A group backed by investors including comedian, Pat Shortt, and former Cranberries musicians, Noel and Mike Hogan, have made a bid for a lucrative 10-year broadcasting licence in Limerick.
The Heart FM group went head to head at an oral hearing on Monday with the current franchise holder in Limerick’s independent radio sector, Live 95FM owned by UTV.
Presenting its case to the Broadcasting Commission of Ireland, Heart FM said it was proposing to employ 36 full-time and 33 part-time staff at a new 5,000 sq. ft. facility comprising studios and office space in Limerick city.
The consortium which is chaired by former RTE broadcaster, Michael McNamara, also includes businessman, Tony Brazil, musicians Noel and Mike Hogan, comedian, Pat Shortt and solicitor and broadcaster, Will Leahy.
The BCI heard on Monday that Heart FM predicts a turnover of 4.3 Million euro in the first year of operation with a 51 per cent market share in the same period.
A total of 300,000 Euro would be allocated to the marketing budget in year one and revenue is expected to grow by 9 per cent annually in each of the first three years of operations.
Pat Shortt |
Heart FM also plans to allocate 25 per cent of its total output to news and current affairs, which its says is significantly higher than its competitor, Live 95FM which currently operates the licence.
The consortium has also proposed to broadcast two daily local talk shows, including a late night programme, compared to the single show currently broadcast in the morning slot on Live 95FM. Several million euro will go towards building and equipping its state of the art studios, the BCI heard.
Limerick’s Live 95FM, which is seeking a renewal of its existing licence, said it had an established track record in the area since it was taken over by the UTV group in 2002.
Market share in the franchise area had risen significantly from 33 per cent to 51.3 per cent following a total investment by UTV of 16 million euro in the past four years. The chairman of the group, professor Donal Dineen, told the hearing that the partnership between UTV as sole shareholder and locally based management and staff who retain editorial control, had proven a winning formula over the last four years.
It will employ a smaller staff than its competitor for the licence, 46 in total, and has committed a budget of one million Euro for investment in new technology over the next 10 years.
The group, which is owned by UTV, told the oral hearing that it plans to continue to build on its success over the last four years and has a long-term commitment to the Limerick city and county franchise area.
"I respectfully submit that the discerning Limerick audience has already endorsed Limerick’s Live 95FM,” said Mr Dineen.
A decision on which consortium will be awarded the new licence for the Limerick franchise area is due from the BCI on January 22 next.
