THE BROADCASTING LANDSCAPE ON THE ISLE OF MAN
PAST, PRESENT AND FUTURE
Introduction
This document is a discussion document that sets out to examine the broadcasting landscape on the Isle of Man from historic beginnings over fifty years ago that actually influenced the way broadcasting was shaped outside of the Island.
We look at the current position and consider the sustainability of local broadcasting in today’s technology environment and consider plans for the future balancing a level of quality output for the local market that meets the production values expected by today’s audience.
In light of Tynwald’s decision to form a Select Committee to examine Public Service Broadcasting on the Isle of Man this document is submitted without bias to any single station. It is designed to look at the broadcasting on the Isle of Man as a whole service to the Island.
THE PAST
THE ISLE OF MAN SHOULD BE PROUD OF ITS BROADCASTING HERITAGE
Manx Radio
To this day, trailer caravans are not allowed on the Isle of Man, so it created quite a stir when a caravan arrived on the island on the evening of 3rd June and was taken to Onchan the next day.
This was to be the very first home of Manx Radio and at the site, a mast 100 feet high was erected and test broadcasts commenced. On 8th June, as an experiment, the station was linked on to the public address system around the TT Course. The commentary from the four points around the course was then transmitted over the VHF frequency.
The station reverted to test broadcasts and then on 29th June, station manager and sole announcer, John Grierson, commenced regular broadcasting on a daily basis from 10am to 12 noon and then from 2pm to 4pm. This was almost ten years before commercial radio was licensed in the United Kingdom but how was this possible especially as the British Government were being taunted by the popularity of Pirate Radio Stations especially Radio Caroline which was anchored three miles out in Ramsey Bay?
Well the Isle of Man, having its own Government and laws, was not subject to the rules prohibiting commercial broadcasting in the UK, however, the Manx Government still had to apply to the UK's General Post Office for a frequency and for permission to broadcast. First requested in 1960, a license was eventually, and somewhat begrudgingly, granted.
Manx Radio was allocated an FM frequency of 89.0MHz and a comparatively low power. In October 1964, an additional frequency of 1600kHz AM was allocated to the station to provide greater coverage.
Manx Radio quickly became an integral part of Island life and in 1965 relocated the studios to Douglas promenade in a building that also housed a snooker hall and an aquarium. The station remained here until 1969 when it relocated to Douglas Head in 1969 where it remains to this day.
The history of Manx Radio has been chequered to say the least and the Government of the Island has always had an involvement its story is well documented in a book call ‘A Nations Station’ written by Derek Winterbottom and published in 2004.
In 2001 a joint team of consultants from off Island were appointed to produce a report on the future of media and communications on the Island with particular focus on the future of Manx Radio.
The report was named the Darwin Report and its findings and recommendations were presented to members of Tynwald in 2002.
In brief, the report recommended a new constitution and funding framework for Manx Radio and had a vision for the station that focussed on Public Service speech broadcasting reducing its music output and leaving the provision of music services to commercial radio stations.
The funding framework recommended an increased level of subvention give to the station by Government from £250,000 per annum to £847.000 over the 2003 – 2005 period reviewed again in the following two years.
After a lengthy Tynwald debate the recommendations of the Darwin Report were approved and it would appear that the future of Manx Radio was assured at least for the time being.
The report opened the door for other commercial broadcasters to be licenced but the broadcasting landscape was already beginning to change.
THE PRESENT
Energy FM
In 2002 Juan Turner a former employee of Manx Radio was granted a broadcasting licence and set up his own radio station Energy FM which was aimed at a 15 to 35 year old audience.
Then in 2003 a number of individuals and companies were applying to the Communications Commission for licences to broadcast which sparked a debate in the House of Keys as to the number of licences that the Commission was prepared to grant and how many the market could sustain. One of the applicants was a company called Athol Radio Limited and in 2004 the company was granted a broadcasting licence but it would appear that Tynwald then closed the door to any further licences being granted.
3FM
Athol Radio Limited began broadcasting in October 2004 under the name 3FM. Licenced as a music radio station targeted at a 30 plus audience 3FM had amongst its shareholders and Directors two former Manx Radio staff members, George Ferguson and Ron Berry.
