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The Arrow - Ofcom Licensing

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Application for the new local<br />

radio licence for Manchester<br />

1


GENERAL INFORMATION<br />

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

This must be a single legal entity: either a body corporate or a named individual person. If the former, a copy<br />

of the certificate of incorporation must be included with the application.<br />

<strong>The</strong> <strong>Arrow</strong> (Manchester) Limited<br />

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

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

Daniel Owen, Director of Regulatory and Public Affairs, Chrysalis Radio.<br />

(020) 7470 1065<br />

<strong>The</strong> Chrysalis Building<br />

13 Bramley Road<br />

London<br />

W10 6SP<br />

daniel.owen@chrysalis.com<br />

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

106.1 <strong>The</strong> <strong>Arrow</strong><br />

2


SECTION 105(A): ABILITY TO MAINTAIN PROPOSED SERVICE<br />

1. Ownership And Control Of Company Which Will Operate <strong>The</strong> Licence<br />

(a) Board of Directors<br />

(i) Provide the name, occupation, other directorships, other media interests, backgr ound and relevant media<br />

experience of each director (executive and non-executive), including the proposed chairperson.<br />

Non-Executive Chairman<br />

Damian Walsh<br />

Occupation: Chief Executive, Mondiale Publishing<br />

Other directorships: Mondiale Publishing Limited<br />

Galaxy Radio Manchester Limited<br />

British Entertainment & Dance Association Limited<br />

Total Production Magazine Limited<br />

Night Magazine Limited<br />

Bar Exhibitions Limited<br />

Momu Limited<br />

Damian Walsh brings to 106.1 <strong>The</strong> <strong>Arrow</strong> a lifelong involvement in Manchester, a deep<br />

passion for the music industry, significant experience of commercial radio, an<br />

understanding of working in a regulated environment and a strong track record of<br />

managing a profitable media business.<br />

Damian was born in Manchester in 1962 and after gaining a degree in economics at<br />

Cambridge University returned to his native city to start a publishing company based on<br />

a deep commitment to music-based entertainment. Twenty years on, Mondiale<br />

Publishing, of which he is Chief Executive, publishes nine magazines around the world<br />

allied to a number of exhibitions and awards programmes in the UK and Europe, all<br />

from its South Manchester offices.<br />

Mondiale produces the leading magazines for the UK club industry and for the global<br />

live music and touring industries – Night Magazine and Total Production International<br />

respectively. While Night focuses on the dance music sector, Total Production is<br />

dedicated to coverage of the whole live music industry, which has as its base the major<br />

US and UK rock tours.<br />

Allied to the media business, Damian represents Mondiale on the National Council of<br />

the Production Services Association, which looks after the interests of the touring concert<br />

production industry and he sits on the National Committee of the British Entertainment &<br />

Dance Association. Both organisations represent their industries at government level<br />

and with Local Authorities on the myriad of regulations that govern both the concert<br />

and club sectors.<br />

Damian was a non-executive director of Galaxy in Yorkshire for five years, enjoying a<br />

hugely successful period for the Leeds-based station before becoming non-executive<br />

Chairman of Galaxy 102 in Manchester in 2004.<br />

3


A huge Oasis fan, Damian lists ‘What’s the Story Morning Glory’ as his favourite rock<br />

album, and their last appearance at Maine Road in July 2005 as the best gig he’s ever<br />

attended.<br />

4


Executive Director<br />

Phil Riley<br />

Occupation: Chief Executive, Chrysalis Radio<br />

Other directorships:<br />

Chrysalis Group plc<br />

Chrysalis Digital Radio Limited<br />

Chrysalis Holdings Limited<br />

Chrysalis Media Plus Limited<br />

Chrysalis Radio Limited<br />

Chrysalis Radio Holdings Limited<br />

Chrysalis Radio London Limited<br />

Chrysalis Radio Midlands Limited<br />

Chrysalis Radio North West Limited<br />

Chrysalis Radio Online Limited<br />

Chrysalis Radio Yorkshire Limited<br />

Digital News Network Limited<br />

Faze Three (East Midlands) Limited<br />

Galaxy Radio Birmingham Limited<br />

Galaxy Radio East Midlands Limited<br />

Galaxy Radio Limited<br />

Galaxy Radio Manchester Limited<br />

Galaxy Radio North East Limited<br />

Galaxy Radio Yorkshire Limited<br />

Heart Radio Limited<br />

LBC 1152 Limited<br />

LBC Radio Limited<br />

London Broadcasting Company 1996 Limited<br />

MXR East Midlands Limited<br />

MXR Holdings Limited<br />

MXR Limited<br />

MXR London Limited<br />

MXR London Holdings Limited<br />

MXR North East Limited<br />

MXR North West Limited<br />

MXR Scotland Limited<br />

MXR Wales and the West Limited<br />

MXR West Midlands Limited<br />

MXR Yorkshire Limited<br />

<strong>Arrow</strong> Digital Limited<br />

<strong>The</strong> <strong>Arrow</strong> (Glasgow) Limited<br />

Central Region News Radio Limited<br />

North East News Radio Limited<br />

North West News Radio Limited<br />

RadioCentre Limited<br />

Digital Radio Development Bureau Limited<br />

RAJAR Limited<br />

A huge fan of rock music, it was Phil’s belief that UK radio was neglecting adult rock<br />

music fans which led him to spearhead the development of <strong>The</strong> <strong>Arrow</strong> as a digital<br />

format for the MXR consortium, in which Chrysalis is a key shareholder. Chrysalis’s<br />

subsequent decision to roll out <strong>The</strong> <strong>Arrow</strong> beyond MXR’s regions and into London and<br />

Central Scotland highlights both a corporate and personal commitment to the concept<br />

behind <strong>The</strong> <strong>Arrow</strong>.<br />

Manchester born and bred, Phil has an outstanding record of commercial radio<br />

management since joining BRMB in 1980 as a graduate trainee. After hugely successful<br />

stints at Midlands Radio and XTRA-AM in Birmingham, and Radio Aire and Magic 828 in<br />

Leeds, Phil joined Chrysalis Radio as a founding director in 1994. As Managing<br />

Director/Launch Director, Phil masterminded the launch and start-up operational phase<br />

of both 100.7 Heart FM in the West Midlands and Heart 106.2 in London. He has played a<br />

major role in establishing Chrysalis Radio as one of the leading new entrants in the UK<br />

radio industry, and was promoted to the role of Chief Executive in June 1999.<br />

Phil is also active in the development of digital radio. He is Chairman of the MXR<br />

multiplex company and also sits on the board of the Digital Radio Development Bureau<br />

(DRDB).<br />

Phil has had an active role on a number of wider industry bodies. He has held full board<br />

membership of the RadioCentre (previously the CRCA) for 8 years, having previously<br />

also been a board director of the RAB.<br />

As one of the world’s biggest Bruce Springsteen fans, Phil’s happiest moment was<br />

watching <strong>The</strong> Boss play ‘Independence Day’ on 4 July at Wembley Stadium. His<br />

favourite rock album of all time is ‘Hotel California’ by <strong>The</strong> Eagles.<br />

5


Executive Director<br />

Don Thomson<br />

Occupation: Commercial and Operations Director, Chrysalis Radio<br />

Other directorships: <strong>Arrow</strong> Digital Limited<br />

Chrysalis Productions Limited (resigned 21.01.99)<br />

Chrysalis Media Plus Limited<br />

Chrysalis Radio Limited<br />

Chrysalis Radio London Limited<br />

Chrysalis Radio Midlands Limited<br />

Chrysalis Radio North West Limited<br />

Chrysalis Radio Online Limited<br />

Chrysalis Radio Yorkshire Limited<br />

Faze Three (East Midlands) Limited<br />

Galaxy Radio Birmingham Limited<br />

Galaxy Radio Limited<br />

Galaxy Radio Manchester Limited<br />

Galaxy Radio North East Limited<br />

Galaxy Radio Yorkshire Limited<br />

Galaxy Radio Wales and the West Limited<br />

(resigned 18.12.00)<br />

Heart Radio Limited<br />

Radio Advertising Bureau Ltd<br />

Hit 40 UK Ltd<br />

Don has a successful record of media sales and commercial management – including<br />

10 years’ commercial experience in Manchester – having held senior management<br />

positions in both radio and television sales over a number of years. Don started his<br />

media career in 1979 as a Local Sales Executive at Piccadilly Radio in Manchester,<br />

before moving to LWT in 1981, where he was responsible for managing the Regional<br />

Sales operation for seven years. In 1988 he returned to Piccadilly Radio as Sales and<br />

Marketing Director. An active member of the Manchester Publicity Association, he<br />

became Chairman of the Association in 1988-1989.<br />

In October 1989, Don moved to London to set up Yorkshire Television’s radio sales arm<br />

as part of Media and Airtime Sales Ltd. In his four years with the Radio Sales Company<br />

he worked with numerous start-up radio stations including Atlantic 252 and Jazz FM, and<br />

handled the national sponsorship and promotions contract for Transworld<br />

Communications.<br />

In June 1994 he joined Chrysalis where, as Sales Director of 100.7 Heart FM and Heart<br />

106.2, he was responsible for the establishment of the stations’ local, regional and<br />

national sales functions. In December 1995 he was appointed to the Chrysalis Radio<br />

Board as Group Sales Director. In June 1997 he became Commercial Director of<br />

Chrysalis Radio.<br />

Don was an active board member of the Radio Advertising Bureau and is chairman of<br />

JICRIT. He is also chairman of Hit 40 UK, the company formed to run the new<br />

commercial radio music chart, and recently became the commercial radio industry<br />

representative on the board of the BCAP.<br />

6


Canned Heat’s ‘Canned Heat Cookbook’ is Don’s favourite rock album, and Queen’s<br />

performance at the Apollo in Manchester in 1979 was the best concert he’s ever been<br />

to.<br />

7


Executive Director<br />

Alan Carruthers<br />

Occupation: Programme Director, <strong>The</strong> <strong>Arrow</strong><br />

Other directorships: Chrysalis Radio Midlands Ltd<br />

Galaxy Radio Birmingham Ltd<br />

Born and raised in North Yorkshire, Alan spent the first half of his working life in the<br />

entertainment industry, managing a variety of venues around the UK. In 1989 he moved<br />

over to radio, joining the fledgling XTRAam in Birmingham as a Producer, becoming<br />

Programme Controller in 1990, a position he held for the following four years.<br />

In 1994, Alan was recruited by Chrysalis as Operations Manager for the launch of 100.7<br />

Heart FM, the company’s first radio station. Alan became Programme Director in 1999,<br />

and in the following 6 years the station achieved record figures for both audience and<br />

revenue.<br />

In 2001, Alan also took on the responsibility for programming <strong>The</strong> <strong>Arrow</strong> on digital radio,<br />

a job he now does exclusively. Alan has been <strong>The</strong> <strong>Arrow</strong>’s guiding force since its launch<br />

on digital. He turned the unique adult rock format into a reality, applying his incredible<br />

passion for, and knowledge of, rock music, as well as his formidable skills in identifying<br />

and motivating presenting talent. <strong>The</strong> popularity of <strong>The</strong> <strong>Arrow</strong> on digital, and the loyalty<br />

of its following, is due primarily to Alan’s devotion to distinctive, high quality rock music<br />

radio. He has instilled in the digital service the characteristics of authority and maturity<br />

that will be <strong>The</strong> <strong>Arrow</strong>’s hallmarks on FM, as well as introducing innovative features –<br />

such as <strong>The</strong> <strong>Arrow</strong> Pocket Guide to... – that have earned <strong>The</strong> <strong>Arrow</strong> respect as more than<br />

just an all-music digital radio service.<br />

Since <strong>The</strong> <strong>Arrow</strong>’s Programme Director role became a full-time job last year, Alan has<br />

been able to deploy greater resources to developing the output of the digital service.<br />

This has included a stronger presenter presence on-air, more music features, greater<br />

emphasis on the regional components of the service and the development of more<br />

specialised strands of programming such as Captain America, a weekly programme<br />

devoted to all things Americana.<br />

As testament to his creative and programming talents, for both Heart and <strong>The</strong> <strong>Arrow</strong>,<br />

Alan was voted Commercial Radio Programmer Of <strong>The</strong> Year at the CRCA ntl Awards in<br />

2003.<br />

<strong>The</strong> <strong>Arrow</strong> owes its authenticity and credibility to Alan’s expertise and passion for great<br />

rock music. His guidance will be essential to <strong>The</strong> <strong>Arrow</strong> in establishing itself as the home<br />

of rock music in Manchester.<br />

Alan’s favourite rock album is ‘American Beauty’ by <strong>The</strong> Grateful Dead, and the best<br />

rock gig he’s ever been to was the Rolling Stones concert in Manchester in 2004.<br />

8


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

specific individuals in mind).<br />

We intend to appoint a Managing Director/Sales Director for the station after the award<br />

of the licence, who would also be a member of the Board of Directors.<br />

9


(b) Proposed Investors and Shareholding Structure<br />

Full details of the proposed 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 />

Name of<br />

Investor<br />

Chrysalis Group plc<br />

Address<br />

<strong>The</strong> Chrysalis Building<br />

Bramley Road<br />

London, W10 6SP<br />

% of total<br />

shares<br />

% of total<br />

investment<br />

100% 100%<br />

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

other etc.).<br />

Classes of<br />

share capital<br />

Number<br />

Par<br />

value<br />

Issue price<br />

(if different)<br />

Voting 2,000,000 £1 n/a<br />

Non-voting<br />

Preference<br />

Other (specify)<br />

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

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

Name of investor Number of shares Class of share Price per share<br />

Chrysalis Group plc 2,000,000 Ordinary voting £1<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<br />

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

Not applicable.<br />

10


(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 />

(a) Advertising agencies;<br />

None.<br />

(b) Newspapers;<br />

None.<br />

(c) Other broadcasting interests;<br />

Chrysalis wholly owns the companies holding the local analogue licences<br />

broadcasting as Heart 106.2 (Greater London), 100.7 Heart FM (West Midlands), Heart<br />

106 (East Midlands), Galaxy 102 (Manchester), Galaxy 102.2 (Birmingham), Galaxy 105<br />

(Yorkshire), Galaxy 105-106 (North East of England), LBC 97.3 (Greater London) and LBC<br />

News 1152 (Greater London).<br />

Chrysalis is also a 39.1% shareholder in MXR Holdings Ltd which, through its subsidiary<br />

MXR Ltd, owns and operates the local digital radio multiplexes for North East England,<br />

South Wales & the Severn Estuary, the West Midlands, North West England and Yorkshire.<br />

It is also a 7.5% shareholder in Now Digital (East Midlands) Ltd, which owns and operates<br />

the local digital radio multiplexes for Nottingham and Leicester.<br />

Chrysalis holds a Digital Sound Programme Service licence, under which it broadcasts<br />

Heart, Galaxy, <strong>The</strong> <strong>Arrow</strong> and LBC across various local digital radio multiplexes.<br />

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

None.<br />

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

None.<br />

(f) Local authorities;<br />

None.<br />

(g) Other publicly-funded bodies.<br />

None.<br />

11


2. Financial and Business Plan<br />

(a) Overall Financial Strategy<br />

Provide a concise summary of how the applicant considers it is able to establish and maintain, throughout the<br />

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

<strong>The</strong> <strong>Arrow</strong> will be owned and operated by Chrysalis Group, a major FTSE-listed media<br />

company and the third largest radio operator in the UK. Throughout our history we have<br />

consistently out-performed our industry peers because of our focus on quality and<br />

service. We would not be applying for this licence if we didn’t think it would enhance<br />

our existing portfolio and our financial strength.<br />

Chrysalis is known in the City and the advertising industry for the strength of its senior<br />

management team. As Dresdner Kleinwort analyst Richard Menzies-Gow said: “We<br />

believe Chrysalis Radio management is among the most progressive thinking in the<br />

industry, and we expect it to fully exploit any attractive opportunities.” We operate<br />

across a variety of successful brands and formats and we believe that <strong>The</strong> <strong>Arrow</strong> is a<br />

viable, distinctive format that will increase the overall share of commercial radio listening<br />

by providing a unique new choice for Manchester.<br />

Our success in launching new services in major markets is on record. Galaxy 105-106 was<br />

the most successful launch of an analogue regional service ever. We outperformed our<br />

own stretching targets by being true to the brand and focused in our approach. <strong>The</strong> first<br />

RAJAR survey for Galaxy 105-106 gave us a 19% reach. From that point on the station<br />

grew and only now – seven years on – is it levelling out, having spent much of the last<br />

five years as the biggest commercial station in the North East.<br />

We will use this hard-earned expertise to repeat that success with <strong>The</strong> <strong>Arrow</strong> in<br />

Manchester.<br />

Manchester has been part of the Chrysalis Radio success story for eight years now.<br />

Since the beginning of 1998, when we launched Galaxy 102 following its rebrand from<br />

Kiss 102, the station has seen its reach grow by nearly 93%, from 228,000 listeners to<br />

440,000 listeners per week, and its market share has more than doubled from 2.6% to<br />

5.6% (RAJAR Q4 1997 vs Q2 2006). In the year prior to our acquisition, revenues for the<br />

station were £1.4m, with a loss of around £200,000. In 2005, revenues were £3.7m, with<br />

profits at £600,000. Significantly, all this has been achieved without sacrificing the<br />

relatively specialised appeal of Galaxy’s dance format.<br />

Our ability to establish and maintain the service depends on our ability to attract an<br />

audience and sell that audience to the marketplace. In an ever fragmenting media<br />

marketplace tighter, under-served demographics are of great appeal to the major<br />

advertisers and agencies. We anticipate the audience to be slightly older than<br />

commercial radio in the region. <strong>The</strong> current stations provide a predominantly femalebiased<br />

under-40 demographic (see Table).<br />

12


Station<br />

Average Age by reach<br />

(Source: RAJAR Q2 2006)<br />

Galaxy 26<br />

Key 103 30<br />

Century 31<br />

Capital Gold 37<br />

Smooth 39<br />

Magic 44<br />

We believe our strength and experience will mean we are more than capable of selling<br />

this audience locally as a valuable demographic to offset the challenge of the older<br />

male audience to national agencies.<br />

This is supported by the appreciation in the advertising industry of the strength of our<br />

management approach at Chrysalis, and our emphasis on providing the best possible<br />

service for advertisers. As Jonathan Barrowman, Head of Radio at Initiative, told Brand<br />

Republic: “<strong>The</strong> music policy and general programme development links well with its<br />

skills at building brands that are both consumer-facing and advertiser-facing. Not all<br />

advertisers and agencies are making the most of what Chrysalis has to offer but I'm sure<br />

that will change in 2006.”<br />

Whilst advertising executives were once cynical about the value of a station like Galaxy<br />

for instance, which was unlikely to be their own station of personal choice, they are<br />

more likely to be in our target demographic. We can be confident of a positive<br />

response to <strong>The</strong> <strong>Arrow</strong> from local advertisers, as our clients will also be listeners.<br />

Marketing<br />

<strong>The</strong> ethos of Chrysalis is one of creativity and innovation. We have a significant track<br />

record in making our marketing budget work hard. Our track record across our brands<br />

demonstrates our ability to create high levels of listener awareness for <strong>The</strong> <strong>Arrow</strong> and,<br />

more importantly, to convert awareness into listening, listening into revenue and<br />

revenue into profit. Our business plan commits to a marketing spend of nearly £1.7<br />

million in the first three years of the licence.<br />

<strong>The</strong> <strong>Arrow</strong> is already heard in the North West on the MXR multiplex. We pioneered the<br />

format because we believe in it. Last year we increased the resource behind the service<br />

appointing a full-time senior level Programme Director to oversee the output. Having<br />

existing digital carriage in the region future-proofs <strong>The</strong> <strong>Arrow</strong> for the digital age. Our<br />

confidence in Manchester as a perfect market for <strong>The</strong> <strong>Arrow</strong> will be cemented by our<br />

commitment to move <strong>The</strong> <strong>Arrow</strong>’s national digital network to the North West within a year<br />

of the launch of the FM service. If our application for the Liverpool licence is successful,<br />

as well as this one, this would clearly allow us to share back-office resources between<br />

the two stations, thereby reducing the cost base for both. Production of the output for<br />

