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Sell Radio 1, Says Media Forum

Posted on: Saturday, 3 June 2006, 00:00 CDT

By Allister Heath, The Business, London

May 21--The BBC must privatise Radio 1 and Radio 2 to inject greater competition into Britain's radio market, a think-tank will say on Monday. The two stations are worth at least £500m (E738m, $943m), the European Media Forum adds.

Radio 1 is estimated to be worth £150m-£200m since it attracts twice as many listeners as Classic FM, valued at approximately £75m by City analysts. Classic FM has a weekly reach of 5.9m listeners while the Radio 1 boasts 10.3m. Radio 2 could be worth even more since its weekly reach now totals 13.3m.

If Radio 1 and 2 were sold together, the proceeds would total £500m or more. Keith Boyfield, an economic consultant and author of the report, said: "Since they attract the highest radio audiences both stations should prosper in the commercial sector. What is more, they would be unfettered by the difficult borderline that needs to be currently drawn between the BBC's public service broadcasting role and the effect this has on the remainder of the broadcasting market. Since we believe Radio 1 and 2's public service role is minimal, this strengthens the case for the privatisation of both stations."

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Source: Sunday Business

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