3FM’s refreshing style of presentation, quality of output and music selection quickly found favour with the Manx audience, and in effect sharpened the broadcasting pencil of both Manx Radio and Energy FM who both tweaked their musical output to emulate 3FM.
Technology
In a relatively short time technology has made quantum leaps and in turn the media landscape has changed almost beyond recognition.
The internet has revolutionised communication and opened up the world of information, media and entertainment. Technology allows access to all of this through a range of fixed and mobile devices. The convergence of the TV and the PC is further revolutionising the way that content is being distributed and in turn how we as consumers access it.
Less than fifty years ago we received our entertainment and information on devices like this;
Today’s devices are very different
We've come a long way in just 10 years. While the 1990’s saw computers, the Internet and various consumer electronics steadily evolve from the sole purview of nerds into things everyone can use, it was the naughties’ which truly brought these technologies (and many more) into mainstream life.
We've seen the birth of social networking, the slow death of wires, and the growth of both entertainment and business technology to the point that the gadgets, computers, and instruments we use today in both work and play look far, far different than those we used back in 2000.
Our pockets are emptier, but the few items inside them can do more than ever. Our televisions are thinner, but their screens display several times more detail. Our storage devices are smaller but they hold massive amounts of data. Our cell phones aren't just phones anymore. They are portable computers that double, triple and quadruple as media players, web browsers, and instant messengers.
With the advent of the iPhone, Blackberries and Android-powered devices, what were once humble handheld telephones are now all-in-one tools for work and play.
The advent of sites like Facebook, Twitter and MySpace has completely changed how we communicate with each other online. Instead of directly messaging one another with email and instant messages, we follow, poke, ping and gather in dozens of different ways and through several different services. While direct text communication is still very useful, most casual web users are far more likely to meet up with their friends through Facebook invitations than a mass email, all whilst playing Web-based games, sending messages and looking up old acquaintances from the same window.
IN THE FACE OF ALL THIS TECHNOLOGY AND CHOICE WHERE DOES LOCAL RADIO ON THE ISLE OF MAN FIT IN?
Manx Radio
In a report on the Public Broadcasting Subvention published by the Treasury in July 2012 the Executive summyary states that;
*“It is evident that Manx Radio has a clear vision of itself as the Isle of Man’s public service broadcaster with focus on locally generated news, current affairs and community programming”.
The latest Treasury report on Manx Radio showed that the Government put over £1.66 million into the station in the financial year 2011/12. In addition to this Manx Radio sells it’s airtime to advertisers.
3FM
3 FM was licenced in 2004 as a music station with an output of 75% music 25% speech. The target market is adults over 25 years and the mix of music is adult contempry. The speech content is made up from commercials, news and current affairs, community announcements and sport reports.
Energy FM
Energy was licensed in 2002 as a restricted service targeting the youth market. Within a year of launch Energy was able to extend its licence into a full broadcast service but retains a policy to cater to the younger end of the population in its music format. The station also carries news and current affairs, community broadcasting and sports and has been involved in a number of outside broadcasts and promotions.
WHAT IS PUBLIC SERVICE BROADCASTING?
In the BROADCASTING (AMENDMENT) ACT 2007 it is defined as followes;
**“public service broadcasting service” means a broadcasting service which is provided as a public service for disseminating information, education and entertainment, which is responsive to the tastes, interests and concerns of the whole community, where the programmes reflect the varied elements which make up the culture of the people of the Island and has especial regard for the elements which distinguish that culture, where the programmes have a wide range in their subject matter, having regard both to the programmes as a whole and also to the days of the week on which, and the times of the day at which, programmes are broadcast, and where a sufficient amount of time in the programmes is given to news programmes and to current affairs programmes which are of high quality.”.
The BBC are Public Service Broadcasters and fulfil their broadcasting through a diverse range of stations, i.e Radio 1,2,3,4,5,and 6 to name but a few.
