Research report prepared for the australian communications and media authority

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5.4Concluding comments

As will be apparent from the review of the UK and Ireland, the German rules also reflect a tradition, in part influenced by European Union law, of strong regulation of advertising and sponsorship designed to ensure clear separation of programming and advertising and protection of editorial independence. With few exceptions, the rules apply to television and radio equally, and there is no indication of any strong move to treat commercial radio differently. Also consistent is the maintenance of central regulation of content. In relation to the design of the regulatory framework, it is important to highlight that the creation of a new position of Commissioner for Programs and Advertising is intended to provide ‘more bite’ in the enforcement of rules although there is little detailed information at this stage as to how this will operate.

With the exception of the rule on sponsorship, we have not found any other rules which relate specifically to regulation of advertising, sponsorship, or other commercial influences in connection with news and current affairs programming. We have found no rules which impose obligations on other persons, such as presenters, to disclose any commercial arrangements.^⁴²⁵

However, despite the clear rules, there are evidently ongoing concerns. Recent debate has concerned the degree of surreptitious advertising which may be occurring on commercial radio. This has been recognised as the phenomenon of ‘Radio-Broadcasting PR’. In 2007, the State Media Authority for the Land of North-Rhine Westphalia released a study it had commissioned regarding the ‘infiltration process’ of public relations, and its blurring of lines with independent journalism in radio broadcasting.^⁴²⁶ However, the director of the State Media Authority suggested that it was for the broadcasters to issue self-regulatory guidelines as to the proper management of public relations.^⁴²⁷

In late 2008, the Commissioner for Programs and Advertising raised strong concerns over the separation between advertising and programming, noting that convergence and some aspects of the AVMS Directive permitting product placement allowed the issue of surreptitious advertising to be sidestepped.^⁴²⁸ The Interstate Treaty is currently being reviewed in order to incorporate the AVMS Directive into German law by end of 2009 as required, although there is no consensus as yet as to the form this will take. The Directors’ Conference of the State Media Authorities has highlighted product placement as one of the main issues for debate and resolution.^⁴²⁹ In 2007, virtually all of the fourteen state media authorities voted against any ‘legalisation of product placement’.^⁴³⁰

APPENDIX

6NOTE ON OTHER RADIO BROADCASTING SERVICES AND DIGITAL RADIO

6.1United Kingdom

6.1.1Other radio broadcasting services

6.1.1.1Community radio

Community radio was established under the Comms Act (UK) and the first licences were awarded in 2005. A community radio service is a non-profit service which must be a local service provided primarily for:

(a) for the good of members of the public, or of particular communities, and

(b) in order to deliver social gain,
rather than primarily for commercial reasons or for the financial or other material gain of the individuals involved in providing the service.^⁴³¹
Community radio licences are awarded for a term of five years on a merit basis. A key policy requirement is that in awarding community licences, Ofcom have regard to the viability of any other local service.^⁴³² Therefore:

Licences will not be awarded in coverage areas where there would be 50% or more overlap with coverage area of an existing local commercial station, if the area contains 50,000 or less adults.^⁴³³
In areas where there would be 50% or more overlap with a local commercial radio station, and the area contains between 50,000 and 150,000 adults, licensees will be prohibited from taking advertising or sponsorship.^⁴³⁴

In other cases, licensees will be prohibited from generating more than 50% of their annual income from advertising and sponsorship.^⁴³⁵ Licensees must comply with the advertising rules administered by Ofcom and the ASA.

6.1.1.2Restricted service licences

These licences are awarded for specific events or locations.^⁴³⁶ Short-term licences are mainly events-based grants, such as for music festivals,religious or sports events, or as trials for community stations.^⁴³⁷ These licences are usually for a term of up to 28 days.^⁴³⁸ Long-term restricted service licences are granted for a five year term and are more likely to be awarded for location-based services such as a hospital or educational campus.^⁴³⁹ Restricted service licences are granted on-demand.

Restricted service licences are allowed to carry advertising and station or program sponsorship. Licensees must comply with the advertising rules administered by Ofcom and the ASA.

6.1.1.3Subscription sector

Services which consist of sound programs made available for reception to the general public, and are delivered via cable or satellite (whether in analogue or digital form), are licensed as radio licensable content services.^⁴⁴⁰ Such services could be subscription-based or free-to-air. These licences are essentially granted on demand, and are awarded for an indefinite period.^⁴⁴¹

6.1.2Digital radio

Digital radio uses Digital Audio Broadcasting (DAB) technology. Digital radio services are delivered via digital radio multiplexes, both national and local.^⁴⁴² Local multiplexes are the more common. Services to be delivered via the multiplex are licensed as digital sound program services.^⁴⁴³ Digital sound program service licences are required for digital-only services as well as services which may be delivered analogue or via other platforms. They are awarded on an application basis for an indefinite period.^⁴⁴⁴

When awarding multiplex licences, Ofcom must be satisfied, in the case of a national multiplex, of the capacity of the digital sound program services to provide a variety of tastes and interests.^⁴⁴⁵ In the case of a local multiplex, the determination will be the capacity to provide for local tastes and interests.^⁴⁴⁶ Multiplex licences are awarded for a period of 12 years.^⁴⁴⁷

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Content%20Projects%20and%20Policy -> Background Speaker biographies

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