<strong>The</strong> <strong>Arrow</strong>’s digital network would be shared between the two FM stations, depending on<br />

where we felt the most appropriate talent for each show was based. If our Liverpool bid<br />

is unsuccessful, the relocation of <strong>The</strong> <strong>Arrow</strong> Digital to Manchester would clearly enhance<br />

13


the city’s reputation as a major media and cultural centre in the UK. It will also<br />

strengthen the output and commercial appeal of both the FM and digital stations. <strong>The</strong><br />

<strong>Arrow</strong> on digital will be more attractive by having access to content that we cannot yet<br />

justify providing on a digital-only basis.<br />

This will allow <strong>The</strong> <strong>Arrow</strong> to build a more stable audience nationwide, which will<br />

enhance the reputation of the brand overall with national advertisers. <strong>The</strong> <strong>Arrow</strong> is<br />

guaranteed continuing carriage on the MXR North West multiplex and its presence on<br />

FM will therefore also help to drive digital radio take-up in the region.<br />

Radio is at risk of becoming a stale medium if it fails to offer something that matches<br />

digital media for unpredictability, personality and unique appeal – in short, radio has to<br />

be sexy again. This is not just an issue for youth-targeted brands. Devices like iPods<br />

have universal appeal and, as we have already seen with digital radio, it is more likely<br />

to be those in their 30s, 40s and 50s who have the financial means to be early<br />

technology adopters. <strong>The</strong> <strong>Arrow</strong> is designed to sound more adventurous and more<br />

passionate than the radio stations of today. <strong>The</strong> long-term prospects of the radio<br />

industry as a whole will depend on stations like <strong>The</strong> <strong>Arrow</strong> to re-invent the sex appeal of<br />

the medium.<br />

Divisional Strategy<br />

Chrysalis’ divisional strategy for radio is to be the most exciting and successful of the<br />

UK’s Big Three Radio Groups, by owning and operating stations with high profit potential<br />

in major markets, and by exploiting our geographical spread of assets and our brandled<br />

approach in both analogue and digital.<br />

We supply a whole range of services to our stations, including a high level of divisional<br />

management support with expertise in sales, marketing, programming, research,<br />

engineering, HR and finance, all of which are constantly available to local managers.<br />

We also use all of our regional agency sales teams – amounting to over 60 professionals<br />

– to sell all of our stations across agencies throughout the UK. This level of sales support<br />

would be available to <strong>The</strong> <strong>Arrow</strong> from the outset. All of our stations are linked by a<br />

sophisticated IT network, with the ability to transfer audio throughout the network<br />

instantaneously – <strong>The</strong> <strong>Arrow</strong> would immediately be connected to this system. In<br />

particular, this system allows all of our stations the ability to access guests from our<br />

London headquarters, where both Heart 106.2 and LBC are based. <strong>The</strong> size of these two<br />

stations, and their formats, means the throughput of guests is constant (be they<br />

politicians, news makers, showbiz, music, film stars etc), and many will have some<br />

relevance to <strong>The</strong> <strong>Arrow</strong>, allowing the Manchester output to be enhanced because of<br />

this network effect.<br />

<strong>The</strong> final element in Chrysalis Radio’s strategy which directly impinges on <strong>The</strong> <strong>Arrow</strong> is<br />

our digital vision. We have extended all of our current analogue brands onto digital<br />

platforms, and for our music brands in particular we have expanded coverage so they<br />

all now broadcast to most of the major UK markets, creating a quasi-national network.<br />

We have also invested heavily in developing <strong>The</strong> <strong>Arrow</strong> as a format new to radio, but<br />

one which broadens choice in the markets where it is currently available in digital<br />

(which includes the Sky platform). An FM presence for <strong>The</strong> <strong>Arrow</strong> would give the digital<br />

network access to richer, more varied original content, boosting the appeal of the<br />

nation-wide digital service. This would obviously have major benefits for the Manchester<br />

14


FM licence, as it would allow us to attract national advertisers by emphasising the<br />

network value of their involvement, and also allow us to attract talent to work for the<br />

station because of its ability to offer national exposure. Relationships with the record<br />

industry, vital for this format, would also be bolstered by the inter-linking of digital and<br />

analogue services.<br />

Moreover, we recognise the challenge to radio posed by developments in new<br />

technology. Mobile devices, from the iPod to the integrated multimedia sets of the<br />

future, risk taking from radio the mantle of providing portable audio entertainment and<br />

information. As an industry, we need to address this challenge and Chrysalis believes<br />

that the key to our continued success is in the strength of our content. Radio continues<br />

to be best placed to provide live entertainment and information that is genuinely<br />

spontaneous and unpredictable, that is locally relevant, and that broadens the listener’s<br />

horizons rather than making them hear things they already know. <strong>The</strong> <strong>Arrow</strong> is part of<br />

our strategy to preserve the unique appeal of broadcast radio.<br />

In the modern information age, commercial radio has never faced more challenges to<br />

its place in the media world. <strong>The</strong> combination of both compelling and distinctive<br />

content, cross-platform access and solid marketing support are essential to any new<br />

broadcasting venture. We believe they make <strong>The</strong> <strong>Arrow</strong> the right choice for<br />

Manchester.<br />

<strong>The</strong> rationale for two applications<br />

Our analysis of the Manchester radio market showed that, where it is possible to discern<br />

a clear under-served gap in such a crowded and competitive environment, it is<br />

amongst listeners over 35. Two unserved genres, in particular, are apparent. If there is<br />

any mainstream music format still absent from Manchester, it is surely classic rock – and<br />

our research for <strong>The</strong> <strong>Arrow</strong> demonstrates clearly that this is the one music genre that<br />

offers a unique combination of appeal and broadening choice. However, it is equally<br />

clear that Manchester lacks any kind of local commercial talk radio format. Our<br />

submission of two separate bids for this licence reflects our belief that these two options<br />

are equally valid, and each represents a real opportunity to provide a service that is<br />

both popular and distinctive. We are equally committed to both propositions. Each<br />

offers a compelling business rationale, and we would be proud to offer either GMBC or<br />

<strong>The</strong> <strong>Arrow</strong> to the listeners of Manchester.<br />

15


(b) Funding<br />

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

(i) Share capital<br />

(ii) Loan stock<br />

(iii) Leasing/HP facilities (capital value)<br />

(iv) Bank overdraft<br />

(v) Grants and donations<br />

(vi ) Other (please specify)<br />

Where relevant, provide information on:<br />

(i) Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms ) ;<br />

(ii) Assets leased.<br />

All of the funding identified above should be confirmed to the applicant. Explanation should be provided if<br />

this is not the case.<br />

£ £<br />

At launch At peak<br />

(i) Share capital 750,000 2,000,000<br />

(ii) Loan stock/medium term borrowing<br />

(iii) Leasing/HP facilities (capital value)<br />

(iv) Bank overdraft<br />

(v) Grants and donations<br />

(vi) Other (please specify)<br />

TOTAL 750,000 2,000,000<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 just ifiable. <strong>The</strong> applicant<br />

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

<strong>The</strong> projections must include:<br />

(i) Profit and loss accounts<br />

(ii) Balance sheets<br />

(iii) Cash-flow forecast s<br />

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

supplied on an Excel spreadsheet or similar, with any accompanying guidance notes.<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 />

Financial projections have been supplied in confidence.<br />

16


(d) Audience Projections<br />

Provide the following information:<br />

(i) <strong>The</strong> projected adult (aged 15+) population of the Total Survey Area (TSA) within which it is intended to<br />

measure the listenership of the service;<br />

2,327,000<br />

(ii) Projections for listenership ratings (e.g. weekly reach, average weekly hours of listening) over the fir st three<br />

years of the service, with detailed demographic br eakdowns as appropriate;<br />

Year 1 Year 2 Year 3<br />

15+ TSA Pop’n 2,327,000 2,327,000 2,327,000<br />

15+ Reach % 11 13 14<br />

15+ Reach 256,000 303,000 326,000<br />

15+ Avg Hours 6.0 7.0 8.0<br />

15+ Total Hours 1,536,000 2,121,000 2,608,000<br />

<strong>The</strong> <strong>Arrow</strong> is targeted specifically at those aged 40-59, with a slight male skew in its<br />

appeal. We should expect this to be reflected in the audience profile more directly in<br />

the second year, although initially we anticipate a slightly younger profile bearing in<br />

mind the increased propensity for immediate trial of new media in younger age groups.<br />

Year One Population Reach Reach % Avg Hours Hours<br />

15+ 2,327,000 256,000 11.0 6.0 1,536,000<br />

15-24 399,000 32,718 8.2 3.5 114,513<br />

25-34 365,000 40,880 11.2 4.5 183,960<br />

35-44 453,000 59,538 13.1 7.5 447,519<br />

45-54 358,000 48,939 13.7 7.9 386,615<br />

55-64 320,000 40,960 12.8 5.8 238,563<br />

65-74 432,000 32,966 7.6 5.0 164,830<br />

75+ 1,133,000 135,406 12.0 6.6 893,679<br />

Male 1,194,000 120,594 10.1 5.3 642,321<br />

Female 1,168,000 149,436 12.8 7.2 1,072,698<br />

40-59 Male 2,327,000 256,000 11.0 6.0 1,536,000<br />

(iii) <strong>The</strong> expected impact of the proposed service on existing services, in listenership terms;<br />

As the only station specifically targeting mature adults with a male bias, we expect<br />

listening to be attracted from a range of existing stations which currently only partially<br />

satisfy our core market’s needs. People who love Adult Rock can only find it elsewhere<br />

17


on the dial as a minor ingredient within generalist formats. <strong>The</strong> following table shows the<br />

percentage of respondents to our survey research who said they would listen every day<br />

to <strong>The</strong> <strong>Arrow</strong>, having had a concept description of the station read to them.<br />

All<br />

adults<br />

BBC<br />

R1<br />

BBC<br />

R2<br />

BBC<br />

R4<br />

BBC<br />

GMR<br />

Any<br />

BBC<br />

Any<br />

ILR<br />

Any<br />

Comm<br />

25% 23% 30% 15% 28% 24% 29% 27%<br />

<strong>The</strong>re is fairly strong demand among listeners to Radio 1 (23%) and Radio 2 (30%). ILR<br />

listeners and commercial listeners taken as a whole are also more likely to listen than<br />

the total 15+ sample.<br />

Based on these findings, we expect to increase commercial share in the area both by<br />

converting BBC listeners at a higher rate than existing ILR listeners, as well as by<br />

generating wholly new listening from Adult Rock fans who may have become<br />

disillusioned with radio altogether.<br />

(iv) <strong>The</strong> basis on which the estimates above have been calculated, and any assumptions taken into account.<br />

To provide a benchmark for our audience projections we used the findings from our<br />

quantitative research survey – including an assessment of responses to our questions<br />

about likelihood to listen. We anticipate a reach of 11% of 15+ adults in our first year,<br />

growing to 13% in Year 2 and eventually 14% in our third year.<br />

<strong>The</strong> projected reach in Year One is equivalent to over a third of the proportion of 15+<br />

adults who said in our survey that they would listen “every day” to a station which we<br />

described to them fully reflecting the proposed output of <strong>The</strong> <strong>Arrow</strong>. <strong>The</strong> 11% figure is<br />

also just over a quarter of the proportion of adults who said they would listen “often” to<br />

<strong>The</strong> <strong>Arrow</strong> after listening to a sample of its musical output. Even allowing for the<br />

overstatement of propensity to listen which direct questioning can generate, we regard<br />

this as a cautious and achievable estimate. Chrysalis Radio’s track record of successful<br />

launches – and of exceeding our projected audience levels – helps to underpin this<br />

confidence.<br />

Projected growth in reach in the second and third years of operation is based on our<br />

experience of new stations’ early audience patterns, and on our analysis of the<br />

performance of the region as a whole to date. A similar process has taken place for our<br />

assumptions about average hours.<br />

Compared with the established stations in this TSA, we believe our projections are<br />

realistic with a reach % figure that is under half of Key 103. We are also confident that<br />

our more focused programming will provide a firm foundation for listener loyalty,<br />

making 6.0 average hours a week very achievable. We have also noted that ‘All<br />

stations’ total hours per head of population on our core market of 40-59 year olds are<br />

2.5% higher in the TSA than among all adults (3.5% higher for 40-59 year old males). This<br />

illustrates that mature adults in our market are more loyal listeners to the medium.<br />

18


3. Transmission Proposals<br />

(i) Provide details of the transmission site you propose to use, under the following headings:<br />

(a) Name and National Grid Reference of site;<br />

(b) Height of site above Ordnance datum (in metres);<br />

(c) Height of transmitting aerial above ground level (in metres);<br />

(d) Radiated power in either o r both planes of polarisation, and aerial radiation pattern (if no aerial radiation<br />

pattern is submitted, it will be assumed without exception to be omni-directional). <strong>The</strong> applicant should confirm whether he believes that his intended mast aperture will be available, and<br />

whether , where required, planning permission can be obtained.<br />

Where appropriate, evidence to support this belief should be provided. Details of any negotiations which have<br />

been entered into with the site owner should also be provided.<br />

106.1 <strong>The</strong> <strong>Arrow</strong> proposes to use the following transmitter site:<br />

Site name Sunley Building<br />

Grid reference SJ 844 983<br />

Site height above<br />

Ordnance datum<br />

Aerial height above<br />

ground level<br />

44 metres<br />

130 metres<br />

Radiated power 500 Watts vertical + 500 Watts horizontal<br />

Antenna Omni-directional<br />

Arqiva has offered us site-sharing facilities at Sunley Building. No planning permission is<br />

required because the antenna will already be in place on the new structure at Sunley<br />

Building and the changes required are all accommodated within the building.<br />

Sunley Building, by virtue of its location, provides excellent coverage of Manchester and<br />

surrounding area.<br />

19


(ii) Please provide a detailed computer predicted map (in colour) of the coverage anticipated using the<br />

transmission site and parameters descr ibed above.<br />

20


(iii) Describe proposed arrangements for transmission provision (installation, maintenance and repair.<br />

Our transmission provider Arqiva is well resourced to install the complete system and<br />

subsequently maintain and monitor the transmission parameters. Telemetry and remote<br />

monitoring systems provide information back to its control centre e.g. carrier power,<br />

lack of modulation, etc. on a 24-hour basis. Its maintenance personnel are highly<br />

trained with the necessary spares and test equipment to resolve any problem quickly.<br />

Arqiva currently provides our Galaxy 102 transmission service and that of the other<br />

Manchester licensee (XFM) broadcasting from Sunley Building, so we are confident it<br />

can add our new service and provide our required on-going transmission to a high<br />

standard.<br />

(iv) What is the anticipated time-lapse between the award of licence and start of broadcasting?<br />

We anticipate that 106.1 <strong>The</strong> <strong>Arrow</strong> will commence broadcasting within six months of the<br />

award of the licence.<br />

21


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

4. Proposed Format<br />

106.1 THE ARROW<br />

Format Outline<br />

Station Name 106.1 <strong>The</strong> <strong>Arrow</strong><br />

Licence Area<br />

Greater Manchester (as defined in licence<br />

advertisement)<br />

Frequency 106.1 MHz<br />

Hours of Broadcast<br />

24 hours a day (at least 19 hours per day<br />

locally produced and presented)<br />

Definitions<br />

Speech<br />

Music<br />

Peak time(s)<br />

Daytime<br />

Locally made<br />

Character of Service<br />

Detail<br />

excludes advertising, trails, sponsor credits and the like<br />

and will be calculated over the period specified.<br />

percentages are calculated as a percentage of the total<br />

tracks broadcast in the specified period.<br />

refers to weekday breakfast and afternoon drive output,<br />

and weekend late breakfast.<br />

is 0600 to 1900 weekdays and 0800 to 1400 weekends.<br />

refers to output produced and presented from within the<br />

licence area and must include peak time.<br />

A CLASSIC ROCK MUSIC STATION FOR LISTENERS OVER 35 IN<br />

MANCHESTER.<br />

<strong>The</strong> music programming will be a unique mix of rock music, in its many and varied forms.<br />

Whilst the station will have broad appeal to listeners over 35, its core target audience will<br />

be 40-59s, with a male bias. <strong>The</strong> dominant constituent of this mix will be rock music from<br />

the 60s, 70s and 80s, together with a selection of more recently recorded songs. No<br />

recorded tracks less than five years old will be played although some more modern music<br />

may be included if it is part of concert footage or recorded live. At least one-third of the<br />

tracks played will never have made it into the UK Top 20. Specialist music programmes,<br />

taken from the rock genre, will be broadcast in non daytime hours, and will include regular<br />

concert and session music recorded in the Manchester area, including music from rock<br />

artists based in and around Manchester.<br />

<strong>The</strong> station will be music-led, but information of particular local relevance will be in<br />

evidence throughout programming, with bulletins containing local news running at least<br />

hourly during peak-time. National or regional news will feature at other times. Speech<br />

should account for not less than 10% of daytime output.<br />

22


5. Programming Philosophy<br />

(i) This sub-section of the application should take the form of a statement setting out the applicant's overall<br />

progr amming philosophy and vision for the radio service. (ii) <strong>The</strong> strategies which the applicant proposes to implement in regard to:<br />

• catering for the tastes and interests, general or particular, of persons living in the area;<br />

• broadening the range of local commercial services available in the area;<br />

• the provision of local material, if any;<br />

• the proportion of locally-made programming, if any<br />

should be set out in this section<br />

(iii) If appropriate, the applicant may also provide a typical programme by-programme weekday schedule,<br />

to give a flavour for the direction of the station.<br />

<strong>The</strong> <strong>Arrow</strong> is All Rock Radio.<br />

<strong>The</strong> <strong>Arrow</strong> was created first and foremost to be distinctive. It will be clearly and<br />

immediately different from the stations that already exist in the region – whether they be<br />

the younger focused Galaxy, Xfm or Key, the slightly older and female targeted Smooth,<br />

or the broader pop hits offerings of Century, Magic, Capital Gold and the small-scale<br />

stations. And it will be a station of distinction – easily identified for its quality and<br />

credibility.<br />

Manchester likes its commercial radio. This is due in part to the rich heritage of<br />

innovative commercial radio in the area and the expectation built up in the audience<br />

of an uncompromising approach to great local radio.<br />

<strong>The</strong> <strong>Arrow</strong> will further enrich the landscape with a format that will at last provide a high<br />

quality service for the under-served predominantly 35+ male audience. Put simply, the<br />

philosophy behind <strong>The</strong> <strong>Arrow</strong> is ‘All Rock Radio’. We will use our knowledge of this<br />

marketplace to deliver a service which we firmly believe will be a success from its first<br />

RAJAR and provide a service the like of which is not available on analogue radio<br />

anywhere in the country. By increasing choice for the listener we will increase the share<br />

for all commercial radio.<br />

‘Stuff you don’t hear on the radio any more.’<br />

<strong>The</strong> mission for <strong>The</strong> <strong>Arrow</strong> in Manchester is to give commercial listeners a new choice on<br />

FM. Our programming philosophy is very much listener-centric. Our listener, typically<br />

male in his forties, feels that his needs are not catered for on the radio. <strong>The</strong> <strong>Arrow</strong> will put<br />

on his radio the classic rock songs from his album collection - not just the songs that<br />

charted 30 years ago but the essential album tracks which were the soundtrack to his<br />

life. Predominantly we will concentrate on classic rock from the 60s, 70s and 80s. We will<br />

use our off-peak hours to go deeper into the sub-genres of rock with specialist shows<br />

and live performances. With Xfm now launched in Manchester, <strong>The</strong> <strong>Arrow</strong> will be a pure<br />

classic rock alternative. Whilst we recognise the appeal to many of our listeners of some<br />

modern rock, we need to recognise that this need is now catered for locally. Unlike our<br />

previous applications, therefore, our proposal for Manchester does not include any<br />

modern rock and music less than five years old will never feature on 106.1 <strong>The</strong> <strong>Arrow</strong>,<br />

unless it is recorded live and broadcast as part of our regular concert footage.<br />

