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The Breeze Warminster - Ofcom Licensing

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General information<br />

(a) Name of Applicant, Address, Telephone and Fax Nos., E-mail address<br />

Note for new applicants: This must be a single legal entity: either a body corporate or a named individual<br />

person. If the former, a copy of the certificate of incorporation must be included with the application.<br />

Celador Radio (South West) Limited<br />

Address: County Gates<br />

Ashton Road<br />

Bristol<br />

BS3 2JH<br />

Telephone: 0117 966 1065<br />

Fax: 0117 953 1065<br />

email: sjones@thebreeze.com<br />

(b) Main Contact (For Public Purposes)<br />

Please nominate at least one individual to deal with any press or public enquiries, stating:<br />

Name: Steve Jones<br />

Telephone (daytime): 0117 966 1065<br />

Address: <strong>The</strong> <strong>Breeze</strong>, County Gates, Ashton Road, Bristol, BS3 2JH<br />

E-mail address: sjones@celador.co.uk<br />

(c) Station Name (if decided)<br />

<strong>The</strong> <strong>Breeze</strong><br />

(d) Main Contact (For <strong>Ofcom</strong> Purposes)<br />

Please nominate one individual to whom questions of clarification and/or amplification should be sent, stating:<br />

Name: Richard Johnson<br />

Address: Celador Radio, County Gates, Ashton Road, Bristol, BS3 2JH<br />

E-mail address: rjohnson@celador.co.uk<br />

This information may be submitted in confidence, separately from the other responses in this section.<br />

1


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company which will operate the licence<br />

(a) Board of Directors<br />

i) Provide the name, occupation, other directorships, other media interests, and, if not a director of an existing<br />

<strong>Ofcom</strong> radio licensee, the relevant media experience, of each director (executive and non-executive), including<br />

the proposed chairperson.<br />

<strong>The</strong> <strong>Breeze</strong> is a popular, stable, local service.<br />

This application is led by a board that is already delivering a local service for <strong>Warminster</strong>,<br />

Frome and Westbury. <strong>The</strong> board has set out to ensure that stability has been brought to a<br />

licence that has been through multiple ownership and programming changes in a relatively<br />

short period of time.<br />

<strong>The</strong> members of the board bring a wide range of relevant skills in creativity, management,<br />

operational (in executive capacity) and business success, and recognise the challenges in<br />

operating a local radio service in a small market under difficult trading conditions.<br />

Our board is made up of the former Chief Operating Officer of Britain’s largest radio group;<br />

the previous operator of the leading ILR services across the South West; a top media<br />

accountant; a programmer with 30 years experience of small and medium markets and a<br />

Chairman who, having built the world’s most successful television format and won<br />

numerous international television and film awards, retains a lifelong passion for radio.<br />

Furthermore, the directors of <strong>The</strong> <strong>Breeze</strong> are not just figureheads for the application but<br />

are all committed to Celador Radio and are actively working for the company.<br />

2


Non-Executive Chairman<br />

Name: Paul Smith CBE<br />

Occupation: Company Chairman<br />

Other directorships:<br />

Celador (Crawlspace) Ltd Celador Entertainment Ltd Lusam Music Ltd<br />

Slumdog Films Ltd Celador Radio Broadcasting Ltd Celador Radio Ltd<br />

Descent 2 Films Ltd Celador Radio (Southampton) Ltd Celador Radio (Portsmouth) Ltd<br />

Scouting Book Films Ltd Celador <strong>The</strong>atrical Productions Ltd Celador Films Ltd<br />

Dirty Pretty Things Ltd Midwest Radio Ltd Celador (A Way Through the Woods) Ltd<br />

Slumdog Distribution Ltd Rainy Puddles Ltd Descent 2 Distribution Ltd<br />

Celador Radio (Andover) Ltd Celador Radio (Newbury) Ltd Centurion Films Ltd<br />

Celador Radio (Bath) Ltd Celador Radio (Swindon) Ltd Delta Radio Ltd<br />

Kestrel FM Ltd<br />

As the founder and owner of Celador, Paul has an extraordinary track record in<br />

entertainment. His creative and media business credentials are second-to-none and under<br />

his leadership Celador has won BAFTA, Emmy, Golden Globe and Academy Awards. Having<br />

achieved global success in television and film, Paul has now set his sights on replicating that<br />

achievement through his lifelong passion for radio.<br />

Paul entered the media world in 1966 when he joined BBC Television in London as a trainee<br />

projectionist. Within seven years, he was directing children’s programming for BBC TV. As<br />

a freelance entertainment TV producer in the 1970s, Paul introduced Jasper Carrott to<br />

British TV audiences and created ‘It’ll Be Alright on the Night’, receiving a BAFTA<br />

nomination and winning a Silver Rose of Montreux in the process.<br />

In 1983, two years after establishing Complete Video as a leading television and broadcast<br />

facilities company, Paul set up Celador Productions. Its TV successes include ‘Auntie’s<br />

Bloomers’ (BBC1), ‘Carrott’s Commercial Breakdown’ (BBC1), ‘Talking Telephone Numbers’<br />

(ITV1), ‘Winning Lines’ (BBC1), ‘Britain’s Brainiest’ (ITV1), ‘<strong>The</strong> Detectives’ (BBC1), ‘You Are<br />

What You Eat’ (Channel 4), and ‘<strong>The</strong> Hypnotic World of Paul McKenna’ (ITV1).<br />

Paul was also the brains behind Celador’s biggest success: ‘Who Wants to Be a Millionaire?’<br />