But can all of the elements of Public Service Broadcasting as defined by the Act really be achieved through one station without that station sounding so schizophrenic that it pleases no one? Manx Radio certainly tries to be all things to all people because that is what it set out to be to the local market way back in 1964.
The broadcasting landscape has changed as this document has demonstrated and along with it the audience’s listening habits – they can now access the world of media and even have a choice of three local radio stations.
In the definition of Public Service Broadcasting as defined in the Broadcasting Act then, one could argue that both 3FM and Energy FM fulfil much of that definition. Neither of these stations is subvented by Government to provide it.
INCOMES AND EXPENTITURE
Manx Radio
*Total Government support in 2011/12 and 2012/12
2011/12 2012/13£
Subvention / 927,000 / 850,000
Capital Programme / 402,000 / 250,000
Transmission Costs / 67,000 / 67,000
Restructuring fund / 266,684 / 0
Total / 1,662,684 / 1,187,000
In addition to public money Manx Radio also sells airtime and derives other trading income.
*By far the largest element of this income relates to Engineering support relating to transmitter maintenance for the Department of Home Affairs and engineering support provided to Cable and Wireless, the BBC and Arqiva. This also includes the design, construction and installation and maintenance of an electronic voting system for Tynwald and the House of Keys.
*Summary financial position 2006/07 through to 2012/13
06/07 Actual / 07/08 Actual / 08/09 Actual / 09/10 Actual / 10/11 Actual / 11/12 Mgt Acts / 12/13 Budget£ / £ / £ / £ / £ / £ / £
Income / 2,025,373 / 2,043,565 / 2,137,192 / 2,108,524 / 2,051,791 / 2,016,752 / 1,979,793
Expenditure / 2,014,361 / 2,013,307 / 2,133,979 / 2,125,115 / 2,077,597 / 2,067,260 / 1,994,791
Profit / 11,012 / 30,258 / 3,213 / -16,591 / -25,806 / -50,508 / -14,998
Staff
Even after restructuring in 2011/12 the station still employs a full time staff of 20, contracted staff 1, a part time staff of 4 and 43 freelancers. That is a total of 68 personnel which is 5 less than the year before, the reduction being brought about through redundancies.
*Expenditure on staff 2006/07 through to 2012/13
06/07Mgt Acts / 07/08* Mgt Acts / 08/09* Mgt Acts / 09/10*
Mgt Acts / 10/11* Mgt Acts / 11/12* Mgt Acts / 12/13* Budget
£ / £ / £ / £ / £ / £
Programing Salaries / 235,004 / 306,775 / 342,054 / 354,756 / 362,976 / 309,245 / 144,800
News Salaries / 316,440 / 329,601 / 333,137 / 325,156 / 324,599 / 317,818 / 244,935
Sales Salaries / 233,864 / 245,211 / 250,938 / 254,425 / 236,539 / 229,648 / 228,822
Admin Salaries / 184,857 / 180,530 / 192,589 / 196,129 / 195,551 / 169,258 / 166,359
Engineering Salaries / 148,380 / 167,158 / 171,894 / 182,902 / 184,896 / 181,259 / 179,099
Directors Salaries / 0 / 0 / 12,834 / 26,250 / 26,448 / 26,448 / 17,500
Directors Fees / 23,762 / 24,426 / 12,342 / 0 / 0 / 0 / 0
Freelancers / 208,657 / 228,627 / 199,104 / 170,626 / 160,908 / 202,959 / 376,596
Total Staff Costs / 1,350,964 / 1,482,328 / 1,514,892 / 1,510,244 / 1,491,917 / 1,436,635 / 1,358,111
Staffing costs as a percentage of total costs / 66% / 73% / 71% / 72% / 72% / 69% / 68%
What the public get for their money.
*Manx Radio have analysed their output for 2010/2011 as shown below.
It is evident that Government money is vital to Manx Radio in its current form but the question has to be asked – Is the amount of public money proportionate to the service that the station delivers?
3FM
3Fm is a privately owned company and does not receive any subvention from Government. There are three shareholders who are also Directors of the Company. In 2011/12 three of the founding shareholders were bought out of the company.
