It was a hostage situation. I was sat on a chair in a large, empty room. An angry man was pacing in circles around me, shouting questions: “What have you done?” and “Why did you do that?” and “Who told you to do what you did?”
Were my family about to receive a ransom note? Unlikely. The room I was in was not some dirty disused dockside warehouse but the plush boardroom of the British government quango where I was employed. My captor was the organisation’s finance and personnel director Neil Romain. Had he mistaken his well-worn DVD of ‘Reservoir Dogs’ for a textbook such as ‘Introduction to Personnel Management’? Was his qualification for this job an earlier life as a school prefect?
My transgression was to have written a ten-page paper analysing the degree of competition between commercial radio stations in Britain’s twenty largest local markets. Qualified in maths and economics, in 1980 I had started to tabulate data about the British radio industry on A3 accountancy sheets which I then transferred to digital spreadsheets in the 1990’s. Prior to this job at The Radio Authority, I had spent most of the previous decade working overseas, hence my UK industry datasets were rather outdated. As no work tasks were given me for the first few months, I used that time to sit at my desktop computer updating my knowledge base.
At lunchtimes, management were regularly being wined and dined by commercial radio bosses at The Ivy restaurant, while I would be searching the stacks of the London School of Economics library for papers in academic economic journals that analysed the American radio industry. What I found inspired me to write my own paper contrasting the significant competitiveness evident in American local radio markets with the high levels of market concentration in Britain. I was not surprised. The United States system of radio had embraced listener choice and commercial competition from its inception in 1920, while the British system of commercial radio had been founded in 1973 upon the notion of monopoly power. My paper demonstrated these divergent outcomes by analysing UK data using a technique favoured by the US Department of Justice. In December 2002, I sent my finished paper to managers in my workplace, hoping for feedback. Zilch.
In January 2003, the government’s Competition Commission announced an investigation into the £12.5m acquisition of Bristol-based local commercial radio station ‘Galaxy 101’ by a joint venture of two large UK radio groups, one of which (GWR Group plc) already had a significant presence in the area. The Commission requested relevant evidence concerning competitiveness within local radio markets. I emailed my paper and received a response requesting my appearance before the Commission to discuss my paper. That was when all hell broke loose around me at work.
At that time, 13 companies owned 177 of Britain’s 259 commercial radio stations. The largest radio groups were lobbying politicians for the ownership law to be changed to allow them to gobble up even more stations, a notion to which The Radio Authority appeared to raise no objection. However, my paper showed that 15 of the UK’s 20 largest local radio markets already exhibited ‘highly concentrated’ ownership. Such a change in the law would only worsen this situation, reducing choice for listeners and advertisers. However, the commercial radio industry and, more surprisingly, the government were keen to argue that even greater concentration of ownership would be a positive change:
“Listeners will be the real winners, with companies like GWR being able to build local centres of excellence offering local output of greater range and quality,” said GWR Group chairman Ralph Bernard.
“A certain amount of consolidated ownership can help to create ‘localness’ by committing the necessary investment,” said Chris Smith MP (and Disney consultant).
The UK government Department for Culture, Media & Sport wrote: “Without any consolidation of ownership, the risk is that a number of small companies will all tend to aim their content at the same middle ground, all seeking the largest possible share of the mass audience…”
These statements would be understood as bollocks by anyone possessing a modicum of economics knowledge, but maybe MP’s and civil servants too had enjoyed free lunches at The Ivy. The reason my little paper created so much anger was that it challenged this bizarre avalanche of propaganda intended to persuade that the fewer companies owned Britain’s commercial radio system, the better the outcomes. Between 1973 and 1990, commercial stations in all local markets (except London) had enjoyed monopoly status. Owners were now demanding the clock be turned back to those uncompetitive times.
This is why Neil Romain had transformed into The Inquisitor, demanding to know why I had written a paper that nobody had asked me to and, then, why I had sent it to the Competition Commission when nobody had asked me to. I explained that it was a personal paper that only analysed publicly available data and which I had submitted individually, not on Radio Authority letterhead. The Commission had asked for evidence and, to the best of my knowledge, nobody else had written a recent analysis of competition issues and market concentrations in British commercial radio.
The subtext of Romain’s angry tirade was me having published incontrovertible evidence that contradicted the prevailing ‘industry’ view that further consolidation would prove more beneficial for radio listeners, rather than less. I was the fly in the ointment. I had refused to drink the Kool-Aid. I had already been given a minor job at The Radio Authority. I was meant to demonstrate gratitude by just sitting at my desk doing absolutely nothing.