A global phenomenon, ‘Millionaire’ would win a BAFTA and two Emmys for Paul, become a<br />

TV sensation in over 100 countries around the world and is widely recognised as the most<br />

successful television format ever.<br />

Celador Films was created by Paul in 2002, and its first release, ‘Dirty Pretty Things’,<br />

starring Audrey Tautou and Chiwetel Ejiofor, premiered at the Venice Film Festival that<br />

year, garnering nine international film awards and an Oscar nomination.<br />

‘Slumdog Millionaire’ – produced and financed by Celador and on which Paul was Executive<br />

Producer – was the critical and box office motion picture hit of 2009, winning eight<br />

Academy Awards (including Best Picture), seven BAFTAs (including Best Film), five Critics’<br />

Choice Awards and four Golden Globes.<br />

In 2012 Paul’s achievements were further recognised with the award of a CBE for services to<br />

the Media Industry and with an honorary degree of Doctor of Science from the University of<br />

Ulster for services to media and enterprise.<br />

Despite his extraordinary success in television and film, Paul’s first love is radio. He now<br />

spends his time actively leading the expansion of Celador Radio.<br />

3


Non-Executive Director<br />

Name: Mark Johnson<br />

Occupation: Commercial Director, Celador Entertainment<br />

Other directorships:<br />

Celador Radio (Bath) Ltd Raising Angels Ltd<br />

Celador Entertainment Ltd Lusam Music Ltd<br />

Celador Radio Broadcasting Ltd Celador Radio Ltd<br />

Celador Radio (Southampton) Ltd Celador Radio (Portsmouth) Ltd<br />

Celador <strong>The</strong>atrical Productions Ltd Celador Films Ltd<br />

Celador Radio (Andover) Ltd Gunpowder Limited<br />

Celador Radio (Newbury) Ltd Calmwater Yacht Management Ltd<br />

Midwest Radio Ltd Celador Radio (Swindon) Ltd<br />

Delta Radio Ltd Kestrel FM Ltd<br />

Mark graduated from the University of Newcastle-upon-Tyne in 1992 and, after a spell as<br />

systems accountant in the public sector at Yorkshire Forward, he moved into industry with<br />

Total Office Group plc (TOG). He remained with the company for five years becoming a key<br />

member of the senior management team and subsequently the Finance & IT Director for the<br />

UK arm of the business.<br />

TOG at the time was the largest supplier of office furniture and ancillary services in Europe.<br />

Mark played a key role in the company's flotation and in the acquisition and integration of its<br />

major competitor. Whilst at TOG Mark qualified as a chartered accountant with the<br />

Chartered Institute of Management Accountants (CIMA 1995).<br />

After TOG, Mark ran his own management consultancy for five years, winning and delivering<br />

finance, IT and sales-based project contracts for several major clients such as De Boer, Lex<br />

Vehicles and TCTi plc. During this time he also ran an event management and sales<br />

company, running hospitality sales for sports events including the AXA Ball – the final event<br />

at the old Wembley Stadium.<br />

In May 2006 Mark joined Complete Communications Corporation Limited (CCCL) as<br />

Interim Financial Controller to oversee the ongoing accounting for the group and assist in<br />

the corporate restructure and the sell off of the intellectual property for the TV format ‘Who<br />

Wants To Be A Millionaire?’ to 2waytraffic (now owned by Sony).<br />

On the completion of the sell-off and restructuring in December 2006, Mark stayed with<br />

Paul Smith as Head of Finance for Celador Entertainment. Mark was appointed to the board<br />

as Commercial Director in June 2009.<br />

Mark has played a major part in Celador Radio’s acquisitions and oversees financial<br />

performance across the radio business.<br />

4


Non-Executive Director<br />

Name: Richard Johnson<br />

Occupation: Group Creative Director, Celador Radio Ltd<br />

Other directorships: Celador Radio Broadcasting Ltd<br />

Celador Radio (Bath) Ltd<br />

Richard Johnson’s entire career has been devoted to radio. He started in BBC Local Radio as<br />

a presenter, before training as a journalist and producer. He went on to become General<br />

Producer Channel Islands, responsible for all programmes on BBC Radio Jersey and<br />

Guernsey. <strong>The</strong> stations were, at the time, the two most successful radio stations in the BBC<br />

local radio network with a weekly reach in excess of 70%.<br />

In 1992 Richard left the BBC to set up Channel 103fm, the ILR station for Jersey. He was a<br />

founder shareholder and Managing Director from the outset. Under his leadership the<br />

station was profitable from day one, had the second highest average revenue per head in the<br />

ILR industry and had amongst the highest audience reach figures in all ILR at the time.<br />

In 1996 Richard founded 2 Air Ltd., an offshoot of Channel 103fm that invested in UK<br />

Independent Local Radio, including stations in Canterbury, Bath, Portsmouth, Liverpool and<br />

Fife.<br />

When Channel 103fm was sold to Tindle Radio in 1998, Richard remained as Managing<br />

Director and was appointed to the main Tindle Radio board as Development Director. In<br />

this role he wrote and managed Tindle’s first successful licence application for North<br />

Norfolk. He also joined the board of Guernsey’s Island FM.<br />

In February 2004 Richard left Channel 103fm and Tindle Radio to form Seven Broadcast<br />

with his long time radio partner Jonathan Arendt. <strong>The</strong> company was established to develop<br />

new radio opportunities and in its first year was awarded the new commercial radio licence<br />

for the Isle of Man.<br />

In August 2004, Seven Broadcast agreed to work jointly with CanWest on UK radio<br />

opportunities and successfully applied for licences in the Solent, Bristol and Aberdeen. After<br />

