Piccadilly Talk - Ofcom Licensing

Executive Summary
The application submitted by Piccadilly Radio Ltd, operators of commercial radio stations in Manchester for 32 years and
a wholly-owned subsidiary of Emap plc, is for the new licence to operate an all speech service in the city.
This follows extensive research and discussions on the likely development needs of Commercial Radio in the next few
years. In these discussions, held by both Emap’s Radio Division and its plc management, it quickly became clear that
there was an overwhelming need to add something new to existing services and with wider audience appeal.
Consequently, this application reflects a well thought out determination to challenge a situation where commercial radio
had a 51.1 share of all radio listening in the second quarter of 1998 and a 42.9 share in the second quarter of 2006 - despite
the launch of 65 new commercial stations between those dates. It also follows a substantial investigation of the success
of all speech stations in the United States, Canada and Australia.
This application recognises that with the BBC’s substantial access to public funding and ability to use TV airtime worth
millions of pounds on cross promotion, the levels of competition will remain intense. It also recognises that a new speech
based station may not achieve the instant success that a new music service might hope for. Because of this our proposal
represents a very conservative approach and although we estimate that PICCADILLY TALK will cost more than £1million
a year less to operate than a free standing operation, it will have an initial loan capital of £3 million plus a reserve of a further
£1 million. PICCADILLY TALK also benefits from Emap’s declared policy of standing firmly behind all subsidiary companies.
Manchester is arguably the most competitive radio market in the UK after London. It is definitely the number two media city
with several thousand people working in media companies. This will greatly increase with the BBC’s stated intention of
moving large areas of its national operations to Salford Quays. It is the ideal centre for Commercial Radio to demonstrate
a highly professional and successful operation of a new service.
Ability to Maintain a New Service.
Emap is one of Europe’s strongest and most innovative media companies with a great history of new product launches.
In addition to the £4 million financial arrangement for PICCADILLY TALK, Emap is able to provide substantial economies
by basing PICCADILLY TALK at existing ultra modern facilities at Castle Quay in the centre of Manchester, a facility which
is also the headquarters for all the group’s radio operations.
Catering for the Tastes and Interests of the Audience.
After 32 years of operating radio services in Manchester, Piccadilly Radio Ltd has a unique knowledge of the area, its needs
and aspirations. It has a large team of highly experienced management and staff eager and excited to implement the new
proposals and the substantial local knowledge and financial resources to attract and retain the services of the outstanding
new talent needed to ensure success.
Broadening Listener Choice.
Manchester already enjoys a huge range of music based stations, two of them operated by Piccadilly Radio Ltd. While it is
true that there may be niches in the market, it is our commercial view that these other niches are not viable. We firmly
believe that by far the best opportunity to broaden listener choice is a uniquely programmed speech station appealing at
various times to all sections of the community but with a slight bias to female and older listeners.
Evidence of Demand.
The evidence comes in two forms – the local knowledge gained in the 32 years of successful operation in Manchester and
an extensive research programme detailed in the application. The research programme faced the usual difficulties when
seeking views of something entirely new. This can only be illustrated by limited clips rather than the overall feel and sound of
the station. However, even a fairly moderate calculation between expressed likelihood and actuality of listening indicates a
keen demand, interest and intention to sample the new service.
Section 105 (A): Ability to Maintain Proposed Service 1