts, celebrity guests and input from listener’s. Callers
will be invited to have their say on the issues that matter to them, to quiz the
experts and talk to the star guests. Plus regular news, weather and travel updates
and a lunchtime sports bulletin.

10.00-14.00:

14.00-18.00:

Afternoon Perspective: The hit music continues alongside news and information
about local leisure and cultural activities and events. As the afternoon moves into
drivetime regular travel, weather, business and sports updates come to the fore
with presenter-led features and interviews on the day’s top news stories. Plus
what’s on at the cinema and local theatres, a guide to the area’s best restaurants
and check at what’s on TV tonight. News bulletins on the hour and, from 16.0018.00, headlines on the half-hour.

18.00-22.00:

Monday – Thursday
SA-FM Evening Show: specialist nightly features will include coverage of sports
and arts events, as well as specialist music sequences and live reports from
important meetings and events taking place in the area. Relationship issues,
fears, phobias and anxieties, obsessions and compulsions, family and sexual
problems will also be explored sympathetically on certain nights, with the best
advice offered by the SA-FM team of experts and counsellors. The programme
will also include material produced at the weekly radio production workshops run
by DACE (The Department of Adult and Continuing Education of Swansea
University – see above).


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5.

Proposed Format

18.00-22.00:

Friday
18.00-19.00: Friday Sports Hour: guests from the world of sport discuss the hot
sporting topics affecting Swansea and district, with listener reaction via phone calls
and text messages.
19.00-22.00: TGI The Weekend: music with a party flavour to set up the
weekend, plus an irreverent look at topical issues, and a check on what’s happening
where in Swansea across the weekend.

22.00-02.00:

SA-FM Nights: music and chat at the end of the day and across midnight, with
guest interviews and listener response in a relaxed but informed context.


Page 34
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

5.

Proposed Format

SA-FM STATION FORMAT
Licence Outline
Station Name
Licence Area
Frequency
Service Duration

SA-FM
Swansea and district (as defined in Ofcom’s Measured Coverage
Area map)
102.1 Mhz
24 hours a day with a minimum of 20 hours a day locally produced
and presented. Automated programmes will account for a maximum
4 ‘non-daytime’ hours per day.

Definitions
Speech
Peaktime(s)
Daytime
Locally
produced/presented

“Speech” excludes advertising, programme/promotional trails &
sponsor credits, and may be calculated across daytime or nondaytime.
“Peaktime(s)” refers to Weekday Breakfast and Afternoon
Drivetime output, and Weekend Late Breakfast.
“Daytime” refers to 0600 to 1900 weekdays, and weekend output
from 0800 to 1400.
Production and presentation from within the licence area. All
requirements for locally produced/presented output must include
peaktime.

Character of Service

AN INTELLIGENT MIX OF MUSIC AND TALK FOR 35-64 YEAR OLDS, FOCUSED ON
SWANSEA AND THE SURROUNDING AREA.
Detail
SA-FM will play music that is predominately 15 years or older (dating back to the 1960’s). More
recent music and current music will feature but will not account for more than 25% of the output.
Specialist music will feature during off-peak hours and will account for a minimum of six hours a
week.
Speech will account for a minimum of 25% during daytime hours and 15% during non daytime
hours.
Speech, during daytime hours will focus on issues, events and activities relevant to Swansea and
the surrounding area and will include at least one interview per weekday, a daily phone-in, weather,
travel, a local what’s on guide and local sport.
News will be broadcast at least hourly, including locally produced and presented news bulletins from
0600 to 2200 on Monday to Sunday.


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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.
Swansea Local Radio Ltd has undertaken a range of research activities. These include three
quantitative pieces of work (detailed below), focus group sessions, desktop RAJAR analysis and the
monitoring of existing local commercial radio services.

