Swedish government to slash fees for commercial radio

MALMÖ — In February, the Swedish government published a draft bill that could substantially lower costs for the commercial radio industry during the next licensing period, 2026–2034.

On March 3, the culture minister Parisa Liljestrand, from the conservative Moderate Party, visited Bauer Media’s headquarters in Stockholm to discuss the changes with leading executives of Bauer Media Audio and its competitor, Viaplay Group. She was also interviewed on the morning show of Bauer’s Mix Megapol. “The government’s proposed changes are intended to create the conditions necessary for commercial radio’s long-term viability, with varied radio content for different interests and tastes,” said Liljestrand.

Since commercial radio was introduced in Sweden in 1993, FM frequencies have been awarded to top bidders in auctions. In total, commercial radio stations have paid the state 4.2 billion Swedish kronor (€384 million). For the current six-year period, which ends in August 2026, the companies paid 1.3 billion kronor (€119 million).

A bill under scrutiny

In a 2022 report to the government, the Swedish Agency for the Media supported a move from auctions to the rules already used for DAB+ licensing. The licenses would go to companies with radio experience and proof of sufficient financial preparation. The Agency would also consider the need for a variety of formats and owners. However, the report didn’t include a new fee system.

In June of last year, the Ministry of Culture developed a new annual fee, corresponding to 3% of the commercial radio industry’s total income from advertising the year before. A national license would cost 18% of the total annual fee; a license in one of the three main metropolitan areas (Stockholm, Gothenburg and Malmö) would cost 3.6%; areas with more than 300,000 inhabitants, 0.55%; and those with a smaller population, 0.3%. Because the fee is based on advertising income, it would change every year.

The government law proposal removes the percentages for the different license areas. Instead, the government wants the Swedish Agency for the Media to decide these. The government doesn’t want any technical changes to the licenses, which today consist of three national ones (currently used by Bauer Media’s Mix Megapol, NRJ Group’s NRJ and Viaplay Group’s Rix FM) as well as regional ones (most of them used by Viaplay Group’s Star FM and Bauer Media’s Rockklassiker).

The bill is currently under review by the Council on Legislation, which scrutinizes draft bills that the government intends to submit to parliament. The council is advisory and doesn’t have the power to stop proposals. The bill is expected to reach parliament in April, and a vote is planned for the autumn. The new law would be implemented on Dec. 1, nine months before the current licenses end in August 2026.

Universal praise

Commercial radio companies, which have long complained that radio is the sole media industry to pay state fees, have universally praised the removal of frequency auctions.

”We welcome the changes that the government proposes in its draft bill. They will give us the conditions for a viable business with better terms and lower costs. It will give us calm and bring optimism about the future of our industry and of our company,” says Bodil Ehlers, CEO of Bauer Media Audio in Sweden.

“It’s a good thing that we have come this far. It’s in line with what the Swedish Agency for the Media report and the department memo have said earlier, so there are no big surprises. The radio companies will now get what they need to make necessary investments in their future,” says Christer Modig, manager of Viaplay Group’s radio activities in Sweden.

”NRJ Group welcomes the draft bill, which we think takes into account the goal of a viable commercial radio. This is important for the industry’s future and the need to invest in our formats,” says Richard Mazeret, CEO of NRJ Sweden.

Johan Lindström has covered Swedish radio since 1991, runs Radionytt.se and is active in Radioakademin. 

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