Media regulator Ofcom has ordered the BBC to halt work on a planned Radio 2 spin-off channel after concluding it could “have a significant adverse impact on fair and effective competition”.
Earlier this year the broadcaster announced plans to launch three new music stations, billed as ‘extensions’ of Radio 1, Radio 2 and Radio 3, on DAB+ and its BBC Sounds app. It also plans to make changes to the existing Radio 1 Dance stream.
It described the proposals as “a cost-effective way to reach audiences on DAB+ where listening is growing as people move over from FM.”
The new stations are subject to regulatory approval, including a Public Interest Test (PIT) for the proposed DAB+ versions and an Ofcom assessment on whether the BBC Sounds versions constitute material changes in the BBC’s output.
While it concluded that the proposed new Radio 1 and Radio 3 streams for BBC Sounds can go ahead, as can the changes to Radio 1 Dance, Ofcom says the planned Radio 2 extension “does represent a material change” given the competition risks it’s identified.
The regulator said: “Given our materiality finding, we are now directing the BBC to stop carrying out this aspect of its proposals. Should the BBC wish to continue to launch the Radio 2 extension Sounds-only stream, it would need to conduct a public interest test.”
When it first announced the proposed changes, the BBC said its Public Interest Test on the DAB+ versions would run until the end of 2024.
Ofcom says that once the BBC submits the PIT, it will carry out an initial assessment, followed by a fuller competition assessment “within six months, to determine whether or not the BBC may proceed with these changes.”
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