If original market research has been undertaken, please provide the following information for each
piece of research:
6.1 Quantitative Research (1) conducted by MIP
(i) A statement of the key objectives of the research:
This study aimed to establish listening levels to Swansea Local Radio Ltd RSL broadcasts, levels of
awareness of the radio station, appreciation of its programmes and propensity to listen to a
permanent version of the service.
(ii) The specific questions that the research sought to answer:
•
•
•
•
•

Weekly reach figures for all services available in the Swansea Local Radio Ltd’s proposed
coverage area
Whether respondents had heard of Swansea Local Radio
Whether respondents had ever listened to Swansea Local Radio
How respondents rated named elements of Swansea Local Radio’s programmes
How likely respondents would be to listen to a permanent service specifically designed for the
people of Swansea

(iii) How the research was conducted:
The research was conducted using telephone call-outs to a randomly selected sample of residential
numbers. Quotas were applied to ensure the final sample reflected the profile of the population in the
proposed Swansea Local Radio Ltd’s coverage area.


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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand

(iv) The size and composition of the sample:
A total of 512 respondents were contacted, their composition being:

Population

Sample

%

%

No

48.0

48.4

248

M 15-24

8.9

8.6

44

M 25-34

6.8

7.0

36

M 35-44

8.3

8.6

44

M 45-54

7.5

7.8

40

M 55-64

7.1

7.0

36

M 65+

9.5

9.4

48

52.0

51.6

264

F 15-24

8.3

8.0

41

F 25-34

6.9

7.0

36

F 35-44

8.7

9.0

46

F 45-54

8.1

8.2

42

F 55-64

7.3

7.6

39

12.6

11.7

60

All Males

All Females

F 65+

(v) When and where the research was conducted:
The research was conducted between 23rd and 26th February 2005 across the proposed Swansea
Local Radio coverage area.


Page 37
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand

(vi) A summary of the main findings from the research, showing how these demonstrate evidence of
demand for the service proposed:
This study found that:
•
•
•
•
•

Swansea Local Radio had an adult weekly reach of 12.5%, and a weekly reach of 15.2% among
the core 25 to 54 age group
39.1% of respondents had heard of Swansea Local Radio
Swansea Local Radio listeners appreciated the service, especially its music, news and
information, and local content. These were rated either ‘good’ or ‘very good’ by 78.6%, 77.7% and
76.7% of listeners respectively
72.8% of Swansea Local Radio listeners claimed to be either ‘very likely’ or ‘likely’ to listen to a
permanent new radio station like Swansea Local Radio. This figure was highest among 25 to 44
year-olds, at 78.9%
Overall, 55.7% of respondents claimed to be either ‘very likely’ or ‘likely’ to listen to a new
permanent radio service designed specifically for the Swansea area. Among 25 to 54 year-olds,
the figure was 62.3%. The highest propensity to listen was recorded among 25 to 44 year-olds,
with 64.2% of them claiming to be either ‘very likely’ or ‘likely’ to listen.

These findings suggest that people in the Swansea area would want to hear a service like that
provided by Swansea Local Radio during its RSL broadcasts. Moreover, non-listeners to the RSL
also indicated that they would be likely to listen to the type of service proposed by Swansea Local
Radio. 51.3% of non-listeners claimed to be either ‘very likely’ or ‘likely’ to listen to a new permanent
radio service designed specifically for the Swansea area.
(vii) Full data tables for any quantitative research undertaken (these may be submitted in confidence).
Full data tables are included in Appendix 4 (Research)
6.2 Quantitative Research (2) conducted by MIP
This study aimed to establish levels of interest in specified elements of speech which could have
been included in Swansea Local Radio’s proposed service.
•
•
•
•
•

Weekly reach figures for all services available in the Swansea Local Radio proposed coverage
area
How interested respondents were in hearing a range of speech items on a new, locally-focused
service
How likely respondents would be to listen to such a service
Whether respondents would listen to a new service exclusively, or in addition to their current
station(s)
Whether, when a new service exists, respondents would listen to the radio in total more or about
the same as currently


