Policy paper

Government response to the Digital Radio and Audio Review

Updated 28 April 2022

This was published under the 2019 to 2022 Johnson Conservative government

1. Introduction

The Digital Radio and Audio Review was commissioned in February 2020 by the Department for Digital, Culture, Media and Sport to look in detail at the landscape for radio and audio over the coming years, and to make recommendations with regard to industry and government action to strengthen the sectors in the context of rapid changes in listening habits and the increasingly diverse ways in which services are distributed.

The government had previously supported the need for a formal review of the progress on digital radio at a point when the majority of radio listening was via a digital platform, and by February 2020 digital listening had reached 60% of all radio listening. The rapid growth of connected audio devices over recent years has started to change the landscape for radio and audio services, however, and meant that the Review would need to consider a much broader range of issues - and not just whether sufficient progress had been made for the government to consider any potential switchover from AM and FM to DAB.

The Review was established as a joint government / industry review to:

• assess future scenarios for the consumption of UK radio and audio content on all radio and online platforms and assess the impact of these scenarios on access to UK radio services;
• assess the impact of likely models of future listener trends on current and future distribution strategies for UK radio groups and industry;
• make recommendations on further measures and collaborative actions to strengthen the UK radio and audio industry for the benefit of all listener groups and to promote innovation.

The Review was led by joint industry working groups under the direction of a cross government / industry steering board with expert independent input, with the output being a written report setting out sector commitments and options for future government support linked to level of ambition and assessed benefit. The steering board was chaired by a DCMS official, with the secretariat provided jointly by DCMS, Digital Radio UK (the UK coordinating body for the growth of digital radio) and industry, and supported by technical advice from Ofcom. It was agreed that the government would need to consider recommendations for future government action.

The government is grateful to the steering board and to everyone who contributed to the Review. The Review’s final report, containing 42 recommendations for government and industry, was prepared collaboratively between DCMS and industry stakeholders, and was published by the government in October 2021.

The Review’s main conclusion was that the time is not right for a formal switch-off of analogue radio services, and that it would be precipitous to look to this happening before 2030 at the earliest. While noting that the ongoing decline of analogue listening makes it appropriate to consider updating elements of the legislative framework to support a smooth transition of services away from analogue in due course, the government agrees with this assessment. The government therefore welcomes this recommendation and agrees with the Review’s assessment that there is a need for government and industry to look at this again in 2026.

We also agree that the case has been made for new regulation to protect radio’s long term position in the context of the rapid growth in usage of smart speakers and other connected devices, to ensure that listeners are able to continue to access radio services on these devices and in recognition of the huge public value which radio provides. We agree that legislation is needed to update the regulatory framework for commercial radio, and we are committed to putting in place strong foundations for the longer-term work that will need doing over the coming years as listening habits and technology continue to change.

The government’s response focuses on the recommendations for specific government action. There are a number of areas identified in the report where industry is better placed to take matters forward, but where we in government can support these efforts, we will of course continue to do so as we work towards a vibrant future for one of the country’s longest-standing and most trusted mediums.

2. Response to specific recommendations

2.1 Updating the commercial radio regulatory framework

R2. Government to consider bringing forward, as soon as possible, legislation to simplify commercial radio licensing and format regulation, as recommended by DCMS in 2017.

R31. Government should consider making changes to legislation to protect the INR status of the two national commercial AM licensees post the closure of their AM networks and ahead of a full analogue switchover.

The government agrees that the current commercial radio licensing structure requires simplification, and will be introducing the relevant legislation when parliamentary time allows.

Building on both the Legislative Reform Order passed in 2020 which allowed for the renewal of analogue commercial radio licences and this year’s LRO with regard to national commercial digital multiplex licensing, the government intends to update the regulatory framework for commercial radio, giving stations greater flexibility to respond to changing listener demand while maintaining local radio’s vital public service role in providing important, trustworthy news and information. The measures will include changes which will ensure that the national AM and FM services retain their Independent National Radio (INR) status, which includes protected carriage on the D1 national multiplex, in the event they hand back their national AM or FM licences.

2.2 Reviewing the rules governing terms and conditions in radio advertising

R3. The FCA to consider working to simplify rules governing terms and conditions in radio ads to facilitate clearer messages on financial products and services.

As the Review highlights, the current requirements have been a long-standing issue for the commercial radio sector, who argue that in an audio-only context, they place an excessive burden on advertisers and on stations while providing minimal protection for consumers. The government recognises these concerns and is committed to supporting the Financial Conduct Authority (FCA) in ensuring rules governing financial promotions provide sufficient protections for the public and place proportionate burdens on advertisers and media platforms across all media, including for radio.

