EKR European Klassic Rock

THE EKR 1997—1999 SATELLITE/DAB BROADCAST
Click here to enter the original 1998 European Klassik Rock website

At 6AM on 20th October 1997 EKR launched European Klassik Rock & Night Tracks
bringing 15 months of innovative classic rock programming.

Sky Radio has become the most successful commercial radio station in The Netherlands broadcasting a mainstream adult contemporary music format on 100.7 MHz FM. Its strategy was innovative; it commenced its service as an analogue Satellite only delivered programme on the then audio sub-carriers of Sky One (via the Astra satellite) and slowly secured carriage on Dutch cable networks. It received encouragement and support from financial institutions, the Dutch regulator and the radio industry as a whole. Its goal of a FM terrestrial frequency was finally achieved. The success of the company is based on the fact that it provides an uncluttered alternative music format to the safe “Hits and Memories” offerings so prevalent in the UK .

European Klassik Rock (EKR) was conceived along the same lines as Sky Radio. Its aim was to produce an economic but professional radio service of mainstream classic rock music not provided by any other UK broadcaster at that time. As a sideline opportunity “Night tracks” was developed to provide a live overnight sustaining service to ILR stations from midnight to 6 am as an alternative to automation. The developing cable industry was intensively targeted and the quirky system of one month temporary FM licences (RSL's) was to be taken advantage of in an ingenious way by promoting and marketing EKR throughout the country. The use of restricted service licences in this manner was to be a “king-pin” in the development of EKR and EKR on Digital. The rules of these temporary FM licences were carefully looked into with the key restriction being that any one-applicant group could apply for the same location or town only twice in a year. The concept was to re-broadcast the signal from satellite by simply visiting at least six different towns or cities in rotation per year, one RSL per month. Unlike Sky Radio, EKR's ambitions for a full time terrestrial FM licence anywhere in the UK were realistic in so far as one quite simply wasn't on offer. Interestingly, independent market research showed that a FM licensed service targeting the 30-65 year old age group along the lines of EKR's programming would have been hugely successful with the listener. The approach taken was to support development and promotion of terrestrial broadcasting in Digital Radio (DAB) by joining the UK Digital radio forum. The hope was that this would assist EKR as a new player in finding support within the industry and help to generate interest in the expansion of new programme formats. New programming was considered a key element in making Digital Radio attractive to the consumer. This would be a high risk strategy for an independent private company supported by one individual enthusiast and efforts were immediately concentrated, even before broadcasting commenced, to find suitable industry partners and backers. In the meantime EKR secured carriage on NTL's experimental DAB multiplex from Croydon in London .

European Klassik Rock and Night Tracks became a reality on 20 October 1997, transmitting on satellite, DAB in London , a one-month FM licence in Maidstone and a few Cable channels in the UK . International interest took the company by surprise and requests for re-broadcasting of the service on cable and FM services throughout Mainland Europe and Ireland were received. The difficulty then was how to exploit commercially the new-found European Market? UK advertising agencies initially showed an interest, particularly those with International clients, but the enquiries always ended up with the same questions. Firstly, “do our multi-national clients have a central advertising budget to draw upon or are they (as we suspect) attached to individual national market campaigns?” Secondly, “who is listening?” and thirdly, “where are the audience figures?” It would have been prohibitively expensive for EKR to unilaterally commission independent European audience research, so proof of listenership closed the door in the short term to effective pan-European sales. The long-term commercial success was not dependent on the European market, but it was seen as having potential added value. Short-term revenue was to be generated from the sales of advertising to the UK satellite market, backed-up by the added value of temporary FM licence sales around the UK . The live Night Tracks overnight sustaining service would also provide a viable and valuable added source of revenue if more than ten full time stations signed up to the service. Effective funding by industry partners and venture capital companies was also crucial to EKR's future digital plans.

The commercial plans were set, could the business succeed? The first setback came from the regulator itself after the second successfully completed RSL in North London . The Radio Authority ruled that future RSL licences would only be issued to “local” applicants that transmitted their programming from studios within the RSL transmission area. This effectively meant EKR could only transmit two RSL's per year from Maidstone in Kent . A wholly unhelpful ruling and a moving of the goalposts from previously licensed FM temporary licences.

The second disappointment came in February 1998 (partly due to the after effects of the "Dot Com" boom failing) when discussions with 3i's Venture Capital Group ended in a decision not to support a proposal to secure capital investment to EKR for expansion into other radio interests including Digital Radio. It was considered unknown territory and too risky.

Over the next nine months numerous meetings and correspondence with influential radio and satellite operators were concluded in an attempt to secure equity backing or partnership opportunities to move EKR into the digital market. EKR wished to secure its ambitions to become a new player as a programme service provider to some of the new digital multiplex licences in the process of being advertised. Astonishingly, out of all the correspondence sent (at least 15 companies), only Sky Joint Ventures had the courtesy to reply, indicating they were promoting Music Choice on Sky Digital and at that time although impressed with the proposals, were not interested. Some venture capital groups, however, indicated that they may be prepared to raise up to 80% of the funding required if other equity partners could be found. In reality that 20% balance became catch 22.

EKR wished to pursue the possibilities of carriage on Digital multiplexes; agreement in principle would certainly have assisted in finding the required extra funding to make the business a success. EKR had been actively promoting “on-air” the benefits of Digital Radio with particular assistance being given to it by the BBC.

In what must be considered a sterling effort to all who were involved in making European Klassik Rock a reality and a professional success, the conclusion to the reasons for the demise of the radio station will be written in the history books. Perhaps an unhealthy factor in the British radio industry at that time was it's over regulation and insatiable appetite for cosy consolidation with the excuse that it makes for a stronger industry. In reality it diluted diversity, restricted expansion, closed doors to new players entering the business with refreshing ideas, inflated the value of licences and made fat profits for those few investors who used the licensing regulations as one big lottery. This situation effectively siphoned development money out of the industry.

EKR in the 90's tried to influence an industry that was all too concerned in appeasing the requirements dictated to it by advertising agencies in following the safe but predictable formats that restrict listener choice. It tried to highlight that the industry was too highly protected and regulated, stifling innovation.

Finally, European Klassik Rocks' main achievements have been to broaden listener choice on digital radio. Perhaps there would never have been a "Planet Rock, "The Arrow" or "Virgin Classic Rock" on DAB if it wasn't for the vision of EKR. Maybe European Klassik Rock was conceived too early but its vision is what radio at that time required and there was a business strategy for it to succeed. As any entrepreneur will tell you, "If you have a good idea you must get in there first, before everyone else copies you!"

Click here to enter the original 1998 European Klassik Rock website