Page 38
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand


The research was conducted using telephone call-outs to a randomly selected sample of residential
numbers. Quotas were applied to ensure the final sample reflected the profile of the population in the
proposed SLR coverage area.
A total of 508 respondents were contacted, their composition being:
Population

Sample

%

%

No

47.8

47.6

242

M 15-24

8.4

8.3

42

M 25-34

7.1

7.3

37

M 35-44

8.4

8.7

44

M 45-54

7.9

8.1

41

M 55-64

6.5

6.7

34

M 65+

9.4

8.7

44

52.2

52.4

266

F 15-24

8.1

8.3

42

F 25-34

7.6

7.9

40

F 35-44

8.6

9.0

46

F 45-54

8.2

8.7

44

F 55-64

6.9

7.3

37

12.8

11.2

57

All Males

All Females

F 65+

The research was conducted between 16th and 21st June 2005 across the proposed Swansea Local
Radio coverage area.


Page 39
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand

•

•
•
•
•
•

There was clear evidence of demand for the majority of the specified speech elements, in
particular local traffic, local news on weekdays, local what’s ons, local news at weekends and
local weather. 83.3%, 83.1%, 81.6%, 77.7% and 76.8% of respondents respectively claimed to be
either ‘very interested’ or ‘interested’ in hearing these elements.
Local sports news and ‘phone-in programmes were also in demand. 72.4% and 68.7% of
respondents respectively were either ‘very interested’ or ‘interested’ in hearing these.
There was least interest in hearing programmes in Welsh, a buy/sell feature, local business news
and local coastal conditions. Only 22.1%, 42.8%, 43.6% and 44.7% of respondents respectively
claimed to be interested in these elements.
There was a high propensity to listen to the proposed service. 83.9% of respondents claimed to
be either ‘very likely’ or ‘likely’ to listen. The equivalent figure was 90.1% among 25 to 54 yearolds, and highest among 35 to 54 year-olds at 90.5%.
84.3% of respondents who were either ‘very likely’ or ‘likely’ to listen to a new service indicated
they would listen to it in addition to their existing service.
86.3% of respondents claimed that, when a new service was broadcasting, they would listen to
the radio in total for about the same amount of time as currently.

It would appear, therefore, that there is a significant level of demand for a service of the type
proposed by SLR among residents of the service’s proposed coverage area.


Page 40
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand

6.3 Quantitative Research (3) conducted by Keith Gorton Services
This study aimed to establish a specific format for the new radio service and to determine the size of
potential audience for each format tested.

Attitudes to a variety of formats
Likelihood of listening to a variety of formats
Which stations were likely to lose audience to a new commercial radio station in Swansea.

(iii) How the research was conducted;
The research was conducted face to face with interviewees working to specific quotas that reflect the
demographic breakdown in Swansea area.


Page 41
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand

(iv) The size and composition of the sample(s);
A total of 542 respondents were questioned. Over half (58%) of the sample were female whilst 42%
were male radio listeners.
The age breakdown of the sample was as follows:
Age

%

25 – 34 years

21

35 – 44 years

19

45 – 54 years

20

55 – 64 years

19

65 – 74 years

21

Total: 542 respondents

100%

(v) When and where the research was conducted;
The Survey was conducted between 18th and 28th July in Swansea City Centre.

demand for the service proposed;
•

The most popular format was a station that plays hits from the 1960’s 70’s and 80’s with
news, occasional interviews and local information. Almost three-quarters of the total sample
reporting that they would be very likely or likely to listen to a station matching this description.

•

The radio station with the most speech content was the most unpopular; however, half the
sample believed they would be very likely or likely to listen to a station that played hits from
the 1960’s to the present with news, interviews, a daily phone-in and discussion programmes.

•

Almost two-thirds of respondents believed that they would spend less time listening to existing
radio stations. Almost one-third would listen to the radio for longer.

•

Over one-third would reduce the amount of the time they spend listening to Wave 96.4 FM in
order to make time to listen to the new radio station. Around one-quarter report that they will
spend less time listening to BBC Radio 1, Real Radio and BBC Radio Two.


