Bauer today announced it was buying Jazz FM, which is good news for the continued existence of a musically important station. I imagine that they’ll be squeezing into Golden Square away from their current Margaret Street studios which will save some money. But I suspect that the key thing in this deal is that Bauer’s national sales team will be able to monetise the brand pretty well.
I’m not completely certain who they’re represented by currently, but in the past First Radio Sales has done the job for them. The problem is that as both Global and Bauer have grown, they’ve squeezed out other operators. While Global might have around 45% of the UK commercial market place, they probably demand more. Assume that Bauer does the same, and those not represented by the Global and Bauer sales teams get squeezed.
Jazz is now inside the Bauer tent, and it gets to profit.
As far as the station itself goes, I trust they won’t mess around too much with the current formula. They have 672,000 reach and around 3m listening hours at the moment which are decent. But there might be some envy about how well Smooth is doing. Although it benefits from some good FM transmitters, it brings in 5.6m reach.
Bauer’s press release sounds like it’s going to be respectful of the format, and that’s a good thing.
The other interesting thing about Jazz FM is that just over 40% of its listening is via the internet. Bauer notes in its press release that they’ll be using their InStream technology to monetise this, and that should work will with a service with such a strong internet presence.
Overall an interesting move by Bauer, going to show that it’s not just Global out acquiring stations right now.