Leaving the EU provides the opportunity to reassess the effectiveness of the requirements like these (which stem from the EU’s Consumer Credit Directive) to ensure our rules act in the interests of UK consumers and respond quickly to our flexible and dynamic markets. To ensure a coherent approach to consumer credit regulation it is important that this consideration is holistic and is aligned to recent regulatory developments including the direction set by the Future Regulatory Framework and the FCA’s Consumer Duty.

The government will therefore look to address concerns about consumer credit radio advertisements as part of this wider work and in due course will further engage the FCA and radio sector to explore possible improvements to ensure the best outcomes for consumers and business.

2.3 Funding to support radio and audio

R5. The government to consider extending support for the growing community radio sector - for example by expanding the Community Radio Fund.

R6. The government to consider continuing to make funding available for public service audio content, subject to evidence of impact, and consider increasing the budget with a portion allocated to supporting opportunities for new and more diverse talent to get started in the industry.

R10. The government to work with industry to review skills funding for the audio sector in order to help develop and deliver high quality audio skills training for a new generation of talent.

The government agrees that both the Community Radio Fund and the Audio Content Fund (ACF) have made a very positive contribution to the strength and vitality of the UK’s radio landscape.

As the Review report notes, the community radio sector has gone from strength to strength since the first stations were licensed in 2002 under the ‘Access Radio’ pilot scheme. We agree with its conclusions as to the vital local service provided by the sector, and are committed to supporting its continued growth.

While the wider economic context did not, in light of other competing demands on taxpayer funding, provide scope for an increase to the Community Radio Fund in the most recent Spending Review, targeted uplifts of £200,000 have been applied to the Fund in both 2020/21 and 2021/22, enabling it to allocate more funding in each of those years than it had in all but one of its previous years of operation.

We have recently published the report of an external evaluation of the CRF, which has highlighted the excellent work being done in the sector as well as potential areas for further development of the Fund, and we are exploring options to adapt the Fund’s operations to the current sector landscape in light of the findings of that evaluation. The evaluation will also inform future discussions about the level of the Fund and its priorities in supporting the community radio sector.

We also recognise the success that the ACF has had with regard to the criteria set for it (including innovation, additionality, diversity and the promotion of new voices). The ACF has brought a wide variety of public service content to listeners across the UK, including in the course of two additional funding rounds - one in the early months of the coronavirus pandemic, and the other focused on alleviating loneliness during the winter of 2020/21.

We are now working on a formal evaluation of the Fund, as agreed when it was initially set up, and will review the possibility of further investment in public service audio content once the economic landscape allows, with any further action in this area being informed by that evaluation.

Finally, we recognise the importance of ensuring that the audio sector is able to deliver high quality skills training, and we will be supporting a new working group, including industry stakeholders. We have started work to coordinate the existing initiatives within the sector and explore opportunities for collaboration.

2.4 Audio production tax relief

R7. The government to consider the case for tax relief for investment in higher-end produced audio content (for example in genres such as drama, comedy, factual e.g. true crime, one-off live big scale events) - drawing on experience of the successful High End TV Scheme.

The UK audio production sector has grown significantly over recent years with increased investment in audio and podcast content and with audiences for podcast content in particular rising rapidly (and likely to double in the next five years). This has benefited both the UK economy and the country’s cultural capital, and we recognise the sector’s potential to continue its growth in the years to come.

We are very grateful to the Review for its assessment of the future prospects for the UK audio production market, and the government recognises the valuable role that the sector plays. Whilst the government keeps tax reliefs under review, it is not currently considering introducing an Audio Production Tax Relief.

2.5 Expanding ethnic minority services

R12. Government and industry to look to collaborate to identify opportunities to expand ethnic minority radio and audio services - particularly for under-served communities - building on the existing provision offered by commercial and community stations.

The government strongly supports the recommendation to identify opportunities to expand radio and audio services for under-served groups, and we will continue to work with industry accordingly. This should include diversity in representation from across the United Kingdom, and diversity of thought. We jointly funded the important research carried out for the Review into diversity in radio and audio, and stakeholders from the Review will be coordinating work on diversity and inclusion with the existing action being taken in this area by Ofcom.

We also note that the rollout of small-scale DAB is now reaching a point where multiplexes are being launched and new stations are coming on air. Small-scale DAB provides a low-cost opportunity for smaller, community-focused stations to broadcast, and we would hope that a significant number of stations targeted at under-served groups will take up licences as the number of multiplexes across the UK continues to increase.

2.6 Transmission technologies

R14. The government to consider introducing legislation to ensure that all new domestic radio products that include DAB will be mandated to include DAB+ by the end of 2023.

R15. Government and industry to review introducing legislation to mandate all domestic radio receivers to include DAB+ in 2026.