CanWest decided to exit the UK, Seven Broadcast purchased Original Bristol and<br />

subsequently Star Bristol. Original Bristol was successfully re-launched as 106 JACK fm in<br />

December 2009 before both stations were sold to Celador Radio in August 2010.<br />

In June 2011 Richard was appointed as Group Creative Director of Celador Radio and whilst<br />

spending his early mornings broadcasting on Jack Bristol, he devotes the rest of his time to<br />

working with the Celador board and management team on the output of <strong>The</strong> <strong>Breeze</strong> and<br />

JACK fm networks.<br />

5


Executive Director<br />

Name: Steve Jones<br />

Occupation: Managing Director, Celador Radio South West<br />

Other directorships: Celador Radio (Bath) Ltd<br />

Steve Jones has spent most of his working life in commercial radio and has risen from a<br />

Sales Executive to be one of the industry’s most successful senior managers.<br />

Having started out in press sales and exhibition management, Steve began his radio career as<br />

a sales executive almost 20 years ago as part of the launch team of Fortune 1458 in<br />

Manchester.<br />

In 1994 he joined the GWR group as a Senior Sales Executive in Swindon, before being<br />

promoted the following year to Sales Manager, with responsibility for Swindon and<br />

Wiltshire. Four years later he was promoted to Sales Director of the GWR Wiltshire Region<br />

and charged with developing commercial activity across Swindon, Bath and the greater<br />

Wiltshire area. In 2002 Steve became GWR’s Regional Sales Director for the M4/M5 Region<br />

leading a commercial team of over 120 across the south of England. He oversaw the sales<br />

operation of what was then GWR’s biggest region comprising of 12 stations including 210FM<br />

in Reading, Plymouth Sound, and GWR Bristol and Bath.<br />

When GWR and Capital agreed to merge in 2004, he was co-opted to the leadership team<br />

that integrated the commercial operations of the two companies. At this time he also took on<br />

responsibility for the Group Creative Production team and Group Recruitment team as well<br />

as adding Red Dragon to his portfolio of stations. Following restructuring in 2007 Steve, in<br />

addition to his role as Sales Director of the M4/M5 region, took on the role of Managing<br />

Director of GWR in the South West (including Wiltshire).<br />

In 2008 GCap was sold to Global Radio and Steve again was part of the Senior Management<br />

team that helped integrate the two organisations. He also oversaw the successful re-branding<br />

and re-launch of Heart Bristol and Heart Bath in 2009.<br />

After a restructuring of Global Radio, Steve left the company to join Celador Radio in 2010 as<br />

Managing Director of the South West Region. He currently runs <strong>The</strong> <strong>Breeze</strong> and JACK fm in<br />

Bristol, JACK fm in Swindon and over the past 18 months has overseen the re-brand of the<br />

<strong>Warminster</strong>, Bridgwater, Yeovil and Shaftesbury licences to <strong>The</strong> <strong>Breeze</strong>, along with the<br />

launch of the new <strong>Breeze</strong> service for Bath.<br />

6


Non-Executive Director<br />

Name: Don Thomson<br />

Occupation: Director, Media Diagnostics Ltd<br />

Other directorships: JICRIT Ltd<br />

Celador Radio Ltd<br />

Celador Radio Broadcasting Ltd<br />

Celador Radio (Bath) Ltd<br />

Don Thomson has over 30 years experience in the broadcast media business, building highly<br />

successful businesses from scratch and turning around ailing ones.<br />

He started as a Sales Executive at Piccadilly Radio in Manchester in 1979, before moving on<br />

to LWT as Regional Sales Manager from 1981 to 1988. He then returned to Piccadilly Radio<br />

as Sales and Marketing Director before moving to London in 1990 to set up <strong>The</strong> Radio Sales<br />

Company.<br />

In 1994 Don became the founder Sales Director at Chrysalis Radio’s first radio station, Heart<br />

fm, in the West Midlands. Over the following 13 years Chrysalis Radio grew to become the<br />

UK’s third largest radio group, developing a stable of leading commercial radio brands:<br />

Heart, Galaxy and LBC. Don took on the role of Commercial and Operations director in<br />

2002.<br />

In 2007 Chrysalis Radio was sold to Global Radio and Don became the Chief Operating<br />

Officer of the new group. He subsequently played a leading role in the acquisition of GCap<br />

Media plc, including preparing the merger case for the OFT hearing. <strong>The</strong> outcome created<br />

the largest radio group in the UK. After overseeing a substantial part of the integration of<br />

the two businesses, he left the group in September 2009.<br />

Don has served on a number of industry boards during his career including Chairman of the<br />

Manchester Publicity Association, Chairman of Hit40UK Ltd, Radio Advertising Bureau,<br />

Digital Radio Development Bureau and BCAP. He is the current Chairman of JICRIT, and is<br />

President of <strong>The</strong> Solus Club.<br />

In October 2009 Don created the Media Diagnostics business consultancy and he now<br />

advises a number of media companies, including Celador Radio, on corporate strategy,<br />

acquisition and mergers, organisation, integration and new business start-ups.<br />

ii) If there are firm plans to appoint any further directors, provide information (with details of any specific<br />

individuals in mind). This information may be submitted in confidence.<br />

<strong>The</strong>re are no plans to appoint any further directors.<br />

7


(b) Investors and Shareholding Structure<br />

Full details of the shareholding structure should be provided, including:<br />

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

Celador Radio (South West) Limited is a 100% subsidiary of Celador Radio Limited. <strong>The</strong><br />

ultimate parent company is Celador Entertainment Limited. All subsidiaries are 100%<br />

owned with the exception of Delta Radio Limited which is 99.524% owned<br />

<strong>The</strong> shareholders of Celador Entertainment Limited are Paul Smith (51%) and Sarah King<br />

