History of Commercial Radio

In 1973, some 18 years after the BBC faced its first commercial competition in television, commercial radio was launched. Stations were licensed by the Independent Broadcasting Authority (IBA) and were local, generally covering cities or counties. There was only one station per area, except in London, where there were two with different remits: Capital, broadcasting entertainment, and LBC, broadcasting news and information. The rest of the commercial local stations around the country offered a broad range of programming – from news and chat, through pop music to classical music and religion - and were all locally owned and run. Localness has, therefore, been an important feature of commercial radio since its inception.

By 1988, there were 69 local commercial stations, each broadcasting on both MW (AM) and VHF (FM). In that year, the Government permitted local commercial stations to offer different services on their MW and VHF frequencies. Following this liberalisation, a number of different formats were experimented with on MW by the commercial radio companies, but by far the most commonly adopted was the ‘Gold’ format, majoring on chart hits from the 1960s and 70s. The overall number of stations increased dramatically as a result.

In 1990, the IBA began to award licences for stations in areas already served by an existing commercial station. The aim was to increase the range of programming available to listeners. Early examples included Jazz FM and Kiss in London, designed to appeal to a different audience from Capital or LBC.

In 1991, the Radio Authority replaced the IBA as the commercial radio regulator and followed a policy of licensing stations to fill in the gaps in existing coverage, to offer smaller stations in areas already covered by large commercial stations and to offer regional stations, which could extend the range of programming available to audiences

National commercial radio began in 1992. Three stations were licensed, and their formats were, to some extent, decreed by Parliament – one had to offer music other than pop music, one had to have at least 50% speech content. These stations were Classic FM, Talk Radio (now talk SPORT) and Virgin Radio.

The general trend in regulation of commercial radio has been gradually to lessen the regulatory burden on radio stations as the competition for revenues and the choice for listeners increases.

The BBC launched DAB digital radio in 1995, and now offers eleven UK-wide digital radio stations (including five only available nationally on digital, and the World Service).

Since then, commercial operators have also made significant investments in digital radio. A national commercial multiplex licence was awarded to Digital One in 1998. Digital One launched its first national commercial services in 1999 and now offers eight services, including five available only on digital. Local DAB commercial services are now available from 46 local DAB digital radio multiplexes around the UK. Digital versions of the relevant BBC Local Radio or nations’ services are also carried on the appropriate local commercial multiplex.

BBC do not advertise on their radio stations unless it for programmes of events held by their company, so that means they are not a commercial radio station, for my radio advertisement clearly I would need to advertise it on a commercial radio station that is popular with my target audience, for example a station such as KISS or Capital FM.