The station employs a permanent staff of 8, two working Directors and 3 freelance personnel and 1 accountant making a total of 14.
Expenditure on staff 09/10 through 11/12
09/1010/1111/12
ActualActualMgt
£
270,259281,022255,742
Summary financial position 09/10 through 11/12
09/1010/1111/12
ActualActualMgt
£
Income535,678493,429467,042
Expenditure461,823455,402474,892
Profit/Loss 73,85538,027-7,850
N.B. Loss in 11/12 due to one off building costs and depreciation exercise.
Energy FM
Energy was licensed in 2002 as a restricted service targeting the youth market. Within a year of launch, Energy was able to extend its licence into a full broadcast service but retains a policy to cater to the younger end of the population in its music format. The station also carries news and current affairs, community broadcasting and sports and has been involved in a number of outside broadcasts and promotions.
Energy FM is also privately owned and does not receive any Government subvention. Energy FM employs a small team of 1 permanent staff and 6 freelance plus one working Director and a part time accountant.
A summary of the financial position of Energy FM is not available at this time but it is estimated that revenues are circa £100K and that the company is not making a profit at this time.
In the summer of 2012 Energy FM relocated into the 3FM building in a strategic move that was designed to reduce costs for both stations by sharing resources.
3 FM and Energy FM now share a single resource for news gathering, in sales where the sales team are able to cross-sell advertising on both stations and in transmission costs with site sharing agreements and a single engineering facility.
It is anticipated that an overall saving in the region of 30% can be achieved in the coming financial year.
The present situation in the Islands broadcasting landscape is that three commercial radio stations operate on the Island. 3FM and Energy FM have clearly defined target markets whilst Manx Radio attempts to cater to all age groups.
RAJAR
The only real measurement that we have of the audience share and profile is through RAJAR which is the only recognised research authority for the radio industry.
The methodology that is employed is through physical diary research which we believe can be flawed, however it is the onl measurement that we have and enables 3FM to get business from National advertisers albeit rates are based on cost per thousand resulting in reduced revenues.
The treaury report states that:
*Manx Radio made a decision in 2008/09 to cease to provide National Advertising. The Managing Director states that this decision was made on the basis that National Advertisers look to base their advertising spends on a „cost per thousand listeners‟ and as such, given Manx Radio‟s relatively low listener numbers it was felt more appropriate to concentrate on the local market.
Manx Radio and 3FM both subscribe to RAJAR at a cost of around £12,000 per annum per station. By subscribing to the research we are able to get quarterly statistics which give an indication of our audience profile. Energy FM elected to opt out of RAJAR.
The latest set of RAJAR figures from Q2 2012 show that 3 FM is on target with a 50% reach in males 25 – 34 and 68% females in the same age group. This compares with Manx Radio at 31% and 28% respectively.
The figures for the 55 plus market show a significant difference with Manx Radio clearly attracting an older audience.
The table that was produced in the treasury report shows clearly that the radio audience peaks around news times with a lager spike for Manx Radio because of its more extensive coverage of news.
Three radio stations survive on the Isle of Man?
The total survey area that RAJAR uses for its research is 71,000 adults (aged 15+) which is a relatively small population for three commercial radio stations to serve. There is however one very important consideration.
The Isle of Man is a Nation albeit a small one and as a Nation we need to serve all sectors of the community. 3 FM and Energy FM have proved that there is a demand for a local alternative but if we are all to survive and serve our Nation well we need to face up to the challenges and work together to deliver a first-class broadcasting service.
As this document demonstrates the media landscape has changed dramatically in a relatively short space of time and continues to change a pace and this has presented local radio everywhere with a set of challenges.
A media journalist summed it up on his blog in the following way;
‘If you’re just producing playlists then Apple does this better. If it’s about discovering music tailored to your tastes, there’s Last fm. Then there’s a whole host of digital and internet-only stations that do a minimum of chat and play fairly narrow genres. Or if you just want to grab a few select tracks, YouTube does the job quite nicely. And we’ve not even touched on podcasts here. Already, it’s easy to see the challenges commercial radio faces.