<strong>The</strong> term rock can describe a wide variety of music. We choose to call it “guitar-based<br />

popular music with an edge”. ‘Rock’ is an extremely difficult term to define. Indeed, we<br />

23


think you would struggle to find a comprehensive written definition of any music genre –<br />

one that would both include everything in the genre, and exclude everything outside it.<br />

As with all genres, there will be tracks that are quintessentially, unarguably rock, and<br />

tracks that may straddle related genres, including pop, country, folk and blues. Even<br />

our suggested description of guitar-led music with an edge is clearly problematic. Not<br />

all rock is guitar-led. Not all guitar-led music is rock. <strong>The</strong> music on <strong>The</strong> <strong>Arrow</strong> on digital<br />

reflects the diversity and range of the genre but every single track is unarguably ‘rock’.<br />

<strong>The</strong> same would be true of <strong>The</strong> <strong>Arrow</strong> in Manchester.<br />

‘Rock’ is one of those terms that defy written definition, but you know them when you<br />

hear them. We have chosen not to offer a formal definition of ‘rock’ in our Format as this<br />

would allow us to reflect the full range of rock music without fear of being in breach of<br />

our Format by playing a track that was unquestionably ‘rock’ but which lay outside the<br />

formal definition we had laid down.<br />

If this approach were considered unsatisfactory by <strong>Ofcom</strong>, then we offer the following<br />

definition as the best fit that we can devise for <strong>The</strong> <strong>Arrow</strong>’s output:<br />

“’Rock’ is defined as a form of modern Western popular music that is commonly,<br />

but not exclusively, characterised by the predominance of electric or acoustic<br />

guitars and the presence of a strong drum-led backbeat. It includes a wide<br />

range of sub-genres, including classic rock, modern rock, soft rock, pop rock,<br />

country rock, rock ‘n’ roll, rhythm and blues, heavy metal, punk, progressive rock<br />

and Britpop. On <strong>The</strong> <strong>Arrow</strong>, classic rock will be the dominant sub-genre. Other<br />

sub-genres may feature throughout the day as well as in specialist shows offpeak.”<br />

Chrysalis is uniquely placed to provide quality rock music to the Baby Boomer<br />

generation. We have been a leading name in rock for over 35 years. Founded in the<br />

late 1960s to develop artists like Procol Harum, Jethro Tull and Ten Years After, Chrysalis,<br />

and other independent record labels like it, placed the UK at the forefront of rock music<br />

at just the time when the Baby Boomers were in their teens. <strong>The</strong>re can’t be many<br />

potential <strong>Arrow</strong> listeners who don’t have at least one Chrysalis album in their collection,<br />

from acts like Blondie, Pat Benatar, Huey Lewis & <strong>The</strong> News, Billy Idol, Spandau Ballet,<br />

Sinéad O’Connor or Ultravox.<br />

We know that the quality of a classic rock track is not always reflected in its popularity in<br />

the singles chart. Some of the greatest rock music of all time was produced in the age<br />

of vinyl, when the album was a work of art in its own right. Where pop acts of today<br />

might be focused on making accessible three-minute songs for radio airplay or<br />

download, the rock acts that will feature on <strong>The</strong> <strong>Arrow</strong> were driven by creative integrity<br />

and pure inspiration. We know that some of the greatest rock music – Stairway to<br />

Heaven, Brown Eyed Girl, Sympathy for the Devil, Back in the USSR, Sex and Drugs and<br />

Rock and Roll, and Thunder Road, to name just a few – never made it into the UK singles<br />

charts. Classic album tracks and songs that were never huge hits as singles already<br />

make up a large proportion of the music on <strong>The</strong> <strong>Arrow</strong> on digital. To bring to our<br />

listeners the full depth and range of experience that rock music has to offer, we are<br />

committed to having at least one-third of the music played on <strong>The</strong> <strong>Arrow</strong> be tracks that<br />

have never appeared in the UK Top 20.<br />

24


<strong>The</strong> <strong>Arrow</strong> will further distinguish its output with knowledgeable presentation from<br />

articulate and credible experts who will add depth to the music with their understanding<br />

of the playlist and the target audience.<br />

Live performance is central to the heritage and quality of rock, and live music will play<br />

an important role at <strong>The</strong> <strong>Arrow</strong>. Manchester’s pedigree in live music is too rich to ignore,<br />

as its ongoing role as a major cultural and entertainment centre. Our regular on-air<br />

guides to events and entertainment around the region will focus strongly on music<br />

performance. Mancheste r Rocks – a short-form feature including brief previews, reviews,<br />

venue guides and excerpts from interviews – will be at the heart of our commitment to<br />

keeping listeners informed about the region’s music scene. A longer, one-hour show,<br />

each Tuesday and Friday evening – Mancheste r Rocks – Live – will include more indepth<br />

features such as interviews and live sessions.<br />

Rock fans do not demand huge amounts of speech but when someone does talk there<br />

is an expectation of intelligence, knowledge, humour, understanding of, and respect<br />

for, the music. Our speech output will be primarily information. <strong>The</strong> news service will be<br />

accessible and comprehensive; it will be local but not parochial; it will deliver the<br />

important stories from home and abroad.<br />

Whether it is through our news, sport, weather or travel updates, <strong>The</strong> <strong>Arrow</strong> listener will<br />

always feel fully informed.<br />

We will also furnish information about the music they love; <strong>The</strong> <strong>Arrow</strong> Live Guide and<br />

Manchester Rocks will provide details of cultural and music events in the region and<br />

latest gig news.<br />

<strong>The</strong> Arr ow Pocket Guide to… is already an established feature on <strong>The</strong> <strong>Arrow</strong> on digital<br />

which takes the documentary format to entertain and inform the audience on one<br />

subject in depth.<br />

As well as respecting the listener, <strong>The</strong> <strong>Arrow</strong> will respect its locality too. We have<br />

recognised that Manchester is fiercely local – Mancunians are proud of their city. This<br />

doesn’t mean they expect strong Manchester accents on air. It does mean that they<br />

expect us to know the local area and understand the passions of its people.<br />

BBC Radio 1’s historic underperformance in the city further demonstrates the preference<br />

for a Manchester based, rather than London station. <strong>The</strong> <strong>Arrow</strong> will bring the music our<br />

listeners love to the region they are proud to live in. It will also be the station to finally<br />

give Radio 2 – still a dominant force in radio in Manchester – a run for it money.<br />

Catering for Local Tastes and Interests<br />

Every aspect of <strong>The</strong> <strong>Arrow</strong>’s output has been tailored to the meet the specific demands<br />

of listeners in Manchester. Our intensive programme of research – detailed later in this<br />

application – has given us a clear and comprehensive picture of the tastes and interests<br />

of the region’s radio listeners.<br />

Our starting point is the appeal of <strong>The</strong> <strong>Arrow</strong>’s music proposition. Adult Rock is<br />

undoubtedly popular. In our core target audience of 40-59 men, it was clearly the<br />

favourite choice from all the musical formats we tested that were not already provided<br />

25


in the region. 75% of the respondents to our research said they would listen at least<br />

once a week to a station playing <strong>The</strong> <strong>Arrow</strong>’s rock music mix.<br />

We also found considerable interest in a number of sub-genres of rock music, and these<br />

will be catered for in a range of specialist music shows. New Wave and rock ‘n’ roll<br />

each commanded significant appeal in our research, and each will find its place in our<br />

programme schedule.<br />

We know from our research what listeners in Manchester want the overall sound and<br />

feel of a new radio station to be like. <strong>The</strong>y want the music to be defined by its quality<br />

rather than its age. <strong>The</strong>y want to hear music with meaningful lyrics, performed by its<br />

composers using real instruments. <strong>The</strong>y don’t want to hear presenters endlessly prattling<br />

on, but they do want some personality and wit from presenters who share their passion<br />

for great music, and can lead them to discover artists and tracks that are new to them.<br />

<strong>The</strong> <strong>Arrow</strong> will also provide all the local news and information that our research shows<br />

our audience expects. This will be more than the obvious news, weather and travel<br />

updates – although these will be comprehensive, reflecting their paramount importance<br />

to listeners.<br />

Local events and gigs came very high in the list of audience priorities that emerged<br />

from our research, and we believe this will be a unique strength of <strong>The</strong> <strong>Arrow</strong>. Not far<br />

behind in terms of audience demand were local music and interviews with rock artists,<br />

and <strong>The</strong> <strong>Arrow</strong> will be the only place to find all these on a regular basis.<br />

You would expect sport – particularly football – to feature strongly in any list of<br />

requirements of <strong>The</strong> <strong>Arrow</strong>’s target audience in Manchester. Whilst there clearly was<br />

some expectation of sports coverage from respondents to our research, it was more<br />

muted than might have been expected – probably reflecting the ample provision of<br />

sports news and commentaries on other radio stations in the region. In a region with<br />

one of the great Premiership rivalries – and not forgetting the area’s other football<br />

teams, or its passion for rugby and cricket – we clearly cannot ignore sport altogether,<br />

but we will respect our listeners’ desire to let the music claim top billing. We will provide<br />

news and updates on the big sports events of the week, but we won’t let live<br />

commentary or lengthy sports phone-ins and discussions interrupt the flow of the music.<br />

Staying constantly in touch with our audience’s expectations is something that Chrysalis<br />

Radio takes very seriously. We invest heavily in a range of ongoing research exercises<br />

for each of our radio stations, and <strong>The</strong> <strong>Arrow</strong> will be no exception. Through both our<br />

research and listener feedback, we know that <strong>The</strong> <strong>Arrow</strong> will always be able to respond<br />

to changes in listener interests and demands. <strong>The</strong> <strong>Arrow</strong> will always be the perfect fit for<br />

Manchester.<br />

Broadening Choice<br />

<strong>The</strong> radio market in Manchester has historically been served by the greatest number<br />

and range of commercial services after London, increased since the recent launch of<br />

XFM that was awarded the last Manchester licence in 2005.<br />

Manchester is presently served by a wide range of radio services, ranging from wide<br />

regional coverage to localised commercial, ethnic and community stations though not<br />

all of these are available in all parts of the new licence area.<br />

26


• Regional : Smooth FM and Century FM<br />

• Greater Manchester : Key 103, Magic AM, Capital Gold, Galaxy 102, XFM<br />

• Localised : Imagine (Stockport), Revolution (Oldham), Tower (Bolton & Bury)<br />

• Ethnic: Asian Sound (East Lancashire)<br />

• Community: All FM (South Manchester), Oldham Community Radio, Pure Radio<br />

(Stockport), Salford Community Radio, Tameside Community Radio, Wythenshawe<br />

FM.<br />

Our examination of the formats of these stations is summarised below, as well as our<br />

sampled analysis of the actual broadcast output of the regional and local stations<br />

currently operating.<br />

We have undertaken significant research into the <strong>Arrow</strong> format in many areas around<br />

Britain, including that undertaken in Autumn 2004 when we applied for the previously<br />

available licence for Manchester. We pointed then to the absence of rock music on the<br />

radio in Manchester, as well as a deficit of listening among older people. <strong>Ofcom</strong><br />

preferred, at that time, to expand the offer in Manchester by licensing a rock station<br />

specifically targeting young listeners under 35.<br />

Published RAJAR data to June 2006 do not yet include XFM, which only launched on 15<br />

March, but it is natural that the station will have attracted listening among its younger<br />

target. As an early indicator, XFM’s ‘national’ reach in the Manchester area (Galaxy<br />

TSA) tripled from just 13,000 in Q1 2006 to 48,000 in Q2. This seems more likely to result<br />

from the launch of the FM service than from expansion in the previous digital audience.<br />

In any event, XFM further reinforces the bias of existing commercial services toward<br />

young audiences.<br />

Our analysis convinces us that there is still a place and demand for another music<br />

station in Manchester, provided it is based on a distinctive popular music genre and<br />

focused on the under-served adult audience. That is <strong>The</strong> <strong>Arrow</strong>: a station playing adult<br />

rock music.<br />

EXISTING STATIONS & FORMATS<br />

North West Regional Services<br />

• Smooth FM (GMG) : Originally, licensed in 1994 as Jazz FM, the station subsequently<br />

adopted a new identity as Smooth FM, with daytime music programming featuring<br />

soul, blues and R’n’B. Jazz is now largely provided in specialist shows.<br />

• Century FM (GCap): <strong>The</strong> second regional station commenced broadcasting in 1998<br />

with a mixed speech and music format. <strong>The</strong> station still retains a significant, though<br />

now reduced, speech commitment: a third to half of daytime output is speech, now<br />

largely provided in ‘blocks’. Music is mainly adult contemporary, with easy listening<br />

and soul.<br />

<strong>The</strong> key features of these stations are their regional character (a wide area of over 5<br />

million adults) and their specific format output. Neither of these stations can focus on<br />

Manchester, nor do they play rock music or target the adult audience of <strong>The</strong> <strong>Arrow</strong>.<br />

27


MANCHESTER FORMAT SUMMARY – REGIONAL STATIONS<br />

Local Output Music Speech Other<br />

CENTURY FM<br />

North West<br />

Region<br />

SMOOTH FM<br />

North West<br />

Region<br />

A full-service talk & music station with 24-hour news targeting primarily<br />

25-54 year olds<br />

Min 20<br />

hours/day local<br />

Local/regional<br />

news 06 to 22h<br />

weekdays and<br />

peak-time<br />

weekends<br />

50% adult<br />

contemporary<br />

modern easy<br />

listening, classic<br />

easy listening &<br />

soul/Motown<br />

Challenging &<br />

regional<br />

Daytime 33%-<br />

50%<br />

20% other times<br />

Smooth is targeted at North West listeners of all ages who particularly<br />

like jazz, soul, blues & R’n’B<br />

Min 7 hours/day<br />

local<br />

Greater Manchester Services<br />

Broad jazz, soul,<br />

blues & R’n’B<br />

categories<br />

Min 45<br />

hours/week<br />

specialist<br />

programmes of<br />

recognised jazz<br />

genres<br />

Music is<br />

‘supplemented’<br />

by speech<br />

(unspecified)<br />

News hourly<br />

during peaktimes<br />

Three bulletins<br />

during breakfast<br />

with local news<br />

Journalistic<br />

presence in<br />

London or<br />

North West<br />

Dispensation<br />

from normal<br />

automation<br />

limits<br />

Manchester’s heritage ILR service, Piccadilly Radio, has now become Key 103 and<br />

Magic AM. Although the programme formats are differentiated, there is some<br />

inconsistency as Key claims to target both younger listeners and those up to 45, whilst<br />

Magic seeks those over 30. Rather than being complementary, their target audiences<br />

therefore aim to overlap to a considerable extent.<br />

<strong>The</strong>se are joined by another AM service, now Capital Gold (after various changes of<br />

ownership and format).<br />

• Key 103 : Key remains a ‘standard’ broad-based ILR FM station and the station with<br />

the most listeners in the area. Music is essentially current and recent chart hits;<br />

speech requirements are minimal (just 10% in weekday daytimes) – though we<br />

found this easily met and exceeded.<br />

• Magic AM : Previously aimed at older audiences, Magic’s entry target is now<br />

described as over-30s playing classic pop hits. Programming is now mostly<br />

networked with other Magic stations around the country.<br />

28


• Capital Gold : Capital Gold is in an unusual situation in Manchester, where it is an<br />

additional format in the market rather than an offshoot of the heritage ILR service as<br />

in other markets where the brand is present. Music is described here as ‘adultoriented<br />

rock and easy listening’ whilst all other Capital Gold formats specify a<br />

‘classic pop hit-led service’. <strong>The</strong> difference more reflects historical accident than<br />

output, as Capital Gold is also networked most of the time.<br />

More recently, two new services have extended choice in Greater Manchester.<br />

However, both of these have been aimed at younger listeners, though featuring very<br />

different music formats.<br />

• Galaxy 102 : Galaxy is aimed at listeners in their 20s with a format based entirely on<br />

modern rhythmic hits and dance-oriented tracks.<br />

• XFM : <strong>The</strong> latest addition, XFM, targets the same young age groups as Galaxy, but is<br />

based on modern and alternative rock music rather than dance rhythms.<br />

<strong>The</strong>re is a clear bias among Manchester stations towards younger audiences, the focus<br />

of the leading heritage station and both of the more recent FM services. Older listeners<br />

are largely limited to the AM stations; but these are hardly local services and attract only<br />

marginal listening. Only XFM plays rock music, primarily new alternative tracks aimed<br />

at young listeners.<br />

<strong>The</strong> <strong>Arrow</strong> will play a wider range of rock music, focused on older classic tracks, aimed<br />

specifically at adult listeners whose interests are not served by existing formats.<br />

MANCHESTER FORMAT SUMMARY – CITY STATIONS<br />

Local Output Music Speech Other<br />

KEY 103<br />

MAGIC1152<br />

AM<br />

A contemporary and chart music and information station for 15-44<br />

year-olds<br />

Min 18<br />

hours/day<br />

local<br />

Up to 10<br />

hours/week<br />

Syndicated<br />

Predominantly<br />

(90%)<br />

current chart<br />

hits, new<br />

releases & hits<br />

up to 3 years<br />

old<br />

Max 50% over 3<br />

years<br />

Local new<br />

hourly during<br />

peak-times<br />

Speech min<br />

10% week-day<br />

daytimes<br />

A music-led over-thirties station for the Greater Manchester area<br />

Min 4 hours a<br />

day local<br />

Classic pop hits,<br />

mostly over 5<br />

years old<br />

Max 30% hits<br />

less than 5 years<br />

old<br />

Minimum 15%<br />

weekday<br />

daytime<br />

Local news<br />

hourly during<br />

peak-times<br />

29


CAPITAL GOLD<br />

GALAXY 102<br />

XFM<br />

An adult rock and quality easy listening station aimed primarily at<br />

over-35s<br />

Min 4<br />

hours/day<br />

local<br />

Adult-oriented<br />

rock and easy<br />

listening<br />

Max 50% from<br />

last 15 years<br />

Un-quantified<br />

speech – a<br />

base of<br />

information,<br />

sport, whatsons<br />

and leisure<br />

features<br />

Local news<br />

hourly during<br />

peak-times<br />

A rhythmic-based music-led service for 15-29 year-olds<br />

Locally made<br />

on week-day<br />

day-times and<br />

6 hrs Sat & 7 hrs<br />

Sun<br />

Contemporary<br />

& classic<br />

rhythmic music<br />

– current &<br />

recurrent hits<br />

Dance & club<br />

genres, soul &<br />

r’n’b<br />

Classic tracks<br />

max 50%<br />

Speech max<br />

25%<br />

Local news<br />

during<br />

weekday<br />

peak-times<br />

A thorough<br />

service of local<br />

information,<br />

features,<br />

entertainment,<br />

whats-ons, etc in<br />

non-local<br />

output<br />

Particular<br />

appeal for<br />

listeners in their<br />

20s<br />

16 hrs/week<br />

specialist music<br />

An alternative music format for 15-34 year olds … guitar-led quality<br />

modern & classic music<br />

Local 20<br />

hours/day<br />

<strong>Arrow</strong> from <strong>Ofcom</strong> Formats<br />

Artists will be<br />

generally<br />

“alternative” –<br />

alternative rock,<br />

modern rock,<br />

Britpop & pop<br />

rock.<br />

Min 70% current<br />

& re-current<br />

alternative<br />

tracks<br />

Local listings,<br />

music news &<br />

news for tastes<br />

of the<br />

audience<br />

Specialist<br />

comedy shows<br />

45 hours/week<br />

specialist shows<br />

Min 2 hours/day<br />

request<br />

programming<br />

3 lives<br />

sessions/week<br />

30


Localised Commercial Services<br />

Three small-scale commercial stations serve specific parts of the Greater Manchester<br />

area: Imagine FM (Stockport), Revolution FM (Oldham) and Tower FM (Bolton & Bury).<br />

