News story reporting plans by UK media owner EMAP plc for the local commercial radio stations it acquired as a result of its recent buyout of Scottish Radio Holdings plc, written by Grant Goddard in June 2005 for The Radio Magazine.

1. NEWS: EMAP PLC EXPLAINS
PLANS FOR NEWLY ACQUIRED
SCOTTISH RADIO HOLDINGS
PLC LOCAL RADIO STATIONS
by
GRANT GODDARD
www.grantgoddard.co.uk
June 2005

2. EMAP plc will use newly acquired Scottish Radio Holding plc’s [SRH] five
digital licences to extend the potential audiences for “proven EMAP brands
that work nationally,” according to EMAP chief executive Tom Moloney.
Referring to plans to carry EMAP stations such as 'Q', 'The Hits' and 'Kerrang!'
on SRH DAB multiplexes, Moloney said: “[SRH] have very strong digital
infrastructure, but they have not invested in digital content. When it comes to
our content, we can spread it across their distribution.”
In its offer document for SRH, the EMAP board had stressed its belief that
“scale, strong brands and distribution capacity across a wide variety of
platforms will enable the combined radio businesses to compete more
effectively.” Moloney emphasised a similar commitment to the size of EMAP’s
radio operations: "To compete more effectively, scale of audience and
infrastructure will be increasingly important".
Although EMAP’s launch of its Kerrang! brand in Birmingham has been
productive, the extension of its 'Magic' brand to its Northern England AM
stations, syndicating shows across the network, has to date not proven such a
success with audiences. Over the last four years, Magic stations have suffered
considerable losses in total hours listened, by 31% in Newcastle, 23% in
Teesside, 32% in Liverpool, 35% in Manchester, 50% in Preston, 34% in
Leeds, 41% in Sheffield and 26% in Hull. Moloney admitted that this had
created a problem: “The AM re-branding was a little bit of an experiment and I
don’t think it’s had the outcome that we thought it would have”. As a result,
Moloney said there were no immediate plans to extend the Magic brand to
SRH’s AM stations in Scotland or Northern Ireland. But he did not rule out the
possibility of EMAP’s existing syndicated shows appearing on some of SRH’s
FM stations. SRH had already been planning to relay its own syndicated
shows on Scottish stations through the night.
Moloney sought to reassure Scottish audiences that former SRH stations
would remain much the same: "We fully understand that Scotland is a separate
country, with its own important corporate, cultural and business links. There is
nothing in this transaction that is going to change that." He promised that no
attempt would be made to draft in presenters from existing EMAP radio brands
such as 'Kiss', Kerrang! or Magic: "All programming decisions will be made by
the current SRH management. We believe the future of commercial radio is all
about being local. 'Radio Clyde' is part of its community." He added: "I believe
that, five years from now, the biggest radio station in Glasgow will be Radio
Clyde, run by a managing director in Glasgow. And you can replicate that
statement for 'Forth' in Edinburgh and 'Tay' in Dundee.”
Explaining how the SRH operation would be merged into EMAP, Moloney said:
“There are four stages of integration. The first is corporate; the second is
advertising; and the third is back office functions such as IT, accounting and so
on. The fourth is content, and so I think programming and individual station
management will probably be as it is now for quite some time. Maybe until next
year and maybe beyond.”
News: EMAP plc Explains Plans For Newly Acquired Scottish Radio Holdings plc Local Radio Stations Page 2
©2005 Grant Goddard

3. Moloney said that local programming could be introduced to EMAP’s national
digital brands once the audiences had grown sufficiently to justify the expense:
“The big debate comes around the breakfast show. If digital radio penetration
continues to increase at the rate it has been, we could be talking about this
time next year.”
EMAP predicts that the SRH buyout will create savings of £5m by the third
year, as a result of consolidating head offices and sales operations. Moloney
said he did not expect job cuts to be significant: "It is inevitable there will be
some headcount reductions, but SRH is an efficient, well-run business."
Asked if SRH’s head office would be closed, Moloney replied: "There will
always be a Glasgow office for EMAP Scotland's radio assets. But, of course,
it will be a slimmed down operation because we don't need a corporate
headquarters." A question mark hangs over the London office of SRH’s
saleshouse, SIRS, that employs 27 people and is likely to be merged with
EMAP Advertising.
Moloney was bullish about the effects of the SRH takeover: "This transaction
enables us to create the highest quality independent local radio business,
reaching all of the UK's major conurbations and delivering a strong position in
Ireland. This is an important step in EMAP's radio strategy, one that creates
real value and leaves us well placed to make the digital step that will be so
important in establishing leadership of UK commercial radio." Asked about
EMAP’s ultimate ambitions in radio, Moloney said: "We would like to be the
biggest, but we are the strongest radio group. If I had to choose between being
the biggest and the strongest, I'd choose the strongest."
EMAP says that SRH’s existing metropolitan stations such as Clyde, Forth and
'Downtown' will be added to its Big City network, enabling it to offer advertisers
a “one stop shop” for campaigns. Radio Clyde managing director Paul Cooney
commented: "EMAP is a very powerful group and Radio Clyde can only
develop from being part of that set-up. In terms of securing advertising, there is
a real benefit in being attached to a large network of radio stations. But that
doesn't mean that Clyde will lose its autonomy. The news gathering operation
will remain in place, and there is no indicated threat to jobs. Nor will there be
cross-fertilisation of programmes. EMAP recognises the identity Radio Clyde
has developed which makes it specific to the west of Scotland."
Rumours are already circulating as to who will replace David Goode as chief
executive of the Scottish operation, when he is expected to leave in early
autumn. Possible candidates include Gus Mackenzie, head of EMAP’s
Manchester stations, and Travis Baxter, head of Kerrang! Radio and the
group's Big City Network. Mackenzie used to run Paisley station 'Q96', while
Baxter once worked for SRH as a programming consultant.
Some existing SRH directors will make substantial windfalls from the EMAP
buyout. Richard Findlay, former SRH chief executive, will earn £4.4m from
shares and options; Lord Gordon of Strathblane, SRH chairman and also
former chief executive, stands to gain £250,000; former non-executive director
News: EMAP plc Explains Plans For Newly Acquired Scottish Radio Holdings plc Local Radio Stations Page 3
©2005 Grant Goddard

4. News: EMAP plc Explains Plans For Newly Acquired Scottish Radio Holdings plc Local Radio Stations Page 4
©2005 Grant Goddard
John McColgan could gain £1.5m; current SRH chief executive David Goode
will get more than £840,000; and finance director Alan Wilson gains £372,000.
[First published in 'The Radio Magazine' as 'Emap Talks Of Savings' & 'Scottish Programmes Safe', #690, 29 June
2005]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk