BBC’s nostalgia radio station blocked amid ‘rip-off’ claims

The BBC’s plans for a Radio 2 spin-off station playing 1960s pop hits have been blocked after rivals branded it a “rip-off”.

The public service broadcaster last year outlined plans for an extension of Radio 2, showcasing the best music from the 1950s, 1960s and 1970s, but the UK’s media watchdog has rejected the proposal.

Bosses hoped the new station, which they described as a “comprehensive nostalgic experience”, would help to win back scores of listeners who have defected to rivals such as Boom Radio and Greatest Hits Radio.

The broadcaster has been accused of abandoning older listeners by shifting Radio 2 to a more modern playlist in pursuit of younger audiences.

Regulator Ofcom is poised to block the launch because it concluded that the BBC did not have a strong enough case for the distinctiveness of the new station and that it would have an adverse impact on commercial rivals.

Ofcom also warned that the spin-off could put off commercial investment and new entrants into the market more generally, particularly among radio stations hoping to serve audiences left behind by the BBC.

The regulator said: “We consider that this creates a significant adverse impact on fair and effective competition which is not justified by the public value of the proposal.”

‘David vs Goliath victory’

The provisional verdict will come as a relief to commercial rivals who had warned of a “chilling” effect on the wider market.

Phil Riley, the co-founder and chief executive of Boom Radio, said he was “delighted” with the decision, which he described as a “David vs Goliath victory”.

He said: “Here’s a case where a new, innovative radio station like Boom Radio came on the market, did something new, got a great audience, and then was immediately attacked by the BBC.

“If that had been allowed to go ahead, every other commercial operator and every other independent would have said I’ve got a great idea but what’s the point in launching it because if it’s unsuccessful I’ll lose all my money and if it is successful the BBC will come along and clone it.”

Ofcom first intervened in the proposals last summer, ordering the BBC to carry out a public interest test.

The corporation admitted that the spin-off would have an impact on rivals but pushed ahead with its plans after tweaking its proposed schedule to include more speech content such as archive documentaries and interviews and adding regular news bulletins.

Mr Riley said he felt sorry for the producers and presenters at the BBC who would not be able to launch a new radio station, which he described as “the most fantastic thing”.

But he added: “I don’t feel sorry for the BBC because I don’t believe they should ever, ever have proposed this. I think they have been, I have to say, arrogant in how they’ve approached this whole process.”

Ofcom also said it intends to block proposals to extend the broadcasting hours of Radio 5 Sports Extra from a part-time service offering live sports to a full daily schedule of programmes.

The regulator warned the spin-off would have a detrimental impact on TalkSport, the station owned by Rupert Murdoch’s News UK.

However, Ofcom approved the launch of three other spin-off stations – Radio 1 Dance, Radio 1 Anthems and Radio 3 Unwind – which it said would deliver some value and would have a limited impact on the market.

Ofcom will now consult on its provisional findings, with responses due by May 14.

Matt Payton, the chief executive of Radiocentre, which represents commercial stations, said: “Ofcom’s proposal to block the launch of a new Radio 2 spin-off service is very welcome and is the only sensible conclusion given its potential impact on competing services. Failure to act would have put the future of some existing commercial services at risk, during a time of significant economic uncertainty.

“It is not entirely clear why Ofcom has not applied the same logic to the launch of the other proposed services from the BBC, which are also an imitation of existing commercial radio stations. We look forward to responding to Ofcom’s consultation setting out these concerns.”

A BBC spokesman said: “We are pleased that Ofcom is set to approve Radio 1 Anthems, Radio 1 Dance and Radio 3 Unwind. The extensions with their brilliant programming have already proved popular on BBC Sounds and will now reach even more listeners on DAB.

“However, we are disappointed that in a thriving audio market, we are not able to launch the new Radio 2 extension or expand the content offer on Radio 5 Sports Extra. They would have provided audiences with a unique BBC take on the music, stories and archive performances from 1950s, 60s and 70s, and helped more listeners across the UK discover our diverse sports podcasts.

“We believe our plans for Radio 2 and Radio 5 Sports Extra were distinctive and formed an important way for us to reach those audiences who currently get less from the BBC. We significantly redeveloped the proposals following an extensive consultation with the industry, so that they would complement the offer across the market for the benefit of listeners.”