(49%). <strong>The</strong>ir address is supplied in confidence.<br />

ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference, other<br />

etc.).<br />

1,000,000 ordinary shares of 1p each are in issue to Celador Radio Limited.<br />

iii) All voting shareholders and holders of 5% or more of non-voting shares and loan stock should be named.<br />

State the number, class/classes and price of shares to be issued to each investor.<br />

Not applicable.<br />

iv) Outline any shareholders agreements or arrangements which exist.<br />

Not applicable.<br />

v) Where a corporate body other than a current <strong>Ofcom</strong> licensee will be providing 30% or more of the required<br />

funding, details should be given of its directors and main shareholders, and of its activities.<br />

Celador Radio Ltd is a current <strong>Ofcom</strong> licensee.<br />

8


(c) Involvement of the Applicant in Specified Activities<br />

Details are required of the involvement by the applicant and its participants (including shareholders or other<br />

subscribers of more than 5% of the applicant's total funding requirements) in any of the activities listed below,<br />

and the extent of the interest. For these purposes, the applicant includes associates of the applicant (i.e.<br />

directors and their associates and other group companies).<br />

i) Advertising agencies;<br />

None.<br />

ii) Newspapers;<br />

None.<br />

iii) Other broadcasting interests;<br />

Celador Entertainment Ltd is the ultimate parent company for the following <strong>Ofcom</strong> licence<br />

holders:<br />

Celador Radio Limited - AL302<br />

Celador Radio (Southampton) Limited – AL241 and AL239<br />

Celador Radio (Portsmouth) Limited – AL238<br />

Celador Radio (South West) Limited – AL319 and AL260 and AL268 and AL247<br />

Celador Radio (Bath) Limited – AL248<br />

Celador Radio (Swindon) Limited – AL304<br />

Celador Radio (Andover) Limited – AL317<br />

Celador Radio (Newbury) Limited – AL256<br />

Midwest Radio Limited – AL281 and AL179<br />

Kestrel FM Limited – AL146<br />

Delta Radio Limited - AL212<br />

Richard Johnson is a shareholder in:<br />

Kingdom FM<br />

iv) Bodies whose objects are wholly or mainly of a religious nature;<br />

None.<br />

v) Bodies whose objects are wholly or mainly of a political nature;<br />

None.<br />

vi) Local authorities;<br />

None.<br />

vii) Other publicly-funded bodies.<br />

None.<br />

9


2. Financial and business plan<br />

(a) Overall Financial Strategy<br />

Provide a concise (maximum 500 words) summary of how the applicant considers it is able to establish and<br />

maintain, throughout the licence period, its proposed service, and how this licence fits in with the investors'<br />

strategy.<br />

A stable and sustainable local service for <strong>Warminster</strong>, Frome and Westbury<br />

<strong>The</strong> <strong>Warminster</strong> licence has three distinct challenges for a local radio station:- the smallest<br />

MCA in the country, a TSA that covers three large towns across two counties and a licence<br />

that has seen eight operators and four different names in the past four years – with the<br />

inevitable confusion and churn for listeners and advertisers alike.<br />

Since launch this licence has never made a profit. After running up over £500,000 of losses<br />

the station was sold by TLRC in June 2008 and then underwent a succession of name and<br />

ownership changes (including periods in administration) whilst all the time haemorrhaging<br />

revenue (and, most likely, audience).<br />

When Celador purchased the licence 15 months ago it was in dire straits. <strong>The</strong> business, which<br />

had been perhaps kindly described in the press as “troubled”, was broadcasting a combined<br />

output with Swindon and revenues (which had been £30K+ per month in 2008) were down<br />

to as low as £2K per month. Not surprisingly advertisers had no trust in the service and<br />

response from listeners was non-existent.<br />

Although revenues have now climbed to an £8/9K per month we recognise that rebuilding<br />

trust in this licence is a long process and a patient approach is required.<br />

<strong>The</strong> key to this licence is attracting an audience by offering a differentiated, local service –<br />

yet doing so in such a way that it is sustainable across the licence period. Using networking<br />

and technology we are able to provide a tailored, cost-effective local service for <strong>Warminster</strong>,<br />

Westbury and Frome that will drive local listenership and deliver a viable and stable local<br />

radio service for the licence period.<br />

We have broken our total station output down into two categories – generic and local.<br />

Generic is all content that can be delivered from Centre – that is music, generic links, and<br />

national and international news (including sport and entertainment). Local content is local<br />

news, weather, traffic and travel, non-generic local links, what’s ons, local idents and jingles<br />

and local advertisements. <strong>The</strong>se components are seamlessly integrated in the playout system<br />

allowing us to produce a truly local sound without the previously associated overheads of<br />

premises and presenters in the marketplace.<br />

Whilst we do benefit from shared resource with our Bristol broadcast centre we have a<br />

journalist dedicated to the TSA and sales staff based in the market (including the former<br />

Station Manager of 3TR).<br />

10


Our (relatively short) experience of operating in this market has given us strong insight into<br />

the importance this service has to an area that is generally poorly served by local media,<br />

along with a stark reminder of how difficult it is to secure commercial revenue.<br />

After just over a year of building bridges in the community with both listeners and<br />

advertisers alike, our audience and revenue figures both show that we’ve turned a corner,<br />

stopped the relentless decline and are now building towards a sustainable and popular<br />

business.<br />

[Word count: 488/500]<br />

11


(b) Funding<br />

Detail the sources of finance that will be used to fund the licence, under the following headings:<br />

100% of the required funding through to break even will be in the form of an interest-free<br />

loan from the ultimate parent company Celador Entertainment Limited.<br />

<strong>The</strong> loan is repayable only from profits generated by the applicant.<br />

(c) Financial Projections<br />

<strong>The</strong> purpose of this question is to allow the applicant to demonstrate its understanding of the market. <strong>The</strong><br />

forecasts should be based on reasonable assumptions, that are logically applied and justifiable.<br />

<strong>The</strong> applicant should provide financial projections on an annual basis for the licence. <strong>The</strong> projections must<br />

include:<br />

i) Profit and loss accounts<br />

ii) Balance sheets<br />

iii) Cash-flow forecasts<br />

<strong>The</strong> period covered is at the discretion of the applicant, but should be justified. <strong>The</strong> forecasts should be supplied<br />

on an Excel spreadsheet or similar, with any accompanying guidance notes. <strong>The</strong> applicant must also complete<br />

and submit the spreadsheet entitled “Financial Template” located at: http://licensing.ofcom.org.uk/radiobroadcastlicensing/analogue-radio/apply-for-licence/re-advertisement/template/<br />

using information from its<br />

business model.<br />

This section must include a full listing of the underlying assumptions on which the financial projections are<br />

based, relating such assumptions clearly to other parts of the application (e.g. proposed format, extent of<br />

coverage area).<br />

<strong>The</strong> applicant should detail how revenue figures were derived, distinguishing between local, national and<br />

sponsorship revenue.<br />

<strong>The</strong> response to this question may be submitted in confidence.<br />

We have submitted three-year forecasts, with underlying assumptions, in confidence.<br />

12


(d) Audience Projections<br />

<strong>The</strong> existing licensee only should answer the following questions:<br />

i) If you propose to continue, in the new licence period, the same type of programme service as currently<br />

broadcast, provide evidence of the listenership attracted by the present service (e.g. from RAJAR);<br />

We propose to operate the same type of programme service as is currently broadcast. This<br />

service was acquired and launched in November 2011 and therefore missed the deadline for<br />

inclusion in RAJAR from Q1 2012. <strong>The</strong> service entered RAJAR in Q3 2012 but has yet to<br />

publish.<br />

Our market research survey carried out across the area in November 2012 shows that <strong>The</strong><br />

<strong>Breeze</strong> currently has a weekly reach of 20% amongst 25-64 year olds. Feedback in the market<br />

would suggest that this is a robust estimate. We would expect weekly reach amongst 15-24s<br />

and 65+s to be lower than this (at c. 10%) giving a current all adults 15+ reach of 16%.<br />

CACI estimate the current (15+) population in the area as 60,685 – slightly less than the<br />

66,000 TSA that was previously claimed by the service in its last RAJAR (Q4, 2009). As<br />

RAJAR only allows entire postcode selection the reporting TSA will cover BA11 (Frome),<br />

BA12 (<strong>Warminster</strong>) and BA13 (Westbury) - a total 15+ population of 67,657.<br />

ii) To what extent do you believe that the potential maximum listenership for your present programme service<br />

is already being achieved? Indicate any audience objectives for the new licence period. ;<br />

<strong>The</strong> <strong>Breeze</strong> is still at an early stage of its life. Whilst it has performed very well in its first year<br />

it is still “work in progress” and there is more to do in marketing and growing the brand.<br />

We do expect growth to continue and would predict a year 3 weekly reach of 25% with an<br />

average 8.0 hours.<br />

13


3. Transmission proposals<br />

<strong>The</strong> existing licensee only should answer the following questions:<br />

a) Provide details of any substantial alteration you propose to make to your existing transmission<br />

arrangements (e.g. proposed relocation of transmission site) for the new licence period.<br />

We do not propose to make any substantial alterations to our existing transmission<br />

arrangements.<br />

14


Section 105(B) and (C): Catering for tastes and interests/broadening<br />

choice<br />

4. Format<br />

Licence number<br />

Licensed area<br />

MCA population<br />

Frequency/ies<br />

AL268<br />

<strong>Warminster</strong> area<br />

18,410<br />

Character of Service<br />

107.7 MHz<br />

THE BREEZE (<strong>Warminster</strong>)<br />

A LOCALLY ORIENTED, BROAD MUSIC AND INFORMATION STATION FOR THE<br />

WARMINSTER AREA.<br />

Service duration<br />

Locally-made<br />

programming<br />

Local news<br />

24 hours<br />

Studio location:<br />

Locally-made programming must be produced within the licensed areas of<br />

<strong>Warminster</strong> (AL268), Bristol (AL260) or Bath (AL248).<br />

Locally-made hours:<br />

At least 7 hours a day during daytime weekdays (must include breakfast).<br />

At least 4 hours daytime Saturdays and Sundays.<br />

Programme sharing:<br />

All programmes may be shared between the <strong>Warminster</strong> licence (AL268), the<br />

Bristol licence (AL260), the Bridgwater & West Somerset licence (AL260) or the<br />

Bath licence (AL248), subject to satisfying the Character of Service requirements<br />

above.<br />

At least hourly during daytime weekdays and peak-time weekends.<br />

At other times UK-wide, national and international news should feature.<br />

Definitions<br />

Speech Excludes advertising, programme/promotional trails & sponsor credits<br />

Peak-time Weekday breakfast and drive-time, and weekend late breakfast<br />

Daytime 06.00 to 19.00 weekdays and weekends<br />

15


5. Programming Philosophy<br />

a) Explain (in no more than 500 words) how your proposed Format will cater for the tastes and interests,<br />

general or particular, of persons living in this local area;<br />

<strong>The</strong> <strong>Breeze</strong> sets out to provide a popular, distinctive local service with broad<br />

appeal to residents of <strong>Warminster</strong>, Frome and Westbury.<br />

Popular – With a solid focus on local news and information – the most important content<br />

demanded in research – and a music mix that has broad appeal, <strong>The</strong> <strong>Breeze</strong> is already a<br />

popular local service.<br />

In a market that is understandably generally ignored by ILR, <strong>The</strong> <strong>Breeze</strong> provides a unique<br />

offering of local news and information specifically targeted at <strong>Warminster</strong>, Frome and<br />

Westbury. By taking the generic content from Bristol, we are able to provide the area with a<br />

high quality product that the market would not ordinarily sustain.<br />

Our research into <strong>The</strong> <strong>Breeze</strong>’s musical output has allowed us to hone the original<br />

proposition to a music mix that has broad popular appeal, particularly to 35+ listeners.<br />

Listeners surveyed wanted a station playing “a broad variety of songs from a mix of decades”<br />

– a brief against which <strong>The</strong> <strong>Breeze</strong> squarely delivers. Furthermore (a very high) four out of<br />

five respondents (80%) stated that <strong>The</strong> <strong>Breeze</strong> was “in tune with their musical tastes”.<br />

Distinctive – This is a service that is demonstrably different from the current ILR services<br />

available in the area. Whilst there is a Catch 22 situation in satisfying the twin requirements<br />

of being distinctive compared to current ILR provision whilst at the same time being as<br />

popular as possible, <strong>The</strong> <strong>Breeze</strong> definitely broadens listening choice in the area.<br />

Traditionally small stations have played a relatively unfocused music selection in an attempt<br />

to be a “catch all” service. However, we strongly believe the “something for everyone”<br />

approach is flawed and a more targeted music mix coupled with strong local news and<br />

information content delivers truly distinctive output that has broad appeal to local listeners<br />

and specific (musical) appeal to 35+ listeners.<br />

Local – Small local stations have generally outperformed their larger competitors in both<br />

reach and average hours measurements by the very fact that they are local. In this market, as<br />

in every other small market we have researched, there is a strong demand for local news and<br />

information. <strong>The</strong> <strong>Breeze</strong> provides local news, weather, what’s ons, coverage of major local<br />

events and local traffic and travel bulletins at breakfast and drive (and at other times should<br />

the need arise).<br />

We know how important this local content is for listeners. We recognise the importance in<br />

providing this content to grow and retain an audience. With <strong>The</strong> <strong>Breeze</strong> network almost<br />

doubling in size in the past year to 13 stations, we are able to spread central costs over the<br />

collective businesses and provide a service that this market would not ordinarily be able to<br />

sustain.<br />

We have already developed custom software to allow us to better deliver local content in a<br />

sophisticated, efficient and seamless way and are looking at building more products to<br />

further enhance our local offering.<br />

[Word count: 475/500]<br />

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<strong>The</strong> existing licensee only should answer the following question:<br />

c) Explain (in no more than 400 words) how your proposed Format will cater for tastes and interests<br />

different from those catered for by other existing local commercial and community radio services available in<br />

this local area.<br />

<strong>The</strong> <strong>Breeze</strong> provides a service that is distinctly different from both the ILR and community<br />

radio stations available in the area in music content, speech output and focus.<br />

Music<br />

As music forms the majority of our output (and of the other ILR stations here), it is obviously<br />

the most important differentiator in demonstrating the broadening of ILR choice.<br />

Whilst many smaller stations have historically offered a full service format (the “we play<br />

everything” approach), this can end up having no particular appeal to any demographic. At<br />

<strong>The</strong> <strong>Breeze</strong>, whilst we provide broad demographic appeal through local news and<br />

information, musically we play a focused blend of melodic songs targeted at listeners aged<br />

35+. <strong>The</strong> station has a female bias.<br />

We have carried out detailed music monitoring of all other stations and it clearly shows that<br />

<strong>The</strong> <strong>Breeze</strong> provides a markedly different musical mix to any other ILR service.<br />

Data from Radiomonitor across the seven days commencing January 7 th 2013 (0600-1900)<br />

shows that <strong>The</strong> <strong>Breeze</strong> is a distinctive service in this market. In summary:<br />

• <strong>The</strong> <strong>Breeze</strong> plays a distinctive blend of music that has minimum overlap with other<br />

ILR stations – just 33% of tracks with Heart, and 1% with Kiss.<br />

• <strong>The</strong> <strong>Breeze</strong> plays 266 different artists, half (48%) of which are unique to <strong>The</strong> <strong>Breeze</strong><br />

vs Heart, and almost all (97%) unique to <strong>The</strong> <strong>Breeze</strong> vs Kiss.<br />

• <strong>The</strong> <strong>Breeze</strong> has a wide playlist (1028 songs), of which 430 are unique to the station.<br />

Both Community Radio stations in the TSA have distinctly different musical offerings to <strong>The</strong><br />