R41. The government should ask Ofcom to review DAB+ to include (a) undertaking a market study to assess the current status of DAB+ device penetration and usage by listeners (both in-car and in-home); (b) initiating a call for evidence to fully assess the consumer, multiplex viability, licensing, market impact, public interest and regulatory implications of accelerating the shift of more digital radio services to DAB+.

R39. DCMS to consider which of the deficiencies [in DAB coverage] already identified by the Broadcast Radio Coverage Group and those road deficiencies identified through the additional BRCG work it could support with capital funding to deliver government objectives and level up disparities between the Nations of the UK.

R34. The government should explore the economic and social benefits of prioritising radio traffic when carried over mobile networks and consider how such prioritisation might be implemented.

The government agrees that it may be appropriate, subject to developments in the radio market and in listening habits over the coming years, for action to be taken to support a faster migration of stations from DAB to DAB+ in order to allow more stations to broadcast on the DAB platform. We will be looking to legislate to allow Ofcom to set technical standards accordingly when parliamentary time allows, and have asked Ofcom to take steps to complete its review of DAB+ (as set out in Recommendation R41) within the next 12 months.

As highlighted in the Review report, DAB+ is more spectrum efficient than DAB, while mandating DAB+ would ensure that all radios sold in the UK would be capable of receiving the full range of digital radio services. This would benefit listeners who might not realise that certain stations, such as talkRADIO or Capital Dance, are not available on some devices, as well as simplifying product lines and the marketing of digital radio, and avoiding the risk of consumers buying radios that can receive limited services (and in the case of AM, and in time FM, services which may be withdrawn).

There are at present no powers to regulate digital radio technical standards, which are part of industry standards overseen by the European Telecommunications Standards Institute (ETSI) and World DAB (the governing body for DAB standards). The issue is only likely to affect portable radios used predominantly in home environments as the vast majority of new DAB radios sold over the past ten years have DAB+ capability. In order to enable potential mandation of DAB+ in all digital radios in due course (see also our response to Recommendation R41 below), we will seek to legislate when parliamentary time allows to allow Ministers - following advice from Ofcom and consultation with industry - to be able to set requirements by Order for radio devices so that all digital radios are able to receive the full range of available stations.

The government also agrees, given spectrum constraints and the likely demand for more services both at a local and a national level over the coming years, that it is appropriate to look towards prioritising DAB+. We agree with the Review’s recommendation that Ofcom should provide advice on how to accelerate the migration of services to DAB+, including the carrying out of a market study and the initiation of a call for evidence in relation to DAB+ - which would in turn inform the actions in relation to Recommendation R14 above on the setting of technical standards.

With regard to the next phase of work on DAB coverage and network planning, we fully recognise that there remain gaps in digital radio coverage within the UK. There is, at the moment, no funding provision for additional support for further buildout of the DAB network, and given that analogue radio will be retained at least until 2030, a strong case would need to be made by industry for the government to consider this; however, we welcome and support work which the Broadcast Radio Coverage Group (BRCG) is carrying out to assess future options for further DAB coverage improvements.

The government notes the recommendation in relation to mobile networks. As the Review concluded, there are potential benefits in prioritising certain types of traffic. We do not believe, however, that the case has yet been made for prioritising radio traffic on mobile networks. There is, in our view, further work for the industry to do in this area, in collaboration with the mobile telecoms sector and with Ofcom. In particular, it will be important to assess the extent to which listeners are and will be reliant on mobile data streaming over the coming years, as well as to establish what issues the current arrangements are causing and whether these would be resolved by a regime which prioritised radio traffic. It will also be important to understand the extent to which any issues may be resolved by planned improvements to mobile networks.

2.7 Digital radio in cars

R20. The government to review the position on mandating DAB / DAB+ in commercial vehicles in the light of any changes to the European Electronic Communications Code (EECC) or, if none, consider independently of the EECC, no later than 2023.

R22. Radio broadcaster members of the Review Board believe the government should - as part of future legislation on public service broadcasting prominence - also consider whether new powers are needed to protect radio’s prominence in cars and other vehicles. However, the SMMT (Society of Motor Manufacturers and Traders) does not agree and believes regulation of vehicle manufacturers is not an appropriate mechanism to achieve prominence for or access to particular services in-vehicle.

The car has historically been, and is likely to remain, an environment in which radio is uniquely placed to provide its distinctive blend of important public service content (including national and local news and traffic and travel updates) as well as music and entertainment. Recent research commissioned by World DAB shows that 89% of people internationally saw the inclusion of a broadcast radio in their car as important.

Broadcast radio also continues to play a critical role in the government’s emergency planning, ensuring that in the event of, for instance, a mobile network or major power outage, public messaging remains widely available and accessible to both domestic and in-car radios.

