RTV Theory and Practice - Special Issue

but even in 1985-7 around a quanter of the stations were still running at a loss . (Phillips 1985; Phillips 1986; Phillips 1987) But in 1987, there was a 26.8/ rise in radio ađvertising revenue аз the cređit boom stimulated the whole есопоту . (Deloitte , Haskins and Sells 1988) The ILRs have also benefited from the rising costs of television advertising with new corporate advertisers buying radio airtime for the first time . (Vick 1988) In contrast with their usual state of crisis , the ILRs are now enJoying a brief moment of windfall profits with even the weakest stations making топеу . (Deloitte , Haskins and Sells 1988; Vick 1988) In 1984/5, the total revenue of the commercial stations was гт68.7, while thsir expenđiture (including IBA f ees) was im 66.8. (Peacock 1986; 49) The total cost of the IBA for its transmission and regulatory services was im 5.3, while its total income from the commercial stations was <т7.lб. (Collins 1987: 46) As the authority is the monopoly provider of transmitters to the ILRs , it can operate a 'Robin Hood principle' in the rentals which it charges . The larger and more profitable stations subsidise the smaller and less profitable ones through a sliđing scale of transmitter rentals (Porter 1988: 2 1-2) For example , a s small station in North Scotlanđ called Могау Firth paid *5,500 rental in 1986, while Capital Radio , the big London station, was charged *1,302,188 for the same service! (IBA 1986) However, in recent years , some redistributive levies have been abolished and rentals cut. (Phillips 1987) This led to a fall in around a third in real terms in IBA costs for the ILRs (IBA 1986) If the IBA has been unable to enforce тапу public service commitments , it has been able to keep тапу ILRs from going under . Its policy of cross-subsidization has helped create 4 8 commercial radio stations covering most areas of the country . This policy allows the IBA to claim that it is continuing the Reithian principle of universality. (Vick 1988) In Britain, two-thirds of businesses go bankrupt within five уеагз of trading , but only one ILR station has ever gone into receivership . 'The upsiđe of those pettifogging IBA rules and exorbitant royalties is an elaborate network of subsidies and safety nets.' (Phillips 1986) This support for the commercial stations does allow the IBA to boast about some limited examples of 'education , religious and social action broadcasting' and the *тЗ raised for charity by the ILRs. (IBA 1987; 4) But the authority's major success is the survival of so тапу stations despite their poor economic performance . Contrary to the hopes of the advertising agencies and the claims of the free-market supporters of the pirates , commercial radio in Britain has never become a large seetor of

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