<strong>Breeze</strong>. WCR’s music “reflects the local culture of <strong>Warminster</strong>” featuring “local artists, new<br />

unsigned bands, popular music, classical, jazz, country, soul, world music, church music and<br />

others”. FromeFM’s music “promotes niche musical genres” and promotes “local performers,<br />

artists and writers”.<br />

News and Speech<br />

<strong>The</strong> other existing ILR services that cover our TSA necessarily have their focus elsewhere.<br />

Heart’s Wiltshire operation has its focus squarely on Swindon, and Kiss, with its national<br />

output and TSA of almost 2.5 million, does not carry local content.<br />

As local news and local traffic and travel were identified as the most important content in our<br />

research we will not only be providing a much-demanded service but one that is clearly<br />

unavailable from other existing ILR operators.<br />

[Word count: 377/400]<br />

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d) In what ways, if any, are your programme proposals for the new licence period substantially different from<br />

the programme service you currently broadcast? Outline the reasons for any such differences from the current<br />

service.<br />

Our programming proposals for the new licence period do not differ substantially from the<br />

programme service we currently broadcast.<br />

That said, we continue to monitor and evaluate our output on a regular basis in an effort to<br />

offer the best possible product.<br />

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Section 105(D): Evidence of local demand or support<br />

6. Evidence of Demand<br />

<strong>The</strong> existing licensee only should answer the following question:<br />

If you propose to alter your existing programme service in the new licence period, outline any way in which<br />

findings from any original market research undertaken, or analysis of existing audience research information,<br />

have influenced this decision.<br />

We do not intend to alter the existing programme service. We have undertaken market<br />

research that shows strong approval for the service <strong>The</strong> <strong>Breeze</strong> provides.<br />

a)<br />

b)<br />

c)<br />

d)<br />

e)<br />

LISTENER RESEARCH<br />

Objective:<br />

To explore reactions to, and the demand for, <strong>The</strong> <strong>Breeze</strong> in <strong>Warminster</strong>, Frome and<br />

Westbury.<br />

Questions:<br />

Current radio listening behaviour<br />

Rating of station by music choice<br />

Rating of station by local news and speech content<br />

Most listened to station<br />

Rating of music mix by station<br />

Rating of <strong>The</strong> <strong>Breeze</strong> speech content<br />

Rating of <strong>The</strong> <strong>Breeze</strong> music mix<br />

Preferred station format<br />

Preferred music mix<br />

Importance of local content<br />

Methodology:<br />

On street interviews<br />

Hallett Arendt undertook the fieldwork and tabulation of data<br />

Sample Size:<br />

515 adults aged 25-64<br />

Fieldwork:<br />

5-14 November 2012<br />

Survey Area:<br />

<strong>Warminster</strong>, Westbury and Frome<br />

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a)<br />

b)<br />

c)<br />

d)<br />

MUSIC MONITORING<br />

Objective:<br />

To obtain and analyse data on the actual output of the existing local commercial<br />

radio services in the area in order to establish the extent to which <strong>The</strong> <strong>Breeze</strong> would<br />

broaden listening<br />

Data sought:<br />

Analysis was conducted of music tracks played by Heart and Kiss, as well as <strong>The</strong><br />

<strong>Breeze</strong>’s music output<br />

Methodology:<br />

Analysis was conducted to determine levels of overlap between stations in terms of<br />

tracks played, music airplay and rotation, and era of music tracks<br />

Monitoring was by Radiomonitor, with analysis conducted in house<br />

Monitoring periods:<br />

Music output data was gathered for the period January 7 – 14, 2013<br />

f. Summary of the main findings of the research<br />

<strong>The</strong> <strong>Breeze</strong> is a popular service<br />

Even though a service has been operating in this area for almost twelve years, in reality this<br />

is a licence that had burnt its bridges with many listeners and advertisers and we regard <strong>The</strong><br />

<strong>Breeze</strong> in <strong>Warminster</strong> as being a station in its infancy.<br />

We launched <strong>The</strong> <strong>Breeze</strong> in November 2011 and surveyed the service exactly a year after<br />

launch. 20% of respondents (25-64s) said that they had listened to <strong>The</strong> <strong>Breeze</strong> in the<br />

previous seven days. This makes it more popular than Kiss (18%), BBC Radio Wiltshire (9%)<br />

and Gold (5%). It is also significantly stronger than WCR (3%) and FromeFM (5%), although<br />

they have significantly smaller TSA’s. <strong>The</strong> market leading station in the area is BBC Radio 2<br />

(40%) with Heart the strongest commercial service (29%).<br />

Importantly, <strong>The</strong> <strong>Breeze</strong> was the number one choice for listeners wanting local news and<br />

information, with 19% choosing our service compared to BBC Radio Wiltshire (14%) and<br />

Heart (13%).<br />

17% of respondents said that <strong>The</strong> <strong>Breeze</strong> was their first or second choice radio station.<br />

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<strong>The</strong> <strong>Breeze</strong> is a highly rated for news and speech<br />

As well as being the station that listeners would tune into for local news and information, the<br />

majority of respondents (75%) rated the news and speech content on the station as “Very<br />

Good” or “Fairly Good”.<br />

<strong>The</strong> <strong>Breeze</strong> plays a popular mix of music<br />

24% of listeners said that <strong>The</strong> <strong>Breeze</strong> was ‘very much in tune’ with their musical tastes. A<br />

