Big Bad Bauer
Should the industry fear it's biggest member?
Today saw the official acquisition of iRadio by Bauer Media Audio Ireland. It’s the latest acquisition for the German owned media group, following Communicorp Ireland, Red FM and Media Central.
It all stacks up to a pretty sizeable portfolio and a significant position in the Irish market. Bauer now have 3 of the 4 regional youth stations, and if I was sitting in Beat 102 103, I’d be keeping an eye on my phone.
Youth Radio in Ireland
I’ve been involved in quite a lot of the youth regional stations, although never Beat…
I was part of the Communicorp team that bid for and won the licence for Spin Southwest, we also competed and failed to win, the licences for the North West and the North East.
iRadio started as two separate licences, and then as the economy struggled, effectively became one service across two licences. I was involved in the licence renewal for iRadio in 2019 which saw it become a single contract.
With my Communicorp Group Programme Director hat on, there was always an aspiration to turn our Spin 1038 / Spin SouthWest stations into a proper national youth brand, now that possibility looks much more likely in the hands of Bauer.
If I were sitting in a Bauer chair, I’d be seriously considering a Spin network which would possibly also include Cork’s Red FM and would deliver a substantial audience on an effectively national platform, with a Weekly Reach of very close to a million people. That’s before you consider Beat 102 103.
The Regional Radio Challenge
Running a regional youth station is no easy task, I’ve seen it up close, and people like Nessa McGann (formerly of Spin SW) and Mark Cunning (CEO of iRadio) have had to sweat blood to keep their stations on the air over the years.
It’s very hard to sell local advertising on a regional station, but it’s also hard to sell national advertising on a regional youth station. So, you really have to fight hard to make the business work. However, as part of a big group, with a unified brand and a top drawer national Sales house, things might become very different, very quickly.
So, what are the implications for one group having so many stations and so much reach across the Irish market? Bauer are not just a radio powerhouse, their Go Loud operation also has a significant presence in the Irish podcast market, and with Media Central, they also control a significant portion of the overall radio revenue pie.
If I were Wireless Group, I’d be concerned and it’s strange that with the deep pockets of Rupert Murdoch behind them, there was no obvious move to bulk up the Irish portfolio and look to achieve economies of scale. It’s still a mystery to me that Wireless didn’t apply for the iRadio licence back in 2019, as adding iRadio to the existing metropolitan network that they have in Dublin, Cork and Limerick would have given them a significant increase in Reach.
It’s interesting to see the Ryan Tubridy move, which seems to be driven more by Virgin Radio UK than Q102, but the question is whether it’s too little too late in terms of Wireless and their footprint in Ireland.
What will they buy next?
The good news, if you’re worried about Bauer, is that there’s really not much more they can buy, with the possible exception of Beat. But the bad news for the industry is that there’s no one else buying either.
The local radio network in Ireland is populated with very successful stations, anchored to small franchise areas, most of which are 35 year old businesses. There’s no real prospect of anyone coming in on a buying spree, there’s also no prospect of savings or business transformations through scale.
So, that really leaves the industry in a difficult place.
The high value properties are concentrated in the hands of one large operator, the State Broadcaster is struggling in a catastrophic situation of its own making and Rupert Murdoch’s Wireless Group seems frozen in time. So, where does the development of the radio sector come from?
The group I work for, Bay Broadcasting has involvement in three stations, Ireland’s Classic Hits Radio, Radio Nova and Sunshine Radio, but there’s not a whole lot of scope for them to expand, as I’ve mentioned above, it’s hard to see where any acquisition makes economic sense.
Ireland’s lack of Empathy for DAB
Sadly, Ireland never managed to agree on a workable strategy for DAB, despite RTE running a “trial” multiplex since 2006, which eventually closed in 2021. The trial never took advertising and was never measured in JNLR.
The industry generally didn’t engage with DAB and we’re now one of relatively few EU countries with a DAB network.
The fact that we don’t have DAB and also haven’t had any new radio licences issued since Radio Nova came on the air in 2010 is really the biggest worry. If there’s no new licencing, no DAB and no prospect of new formats, or new entrants to the market, then the fact that Bauer owns so much does become an issue.
Fresh Feet on the Pitch
It’s time for the new Broadcast regulator Coimisiún na Meán to consider what a new licencing plan might look like. Even if legacy operators don’t want to move to DAB, there could still be new licences issued and opening DAB up for new entrants would potentially be a more cost effective and constructive way to approach it, rather than pushing for new FM licences.
New ideas, new formats and new outlets for talent discovery and entertainment are crucial in any entertainment business, radio is no different.
Nobody should fear the power of Bauer, but equally, the industry needs to evolve and innovate if it is to survive.
This has been the 25th official edition of the RAudio Newsletter
Just to recap, each week I’ll be taking a look at big stories in radio, podcasting and audio.
Any feedback, questions or potential topics are welcome – you can get me on Linkedin https://www.linkedin.com/in/liamthompsonconsulting/ or on Twitter @Maxliam