<strong>The</strong>se stations apply similar format principles, common to most stations of this kind<br />

around the country, though naturally with differences to reflect local opportunities and<br />

sensibilities:<br />

• Local focus, with a high level of locally-produced output:<br />

• Broad appeal across local adult groups, notably the 30-year band aged 25-54;<br />

• A wide music mix, including both current and recent hits with tracks from the last<br />

three to four decades.<br />

<strong>The</strong>se are small stations, whose distinctive purpose is to serve a broad range of listeners<br />

in a specific locality. None of these stations is designed to serve the Greater Manchester<br />

area of the new licence, nor do they have the musical or demographic focus of <strong>The</strong><br />

<strong>Arrow</strong>.<br />

MANCHESTER AREA FORMAT SUMMARY – SMALL-SCALE LOCAL STATIONS<br />

Local Output Music Speech Other<br />

IMAGINE FM<br />

Stockport<br />

A locally-focused music & information station for Stockport<br />

Min 22<br />

hours/day<br />

local<br />

Top 40 hits from<br />

1960s to today.<br />

Max 45% current<br />

& re-current<br />

Minimum 20%<br />

daytime<br />

Local news at<br />

least hourly in<br />

peak-times<br />

REVOLUTION FM<br />

A truly local full service station aimed at 25-54 year olds playing AC<br />

and Soft Rock hits<br />

Oldham<br />

Adult<br />

Min 20% Min 2 weekday<br />

Min 18<br />

Contemporary, daytime daytime<br />

hours/day Soft Rock & Local news at extended (5<br />

local<br />

Ballads.<br />

least hourly min) news<br />

Other genres during peak- bulletins<br />

max 50%<br />

time<br />

A full service local station for adult listeners within the area<br />

TOWER FM<br />

Classic hits from Min 15% Min 2 weekday<br />

Bolton<br />

Min 20<br />

last 25 years. daytime daytime<br />

hours/day Current chart Local news at extended (10<br />

local<br />

max 25%<br />

least hourly min) news<br />

during peaktime<br />

bulletins<br />

<strong>Arrow</strong> from <strong>Ofcom</strong> Formats<br />

Ethnic Minority & Community Services<br />

• Asian Sound<br />

Principal among these stations is Asian Sound, a commercial service aimed at Asian<br />

ethnic groups across East Lancashire. Originally licensed in Blackburn, its coverage was<br />

31


extended with an additional transmitter toward Manchester. Asian Sound provides a<br />

clearly distinctive service targeted at Asian listeners. Asians constitute the largest ethnic<br />

minority in the Manchester licence area, with 116,000 adults aged 15-plus (4% of the<br />

total) in the Galaxy TSA (RAJAR).<br />

• Community stations<br />

A further tier of small-scale localised radio will be provided by a number of recentlylicensed<br />

community radio stations. By nature these are low-powered services, designed<br />

to serve small geographic areas and specific communities of interest. Speech output is<br />

aimed at a range of specific interests and groups, whilst music is wide-ranging and<br />

often eclectic.<br />

MANCHESTER AREA – COMMUNITY RADIO STATIONS<br />

ALL FM South<br />

Manchester<br />

Specialist programmes for particular interest<br />

groups, etc. Music – gold, Asian, African, Irish –<br />

specialist music overnight.<br />

OLDHAM<br />

Oldham Children & students; over-60s;black & ethnic<br />

COMMUNITY RADIO<br />

minorities; special interest groups<br />

PURE RADIO Stockport Disadvantaged & unemployed. Contemporary<br />

and adult rock, with specialist world music,<br />

urban and blues/soul<br />

SALFORD COMMUNITY Salford Contemporary & classic music, also featuring<br />

RADIO<br />

dance, bhangra, classical, etc.<br />

TAMESIDE<br />

COMMUNITY RADIO<br />

Tameside AC music with magazine-style programming,<br />

some CHR & oldies. Youth output in evenings<br />

and at weekends.<br />

WYTHENSHAWE FM Wythenshawe Magazine-style programmes in daytime;<br />

specialist shows evenings and weekends.<br />

<strong>The</strong> <strong>Arrow</strong> from <strong>Ofcom</strong><br />

<strong>The</strong> <strong>Arrow</strong> will clearly differ from these stations both in its nature and programme output.<br />

Examination of the format requirements of the existing stations in the Greater<br />

Manchester area shows quite clearly that there is no station that presently provides, or<br />

could provide, the musically and demographically focused adult rock service<br />

proposed by <strong>The</strong> <strong>Arrow</strong>.<br />

Listening Profiles<br />

Before deciding to make this application we asked ourselves, as will surely <strong>Ofcom</strong>,<br />

whether there is a place in Manchester for another music-based station. We analysed<br />

RAJAR listening data in detail – this is summarised in Section 105(d) below. Here we<br />

summarise the profile of listening to existing stations in Manchester, rather than absolute<br />

audience levels.<br />

• Existing ILR stations clearly attract most of their listening from those under 45; this will<br />

naturally increase once Xfm is included in listening data. Listeners under 45 already<br />

32


account for two-thirds of listening to local commercial stations – and over 80% for<br />

those under 55.<br />

• Thus, under 45s account for 75% of listening to the heritage station Key 103, with<br />

similar or greater proportions for the localised stations Imagine and Revolution<br />

(Tower has a wider audience spread, but 80% of listening is still among under 55s).<br />

• <strong>The</strong> regional station Century FM has the same overall profile of listening as Key 103,<br />

though slightly less listening among 15-24 year olds. Nevertheless, under 45s<br />

account for over 70% of listening to Century. Smooth’s ‘specialist’ music attracts a<br />

slightly older audience – less 15-24s, but 70% of listening among 25-54 year olds.<br />

• It is the BBC that clearly attracts older radio listeners – two-thirds of listening to BBC<br />

stations is among people over 45 and those over 55 account for half of listening. This<br />

is even more pronounced for listeners to BBC local stations: people over 55 account<br />

for three-quarters of listening, with 50% coming from those 65 and over.<br />

<strong>The</strong>re is clearly a gap in the provision of commercial services in Manchester for adult<br />

listeners, particularly those over 45.<br />

<strong>The</strong> <strong>Arrow</strong><br />

Century<br />

Smooth<br />

Key<br />

Magic<br />

Gold<br />

Galaxy<br />

Imagine<br />

Revolution<br />

Tower<br />

All ILR<br />

All BBC<br />

BBC Local<br />

2%<br />

4%<br />

3%<br />

7%<br />

7%<br />

8%<br />

7%<br />

15%<br />

13%<br />

5%<br />

20%<br />

7%<br />

21%<br />

21%<br />

12%<br />

17%<br />

25%<br />

10%<br />

9%<br />

7%<br />

16%<br />

8%<br />

48%<br />

14%<br />

Manchester Listening Profiles<br />

Rajar Q2-2006 (<strong>Arrow</strong> projections)<br />

24%<br />

16%<br />

16%<br />

42%<br />

24%<br />

20%<br />

29%<br />

26%<br />

27%<br />

24%<br />

17%<br />

24%<br />

25%<br />

0% 20% 40% 60% 80% 100%<br />

Format & Listening Summary<br />

25%<br />

32%<br />

31%<br />

44%<br />

22%<br />

21%<br />

25%<br />

31%<br />

21%<br />

36%<br />

26%<br />

15-24 25-34 35-44 45-54 55-64 65+<br />

We have examined in detail the formats and listening profiles of existing stations in<br />

Manchester. This clearly shows how younger age groups in Manchester are already<br />

best-served by a wide range of mainstream and more specialised music formats.<br />

26%<br />

12%<br />

17%<br />

50%<br />

11%<br />

16%<br />

17%<br />

12%<br />

16%<br />

30%<br />

11%<br />

9%<br />

15%<br />

11%<br />

18%<br />

10%<br />

11%<br />

9%<br />

33<br />

11%<br />

6%<br />

11%<br />

4%<br />

8%<br />

3%<br />

4%<br />

4% 0%<br />

5%<br />

5%<br />

2%


15-24 25-34 35-44 45-54 55-64 65+<br />

KEY 103 Current & recent Chart Hits<br />

MAGIC AM Classic Pop Hits<br />

CAPITAL GOLD Adult-oriented rock & Easy listening<br />

GALAXY FM Rhythmic & Dance<br />

XFM Alternative & Modern Rock<br />

CENTURY FM Adult Contemporary & Easy<br />

SMOOTH FM Jazz, Soul, Blues & R’n’B<br />

IMAGINE FM Top 40 from 60s to present<br />

REVOLUTION AC, Soft rock & Ballads<br />

TOWER FM Current & Classic Hits from last 25 years<br />

THE ARROW Adult Rock<br />

This leads us to believe that the best way to fill any remaining music gap in Manchester<br />

would require a service aimed at an older adult audience and focusing on music that<br />

other stations do not currently play – classic rock music.<br />

We are convinced that <strong>The</strong> <strong>Arrow</strong> will fulfil both of those requirements.<br />

BROADCAST OUTPUT<br />

Formats set the framework for stations’ programming and the boundaries within which<br />

that may be varied. However, formats do not demonstrate how that framework is<br />

actually applied to broadcast output. We therefore undertook a spot-check and<br />

analysis of actual output in order to provide quantifiable comparative measures.<br />

In this context, we looked specifically at the music played on each of the existing<br />

commercial stations.<br />

Music Focus & Eras<br />

<strong>The</strong> pattern of music played is clearly related to the target and appeal of each station,<br />

as one would expect. Indeed, these differences confirm the distinctive music profile<br />

and target appeal of <strong>The</strong> <strong>Arrow</strong>.<br />

• <strong>The</strong> youth-oriented stations, Galaxy and XFM, play (each in its own style) almost<br />

exclusively current and recent tracks. Galaxy played almost 80% of songs from the<br />

last 18 months and 90% from the current decade; for XFM 70% were current/recurrent<br />

songs from the last 18 months and over 80% from the last 5 years or so.<br />

• Key 103 places less reliance on current and recurrent songs (43%) though this still<br />

represents the largest category played. Together with songs from earlier in the<br />

current decade (28%), the contemporary hit programming of the station accounts<br />

for over 70% of music output. <strong>The</strong> balance is made up of songs from the 90s (17%)<br />

and 80s (11%); unsurprisingly, almost no songs over 25 years old are played.<br />

• <strong>The</strong> two AM stations, Capital Gold and Magic, focus heavily on ‘golden oldie’ titles<br />

over 25 years old – these represented over 85% of output on Magic and over 70% on<br />

Capital Gold, that also played a higher proportion of 80s hits than Magic. Neither<br />

station played any significant proportion of songs from the last 15 years.<br />

• Whilst Century FM has a higher speech content, in terms of music its output is spread<br />

fairly evenly over the current and previous two decades – 31% since 2000 (17%<br />

34


current and recurrent), 29% from the 1990s and 32% from the 80s. Again, there are<br />

almost no songs over 25 years old.<br />

• <strong>The</strong> other regional station, Smooth FM, provides a musically-focused mix based on<br />

soul, blues, r’n’b and jazz. Emphasis is on tracks from the 70s and 80s, that made up<br />

nearly 70% of output, together with younger and older titles from the 90s and 60s and<br />

a complement (10%) from the current decade.<br />

• <strong>The</strong> localised stations naturally show the broad spread of music, consistent with their<br />

aim of appealing to a wide age range in a specifically local area. <strong>The</strong> pattern is<br />

similar throughout, in keeping with other small-scale stations all around the country.<br />

Current and recurrent hits account for between a quarter and a third of music<br />

played; together with hits from the last five years (current decade) this accounts for<br />

some 40-50% of output. <strong>The</strong> balance is mostly songs from the 80s and 90s, with few<br />

tracks over 25 years old. (Revolution conforms with the pattern, but emphasises a<br />

slightly younger music profile than Imagine or Tower.)<br />

ILR MANCHESTER – MUSIC OUTPUT BY ERA<br />

Century Smooth Key Magic Galaxy Gold XFM Imagine Revolution Tower<br />

2005 + 17% 7% 43% - 79% 3% 70% 26% 33% 24%<br />

2000-4 14% 3% 28% 1% 11% 2% 12% 12% 17% 18%<br />

90s 29% 17% 17% 2% 10% 3% 13% 20% 28% 24%<br />

80s 32% 30% 11% 10% - 19% 3% 35% 7% 29%<br />

70s 7% 29% 1% 43% - 36% 1% 7% 9% 4%<br />

60s 1% 13% * 44% - 37% * - 5% 1%<br />

<strong>Arrow</strong> from Intelligent Media, 24-25 July 2006.<br />

In contrast, <strong>The</strong> <strong>Arrow</strong> plays a mix of music concentrated on its adult target (70% from<br />

the 70s and 80s). <strong>The</strong> station’s listeners are not followers of new releases, but do not want<br />

to be left in a ‘golden’ time-warp either. Whilst <strong>The</strong> <strong>Arrow</strong> on digital includes a spread of<br />

current and recurrent tracks (10%) and songs from the previous 15 years (around 15%),<br />

in Manchester it is proposed that no tracks will appear that are less than five years old,<br />

thereby securing even less overlap than the minimal level recorded here with Xfm.<br />

This provides a unique balance that is not available from any other station,<br />

independently from the further focus of <strong>The</strong> <strong>Arrow</strong> exclusively on rock music. <strong>The</strong> only<br />

station that shows a similar prevalence of tracks from the 70s and 80s is Smooth FM; and<br />

Smooth plays wholly different styles of music as its format states and our detailed title<br />

analysis confirmed.<br />

THE ARROW – MUSIC OUTPUT BY ERA<br />

Total 2005+ 2000-4 90’s 80’s 70’s 60’s<br />

Titles : 301 4% 4% 9% 29% 40% 14%<br />

Airplays :<br />

351<br />

9% 4% 9% 27% 38% 13%<br />

<strong>Arrow</strong> from Intelligent Media, 24-25 July 2006.<br />

Although not included above, we have also examined the comparable output of BBC<br />

Radio Manchester (92 songs played during the 19 hours of local output monitored). In<br />

terms of the era of music output, this shows that BBC Manchester more closely resembles<br />

the spread of music played by <strong>The</strong> <strong>Arrow</strong>, with similar emphasis on the 70s and 80s<br />

35


(55%), though slightly more titles from the last 15 years. But, when we examined the<br />

songs actually played, it was again clear that they might be drawn from the same eras<br />

but certainly not the rock genre.<br />

<strong>The</strong> extent of music overlap between stations was the next step in our analysis.<br />

Music Overlaps<br />

To assess the overlaps we again compared the actual music output of each of the<br />

existing stations on a title-by-title basis with that broadcast at the same times by <strong>The</strong><br />

<strong>Arrow</strong> (transmitted digitally in the North West). <strong>The</strong> first task was to identify the titles that<br />

were played by both <strong>The</strong> <strong>Arrow</strong> and each of the other stations during the simultaneous<br />

periods examined. <strong>The</strong> overlap between the commonly-played titles could then be<br />

calculated, both as a proportion of the output of the ILR stations concerned and of <strong>The</strong><br />

<strong>Arrow</strong>. <strong>The</strong> total of songs played naturally varied between stations, both according to<br />

the proportion of output dedicated to speech or advertising and the underlying period<br />

monitored (24 hours for the regional/city-wide stations and 13 hours daytime for the<br />

smaller localised stations).<br />

• Quite clearly, <strong>The</strong> <strong>Arrow</strong> plays very different music to any of the existing stations: at<br />

least 85% of the music played by <strong>The</strong> <strong>Arrow</strong> was not heard on another station.<br />

• <strong>The</strong> greatest overlaps were with Capital Gold (14%), Key 103 (10%) and XFM (8%).<br />

This is both minimal and natural.<br />

• Capital Gold concentrates it programming (75%) on hits from the 60s and 70s; some<br />

of these will obviously also fit with <strong>The</strong> <strong>Arrow</strong>’s rock format – indeed, it is a measure of<br />

the extent to which <strong>The</strong> <strong>Arrow</strong> differs from Capital Gold that there is no greater<br />

overlap.<br />

• <strong>The</strong> overlap with Key 103 was just 7% in the number of titles but 10% in airplay. <strong>The</strong><br />

effect is similar with XFM. A common title may be played only a few times by <strong>The</strong><br />

<strong>Arrow</strong> but more often on a hit-oriented station. Looked at the other way (below),<br />

those same titles account for a lower proportion of <strong>The</strong> <strong>Arrow</strong>’s output. This overlap<br />

will clearly be reduced further in Manchester by the commitment to play only music<br />

that is at least five years old.<br />

• <strong>The</strong> overlap with any of the other stations was just 5% or less.<br />

36


ARROW MUSIC OVERLAP - % ILR STATIONS’ AIRPLAY<br />

Century Smooth Galaxy Capital Gold Key 103<br />

Total Airplays 248 290 320 302 236<br />

Common<br />

Titles<br />

4 1 - 40 12<br />

Overlap<br />

Airplays<br />

7 1 - 42 24<br />

Overlap<br />

Airplays %<br />

2.8% 0.3% - 13.9% 10.2%<br />

Magic XFM Imagine Revolution Tower<br />

Total Airplays 324 330 128 133 135<br />

Common<br />

Titles<br />

14 14 3 2 7<br />

Overlap<br />

Airplays<br />

15 27 4 2 7<br />

Overlap<br />

Airplays %<br />

4.6% 8.2% 3.1% 1.5% 5.2%<br />

<strong>Arrow</strong> from Intelligent Media, 24-25 July 2006.<br />

<strong>The</strong> pattern is very similar when one looks at the ‘reverse overlap’, the proportion<br />

commonly-played songs represent as a percentage of <strong>The</strong> <strong>Arrow</strong> output. Differences<br />

are largely a result of programme priorities and rotational emphasis.<br />

Again, the station with the biggest overlap was Capital Gold at 13%. But, measured<br />

against <strong>The</strong> <strong>Arrow</strong>’s airplay, no other station exceeded 5%. This included Key 103 and<br />

XFM, confirming the reverse effect of lower programming priority on <strong>The</strong> <strong>Arrow</strong> for<br />

current tracks compared with the emphasis on those stations on new music.<br />

ARROW MUSIC OVERLAP - % ARROW’S AIRPLAY<br />

Century Smooth Galaxy Capital Gold Key 103<br />

Common<br />

Airplays<br />

4 1 - 40 12<br />

Airplays % 1.3% 0.3% - 13.3% 4.0%<br />

Magic XFM Imagine * Revolution * Tower *<br />

Common<br />

Airplays<br />

14 14 3 2 7<br />

Airplays % 4.7% 4.7% 1.7% 1.1% 4.0%<br />

<strong>Arrow</strong> from Intelligent Media, 24-25 July 2006. Total <strong>Arrow</strong> airplays 301 (* airplays 175)<br />

<strong>The</strong> results of this analysis repeat and are wholly in-line with the similar research we<br />

undertook in the Greater Manchester market in October 2004.<br />

As a final check, we looked at the extent to which the music played on <strong>The</strong> <strong>Arrow</strong><br />

overlapped with the Greater Manchester stations collectively rather than individually (for<br />

this purpose, Century, Smooth, Galaxy, Capital Gold, Key 103, Magic, XFM). This<br />

showed that just a quarter of the songs played by <strong>The</strong> <strong>Arrow</strong>, whether measured by<br />

number of titles or airplays, could also be heard during the same period on ANY other<br />

commercial station in the area.<br />

37


Examination of the actual output of existing stations confirms that:<br />

• <strong>The</strong>re is presently no station in the Greater Manchester market that has the distinctive<br />

music profile and target appeal of <strong>The</strong> <strong>Arrow</strong>;<br />

• <strong>The</strong> music played by <strong>The</strong> <strong>Arrow</strong> is different from that of any existing station, with at<br />

least 85% (and generally well over 90%) of music not heard on other stations during<br />

the same time period.<br />

CORROBORATIVE RESEARCH<br />

<strong>The</strong> <strong>Arrow</strong> continues to offer a unique music proposition. This has been confirmed time<br />

and again as we have researched this format around the UK.<br />

Initially, we compared <strong>The</strong> <strong>Arrow</strong>’s theoretical main music library with stations' output.<br />

But since <strong>The</strong> <strong>Arrow</strong> started digital broadcasts in 2002, we have been able to compare<br />

its live output with that of other stations. Our previous analysis now covers the live output<br />

of 46 existing ILR services. This includes the main Manchester stations that we examined<br />

in the same way almost two years ago, with the same results as today. What is<br />

consistently striking is that there has never been more than 15% overlap between the<br />

music played by <strong>The</strong> <strong>Arrow</strong> and any of the many stations studied, whatever their size,<br />

coverage or location. <strong>The</strong> <strong>Arrow</strong> is truly a unique and different music format.<br />

THE ARROW – MUSIC OVERLAP ANALYSES<br />

Yorkshire Scotland Manchester Solent North East Liverpool<br />

Aire FM 9% Clyde 8% Capital 12% 2CR FM 3% Alpha 7% City FM 6%<br />

1<br />

Gold<br />

Classic 15% Clyde 11% Century 5% Capital 11% Century 3% Magic 9%<br />

Gold<br />

2<br />

FM<br />

Gold<br />

AM<br />

Kiss 0% Beat 7% Galaxy 0% Classic 6% Galaxy - Juice -<br />

FM<br />

102<br />

Gold<br />

FM<br />

Magic 11% Forth 1 12% Key 103 9% Fire 0% Magic 6% Century 1%<br />

AM<br />

FM<br />

107.6<br />

AM<br />

Pulse 14% Forth 2 12% Magic 10% IOW FM 5% Metro 5% Smooth *<br />

FM<br />

AM<br />

FM<br />

XFM 6% Real 11% Smooth


<strong>The</strong> <strong>Arrow</strong> in Manchester<br />

Localness has always been central to the success of commercial radio. In Manchester,<br />

37.7% of all radio listening is to local radio stations, compared with 34.1% nationwide.<br />

Our research shows that our target audience particularly values local information and<br />

local relevance.<br />

We take seriously our commitment to local output. Our listeners are rightly proud of<br />

their city, and they expect their local radio station to share and reflect their love of<br />

Manchester. Moreover, the city has a strong musical heritage, and a vibrant rock music<br />

scene, which currently has no outlet on local radio here.<br />

<strong>The</strong> <strong>Arrow</strong> in Manchester will be unique to Manchester. It will serve the specifically local<br />

needs of our listeners in the city. You will hear the localness in every aspect of our<br />

output.<br />

Speech is the most obvious way of delivering locally relevant content. Our research<br />

shows that rock music fans do not want too much speech getting in the way of the flow<br />

of the music. But when our presenters open their mouths, they need to say something<br />

meaningful and relevant. <strong>The</strong>re is the expectation – here as elsewhere – of a<br />

comprehensive local news and information service on local radio. Our local news<br />

team will provide up-to-the-minute coverage of the major news stories affecting the<br />

region, and the major cities within it.<br />

Regular local weather forecasts and traffic & travel updates will help listeners get<br />

through the business of the day. Our guides to local events and live concerts will cover<br />

the wide range of entertainment and culture throughout the region and nearby, and we<br />

will invest in the technology to be able to deliver live or recorded outside broadcasts<br />

from the many venues, large and small, across the city.<br />

But it is not just in our speech content that our localness will be apparent. <strong>The</strong> <strong>Arrow</strong> will<br />

be the champion of live music in Manchester. Manchester Rocks will be the showcase<br />

for live performances from classic rock acts in and around the region. Manchester<br />

Rocks – Live will augment this coverage with in-depth interviews, live sessions from bands<br />

playing locally, as well as documentary features and retrospectives to enhance our<br />

listeners’ knowledge of the music they know and love.<br />

This role will be cemented by our promise to re-locate <strong>The</strong> <strong>Arrow</strong>’s national digital<br />

network to the North West if we win the FM licence. This will enhance the region’s<br />

credentials as a vital media force in the UK, and offer a nationwide platform for the<br />

region’s entertainment scene. <strong>The</strong> best live music will find a natural home on <strong>The</strong><br />

<strong>Arrow</strong>’s digital network, making <strong>The</strong> <strong>Arrow</strong> a showcase for Manchester across the UK.<br />

39


<strong>The</strong> <strong>Arrow</strong>’s proposed programme schedule<br />

Monday to Thursday<br />

0600 – 1000<br />

1000 – 1100<br />

1100 – 1500<br />

1500 – 1600<br />

1600 – 1900<br />

<strong>The</strong> Breakfast Show<br />

A mature, witty, and entertaining start to your day<br />

Upbeat music, with the emphasis on familiar tracks. Lively, humorous<br />

presentation style, with information-rich speech to get everyone set up for<br />

the day<br />

News & Sport – Travel – Weather – <strong>The</strong> Live Guide<br />

<strong>The</strong> Vintage Years<br />

60 minutes of upbeat classics<br />

An upbeat mix of classics from the 60s and 70s with a knowledgeable<br />

presenter giving background to the music. A more eclectic range than<br />

Breakfast, with album tracks and undiscovered gems<br />

<strong>The</strong> Long Lunch<br />

Rocking good company into the afternoon<br />

An up-tempo adult rock mix, with a variety of familiar and less familiar<br />

tracks. Studio guests, ‘Album of the Week’, competitions and ‘Workplace<br />

of the Day’.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

<strong>The</strong> Vintage Years<br />

60 minutes of upbeat classics<br />

An upbeat mix of classics from the 60s and 70s with a knowledgeable<br />

presenter giving background to the music. An eclectic range of music,<br />

with album tracks and undiscovered gems<br />

Drivetime<br />

Friendly and informative for the drive home<br />

An adult rock mix, moving the tempo up a gear. Focus on the evening’s<br />

entertainment, for listeners going out or staying at home. Entertainment<br />

news from the world of rock.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

1900 – 2000 <strong>The</strong> Rock Request Jukebox<br />

We play the listeners’ favourites in this all request hour. Listener calls on air,<br />

plus requests by letter, text, and e-mail.<br />

News & Sport – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

40


Monday to Thursday<br />

2000 – 2100 Specialist Shows<br />

2100 – 2200<br />

2200 – 0100 Rockmania<br />

0100 – 0600<br />

Monday: I Do Like Mondays<br />

<strong>The</strong> best punk and new wave<br />

Tuesday: Manchester Rocks – Live<br />

Our focus on live performance from around the city<br />

Wednesday: Eight O’Clock Rock<br />

Music from the greats of rock ‘n’ roll<br />

Thursday: Madchester<br />

Manchester giants, including Oasis, Stone Roses, Happy Mondays plus<br />

new sounds from local bands<br />

<strong>The</strong> Vintage Years<br />

60 minutes of upbeat classics<br />

An upbeat mix of classics from the 60s and 70s with a knowledgeable<br />

presenter giving background to the music. An eclectic range of music,<br />

with album tracks and undiscovered gems.<br />

An eclectic mix of new and old rock, including album tracks and<br />

undiscovered gems. Presented by a true rock aficionado, this is the show<br />

to discover the hidden greats of rock. Occasional live sessions from artists<br />

playing in the region.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Night Moves<br />

Laid back humour with mature idiosyncratic wit<br />

<strong>The</strong> <strong>Arrow</strong> night time mix with a classic rock emphasis and additional<br />

album tracks. Plus another chance to hear highlights from the day’s<br />

output, shared with <strong>Arrow</strong> digital listeners around the UK.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

41


Friday<br />

0600 – 2000 As Monday to Thursday<br />

2000 – 2100 Manchester Rocks – LIVE<br />

2100 – 2200<br />

2200 – 0100<br />

0100 – 0600<br />

A close look at the region’s live music scene. Previews, reviews, interviews,<br />

live sessions and studio discussion.<br />

<strong>The</strong> Vintage Years<br />

60 minutes of upbeat classics<br />

An upbeat mix of classics from the 60s and 70s with a knowledgeable<br />

presenter giving background to the music. An eclectic range of music,<br />

with album tracks and undiscovered gems.<br />

Rock Party Weekend<br />

Full on rock for the weekend<br />

Break out the air guitar and turn the amp up to ‘11’. Minimal presenter<br />

presence – the show lets the music speak for itself for maximum<br />

enjoyment. Includes ‘Five of the Best’ – five tracks from one great artist<br />

back-to-back<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Night Moves<br />

Laid back humour with mature idiosyncratic wit<br />

<strong>The</strong> <strong>Arrow</strong> night time mix with a classic rock emphasis and additional<br />

album tracks. Plus another chance to hear highlights from the day’s<br />

output, shared with <strong>Arrow</strong> digital listeners around the UK.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

42


Saturday<br />

0600 – 1000<br />

1000 – 1300<br />

Saturday Breakfast<br />

A bright, uptempo, informative and down-to-earth start to the day<br />

Upbeat music, with the emphasis on familiar tracks. Lively, humorous<br />

presentation style, with information-rich speech to get everyone going for<br />

the weekend<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Saturday Morning<br />

Fresh sounding upbeat classics<br />

100% classic adult rock, and a bit of fun for your Saturday brunch. Travel<br />

news for listeners heading into town, or away for the day, including those<br />

heading to big events and sports fixtures. Competitions and trivia.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

1300 – 1400 <strong>The</strong> Week In Rock<br />

Birthdays, anniversaries and news from years gone by in this week, with<br />

the rock tracks that were the backdrop<br />

1400 – 1800 <strong>The</strong> <strong>Arrow</strong> Weekend<br />

Classic rock with updates from the major sports events of the day.<br />

Scoreflashes, football half-time and full-time reports, plus regular updates<br />

from major rugby, racing and cricket fixtures.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

1800 – 2000 Rock with Laughter<br />

2000 – 2100 Roots of Rock<br />

2100 – 2200<br />

Two hours of great comedy and great rock. Sketches and parody songs<br />

from the week’s events. Guest appearances from the stand-up circuit in<br />

Manchester. Focus on comedy club events around the region.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Specialist show playing homage to the music that created the rock genre,<br />

with blues, rock ‘n’ roll and vintage rock classics from artists such as BB<br />

King, Elvis Presley, Elmore James and John Mayall.<br />

<strong>The</strong> Vintage Years<br />

60 minutes of upbeat classics<br />

An upbeat mix of classics from the 60s and 70s with a knowledgeable<br />

presenter giving the background to the music. An eclectic range of<br />

music, with album tracks and undiscovered gems.<br />

43


Saturday<br />

2200 – 0100<br />

0100 – 0600<br />

Rock Party Weekend<br />

Full on rock for the weekend<br />

Break out the air guitar and turn the amp up to ‘11’. Minimal presenter<br />

presence – the show lets the music speak for itself for maximum<br />

enjoyment. Includes ‘Five of the Best’ – five tracks from one great artist<br />

back-to-back<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Night Moves<br />

Laid back humour with mature idiosyncratic wit<br />

<strong>The</strong> <strong>Arrow</strong> night time mix with a classic rock emphasis and additional<br />

album tracks. Plus another chance to hear highlights from the day’s<br />

output, shared with <strong>Arrow</strong> digital listeners around the UK.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

44


Sunday<br />

0600 – 1000<br />

1000 – 1300<br />

Sunday Breakfast<br />

A relaxed, informative and down-to-earth start to the day<br />

Start your Sunday with a lively dose of quality adult rock. A more laidback<br />

feel to ease you into the day. Acoustic rock and soft rock. Focus on<br />

the region’s car boot sales, with information on where today’s sales are<br />

happening, and listeners and studio guests describing their recent musical<br />

finds<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Sunday Brunch<br />

Fresh sounding upbeat classics<br />

100% classic adult rock, and a bit of fun for your Sunday morning. Travel<br />

news for listeners heading into town, or away for the day, including those<br />

heading to big events and sports fixtures. Competitions and trivia.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

1300 – 1400 <strong>The</strong> Great Manchester Rock Quiz<br />

<strong>The</strong> <strong>Arrow</strong>’s weekly rock quiz. Listeners compete on air to be the last<br />

person left answering questions on rock music. Annual summer<br />

competition pits pub quiz teams against each other in outside broadcasts<br />

held around the region<br />

1400 – 1800 <strong>The</strong> <strong>Arrow</strong> Weekend<br />

Classic rock with updates from the major sports events of the day.<br />

Scoreflashes, football half-time and full-time reports, plus regular updates<br />

from major rugby, racing and cricket fixtures.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

1800 – 1900 <strong>The</strong> <strong>Arrow</strong> Roundtable<br />

We review the week’s new rock releases with local journalists and music<br />

industry figures. Listeners contribute by phone, text and e-mail<br />

1900 – 2000 <strong>The</strong> <strong>Arrow</strong> Pocket Guide To…<br />

2000 – 2100 My Pod<br />

‘Rockumentary’ feature giving the background to the legends of rock<br />

music<br />

Celebrities pick their 10 favourite rock tracks and their all-time favourite<br />

concert<br />

2100 – 2200 <strong>The</strong> Vintage Years<br />

An upbeat mix of classics from the 60s and 70s with a knowledgeable<br />

presenter giving the background to the music. An eclectic range of<br />

music, with album tracks and un discovered gems<br />

45


Sunday<br />

2200 – 0100 Rockmania<br />

0100 – 0600<br />

An eclectic mix of now and old rock, including album tracks and<br />

undiscovered gems. Presented by a true rock aficionado, this is the show<br />

to discover the hidden greats of rock. Occasional live sessions from artists<br />

playing in the region.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

Night Moves<br />

Laid back humour with mature idiosyncratic wit<br />

<strong>The</strong> <strong>Arrow</strong> night time mix with a classic rock emphasis and additional<br />

album tracks. Plus another chance to hear highlights from the day’s<br />

output, shared with <strong>Arrow</strong> digital listeners around the UK.<br />

News & Sport – Travel – Weather – Manchester Rocks – <strong>The</strong> Live Guide<br />

46


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

6. Evidence of Demand<br />

This section should provide an analysis of the reasons as to why it is considered that there is a demand for<br />

the type of service proposed, with reference to the size and nature of the proposed target audience.<br />

If original market research has been undertaken, please provide the following information for each piece of<br />

research:<br />

a) A statement of the key objectives of the research;<br />

b) <strong>The</strong> specific questions that the research sought to answer;<br />

c) How the research was conducted;<br />

d) <strong>The</strong> size and composition of the sample(s);<br />

e) When and where the research was conducted;<br />

f) A summary of the main findings from the research, showing how these demonstrate evidence of demand<br />

for the service proposed;<br />

g) Full data tables for any quantitative research undertaken (these may be submitted in confidence).<br />

Please provide your responses to (a) – (e) in tabular format.<br />

47


Objectives of<br />

research<br />

To identify gaps<br />

in the Manchester<br />

radio marketplace<br />

To examine the<br />

Manchester radio<br />

marketplace<br />

To establish initial<br />

demand for <strong>The</strong><br />

<strong>Arrow</strong> concept<br />

Gauge opinions of<br />

actual <strong>Arrow</strong><br />

output on DAB<br />

radio<br />

To establish appeal<br />

of <strong>The</strong> <strong>Arrow</strong> and<br />

refine station<br />

format<br />

<strong>Arrow</strong> Research Methodology<br />

Specific<br />

questions<br />

What does the<br />

current<br />

radio marketplace<br />

look<br />

like? What type of<br />

radio station would<br />

plug the major<br />

gaps?<br />

How popular are<br />

various radio station<br />

formats? Which of<br />

these formats are<br />

already catered for?<br />

What are listeners’<br />

thoughts on current<br />

radio provision?<br />

What are their<br />

thoughts on a range<br />

of radio specific<br />

issues and in<br />

particular <strong>The</strong><br />

<strong>Arrow</strong>?<br />

Which shows did<br />

people listen to?<br />

What did they<br />

like/dislike? How<br />

does it compare to<br />

other stations?<br />

How popular is the<br />

<strong>Arrow</strong> concept?<br />

What are the other<br />

music and speech<br />

requirements of<br />

listeners?<br />

How research<br />

was<br />

conducted<br />

Desk<br />

Research<br />

Format Test<br />

Focus<br />

Groups<br />

DAB<br />

Broadcast<br />

and Indepth<br />

Interviews<br />

Quantitative<br />

Survey<br />

Size and<br />

composition of<br />

samples<br />

RAJAR Q2 1999-Q2<br />

2006<br />

Approx. 3,000<br />

sample in Key 103<br />

TSA<br />

811 sample of 16+<br />

year old adults<br />

4 focus groups<br />

consisting 8 adults<br />

in each – 35-64<br />

years old adults<br />

20 in-depth<br />

interviews among<br />

35-64 year old<br />

adults<br />

803 sample of 16+<br />

year old adults (see<br />

Appendix for<br />

profile)<br />

When and<br />

where research<br />

was conducted<br />

In-house in August<br />

2006.<br />

Morris Hargreaves<br />

McIntyre<br />

conducted<br />

telephone<br />

interviews between<br />

27 July and 13<br />

August 2006.<br />

Morris Hargreaves<br />

McIntyre<br />

conducted the<br />

groups on 8 and 9<br />

August 2006 in<br />

Manchester.<br />

Respondents<br />

listened to the<br />

<strong>Arrow</strong> on DAB<br />

between 10 and 21<br />

August 2006. Morris<br />

Hargreaves<br />

McIntyre<br />

interviewed on 30<br />

August to 1<br />

September 2006.<br />

Morris Hargreaves<br />

McIntyre<br />

conducted<br />

telephone<br />

interviews between<br />

23 August and 20<br />

September 2006.<br />

48


OUR AIMS<br />

<strong>The</strong> primary objectives of our research programme were as follows:<br />

To examine the current radio marketplace and find out where gaps exist for a new<br />

service;<br />

To determine the extent to which <strong>The</strong> <strong>Arrow</strong> would be perceived as broadening<br />

choice (having already gauged how much it would actually broaden choice,<br />

through our monitoring and analysis of existing stations, detailed in question 4a);<br />

To help us to refine the station’s format to address specific local needs.<br />

In order to achieve these objectives, five stages of original research were undertaken:<br />

Desk Research<br />

An analysis of existing radio listening patterns through a detailed examination of RAJAR<br />

data<br />

for the Key 103 TSA.<br />

Format Test<br />

A format test exercise would give us a good indication of the level of appeal of <strong>The</strong><br />

<strong>Arrow</strong>, as well as discovering the popularity of other potential radio station formats.<br />

Additionally, this test would reveal which format types were already well catered for in<br />

the<br />

region.<br />

Focus Groups<br />

In-depth discussion with our potential listeners would help gauge initial reaction to <strong>The</strong><br />

<strong>Arrow</strong><br />

concept and provide insight into radio listening that would guide our proposal.<br />

DAB Broadcast and In-depth Interviews<br />

In order to discover what people actually think of <strong>The</strong> <strong>Arrow</strong> output we decided to<br />

interview people who were exposed to the station over a period of one week. We could<br />

then discover in greater detail what the target demographic thought of specific shows<br />

and<br />

how it compared to the other stations they listen to.<br />

Quantitative Survey<br />

This was conducted to establish in more detail the level of appeal of <strong>The</strong> <strong>Arrow</strong>, and<br />

provide us with information to allow us to refine the programme proposition for the<br />

Manchester<br />

market.<br />

49


SPECIFIC QUESTIONS<br />

Desk research<br />

<strong>The</strong> aim of the market study was to provide us with a picture of the current provision of<br />

radio in Manchester, particularly in terms of demographic appeal. This part of the<br />

country has a competitive radio marketplace, with a few long-established heritage ILR<br />

services (Key 103, Galaxy Manchester and Magic 1152), and the two regional stations<br />

105.4 Century FM and Smooth FM. Despite what appears to be a relatively crowded<br />

region, we sought evidence of more subtle variations in appeal, as well as analysing<br />

longer-term trends in the marketplace that might indicate a neglect of certain<br />

demographics.<br />

Format Test<br />

<strong>The</strong> aim of the format test was to gain an insight into the popularity of a selection of<br />

different radio station formats. This simple approach allowed us to see clearly not only<br />

which genres of music would be popular for a radio station, but also which were<br />

already perceived to be currently supplied by existing stations. This initial test would<br />

then provide confirmation of the potential gap in the market and dictate the format with<br />

which we would apply for this licence.<br />

Focus Groups<br />

We obtained further valuable guidance on our proposals through qualitative research.<br />