(high) 80% of respondents felt that <strong>The</strong> <strong>Breeze</strong> was ‘very much’ or ‘fairly’ in tune with their<br />

musical tastes.<br />

<strong>The</strong> format of <strong>The</strong> <strong>Breeze</strong> playing ‘a broad variety of songs from a mix of decades’ was (at<br />

62%) significantly more highly rated than more niche formats focusing on one or two<br />

decades.<br />

<strong>The</strong> <strong>Breeze</strong> provides much wanted local content<br />

Respondents were asked to rate the importance of local news and information content on<br />

local stations, scoring each feature out of ten.<br />

Local news scored a (high) 7.4 amongst all adults 25+, with 7+ appeal in all demographics.<br />

Similarly high (7.2) was local weather, and travel (6.5) and what’s on (6.3) both had broad<br />

popular appeal. All of these items feature strongly on <strong>The</strong> <strong>Breeze</strong>.<br />

Local sports news at 4.1 was the least popular feature and for this reason is only included on<br />

<strong>The</strong> <strong>Breeze</strong> in news bulletins (when merited).<br />

g. Full data tables have been submitted in confidence.<br />

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7. Evidence of Support<br />

Summarise (in no more than 500 words) any evidence of support for your application from your potential<br />

audience or from prospective local advertisers.<br />

Whilst <strong>The</strong> <strong>Breeze</strong> has only been broadcasting for just over a year, response has already been<br />

very positive. Perhaps the purest illustration of the support the service has received is the<br />

growing number of clients that are prepared to commit to investing money in advertising on<br />

the station.<br />

Advertiser Melvin Davies, a director of Davies & Latcham Estate Agents in <strong>Warminster</strong>,<br />

underpins our market research stating that “advertising on <strong>The</strong> <strong>Breeze</strong> has proved a very<br />

effective means of generating fresh business” and pointing out that the service “is proving a<br />

great asset locally…a truly locally focussed and professional radio station.”<br />

James Baber, Director of Premiere Installations, <strong>Warminster</strong>, gave us a vote of confidence<br />

saying “Celador have given the stability that our local radio station has needed. <strong>The</strong> <strong>Breeze</strong><br />

is clearly a professionally run operation that truly reflects what’s happening in our local<br />

community. As a local business it is reassuring to know that the station is now being<br />

managed well.”<br />

Colonel Peter Merriman MBE, Commandant of the <strong>Warminster</strong> Garrison, partnered with<br />

<strong>The</strong> <strong>Breeze</strong> for the primary Garrison Community Engagement event - the <strong>Warminster</strong><br />

Fireworks. He says “the publicity you provided undoubtedly made a significant contribution<br />

to this success.”<br />

Ian Pearce is Club Secretary for Frome Town FC – “As a community based football club we<br />

believe it important for a local radio station to be focussing on events and news from the<br />

local areas – and that’s exactly what <strong>The</strong> <strong>Breeze</strong> have done since launching in the Frome<br />

and West Wilts area. Losing <strong>The</strong> <strong>Breeze</strong> would not be in the best interests of the local<br />

community – especially with the work they have already done to engage the local<br />

population to give them back a radio station they can be proud of.”<br />

Paul Batchelor, the Deputy Mayor of <strong>Warminster</strong> wrote to support our application stating<br />

that our news had “a sincere commitment to professionalism” and that “involvement with<br />

the town Fireworks and other events has been welcomed, delivering and promoting these<br />

to a wider audience.”<br />

“It has been a relief to get a station that has hung around for more than a few months! I<br />

like the music and the news service is first class” praised Jude McCallin of <strong>The</strong> Corn Flower<br />

Florists in <strong>Warminster</strong>.<br />

Frome carpet retailer Kevin Corcoran felt that “Celador has bought some much needed<br />

professionalism to a radio station that had, quite clearly been suffering from a lack of<br />

investment for some time.”<br />

Colin Doolan of Dimensions Tiles and Bathrooms (Frome and Trowbridge) told us “the news<br />

service is very good and during the bad weather <strong>The</strong> <strong>Breeze</strong> was a great source of<br />

information”.<br />

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Martin Bradbury of Northwood UK (<strong>Warminster</strong> and Trowbridge) said “In these challenging<br />

times <strong>The</strong> <strong>Breeze</strong> is providing a good value way of reaching new customers.”<br />

Claire Ellis of Renrod summed up <strong>The</strong> <strong>Breeze</strong> saying “All the news is local to us, all the<br />

music is up beat and easy listening. Since being bought by Celador the station has gone<br />

from strength to strength”.<br />

[Word count: 498/500]<br />

Declaration<br />

Applicants are required to conclude their submission by responding to the following question:<br />

Do you confirm that, to the best of your knowledge and belief:<br />

a) the applicant is not a disqualified person in relation to the licence by virtue of the provisions of section 143(5)<br />

of the Broadcasting Act 1996 (relating to political objects);<br />

b) no director or person concerned directly or indirectly in the management of the company or the applicant<br />

group is the subject of a disqualification order as defined by section 145(1) of the Broadcasting Act 1996;<br />

c) no person involved in the application has been convicted within the past five years of an unlicensed<br />

broadcasting offence and that the applicant will do all it can to ensure that no person so convicted will be<br />

concerned in the provision of the service, the making of programmes included in it, or the operation of a radio<br />

station if the applicant is granted a licence; and<br />

d) any matters which might influence <strong>Ofcom</strong>'s judgement as to whether the directors and substantial<br />

shareholders involved in the application are fit and proper persons to participate in a radio licence have been<br />

made known to <strong>Ofcom</strong>?<br />

Yes.<br />

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