This sense of absurdity was underlined after I was pushed into the office of my manager, David Vick, for a further dressing down. I was on the receiving end of another mad outburst which eventually ended with Vick demanding that I should not talk to anyone about radio, nor write anything about radio that had not been requested of me. I felt compelled to point out that I was studying an MA in media management (paid for by my employer) that required me to write and talk about the media.
“I forbid you,” he shouted. “You are not to talk to anyone about radio while you are employed here.”
It was apparently a crime to be an authority on radio at The Radio Authority. Was this ‘1984’? Rather, the situation recalled the absurd bureaucracy in the 1985 film ‘Brazil’, with me cast as Sam Lowry, the man who knew too much; Vick playing Lowry’s boss Mr Kurtzmann, the man who stymied Sam’s career; and Romain as Jack Lint, the family man who enjoyed a dose of mundane torture in his office. All that Vick and Romain’s actions confirmed was that I was working in an organisation that pretended to be a public regulator but whose levers were being pulled by commercial interests. Their reaction to my paper revealed once again the real men behind the curtain. I vowed to ignore their ridiculous posturing and continue writing papers about radio.
In April 2003, The Radio Authority funded Romain to attend the annual National Association of Broadcasters convention in Las Vegas. I asked him beforehand if he could purchase a short list of books about radio that I knew would be on sale at the convention book stall, me having attended the same event a decade earlier. Unavailable online, these materials would assist my research. On his return, I asked Romain if he had managed to purchase my requested books, to which he answered simply “no” without apology or explanation. He was subsequently promoted to deputy CEO. I had been exiled to the naughty step.
In May 2003, the Competition Commission announced that the conclusion of its investigation was to block the sale of ‘Galaxy 101’ to new owners on the grounds that GWR Group already dominated the local radio markets in Bristol and Bath. This outcome forced GWR to sell its half-share in the joint venture. I was pleased that my analysis had informed the Commission’s decision-making, though I was realistic that my chance now of ever finding employment within a large commercial radio group in the UK would be zero … and so it was.
At the end of 2003, as the Authority merged into new regulator Ofcom, Romain was appointed managing director of commercial radio group London Media Company Ltd. This was surprising on two counts: to the best of my knowledge, Romain had not previously managed a radio station; and the company he joined was owned by Avtar Lit whose activities in the radio industry were already, er, notorious. ‘The Sunday Times’ newspaper in Sri Lanka alleged that Lit had accrued 177 convictions for fraud and petty crime by 1998.
I had had occasional contact with Lit since the late 1980’s when he had claimed to run a West London pirate station ‘Sina Radio’ whose broadcasts I had never found, despite living only a few miles away. He would phone me at home for free advice on his imminent application for a legal ‘incremental’ radio licence, and I attended some of his public meetings where I heard all sorts of crazy talk.
In 1998, Avtar Lit and Radio Authority employee Janet Lee had been arrested on charges of alleged corruption in connection with Lit’s successful licence application for new London Asian station ‘Sunrise Radio’. Was Lee sacked by disciplinarian personnel director Neil Romain? No, she clung on to her management post at the Authority until it was dismantled five years later. Was Lit’s licence revoked? On the contrary, the Authority renewed it in 2000 for a further eight years because its “application for licence renewal complies with the statutory requirements”.
Only months later, The Radio Authority fined Lit’s station £10,000 for having broadcast propaganda supporting his (unsuccessful) campaign to be elected Southall’s MP. The regulator inexplicably provided Lit with the licence to operate London’s first and sole Asian commercial radio station from 1989 to 2003, enriching him sufficiently by 2005 to be lauded as one of the "twenty most powerful Asians in British media.” In 2007, ‘Forbes’ magazine profiled Lit’s success at building a global business empire, without mention of its foundation on a monopoly radio licence that allegedly had been awarded corruptly by the regulator.
The tiny local radio stations acquired by Lit’s London Media Company, managed by Neil Romain, proved to be unmitigated commercial disasters. In 2009, I wrote a 6,000-word essay analysing the abject failure and closure of two of them. In 2010, Sunrise Radio’s accounts declared a loss of £10m. In 2013, the station was prosecuted for £390,000 in unpaid taxes. In 2014, Lit was declared bankrupt by the High Court and Sunrise Radio was placed into administration. Lit’s radio group was then acquired by Ketan Somaia whose interests, ‘The Guardian’ reported at the time, “once included hotels, banking, motoring and media, [and who] is being prosecuted [at the Old Bailey] for fraudulently taking £14m in a series of deals dating back to 1999”.
Corners of the UK commercial radio industry can appear to resemble a ‘pass the parcel’ game in a pawn shop.
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