Through focus group exercises, we sought to get a detailed impression of the views of<br />

our target audience on existing radio provision in the Manchester region, tastes in<br />

music, speech and presentation style, and on a range of specific radio issues such as<br />

news, live music and localness. We were also able to obtain a more in-depth reaction<br />

to <strong>The</strong> <strong>Arrow</strong>’s proposed music output.<br />

DAB Broadcast and In-depth Interviews<br />

To get a more detailed look at what people thought of <strong>The</strong> <strong>Arrow</strong>, we felt it was vital to<br />

interview respondents who had been exposed to the station over an extended period of<br />

time. Only in doing this could we have a greater understanding of specific shows, how<br />

<strong>The</strong> <strong>Arrow</strong> compares to other stations and of course what we could be doing better to<br />

provide a more complete station for the region.<br />

Quantitative Survey<br />

Using the results from the format test, we were able to further refine the programme<br />

proposition in order to gauge its overall appeal in the region by means of a quantitative<br />

survey research exercise. We sought, through this exercise, to establish existing listening<br />

habits and to verify respondents’ likelihood to listen to a station fitting <strong>The</strong> <strong>Arrow</strong>’s<br />

description. More specifically, we used this research to determine the level of appeal of<br />

a range of music and speech features, and listener attitudes to a spectrum of radio<br />

related issues, including style of presentation and the importance of localness. By<br />

playing music clips, we also gauged the appeal of <strong>The</strong> <strong>Arrow</strong>’s proposed music output.<br />

50


METHODOLOGY<br />

Desk Research<br />

Chrysalis Radio’s research team conducted an analysis of RAJAR data from Q2 2006 to<br />

provide a ‘snapshot’ of current radio listening patterns within the Key 103 TSA.<br />

Additionally, they analysed RAJAR data for each quarter from Q2 1999 to Q2 2006 to<br />

assess historic trends in listening patterns and profiles.<br />

Format Test<br />

We compiled nine pods of music that best represented both the different types of radio<br />

station currently on offer in the region and other possible licence winning genres. This<br />

covered genres ranging from Modern Rock, Dance/R&B, Gold, Easy Listening and<br />

Classic Rock. Having heard each genre, respondents were asked to give it a score and<br />

then state whether they thought there were any existing stations playing that type of<br />

music. Fieldwork was conducted by the research agency Morris Hargreaves McIntyre.<br />

<strong>The</strong> format search was a telephone research exercise, conducted between 27 July and<br />

13 August. 811 interviews were conducted with all respondents aged 16 and over living<br />

in the Key 103 TSA.<br />

Focus groups<br />

We conducted four focus groups on 8 and 9 August 2006 in central research facilities in<br />

Manchester. Each focus group had seven or eight participants, aged 35-64. One group<br />

was all male, another was all female and the other two were both mixed but with the<br />

ages separated into 35-49 and 50-64. All participants were music radio listeners.<br />

<strong>The</strong> discussion guide for the focus groups was designed by <strong>The</strong> <strong>Arrow</strong> project team at<br />

Chrysalis Radio with advice from Morris Hargreaves McIntyre, who also moderated the<br />

focus group sessions and provided a summary of the findings. A full report, including<br />

transcripts of both focus groups, is submitted in confidence with this Application.<br />

DAB Broadcast and In-depth Interviews<br />

Respondents were asked to listen to the <strong>Arrow</strong> on a DAB radio, as provided to them by<br />

Chrysalis, for the duration of the week and asked to record comments and answer<br />

simple questions in a diary. <strong>The</strong> respondents were then telephoned at the end of the<br />

week and asked further questions about the output.<br />

Twenty telephone interviews were conducted by Morris Hargreaves McIntyre and<br />

completed between 30 August and 1 September.<br />

Quantitative Survey<br />

803 telephone interviews were conducted between 23 August and 20 September. All<br />

respondents were aged 16+, and lived within the Key 103 TSA. <strong>The</strong> questionnaire was<br />

designed by <strong>The</strong> <strong>Arrow</strong> project team at Chrysalis, who also analysed the data.<br />

Fieldwork was conducted by Morris Hargreaves McIntyre.<br />

51


OUR FINDINGS<br />

Desk Research<br />

In order to decide upon our application for this licence, the research team at Chrysalis<br />

undertook a detailed examination of the existing radio marketplace in the Manchester<br />

region, using Q2 2006 RAJAR and trended data available.<br />

Commercial analogue radio in Manchester better serves the younger end of the<br />

market. Current figures show that 73.3% of 15-34s listen to commercial analogue radio<br />

compared with only 62.1% of all adults and 56.6% of 35+ year olds. When looking<br />

specifically at local commercial FM radio, the difference is far greater with 68.8% of 15-<br />

34s, 34% higher compared with all adults. For 35+ year olds % reach is only 40.4% -<br />

18.7% below the all adult audience.<br />

<strong>The</strong> market share for 35+ year olds in Manchester on local commercial radio is currently<br />

30.2%. Historically 35+ share has fallen (16.8% down on Q2 1999). Share for 15-34s,<br />

however, has remained high with 57.9%, only 0.5% lower than recorded in Q2 1999.<br />

Looking at <strong>The</strong> <strong>Arrow</strong>’s target demographic of 40-59 males the market share is low at<br />

36.8% and is 14.4% down on Q2 1999. It is clear that there is a need for a commercial<br />

station to suit the tastes of the older end of the market and <strong>The</strong> <strong>Arrow</strong> would serve this<br />

underrepresented audience.<br />

This chart shows the demographic and sex distribution of the individual radio station<br />

audiences in the Key 103 TSA based on reach. Along the horizontal axis is displayed the<br />

average age of each audience and vertically, the proportion of males. <strong>The</strong> graph<br />

shows the large quantity of local commercial stations with a higher proportion of under-<br />

40 year olds than the average – further emphasising the need for a local commercial<br />

FM alternative for the older age groups, currently dominated by the BBC and national<br />

commercial stations.<br />

% sex profile<br />

90<br />

Male<br />

80<br />

70<br />

60<br />

50<br />

40<br />

Female<br />

30<br />

20<br />

10<br />

Manchester Marketplace<br />

Radio 1<br />

Galaxy Manchester<br />

105.4 Century FM<br />

talkSPORT<br />

<strong>The</strong> <strong>Arrow</strong><br />

Key 103 Magic 1152<br />

Radio 5<br />

Radio 2<br />

Radio 4<br />

Classic FM<br />

Radio 3<br />

Radio Manchester<br />

20 25 30 35 40 45 50 55 60 65 70<br />

Average age<br />

Source: Rajar Q2 2006 – Key 103 TSA<br />

<strong>The</strong> <strong>Arrow</strong> figures taken from Manchester quant study 2006<br />

52


This % reach index graph provides a clearer look at the dominance of commercial<br />

radio stations for the younger audience in the Key 103 TSA.<br />

150<br />

140<br />

130<br />

120<br />

110<br />

100<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

100.7<br />

99.7<br />

15-34<br />

35+<br />

83.7<br />

108<br />

134.1<br />

All Stations All BBC Radio All ILR<br />

All radio listening for 35+ year olds is marginally below average, indexing at 99.7 and<br />

they are 16.6% less likely to listen to local commercial radio at this time.<br />

Looking at market share in the Manchester region we can see that commercial radio<br />

better serves 15-34s with 65.5% share versus only 39.6% for 35+ year olds (indexing at<br />

84.7). Key 103 and Galaxy Manchester are very much geared towards the younger<br />

market both indexing very highly, (Key 103 at 161.1 and Galaxy Manchester at 249.2).<br />

105.4 Century FM has a slightly broader appeal, however still doesn’t index well for 35+<br />

year olds (83.3) versus 15-34s (145.0).<br />

%<br />

70<br />

65<br />

60<br />

55<br />

50<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

All BBC Radio<br />

All Commercial Radio<br />

All ILR<br />

Current Market Share<br />

All ILR FM<br />

BBC Radio 2<br />

Key 103<br />

BBC Radio 1<br />

Galaxy Manchester<br />

All!Adults<br />

15-34<br />

35+<br />

105.4 Century FM<br />

BBC Radio Manchester<br />

Smooth FM<br />

83.4<br />

All ILR AM<br />

Magic 1152<br />

53


Smooth is the only commercial FM station that 35+ year olds can turn to with 5.5% share<br />

and an index of 112.2. Other than this Magic 1152 is the only other commercial choice<br />

for the older end of the market and with this being on AM the station has been in<br />

dramatic decline. Since Q2 1999 Magic 1152’s % reach has dropped from 13.3% to 3.6%<br />

for all adults (15.4% to 4.1% for 35+ year olds). With very little choice on commercial<br />

radio for the older end of the market there are a large amount of 35+ year olds listening<br />

to BBC Radio 2 (market share of 22.4%) as the only real alternative for music radio that<br />

suits older tastes. It is clear from this information that there is a gap to be filled at the<br />

older end of the commercial market.<br />

Format Test<br />

Conducting a format test is vital in establishing both the viability of a format as well as its<br />

ability to broaden choice. It establishes, to use the marketing cliché, both the gap in<br />

the market and the market in the gap. An uninformed observer might look at the<br />

Manchester radio market and presume that some kind of classic easy listening format<br />

for over 50s was the most obvious unserved gap for listeners in the region. As our<br />

research has demonstrated time and again, that simply is not the case. Of the formats<br />

tested that do not already exist in the market, classic rock is the most popular, ahead of<br />

classic easy listening – among all adults and our target demographic of 40-59 males.<br />

No other music format matches <strong>The</strong> <strong>Arrow</strong> for combination of popular appeal and<br />

broadening choice.<br />

<strong>The</strong> nine music pods below were played on rotation during format test interviewing.<br />

<strong>The</strong>se represent seven genres that currently exist in the region on local commercial<br />

radio and three other potential new genres. <strong>The</strong> names themselves should only be<br />

considered as labels for the overall sound of the songs making up the groups – at no<br />

point were any labels or descriptors of music genres suggested to, or by the research<br />

respondents. <strong>The</strong> pods each consist of seven songs, allowing the sound to be fully<br />

developed and to minimise the polarising effects that using fewer tracks may have.<br />

Top 40 (Key 103)<br />

Keane – Is It Any Wonder<br />

Lilly Allen – Smile<br />

Pink – Who Knew<br />

Kelly Clarkson – Breakaway<br />

James Morrison – You Give Me Something<br />

<strong>The</strong> Feeling – Fill My Little World<br />

Sandy Thom – Wish I Was A Punk Rocker<br />

<br />

Gold (Capital Gold)<br />

<strong>The</strong> Beatles – Ticket To Ride<br />

<strong>The</strong> Commodores - Easy<br />

Tina Turner – We Don’t Need Another<br />

Hero<br />

Rod Stewart – Maggie May<br />

Dusty Springfield – Son Of<br />

A Preacher Man<br />

Abba – <strong>The</strong> Winner Takes It All<br />

John Lennon - Imagine<br />

54


Dance/R&B (Galaxy)<br />

Infernal – From Paris To Berlin<br />

Shakira – Hips Don’t Lie<br />

Nelly Furtardo – Maneater<br />

Mary J Blige – Be Without You<br />

Armand Van Heldon – My My My<br />

Pussy Cat Dolls – Buttonz<br />

Southside Hustlers – Right Before My Eyes<br />

Adult Contemporary (Century)<br />

Bill Medley/Jennifer Warnes<br />

– I’ve Had <strong>The</strong> Time Of My Life<br />

<br />

<br />

<br />

Daniel Powter – Bad Day<br />

UB40 – Red Red Wine<br />

Shola Ama – You Might Need Somebody<br />

Ce Ce Peniston - Finally<br />

Natalie Imbruglia - Torn<br />

Maroon 5 – This Love<br />

Easy Listening (Magic/Smooth)<br />

Luther Vandross – Never<br />

Too Much<br />

George Benson – Give Me <strong>The</strong> Night<br />

Candi Station – Young Hearts Run Free<br />

Marvin Gaye – Sexual Healing<br />

George Michael – Careless Whisper<br />

Randy Crawford – One Day I’ll Fly Away<br />

Will Young – All Time Love<br />

Classic Rock (<strong>The</strong> <strong>Arrow</strong>)<br />

Led Zeppelin – Stairway To Heaven<br />

David Bowie – Jean Genie<br />

<strong>The</strong> Eagles – Hotel California<br />

REM – Shiny Happy People<br />

<strong>The</strong> Rolling Stones - Satisfaction<br />

Oasis - Wonderwall<br />

U2 – I Still Haven’t Found What I’m Looking For<br />

Classic Easy (50+)<br />

Batchelors – I Believe<br />

Frank Sinatra – New York New York<br />

Petula Clark – Downtown<br />

Ella Fitzgerald – Every Time I Say Goodbye<br />

Harry Connick<br />

Jr – Recipe For Love<br />

Shirley Bassey – Goldfinger<br />

Chubby Checker – Let’s Twist Again<br />

55


Modern Rock (Xfm)<br />

<strong>The</strong> Kooks – She Moves In Her<br />

Razorlight – In <strong>The</strong> Morning<br />

<strong>The</strong> Zutons – Valerie<br />

<br />

Own Way<br />

Arctic Monkeys – When <strong>The</strong> Sun Goes Down<br />

Orson – Happiness<br />

Snow Patrol – You’re All I Have<br />

Red Hot Chilli<br />

Peppers – Tell Me Baby<br />

Country/Folk<br />

Aaron Tippin – Come<br />

Friday<br />

Bonnie Raitt – Something To Talk About<br />

Billy Dean – Race You To <strong>The</strong> Bottom<br />

Gretchen Wilson – All Jacked Up<br />

Glen Campbell<br />

– Galveston<br />

Dolly Parton<br />

- Jolene<br />

Gary Allan<br />

– Best I Ever Had<br />

This table shows the popularity of each music po d in terms of the mean score given to it<br />

by respondents rating it from 1 to 10, where 1 is hate and 10 is l ove. This provides us with<br />

the appeal of<br />

each m usic genre and helps us to decide which format we will apply<br />

for<br />

the<br />

licence with.<br />

Scale 0-5.9 6.0-6.4 6.5-6.9 7.0-7.4 7.5-7.9 8.0+<br />

16-24 25-34 35-44 45-54 55-64 65+<br />

Top 40 7.0 7.0 6.8 5.8 4.9 3.4<br />

Gold 5.1 6.2 6.5 7.7 7.9 7.3<br />

Dance/RnB 7.3 6.4 5.8 5.3 4.2 3.2<br />

AC 6.1 6.5 6.7 7.4 7.3 6.3<br />

Easy Listening 5.2 5.9 6.8 7.5 7.2 6.0<br />

Modern Rock 6.7 6.2 6.0 4.6 4.1 3.8<br />

Classic Rock 4.9 6.1 7.0 7.2 6.5 5.2<br />

Classic Easy 3.2 3.9 4.1 6.0 6.6 8.1<br />

Country Folk 2.4 2.7 3.0 4.2 4.8 5.2<br />

<strong>The</strong> top 6 genres listed in the table are already in existence in some form in the<br />

Manchester marketplace, and, perhaps unsurprisingly are all relatively popular among<br />

respondents. <strong>The</strong> Top 40 genre is a particular favourite among 16-44 year olds, while<br />

Dance and RnB is popular among 16-34 year olds. <strong>The</strong> older age groups favour Gold,<br />

and Adult Contemporary is somewhat popular among all demographics. Modern Rock<br />

produces a good result for 15-44s,<br />

which bodes well for the new Xfm format. Looking at<br />

genres<br />

not currently<br />

represented,<br />

Classic<br />

Rock stands out by appealing<br />

to a wide<br />

demographic,<br />

and in particular 35-54s. Classic Easy has a slightly less broad appeal<br />

56


with good scores for 45+ year olds and very high score for 65+ year olds. Country/Folk is<br />

the least popular genre with very low mean scores.<br />

35-64 40-59 Male 40-59 Female Male All<br />

Top 40 5.9 5.9 5.7 6.0 5.6 5.8<br />

Gold 7.3 7.4 7.4 6.9 6.7 6.8<br />

Dance/RnB 5.2 5.1 4.7 5.8 4.9 5.3<br />

AC 7.1 7.2 6.9 7.0 6.3 6.7<br />

Easy Listening 7.1 7.3 6.9 6.8 6.0 6.4<br />

Modern Rock 5.0 4.8 5.1 5.1<br />

5.3 5.2<br />

Classic Rock 6.9 7.1 7.4 5.8 6.5 6.1<br />

Classic Easy 5.4 5.5 5.4 5.5 5.2 5.3<br />

Country Folk 3.9 4.0 4.1 3.7 3.7 3.7<br />

Classic Rock maintains its popularity in Manchester among<br />

its wider and core<br />

demographic and the mean scores are far higher than the other potential genres.<br />

Males 40-59 provided a mean score of 7.4 for Classic<br />

Rock<br />

versus 5.4 for Classic Easy<br />

and 4.1 for Country/Folk.<br />

<strong>The</strong> following chart shows the percentage of respondents who said they would listen to<br />

each genre of music often or occasionally.<br />

Listen<br />

Often/Occasionally<br />

(All Adults)<br />

AC 84%<br />

Gold 83%<br />

Easy Listening 78%<br />

Classic Rock 74%<br />

Top 40 71%<br />

Dance/ RnB 60%<br />

Classic Easy 59%<br />

Mod Rock 56%<br />

Country Folk 37%<br />

AC and Gold are very popular genres of music followed by Easy Listening. Classic Rock<br />

fairs extremely well at fourth for all adults with 74%. This is ahead of Top 40, Dance & RnB,<br />

and Modern Rock, even though they are currently serving<br />

Manchester and the Classic<br />

Rock format is underrepresented. Classic<br />

Easy and Country/Folk<br />

come out in the<br />

bottom three.<br />

Another important aspect of this initial format<br />

test was to find out not only respondents’<br />

favourite music genres but also whether they could attribute<br />

any of them to a station<br />

currently broadcasting in the region. <strong>The</strong> table below provides the percentage of<br />

respondents who claimed that there was no station that<br />

currently plays each type of<br />

music.<br />

It follows that the higher this percentage the bigger gap there is in the market for<br />

that particular genre (although this will of course need to be combined with its<br />

popularity).<br />

57


No Attribution (All<br />

Adults)<br />

Country Folk 77%<br />

Classic Easy 58%<br />

Classic Rock 52%<br />

AC 44%<br />

Gold 43%<br />

Mod Rock 40%<br />

Easy Listening 37%<br />

Dance/ RnB 29%<br />

Top 40 26%<br />

Predictably, those genres chosen because they were already present in the<br />

marketplace showed the highest levels of attribution, with the ‘new’ genres receiving<br />

high levels of no attribution. Country/Folk was deemed not to have much presence<br />

currently,<br />

but again, this must be offset with low popularity scores. Classic Easy is<br />

second and Classic Rock third for no attribution, however combining these scores with<br />

the music popularity scores suggests that there is more room for Classic Rock to be<br />

introduced<br />

into Manchester’s radio marketplace. To reinforce this, when looking at<br />

respondents scoring 7-10 for each genre, Classic Rock accrued 51% of all adults and<br />

Classic Easy, only 39%.<br />

Focus Groups<br />

In order to greater explore the initial findings from the first two research stages, we<br />

decided to conduct<br />

some focus groups. <strong>The</strong>se enabled us to better examine our<br />

suspicions<br />

that there was a gap in the market for a rock based music station. We also<br />

gathered a more detailed picture of listening habits and preferences during the four<br />

groups<br />

of 35-64s – split one evening by age and by gender for the second evening.<br />

Generation of real music lovers<br />

Music is important to this generation; they<br />

are passionate about music with eclectic<br />

tastes. Music is a crucial part of their lives and is evermore important as they get older.<br />

I probably wouldn’t get out of bed for a week [without music].<br />

Just from being a teenager I have just always been into music and I have just followed<br />

different things throughout my life and I still like music.<br />

‘Madchester’<br />

<strong>The</strong> ‘Madchester’<br />

music scene had an impact on this group. For those who were born<br />

and bred in Manchester, growing up in a city with strong musical identity was an<br />

influence on them.<br />

I grew up in Manchester when that ‘Madchester’ thing was going on, and so the<br />

Mondays and the Roses and I went to all the clubs<br />

and all that sort of scene is what I<br />

came through.<br />

Existing stations don’t meet their tastes…<br />

When asked about the stations they currently listen to, most felt that those available<br />

don’t suit their needs.<br />

58


Radio<br />

1 is seen as too young, a station they had grown out of.<br />

It is a bit too trendy.<br />

A lot of it is aimed at the younger market these days.<br />

Radio<br />

2 is perceived as having background music; inoffensive and easy listening. <strong>The</strong>re<br />

was<br />

no passion from respondents about this type of music.<br />

It is sort of easy going…you are sort of driving along and not really taking much noticed<br />

of it, but it’s just there, it is pleasant.<br />

I think Radio 2 is almost wallpaper music.<br />

Century is about as close as it gets to the respondents’ tastes but it is still felt that Century<br />

is a little too young for them, with too much banter.<br />

Century is targeting<br />

itself more at the 25/30’s and above and they play music from the<br />

70’s, 80’s and 90’s.<br />

<strong>The</strong>re is a little bit too much chat and sport and phone-ins.<br />

Generally<br />

the stations in the market don’t fit in with their musical tastes.<br />

All that modern rubbish, some of it is just so bad. That’ s why I don’t listen to the radio as<br />

much as I’d like to.<br />

[Radio 1] could<br />

drop a bit more of the hip hop and put in a bit more of the guitar music.<br />

…and there is no loyalty towards any particular station<br />

Respondents<br />

felt they didn’t have a favourite station and tend to flick between stations<br />

because they aren’t enjoying the presenters or the music. <strong>The</strong>y would like to have a<br />

station they can call ‘home’ but they feel that stations were too narrow for their tastes<br />

and lack depth.<br />

I just switch around. I have no real loyalty.<br />

I don’t feel attached to any particular radio station really.<br />

Taste is determined by the stations and not the listeners<br />

Respondents are tuned into the fact that stations, particularly Radio 1 and Key 103 will<br />

use the same play list every day and believe that these are determined by the music<br />

publishers.<br />

<strong>The</strong> play list is dictated by the big record companies to my mind.<br />

Radio 1’s too commercial for me, it’s too chart orientated. It’s like play lists that the MDs<br />

might choose, not the DJ’s and listeners.<br />

59


Talent<br />

and authenticity is vital to this audience<br />

Discerning<br />

in their tastes respondents liked bands and musicians that were original,<br />

authentic and not commercial, manufactured<br />

pop throughout the 60s, 70s and 80s. This<br />

still applies to them and they remain passionate about the classics that can stand the<br />

test of<br />

time. When asked to describe what they consider as ‘good’ music:<br />

It is about being talented.<br />

<strong>The</strong>y can play instruments.<br />

Good songwriters.<br />

I think that it is musicians; it is not manufactured rubbish you get.<br />

Holding onto memories through music<br />

Respondents use music to reminisce about their youth and important times in their lives.<br />

I like to listen to music that brings things back…if you hear a record from say 25 years<br />

ago and I remember<br />

who I was with back then and that is what it’s all about ain’t it? If it<br />

makes you feel good, what more could you want?<br />

It is all memories of the different tunes of your life span. <strong>The</strong>y just hit that certain note.<br />

When I was going through my split from my partner…the best thing I liked when I came<br />

home was headphones on Led Zep full blast in my ears.<br />

Variety is crucial<br />

It is<br />

felt that radio stations continually play the famous tracks from big artists, yet they<br />

don’t delve into the b-sides and album tracks that are just as good, if not better than the<br />

commercial hits.<br />

<strong>The</strong>re are just so many tracks by the<br />

Stones that are better…they always play the<br />

popular tunes.<br />

<strong>The</strong> big boys like Century and Key 103…they have got to get their listening figures up<br />

and they get those up by playing Satisfaction rather than Brown Sugar.<br />

Predictability and repetitiveness irritates this audience. <strong>The</strong>y are aware that this is<br />

because the play lists are narrow<br />

and certain hit songs are to be repeated a number of<br />

times in the day, however they’d still rather not listen to the same tracks over again.<br />

If you sit there for two hours you’ll hear the same tunes about three or four times.<br />

<strong>The</strong>y play the music they want to hear. Like today on Chris Moyles, a competition<br />

winner got through and they said ‘Oh what can we play today, what would you like to<br />

hear?’ And he mentioned some record. ‘Oh sorry it’s not on<br />

my play list’. So it works<br />

around a play list and a script.<br />

Embracing unfamiliar and different music<br />

Despite having favourite<br />

acts that they know and love from the past, respondents are<br />

open to unfamiliar music and like to hear acts they haven’t heard before.<br />

60


I want to hear new stuff, I don’t want to hear stuff I’ve already got, I’m looking to hear<br />

some new music.<br />

Reaction to the music pods<br />

Nine<br />

music pods were played during the focus groups to get and idea of the types of<br />

music<br />

that would appeal to the Manchester audience.<br />

Classic<br />

Rock<br />

This genre was<br />

well received by all, and it was felt that this was their kind of music. Many<br />

felt the tracks were classic, building the base of a good collection of music. This is the<br />

core of what they see as good quality music by talented<br />

artists.<br />

<strong>The</strong>y are all superstars.<br />

<strong>The</strong>y are well known<br />

people and they have been going for a while.<br />

Bright and breezy and you have just got up and are ready for the day type music.<br />

Modern<br />

Rock<br />

<strong>The</strong> majority<br />

enjoyed this music; however felt they knew very little about the genre.<br />

I know<br />

every single track there, but I couldn’t give you the title and I couldn’t give you<br />

the category, but I like it.<br />

Rock ‘n’ Roll<br />

Many commented on how much they listen to this kind of music. It was felt, however,<br />

that this kind of music belonged in to specialist show.<br />

A lot of music I listen to is from the 60s.<br />

In a little programme of its own. Say a half an hour.<br />

Punk<br />

This pod had a positive response, particularly for those who were fans of the music and<br />

were growing up<br />

when this music came out.<br />

<strong>The</strong> good stuff from the punk era transcends everything and I think it is great music.<br />

I reckon, like everyone says, you could drop a Pistols song in and I bet half this room<br />

would probably turn it up.<br />

Ska<br />

This<br />

divided the respondents. Those who knew this genre loved it and reminisce about it.<br />

Those who<br />

didn’t know it very well still wanted to hear it.<br />

It takes me<br />

back somewhere and the clubs that I used to go to and friends and stuff,<br />

because that was music that was in my age group at the time.<br />

I don’t know much about it, but every time I hear it I think it is just wicked.<br />

61


New Romantic<br />

Seen as a more relaxing type of music, ideal for winding down to.<br />

I would like it in the evening coming home, not in the morning.<br />

New Wave<br />

Although<br />

a popular genre with some, overall responses were fairly neutral. This genre<br />

did bring back fond memories, however.<br />

I just remember going<br />

off my head at a disco and you just couldn’t keep still at it.<br />

Northern Soul<br />

A few respondents were real fans of this music, with others not listening to it much at all,<br />

but keen on knowing more about it.<br />

<strong>The</strong>re were some monster hits.<br />

I want to know more about it, and so again I am open to it.<br />

Heavy Metal<br />

This genre was seen as something<br />

that would fit in well with the rest of the music played,<br />

however<br />

only in small quantities and something not to play too late in the evening<br />

because it is much louder.<br />

Definitely my type of music.<br />

To me it is not night time music. It is not after 9 o’clock music.<br />

Forming a suitable music station<br />

Overall respondents’ core music taste was for classic<br />

rock but with added extras;<br />

listeners were being discerning within the pods as to what they liked, but essentially the<br />

music they enjoy always has the common elements mentioned earlier that make music<br />

‘good’ to them.<br />

<strong>The</strong>y<br />

want a deeper play list from the chosen artist, not obscure music but a range,<br />

including more than just their biggest hits. <strong>The</strong>y don’t want endless variety but their<br />

demand is for ‘rock plus’, the classics combined with the ‘good’ half of the charts that<br />

they<br />

have always liked.<br />

Here are a couple of quotes from respondents after<br />

hearing all of the pods.<br />

I think that what you have got there, if that is our radio station, it is a lively one isn’t it…I<br />

think it’s an upbeat kind of selection.<br />

I would listen. If that was on air I would tune into it, without a doubt.<br />

Presenters<br />

must be knowledgeable about the music<br />

Although the presenter<br />

is not the most important aspect of respondents’ ideal station it is<br />

crucial that the presenter is passionate and has a clear knowledge of the music they are<br />

representing. <strong>The</strong>y are not keen on presenters<br />

who talk between songs about irrelevant<br />

stuff and feel it’s unnecessary.<br />

62


I find that Terry Wogan can waffle on a little bit too long as far as I’m concerned.<br />

I think a lot of stations basically you have disc jockeys going on there that have not a<br />

clue what they are on about. Because it is like you have got someone playing 70s, 80s and…he was in his nappies at the time.<br />

<strong>The</strong>y have got to love the music.<br />

Keeping it local<br />

Respondents<br />

were keen on making sure that the station is local and represents<br />

Manchester’s<br />

music tastes along with having Mancunian personalities.<br />

Somebody who knows and can tell you what is going on in Manchester.<br />

I think somebody who is local and knows the area.<br />

More local, Manchester based artists<br />

would be well received by this audience.<br />

You have got to have some Manchester.<br />

Some Manchester stuff like Inspiral Carpets.<br />

Non-stop<br />

music<br />

This is something respondents’ spontaneously said they would like to hear more of on<br />

the radio. <strong>The</strong>re aren’t enough stations providing a non-stop music hour or evening<br />

where it is all about the music and nothing else.<br />

I was just thinking they used to have a non-stop hour on the radio, on Radio 1 and<br />

various stations…which is a good thing but they don’t do enough of it.<br />

Utilities<br />

<strong>The</strong>se are considered to be sufficiently serviced in the market, however it is understood<br />

that they are important to listeners.<br />

Mundane things like daily news and travel and locals news is important as well.<br />

<strong>The</strong>y<br />

are happy to keep these necessities short and sweet, just a few minutes every hour<br />

or so.<br />

Headlines…I don’t need to know anything else.<br />

Local weather…it can just be a line can’t it?<br />

With<br />

sport, as long as the listeners know what is happening it doesn’t need to be indepth.<br />

Sports deadlines, results, any transfer news like that.<br />

DAB<br />

broadcast and in-depth interviews<br />

To discover what<br />

people really thought of <strong>The</strong> <strong>Arrow</strong> as a living, breathing station, we<br />

asked 20 respondents to complete a diary across a week-long period and give their<br />

63


views on the music, programming and presenters and how it compares with the current<br />

marketplace.<br />

A welcome change<br />

Respondents<br />

felt <strong>The</strong> <strong>Arrow</strong> provided a welcome alternative to their usual listening, filling<br />

a gap and fitting their music tastes. <strong>The</strong>y felt it was very different to their first preference<br />

station<br />

for many reasons.<br />

It is more appealing to me…Smooth is more laid back and easy listening and more<br />

placid as I say, but I like a little bit of oomph in the music and get up and go as my job<br />

entails hard work and graft.<br />

I knew<br />

more of the songs on <strong>The</strong> <strong>Arrow</strong> and so I enjoyed it more… I’d probably switch<br />

[from Xfm]. I would definitely listen to it, but not necessarily all the time.<br />

Musical depth<br />

<strong>The</strong> <strong>Arrow</strong>’s unusual tracks were loved<br />

by all. Most respondents agreed the music was<br />

less predictable, which they found refreshing. <strong>The</strong>y have become accustomed to<br />

stations playing the odd hit from their favourite artists welcome the opportunity to hear a<br />

wider range.<br />

It was less predictable, which I loved…there was obscure Beatles tracks, not obscure but<br />

do you know what I mean, not the usual ones? I heard a Neil Young track that<br />

I swear I<br />

haven’t heard since I listened to Radio International at two in the morning.<br />

A ‘rock’<br />

station<br />

Although respondents acknowledge a wide range of music is played, the rock music<br />

identity<br />

came across strongly to them. <strong>The</strong> <strong>Arrow</strong> is most certainly perceived as a rock<br />

station.<br />

I would describe it as a rock station, but it’s an entertaining one.<br />

Music<br />

meets the listeners’ needs…<br />

Over half of the respondents<br />

agreed that <strong>The</strong> <strong>Arrow</strong> is a station aimed at people who<br />

like ‘good’ music. So although they view it as a rock station, they feel it covers a wide<br />

range<br />

of tastes and is aimed at people who enjoy quality.<br />

Absolutely<br />

totally different in more ways than one, like I mean the music is brilliant…it is<br />

my type.<br />

It’s a bit staid in a sense, Radio 2, and <strong>Arrow</strong> is quite different…well it’s kind of<br />

invigorating really, it was the type of music you had on, and I suppose it’s something<br />

different isn’t it?<br />

…and there’s something for everyone<br />

It was felt by most respondents that there is something to suit everyone’s tastes and <strong>The</strong><br />

<strong>Arrow</strong> doesn’t just focus<br />

on old music, but includes newer tracks that they are interested<br />

in hearing.<br />

If you want a blast from the past with the modern stuff get it on.<br />

64


I think it is quite broad if I am truthful, because the kids did actually listen to it with us<br />

while<br />

we were in the kitchen and things like that and they were laughing at some of the<br />

old songs but they were actually singing and dancing to some of the other stuff.<br />

All about the music<br />

It is clear to respondents that <strong>The</strong> <strong>Arrow</strong> is primarily a music radio station, more so than<br />

the stations currently<br />

in the market. <strong>The</strong>y appreciated the uniqueness of the station and<br />

the music it played.<br />

I don’t think any of the stations<br />

that I’ve heard actually do it quite the same to be truthful.<br />

More music,<br />

less chat<br />

<strong>The</strong> more music approach of <strong>The</strong> <strong>Arrow</strong> was very appealing to respondents. <strong>The</strong>y felt<br />

that music should take priority and that too much speech on a music station often<br />

irritates them, interrupting the tracks. <strong>The</strong>y listen primarily for the music and presenters<br />

are there to deliver<br />

this, which <strong>The</strong> <strong>Arrow</strong> succeeded in.<br />

A radio<br />

station is more about music isn’t it? A lot of people do these competitions and<br />

what have you and yes it is exciting, but it takes it away from<br />

what a radio station is.<br />

I quite liked the fact that I would just listen to the <strong>Arrow</strong> when I just wanted the music<br />

really and not the chat.<br />

Presenting<br />

style<br />

Overall the presenting was considered as calm,<br />

relaxing and unobtrusive. <strong>The</strong>y liked<br />

the fact the presenters weren’t overbearing and enjoyed being able to listen to a station<br />

where music took<br />

priority.<br />

<strong>The</strong> DJ’s took a back seat I felt and the music was paramount and that<br />

is perfect.<br />

Respondents thought that the amount of music information given by presenters was just<br />

enough<br />

and provided a sense of the presenter’s knowledge of the tracks and artists they<br />

were referring to.<br />

<strong>The</strong>y certainly seemed to know a lot about it, you know? I got the feeling like they<br />

weren’t trying to bluff you.<br />

<strong>The</strong> presenters were seen as genuine and passionate<br />

about <strong>The</strong> <strong>Arrow</strong>, which was<br />

refreshing to hear.<br />

<strong>The</strong>ir personalities came across as if they were really interested in what they were doing.<br />

You know, they put a little bit of effort into it.<br />

A regional feel<br />

Although <strong>The</strong> <strong>Arrow</strong> on DAB is a digital station, most said that it felt regional. Listeners<br />

were<br />

happy with this regional sound and suitable for the style of the station.<br />

It seems<br />

more regional, but sort of appropriate.<br />

Listener involvement<br />

Many enjoyed the low listener involvement on the station<br />

as it can be irritating and can<br />

also<br />

be found on other stations that are more suitable for that sort of programming.<br />

65


I thought it was a very good idea…its different<br />

from having quizzes and people phoning<br />

in and so on, which irritate don’t they?<br />

<strong>The</strong> last thing I want to listen to is my neighbour phoning up and talking to me on the<br />

radio and so that suits me down to the ground really.<br />

Utilities<br />

Respondents felt that there was an ideal<br />

amount of news and sport, and they enjoyed<br />

the snippets of information given throughout the day.<br />

<strong>The</strong>y pitched it right for the type of station it was. It was brief, but it was inclusive. It gave<br />

a good snapshot of the news of the day.<br />

Brief overviews were definitely<br />

well received by all. Respondents’ tend to switch to the<br />

television or the Internet if they want to know more.<br />

It was useful, not too much, because you know if you do want to hear the news there is<br />

always somewhere you can go, isn’t there?<br />

<strong>The</strong>y were satisfied with the traffic news as well.<br />

It was just very ‘oh by the way there is a bit of a traffic jam here’, it was no fuss and didn’t<br />

seem to intrude, where a it can do so on other stations.<br />

Local music and events information<br />

<strong>The</strong>re was an indication that<br />

respondents would like to hear more in terms of local<br />

events<br />

and gigs within the entertainment news. Although <strong>The</strong> <strong>Arrow</strong> on DAB would not<br />

have had this focus, this is something that the station would provide in Manchester.<br />

…but local events as well and what is going on in your<br />

local area and what is<br />

happening over the bank holiday weekend and that sort of thing.<br />

<strong>The</strong>y could have been a bit more forthcoming with up and coming local bands.<br />

Whilst new local bands is more likely<br />

to be the preserve of Xfm, <strong>The</strong> <strong>Arrow</strong> would remain<br />

the place to find out about live classic rock performances in Manchester, whether from<br />

the original<br />

artists on tour in the city’s major venues, or cover and tribute bands in<br />

smaller pubs and clubs.<br />

To summarise<br />

Overall,<br />

<strong>The</strong> <strong>Arrow</strong> was appreciated as a welcome change compared with stations<br />

currently<br />

serving Manchester. <strong>The</strong> majority of respondents were genuinely happy to<br />

have discovered the station.<br />

I loved<br />

it.<br />

I would turn that on first.<br />

I’m going to leave it tuned to <strong>The</strong> <strong>Arrow</strong>.<br />

66


A pleasant outcome of this research is that respondents said that they would willingly<br />

recommend<br />

<strong>The</strong> <strong>Arrow</strong> to others.<br />

I have been telling people all about it already actually…I’ve been mentioning I’ve<br />

been listening to it and it really interests me.<br />

I would recommend it to anybody.<br />

Quantitative<br />

Survey<br />

<strong>The</strong> aims of this part of the original research were to refine our programming<br />

proposition<br />

and ultimately establish likelihood to listen to a station fitting <strong>The</strong> <strong>Arrow</strong>’s description.<br />

Summary<br />

of Results<br />

Upon hearing a sample of <strong>The</strong> <strong>Arrow</strong>’s Adult Rock<br />

format, 38% of respondents said<br />

that they would listen often.<br />

<br />

75% of respondents declared that they would listen at least once a week to the<br />

station after hearing a description of its format.<br />

Having appropriate music is the most important attribute for a rad io station, with<br />

poor music, chart music and too much talking over the music being particularly irritating.<br />

Localness is also an important aspect of a potential new radio station, with sport<br />

being much less significant.<br />

Likelihood to Listen to <strong>The</strong> <strong>Arrow</strong><br />

We read respondents the following description of <strong>The</strong> <strong>Arrow</strong> format:<br />

A Manchester-based station playing four decades of quality adult rock, combining<br />

popular rock hits with classic album tracks.<br />

Music would include legends of rock like the Rolling Stones, Fleetwood Mac, Bruce<br />

Springsteen and REM, as well as newer talent like Coldplay, <strong>The</strong> Thrills and<br />

