Communicorp Scores a Quasi
Michael Hedges June 5, 2006
Ireland’s Broadcasting Commission granted “quasi-national” authorization to Newstalk 106, a Dublin local radio station majority owned by Communicorp. The ten-year license with “strong emphasis” on news and talk will bring certain competition to private channel Today FM and public broadcaster RTE.
 Newstalk 106 was the only applicant for the license covering about 85% of Ireland. When all the details are worked out, Communicorp will surrender its local radio license for Dublin city and county. Some Irish media observers expressed minuscule surprise at Communicorp’s interest in spending an estimated €6 million in addition to the €14 million already invested in Newstalk 106 as a Dublin local station…for a 5.6% market share. The ad market, they say, is moving to local stations.
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Metromedia International Group (MIG) announced in July the sale of substantially all its radio holding company, Metromedia International Inc. (MMI) in the Baltics and Eastern Europe to Communicorp Group.
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Under the new license agreement, Newstalk will be allowed up to three tunes per hour, limited to “lifestyle” programs.
In Ireland Communicorp also owns 98FM, Spin FM and a minority holding in East Coast Radio. The company has substantial radio holdings in Finland, Czech Republic, Bulgaria, Estonia and Hungary. It recently acquired a radio network in Ukraine.
None of this has gone unnoticed by Irish public broadcaster RTE. Anticipating – perhaps – the Newstalk move to a nearly national presence, changes recently hit the fan at RTE Radio 1. The most recent radio audience figures, released mid-May for April ’05 – March ’06, show losses for RTE’s Radio 1 and 2FM. The survey also shows that roughly two-thirds of listeners tune in to local stations, national stations losing about 1% per year over the last five years.
ftm Follow Up & Comments
If regulators concur, Emap’s three Irish radio stations will join the Communicorp family. The purchase agreement signed over the weekend and announced to the London Stock Exchange this morning ends month long bidding for another part of Emap’s broadcast holdings it wants to shed. Communicorp, Denis O’Brien’s radio company, will pay about €200 million (£135 million, US$275 million)....MORE
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