Commercial radio generates £103m in music sales, with an additional £50m made available for rightsholder royalty payments, a new report reveals.
The Valuing Radio study, commissioned by Radiocentre, finds the sector spends 11 percent of its total operating costs on acquiring music licences from PRS for Music and PPL, with a total £50m made available to pay for music rights.
Overall, commercial radio is worth £683m in gross value added (GVA) to the UK economy, with £103m in music sales.
The study, which was prepared by Oxford Economics, brings together a range of information for the first time in order to assess the economic contribution of commercial radio and the value it provides.
Alongside the gross economic worth, the report also reveals that 12,340 jobs are supported by commercial radio, including 4,410 direct employees.
Elsewhere, its value to advertisers is estimated at £4.6bn based on an average return on investment of £7.70 for every £1 spent, while direct charitable fundraising is estimated at £25m.
Siobhan Kenny, chief executive of Radiocentre, said: ‘Commercial radio’s popularity with listeners is not in doubt with an incredible weekly audience of 34.3 million. However the economic activity it supports has never been examined in any detail. We thought it was about time to address this and gather comprehensive data on the value of commercial radio to the economy, advertisers and the music industry.
‘The results are impressive, but there is also the potential for even greater value if changes in regulation and a shift to more distinctive BBC radio services can be achieved.’
Welcoming the report, culture secretary John Whittingdale MP added: ‘It is hugely impressive to see the positive impact commercial radio has on the UK economy. Like many of our creative industries it makes a notable contribution to our GDP and employment. It also supports other sectors indirectly and is a fantastic promotional platform for the UK music industry.
‘This government is committed to doing all it can to support the success of commercial radio so it continues to provide this value to audiences across the UK and advertisers now and in the future.’
The full report is available here.
The Valuing Radio study, commissioned by Radiocentre, finds the sector spends 11 percent of its total operating costs on acquiring music licences from PRS for Music and PPL, with a total £50m made available to pay for music rights.
Overall, commercial radio is worth £683m in gross value added (GVA) to the UK economy, with £103m in music sales.
The study, which was prepared by Oxford Economics, brings together a range of information for the first time in order to assess the economic contribution of commercial radio and the value it provides.
Alongside the gross economic worth, the report also reveals that 12,340 jobs are supported by commercial radio, including 4,410 direct employees.
Elsewhere, its value to advertisers is estimated at £4.6bn based on an average return on investment of £7.70 for every £1 spent, while direct charitable fundraising is estimated at £25m.
Siobhan Kenny, chief executive of Radiocentre, said: ‘Commercial radio’s popularity with listeners is not in doubt with an incredible weekly audience of 34.3 million. However the economic activity it supports has never been examined in any detail. We thought it was about time to address this and gather comprehensive data on the value of commercial radio to the economy, advertisers and the music industry.
‘The results are impressive, but there is also the potential for even greater value if changes in regulation and a shift to more distinctive BBC radio services can be achieved.’
Welcoming the report, culture secretary John Whittingdale MP added: ‘It is hugely impressive to see the positive impact commercial radio has on the UK economy. Like many of our creative industries it makes a notable contribution to our GDP and employment. It also supports other sectors indirectly and is a fantastic promotional platform for the UK music industry.
‘This government is committed to doing all it can to support the success of commercial radio so it continues to provide this value to audiences across the UK and advertisers now and in the future.’
The full report is available here.