Page 42
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand


6.4 Qualitative Research (1) conducted by MIP
This study set out to establish in more detail what potential listeners would want to hear on a new
radio service designed specifically for them.
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Which radio stations respondents listen to currently.
Reasons respondents change stations.
What types of music respondents preferred.
How interested respondents were in specialist music and local music.
How much news and weather coverage respondents would like.
Requirements for traffic and travel information.
How much interest there was in sports coverage.
Requirements for ‘what’s on’ information.
Whether respondents wanted interview and ‘phone-in programmes.
Whether respondents wanted business and financial information.
Whether respondents were interested in arts programming.
Respondents’ views on accessibility and competitions.
How interested respondents were in Welsh language programming.
Respondents’ propensity to listen to a new radio service.

Two focus groups were held.


Page 43
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

6.

Evidence of Demand

The sample consisted of 14 respondents, all of whom were residents of the proposed coverage area
of a new service and current local commercial radio listeners. Respondents represented a range of
backgrounds and life-stages, as shown below:
Males
Hotelier
Businessman
Shopfitter
Sales manager
Mature student
Student

Females
Hotelier
Legal secretary
Learning and development officer
Administrator
Administration assistant
Artist
Housewife
Student

The focus groups were conducted on the evenings of Monday 23rd May and Tuesday 24th May 2005
at the Dylan Thomas Centre, Somerset Place, Swansea.
•
•
•
•
•
•
•
•
•
•
•
•
•

Radio 2 was the most popular service.
A new radio station needs to offer a broad range of music, similar to that offered by Radio 2.
Specialist, and particularly local, music should be given exposure on a new service.
A new service should have local news and weather, but not too much.
Traffic and travel information would be an important part of a new service.
There was interest in local Sports being covered.
A good local ‘what’s on’ guide would be a welcome element of a new service.
Interviews and ‘Phone-ins, including consumer advice, had strong appeal for these respondents,
particularly any opportunity to challenge local councillors.
Business issues were also found to be of interest, although not in any great depth.
There was limited demand for some arts type programming.
This research revealed a strong feeling that a new radio service should be accessible.
There was found to be little demand for a new service to include Welsh language programming.
All the respondents would at least be willing to try a new service along the lines discussed in the
focus groups, especially if it celebrated the area.

These conclusions demonstrate the need for a new local service that local news, information,
interviews and phone-ins. This supports the findings of the quantitative research conducted by MIP in
June and detailed earlier in this section.


Page 44
Page 44

SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

7.

Evidence of Demand

6.5 Analysis of the Swansea Radio Market
This research project was commissioned from Radio Development International research specialists.
The objective was to analyse the changes in listening patterns in the Swansea market over the last
five years from RAJAR data. The key results were:
•

Hours listened to all radio have increased substantially over the last five years, driven by the
launch of Real Radio in 2000 and by the increasing popularity of BBC Radio Wales and BBC
Radio Four.

•

As a result, listening to local commercial station The Wave has fallen dramatically, particularly in
the 25-44 demographic. Some of this audience has transferred to Real Radio, some to BBC
Radio Wales, and some even to BBC Radio One (whose hours listened are up 20%).

•

The launch of Real Radio has been insufficient to stem the declining appeal of commercial radio
as a whole, reflecting the similar pattern that exists across the UK.

•

Real Radio’s appeal extends equally across the 25-54 demographic, and even considerably into
the 15-24 demographic. Its output appeals to the C2DE demographic twice as much as to the
ABC1 demographic.

•

Although less significant, BBC Radio Cymru is increasing its hours listened over the long run.

•

Unlike other areas of the UK, BBC Radio Two has shown little growth in the last five years, but
the station is ranked #1 in the market.

•

BBC stations take four of the top five positions in the market (in order: Radio 2, Radio Wales,
Real Radio, Radio One, Radio Four). Five years ago, the BBC took three of the top five positions
(in order: The Wave, Radio Two, Radio One, Swansea Sound, Radio Wales).

•

Even two years ago, The Wave continued to be ranked #1 in the market. Now it ranks #6.

•

The addition of a new commercial station in 2000 – Real Radio – has increased listening to
commercial radio, but relatively less than the increase in BBC radio listening.

6.6 Research of Local Advertisers conducted by MIP
Two pieces of research were conducted and the results that demonstrate support from the local
business community are set out below:
The first piece of research investigated the levels of interest in using a new radio service as an
advertising medium. This was conducted using telephone call-outs to businesses, all of which were
current or recent advertisers in the local media - either press, radio, Yellow Pages or Thomson
Directory. A total of 50 businesses were contacted.


Page 45
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SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

7.

Evidence of Demand

•
•
•

68% of respondents would be either ‘very interested’ or ‘interested’ in advertising on a new
service.
80% of respondents thought that there would either definitely or ‘probably’ be sufficient other
businesses in the area interested in advertising to support a new service.
14% thought that £800 would be about the right price for a one-month campaign of 35 x 30second commercials a week. Another 46% thought it was ‘probably’ about right.

This research indicates that there should be sufficient demand from local businesses for a new
service as an advertising medium to make it commercially viable.
The second piece of research investigated the potential commercial viability of a new radio service.
Eight local businesspeople were interviewed face-to-face.
•
•
•
•

These respondents expressed an interest in using a new local service as an advertising
medium.
The consensus view was that sufficient other local businesses would be interested in advertising
to support a new service.
There were varying views as to what would represent a ‘fair price’ for a one-month advertising
campaign.
The majority of respondents felt that Swansea should have a new radio service.


Page 46
Page 46

SECTION 105(D):
EVIDENCE OF LOCAL
DEMAND OR SUPPORT

7.

Evidence of Support

This section should provide evidence of support, where appropriate, from the applicant's potential
audience or from prospective local advertisers.

7.1 Support from Potential Audience

Swansea Local Radio’s plans have benefited immensely from staging two Restricted Service Licence
broadcasts during the last year. These events have given us opportunities to interact with hundreds
of potential listeners to the permanent station proposed in this application. They have also provided
us with direct feedback (both positive and negative) to the various programming elements and ideas
we have included in the stations’ output.
The first trial broadcast took place in September 2004 using the on-air name 'The Rock'. The
programming targeted 18-35 year olds with a mix of new and classic rock music. It was the feedback
we received from listeners and advertisers, combined with subsequent market research, that
persuaded us to re-evaluate the format and the target audience of a permanent station for Swansea.
The results told us that a more broad-based audience desired a station with less niche appeal and
more speech content focused on local news and issues.
For the second trial broadcast in February 2005, we renamed the station Swansea Local Radio to
reflect the “localness” that potential listeners said they wanted, increased the speech content and
widened the music policy. The station was conversational in style, with an emphasis on local news
and information, complemented by a wide range of subjects through features and interviews. For
example, at 1800 each evening, we presented a one-hour speech programme that covered topics as
varied as alternative health, local politics, local musicians, and the local arts. We ensured that each
programme was presented by a local expert, a policy that brought us considerably closer to our
audience.
The response to the second trial broadcast was very encouraging, with over 300 telephone calls and
50 e-mails received by the station during its 28 days on-air. The calls from the audience expressed
approval of the programme mix and supported the station's focus on local issues and the use of new
local talent.
Subsequently, from March to June 2005, Swansea Local Radio organised a programme of eight
investigative consultation meetings (over 60 people attended - a full list can be supplied if required)
to elicit information from the potential audience that would add to our formal market research [see
answer to Question 6]. The resultant mix of independent research findings and opinions expressed at
these consultation sessions gave us a much better notion of the type and kinds of programmes
appropriate for radio listeners in Swansea.


Page 47
Page 47

'An Application To Ofcom For The FM Independent Local Radio Licence For Swansea By SAfm' by Grant Goddard

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