The government notes the Review’s view that the development of exclusive in-car entertainment systems by car manufacturers and tech platforms may in the longer term seek to exclude broadcast radio in spite of the high customer demand and the significant public value. The government believes that it is important that radio services remain available and prominent, and there is a growing risk that without suitable regulation in this area, future motorists may be dependent for radio services on access via mobile networks managed by in-car entertainment systems. The government will therefore look to take action to address these concerns as part of its wider work in relation to the impact of connected audio devices on radio’s route to its listeners.

The government will also keep the position in terms of mandating DAB (and potentially, in due course, DAB+) radios in commercial vehicles under review, and in particular will consider whether it may be appropriate to extend the requirements introduced in December 2020 should the broader market situation change (for instance, if the EU decides to extend the provisions of the European Electronic Communications Code, which currently only apply to passenger cars).

2.8 Smart speakers

R24. The government to consider introducing new legislation that makes clear that platform operators must not limit or restrict access to services or charge for carriage of UK audio services. Any such regulations should clarify that platforms that carry UK radio and audio services cannot mandate their own ad-tech solutions and must not insert or overlay sponsorship and advertising around UK radio or audio content without the prior express consent of the provider.

R25. The government to consider regulatory changes to ensure radio stations and radio and audio content can be easily found and is discoverable by users of voice assistant platforms, including smart speakers and in-car infotainment systems.

R26. The government to consider regulatory changes which would allow UK radio and audio full access to data generated by their presence on connected listening platforms (this should deal with issues such as user consent that may be unduly used to justify withholding data on service usage).

R27. The government to consider whether Ofcom needs to have new powers to regulate audio attribution and the positioning of content to ensure UK broadcasters and audio news providers are able to set requirements for associations of their content when aggregated by a connected audio platform such as an audio streaming application, voice assistant or audio content directory.

R28. The government should consider whether regulators (either Ofcom or the CMA) should have powers to safeguard the findability, discoverability and prominence of third party radio stations and other audio content which offers public value on connected audio platforms.

The government agrees with the conclusions of the Review that the case has been made for taking action to protect radio’s long term position in the context of the rapid growth in usage of smart speakers, and to ensure the continuation of the huge public value which radio provides.

As the Review clearly showed, the future of radio is no longer a straightforward question of an analogue to digital switchover – listening over connected audio devices already represents nearly a fifth of all radio listening, and this is only likely to increase over the coming years as the base of connected speakers in UK households continues to grow.

This fundamental change to the radio landscape - with a sizeable proportion of the audience accessing stations via third party technology which has the capability to manage (and limit) access to those stations - means that it is possible that new measures may be needed to ensure that radio streams can continue to reach audiences who use these devices without either any interference with the integrity of the streams or those listeners being subject to access charges.

However, this will not be straightforward. Any significant intervention in this area will need to be considered in the wider context of other work that we are carrying out, particularly in relation to digital markets and data protection reform. We will also need to engage further with the radio industry, and to gain a deeper understanding of the policies and practices of the smart speaker platforms, in order to ensure that we are putting in place the best possible regime to allow radio to continue to thrive.

2.9 Prominence of radio on TVs

R19. The government to consider updating the prominence regime for television such that radio retains its present level of prominence on all TV electronic programme guides (EPGs) including on IPTV EPGs, or receives the equivalent (or better) prominence elsewhere in the TV user interface.

The Government agrees that it is important that high quality public service content is made widely available and is easy to find for UK audiences.

The current prominence regime underpins the delivery of this content by making it easy to find and consume. This is currently achieved for linear broadcasting through rules set out by Ofcom that affect the position of specific programme channels on an electronic programme guide (EPG).

Section 310 of the Communications Act 2003 sets out the requirements on Ofcom to maintain a code of practice providing guidance in relation to EPGs, and we will keep this provision under review in the context of ensuring appropriate protection for radio content in the years to come.

2.10 Net zero

R42. Industry should, as part of future planning assumptions, commit to a target to lower overall energy use for (a) transmission and (b) radio sets (to support the government’s net zero emissions targets). As part of this the government and industry should initiate new research on the energy use of devices and determine whether the current minimum receiver specification for digital radio devices should be updated accordingly with an energy efficiency target.

The government is fully committed to taking action across all sectors in relation to energy use and achieving net zero carbon emissions by 2050, with a target of reducing emissions by 78% compared with 1990 levels by 2035.

We welcome the work the broadcasting sector is already doing to support the UK’s net-zero target and appreciate the positive example the UK industry is already setting globally, with broadcasters including the BBC committing to carbon neutrality by 2030. We are also grateful for the radio industry’s acknowledgment of the need to commit to lower energy use for transmission and radio sets, and we will work closely with industry to support action in this area.