Stereophonics.<br />

<strong>The</strong> station would also be a showcase for live music, featuring both new local bands,<br />

and major music acts playing in and around Manchester.<br />

<strong>The</strong> DJs would be friendly and well-informed and the station would include a concise<br />

news and information service with a strong focus on Manchester.<br />

A remarkable 81% of all respondents said that they would listen at least once a week,<br />

and an equally impressive 30% declared they would tune in everyday.<br />

67


Appeal of <strong>The</strong> <strong>Arrow</strong>’s Music<br />

In response to being played a selection of music representing <strong>The</strong> <strong>Arrow</strong>’s Adult Rock,<br />

38% of respondents said that they would listen often. This figure rises to 56% among <strong>The</strong><br />

<strong>Arrow</strong> target market of 40-59 year olds. When asked whether or not that would be their<br />

favourite station, a total of 13% of all respondents (and 20% of 40-59 year olds) claimed<br />

that it would be, indicating a potential P1 audience. <strong>The</strong> potential P1 audience has the<br />

following profile.<br />

51%<br />

49%<br />

7%<br />

19%<br />

Female Male 16-24 25-34 35-44 45-54 55-64 65+<br />

<strong>The</strong>re was little attribution of the sound to any particular station. Century 105.4 received<br />

the highest attribution of 15.9% and no other station came close to this. Altogether 44%<br />

of adults could not attribute <strong>The</strong> <strong>Arrow</strong> clip to any current station.<br />

Specialist Music Tastes<br />

At the end of the research we also wanted to find out what respondents thought of<br />

potential specialist music that we’d looked at in the focus groups. <strong>The</strong> results from this<br />

part of the survey would help provide the content for specialist music shows and<br />

indicate whether there was a strong enough demand for it to be played alongside the<br />

core <strong>Arrow</strong> music.<br />

Respondents were asked to state how often they would like to hear different types of<br />

music on a scale from ‘1’ to ‘5’, where ‘1’ means they would not like to hear that type of<br />

music at all and ‘5’ means that they would like to hear it a lot. <strong>The</strong> music played was<br />

asked to be judged on the style it represents, not the individual song itself.<br />

Modern Rock<br />

<strong>The</strong> Kooks – She Moves In Her<br />

Own Way<br />

Razorlight- In <strong>The</strong> Morning<br />

<strong>The</strong> Zutons – Valerie<br />

<br />

Rock ‘n’ Roll<br />

Bill Haley & <strong>The</strong> Comets: See<br />

You Later Alligator<br />

Buddy Holly: Oh Boy!<br />

Chuck<br />

Berry: Maybellene<br />

22%<br />

23%<br />

18%<br />

11%<br />

68


Punk <strong>The</strong> Sex Pistols: Pretty Vacant<br />

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

Ramones: Sheena is a Punk Rocker<br />

<strong>The</strong> Stranglers: Peaches<br />

Sk a<br />

<strong>The</strong> Specials: A message to you Rudy<br />

<strong>The</strong> Beat: Mirror in the Bathroom<br />

Selecter: On My Radio<br />

<br />

<br />

New Romantic<br />

Japan: Ghosts<br />

Spandau Ballet: Chant No. 1<br />

Visage: Mind of a Toy<br />

New Wave<br />

Blondie: Union City Blue<br />

Boomtown Rats: Lookin’<br />

after No.1<br />

<strong>The</strong> Jam: Going Underground<br />

Northern Soul<br />

Frank Wilson: Do I Love You<br />

Timi Yuro: Hurt<br />

Mitch Ryder: Breakout<br />

Heavy Metal<br />

Led Zeppelin: Black Dog<br />

Black Sabbath: Paranoid<br />

Motley Crue: Girls Girls Girls<br />

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

table shows percentage of respondents who rated each music pod either ‘4’ or ‘5’<br />

out<br />

of ‘5’ and essentially revealing the popularity of each cluster (ranked by adults 40-<br />

49).<br />

69


Total Adults 16+ Adults 35-64 Adults 40-59<br />

<strong>Arrow</strong> music<br />

‘Favourite’<br />

Modern Rock 54% 48% 48% 60%<br />

New Wave 37% 46% 47% 56%<br />

Rock n' Roll 46% 52% 45% 57%<br />

Ska 28% 34% 36% 34%<br />

Northern Soul 28% 35% 36% 34%<br />

Heavy Metal 32% 33% 33% 39%<br />

Punk 25% 23% 25% 37%<br />

New Romantic 21% 27% 25% 37%<br />

Modern Rock, New Wave and Rock ‘n’ Roll are the most popular music types here.<br />

Popularity<br />

is one thing, but being well liked is irrelevant if this type of music is already<br />

catered<br />

for in the current marketplace. To find out about attribution we asked<br />

respondents<br />

what station comes to mind when they hear that type of music, with the<br />

following<br />

percentages declaring that no station comes to mind.<br />

No<br />

Attribution<br />

Ska<br />

78% 77%<br />

New Romantic<br />

76% 74% 73%<br />

Punk<br />

Northern Soul<br />

Heavy<br />

Metal<br />

Rock n' Roll<br />

67% 66%<br />

New Wave<br />

Modern Rock<br />

So, music types such as Modern Rock and Rock ‘n’ Roll, despite being popular are<br />

among the lowest stations for ‘no attribution’. That is, 53% of respondents<br />

could attribute<br />

the<br />

Modern Rock sound to a particular station. It should be noted, however, that Xfm<br />

had only recently launched<br />

at the time this research was conducted, so it is unsurprising<br />

that<br />

it have yet to make a significant impact on the consciousness of Manchester<br />

listeners.<br />

Of<br />

ultimate interest, is to combine the two previous charts to reveal the balance<br />

between appeal and attribution to provide a figure for the potential gap in the market.<br />

47%<br />

70


By simply multiplying the two figures (a high figure for appeal and ‘no attribution’ are<br />

both<br />

positive for a music genre) we arrive at the following finding.<br />

Appeal<br />

and Potential<br />

Rock n' Roll<br />

30.6<br />

Modern Rock<br />

25.2<br />

New Wave<br />

24.3 23.0<br />

Heavy Metal<br />

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

chart shows room for specialist music such as Rock n’ Roll and New Wave. Whilst<br />

Modern<br />

Rock clearly also has appeal, its provision on Xfm means that its inclusion on<br />

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

<strong>Arrow</strong> would run the risk of diluting our distinctiveness.<br />

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

age profile of each music type shows a big desire for Rock ‘n’ Roll music among the<br />

older<br />

end of the age range, with Modern Rock appealing to the younger market<br />

particularly,<br />

and generally has a very broad appeal. New Wave is a particular favourite<br />

for<br />

35-44s.<br />

ka<br />

S<br />

21.8<br />

20.5<br />

Northern Soul<br />

19.3<br />

Punk<br />

New Romantic<br />

16.2<br />

71


Cluster<br />

% 4/5 16-24 25-34 35-44 45-54 55-64 65+<br />

Modern Rock 83% 66% 54% 51% 36% 29%<br />

Rock ‘n’ Roll 20% 24% 35% 47% 78% 77%<br />

Punk 32% 33% 30% 25% 14% 16%<br />

Ska 16% 24% 40% 35% 24% 23%<br />

New Romantic 10% 13% 39% 21% 18% 22%<br />

New Wave 24% 30% 58% 43% 35% 23%<br />

Northern Soul 10% 9% 25% 37% 46% 41%<br />

Heavy Metal 39% 25% 35% 35% 27% 27%<br />

Compatibility of Adult Rock Genres<br />

In order to guide our programming format, we needed to check the compatibility of the<br />

music<br />

types. <strong>The</strong> table below shows the correlation in appeal between the various<br />

music<br />

types we tested. Each column represents the views of all those respondents who<br />

gave<br />

a score (out of 5) of 4 or 5 for the music type at the head of that column. <strong>The</strong><br />

percentage<br />

is the proportion of these people who also liked the music type shown in<br />

each<br />

of the rows (i.e. scored it ‘4’ or ‘5’ out of 5). For example, 24% of those people who<br />

liked<br />

Modern Rock, also liked Rock ‘n’ Roll.<br />

72


Cluster<br />

Modern<br />

Rock 4/5<br />

Rock ‘n’ Roll<br />

4/5<br />

Punk 4/5<br />

Ska 4/5<br />

New<br />

Romantic<br />

4/5<br />

New Wave<br />

4/5<br />

Northern<br />

Soul 4/5<br />

Heavy Metal<br />

4/5<br />

Modern Rock 42% 74% 55% 63% 66% 49% 70%<br />

Rock ‘n’ Roll 36% 44% 60% 59% 50% 75% 54%<br />

Punk 35% 25% 47% 43% 44% 29% 54%<br />

Ska 29% 37% 52% 48% 48% 46% 42%<br />

New Romantic 25% 28% 37% 37% 36% 34% 29%<br />

New Wave 45% 41% 64% 63% 63% 51% 59%<br />

Northern Soul 26% 46% 31% 46% 44% 38% 36%<br />

Heavy Metal 41% 38% 67% 47% 43% 51% 41%<br />

This table shows that certain genres of music are compatible, while others are less so. It<br />

appears that New Wave is liked by Ska, New Romantic and Punk fans and Northern Soul<br />

fans also particular like Rock ‘n’ Roll. However, a station playing both Modern Rock and<br />

Northern Soul may be too much of a clash for listeners.<br />

Positive<br />

Attributes of Radio<br />

Respondents were asked to rate the importance of a number of features on radio, rating<br />

them on a scale of ‘1’ to ‘9’ where ‘1’ means they don’t care for it much at all, and ‘9’<br />

means they value it so much that they would consider retuning to another station based<br />

on that quality. This allows us to assess and compare the extent to which each feature<br />

attracts support among the potential audience.<br />

Suitable<br />

music is clearly judged to be the most important aspect of a radio station, 74%<br />

rating<br />

it between ‘7’ and ‘9’. Among all adults it is Smooth FM which leads the way as<br />

the<br />

station that scores highest for ‘music that suits them best’. This suits the type of station<br />

that<br />

Smooth FM is, which is aimed at a slightly more niche market.<br />

<strong>The</strong>se<br />

findings also confirm that most people are not too concerned about having upto-date<br />

music; with the core arrow target of 40-59 year olds scoring it as low as 5.5 out of<br />

9.<br />

Playing old favourites is important, with BBC Radio 2 scoring best for this attribute. This<br />

suggests<br />

that such music that has dropped off the play lists of pop-based FM ILR stations<br />

has strong appeal. <strong>The</strong>re is also evidence of demand for consistency in approach, with<br />

respondents<br />

expecting to hear music they enjoy at all times.<br />

73


Positive Attributes to Radio<br />

Music<br />

suits<br />

you<br />

7.3 6.8<br />

v<br />

Old fa<br />

ourites<br />

Only good<br />

songs<br />

Negative Attributes of Radio<br />

A similar question was asked regarding what things people hear on the radio that irritate<br />

them.<br />

Here, ‘1’ is something they do not find annoying at all, and ‘9’ is so annoying that<br />

they<br />

would consider retuning to another station because of it.<br />

Inappropriate<br />

music, including chart music, is a clear turn-off, with Radio 1 noted as a<br />

station<br />

which most plays irritating music. Stations that have a lot of talk and interruptions<br />

and<br />

that do not mention the songs being played also annoy. Old songs being played<br />

is found to be the least irritating with only 17% rating it between ‘7’ and ‘9’.<br />

Negative<br />

Attributes to Radio<br />

Don't like music<br />

6.5 6.5<br />

Talk & interptn<br />

o<br />

No song inf<br />

6.7 6.7 6.6<br />

6.4 6.2<br />

Local news/info<br />

More music,<br />

less<br />

chat<br />

s<br />

Nothing but chart<br />

Knowledgeable presenters<br />

No knowledge<br />

5.7<br />

5.3<br />

6.3<br />

Go<br />

o<br />

Bad T&T<br />

Mostly bad songs<br />

d T&T<br />

5.9<br />

Up-to-date<br />

music<br />

4.9 4.9 4.8<br />

Music too young<br />

Irrelevant news<br />

5.6 5.5<br />

Good<br />

weather<br />

Lots new songs<br />

4.2<br />

Lots old songs<br />

3.3<br />

74


This data complements and reinforces the findings from the previous questions about<br />

positive station attributes. <strong>The</strong> preference for ‘old songs’ over ‘chart music’ is particularly<br />

stark. Interestingly, there is a high level of tolerance for ‘new songs’ which suggests that<br />

the age of the music is not, in itself, an overriding factor; rather, it is the devotion to<br />

following<br />

ephemeral music fashions, and the youth-targeted Top 40, that annoy our<br />

target<br />

audience. Newer songs from the 80s and 90s that are of high quality and<br />

consistent<br />

with the overall musical approach to the station, regardless of their chart<br />

success,<br />

would appear still to be well received.<br />

General<br />

Attitudes to Radio<br />

Attitudes<br />

to radio in general were also sought. Respondents were asked to state how<br />

much<br />

they agree or disagree with a series of statements. This chart shows those who<br />

agree<br />

or agree strongly.<br />

79%<br />

72%<br />

69%<br />

Prefer FM to AM Plenty music at Prefer local More choice for Don't hear enough Lke to know about<br />

home that's not on stations to London under 40s than Manchester bands Top 40 Single<br />

radio stations over 40s on radio Chart<br />

<strong>The</strong> majority of respondents (79%) prefer stations on FM rather than AM or medium<br />

wave. This indicates that if an alternative to their current AM options was made<br />

available they would be highly likely to switch over to FM. Almost three-quarters of<br />

respondents<br />

state that there is music they play at home which they don’t hear much on<br />

the<br />

radio, suggesting a definite need for a new entrant into the radio marketplace with<br />

a different format to any currently existing.<br />

This again confirms our instinctive approach<br />

to serving this generation of listeners – this is an audience which has lovingly built up a<br />

record collection of classic<br />

favourites, and would like to hear those songs and others<br />

like<br />

them, on the radio.<br />

<strong>The</strong>re is clear dissatisfaction with the range of choice available to them at the moment,<br />

with the current provision of radio in Manchester viewed as being primarily targeted at<br />

younger listeners, with the Baby Boomer generation disenfranchised by the medium<br />

they love.<br />

Appeal<br />

of Individual Speech Features<br />

Respondents were then asked to what extent they would want to hear certain items on a<br />

new station.<br />

Localness, whether<br />

in the form of news, traffic & travel or weather, is a very important<br />

part<br />

of what respondents would want to hear on a new station. Local news is seen as<br />

particularly vital, with an emphasis on events, music and entertainment. North West<br />

59%<br />

53%<br />

37%<br />

75


listeners also clearly care about what’s going on in the world, with news in all forms<br />

rating highly. People in the Manchester area also care about news in the wider region<br />

but not as much as they do about their own locality.<br />

<strong>The</strong>se results should also be considered alongside the findings from the focus groups. It<br />

appears that local news, weather and traffic and travel are important to listeners, but<br />

should<br />

only appear on the station in the appropriate way. That is to say: short, sharp<br />

and<br />

relevant.<br />

Listener<br />

interest in live and local music is also clearly apparent. Live music sessions,<br />

features<br />

on local music talent and new music from local bands all scored well, although<br />

much<br />

of this is territory which will already be well covered by Xfm.<br />

89% 84%84%<br />

79% 79% 79% 76% 73% 72%71% 71% 70% 67% 66%<br />

59% 59% 57% 55% 54% 52%<br />

47% 45% 43%<br />

Local<br />

news<br />

Local<br />

music<br />

news<br />

Local<br />

info<br />

Reg<br />

T&T<br />

Reg<br />

weather<br />

Live gig coverage<br />

North<br />

West<br />

news<br />

Artist<br />

interviews<br />

Live<br />

sessions<br />

New<br />

local music<br />

Local talent<br />

features<br />

UK news<br />

Intnl news<br />

Films<br />

& videos<br />

Quizzes and competitions<br />

Road show appearances<br />

Health<br />

& fitness<br />

Local sport<br />

Music documentaries<br />

Local sports events<br />

Uk & Intnl sport<br />

Sports<br />

interviews<br />

Local business<br />

new<br />

Least important among respondents is business, health and fitness and sport. Only 47%<br />

want to hear about UK and international sports news and even local sport only<br />

manages<br />

to command the support of 55% of respondents.<br />

Speech/Music Ratio<br />

When asked what ratio of speech to music they would like on a new station, 57% of<br />

respondents opted<br />

for ‘all music’ or ‘mostly music’, compared to only 3% who chose<br />

‘mostly<br />

talk’ or ‘all talk and very little music’. Given the questions that preceded it, and<br />

the<br />

wording of this question, it is clear that respondents understood that they were being<br />

asked<br />

about relative speech levels within a station that would include at least some<br />

music.<br />

In comparison with existing music stations, an overwhelming 95% would prefer either<br />

more<br />

music or approximately the same balance. It is apparent that, if presented with a<br />

further<br />

music radio choice, listeners in Manchester would not welcome one with high<br />

speech<br />

levels.<br />

s<br />

76


36%<br />

More music, less chat than<br />

existing stations<br />

Music: Speech Preferences<br />

59%<br />

5%<br />

About same as existing stations More talk, less music that<br />

existing stations<br />

77


7. Evidence of Support<br />

This section should provide evidence of support, where appropriate, from the applicant's potential audience<br />

or from prospective local advertisers.<br />

<strong>The</strong> <strong>Arrow</strong> has the overwhelming support of listeners in Manchester.<br />

<strong>The</strong>re is clearly interest in having a new radio choice in the market. Respondents to our<br />

survey were asked about their attitudes towards the launching of a new station in the<br />

region. An astounding 92% of them agreed that they would be very keen to try it out,<br />

irrespective of the format.<br />

Our research also showed extremely high levels of support for <strong>The</strong> <strong>Arrow</strong>. When read a<br />

description of <strong>The</strong> <strong>Arrow</strong> and asked how often they thought they would listen to it, 25% of<br />

respondents said they would listen every day (35% among males 40-59), with the figure<br />

rising to 75% of respondents who would listen at least once a week (84% among males<br />

40-59). When played a selection of tracks representing <strong>The</strong> <strong>Arrow</strong>’s format, 38% (57%<br />

among male 40-59) said they would listen often and 13% said that it would be their<br />

favourite station. This figure gives the most accurate indication of the potential reach of<br />

the station, and therefore represents a major achievement for a new service in a<br />

competitive market. We then asked how this would affect their current radio listening<br />

habits. 38% of respondents said they would spend more time listening to the radio in<br />

general, with 13% stopping listening completely to a particular station. For 59% of the<br />

respondents the introduction of <strong>The</strong> <strong>Arrow</strong> would mean they would listen less to any<br />

particular existing stations.<br />

We also sought to measure general support for a station like <strong>The</strong> <strong>Arrow</strong> even amongst<br />

non-rock music fans. Respondents were asked: “Regardless of whether you would listen<br />

or not, would you support a radio station like [<strong>The</strong> <strong>Arrow</strong>] getting a licence to<br />

broadcast?” A staggering 95% of them said ‘yes’. This overwhelming support is an<br />

extraordinary finding, and confirms our view that the <strong>Arrow</strong> is the station that Manchester<br />

really wants to hear.<br />

78


Declaration<br />

We confirm that, to the best of our knowledge and belief:<br />

a) the applicant is not a disqualified person in relation to the licence by virtue of the<br />

provisions of section 143(5) of the Broadcasting Act 1996 (relating to political objects);<br />

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

company or the applicant group is the subject of a disqualification order as defined by<br />

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<br />

an unlicensed broadcasting offence and that the applicant will do all it can to ensure<br />

that no person so convicted will be concerned in the provision of the service, the<br />

making of programmes included in it, or the operation of a radio station if the applicant<br />

is granted a licence; and<br />

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

and substantial shareholders involved in the application are fit and proper persons to<br />

participate in a radio licence have been made known to <strong>Ofcom</strong>.<br />

Phil Riley<br />

Chief Executive<br />

Chrysalis Radio<br />

79

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