Strategy verdict - Guardian Media Group

Now if the Guardian Media Group has its way, we are going to hear a
return to those blissful days of the early '90s, with the launch of a
new easy listening station targeting the over-50s in London.

GMG has asked Ofcom for permission to change the format of Smooth FM,
which after rebranding from Jazz FM in 2005 has become mired in the
rather crowded end of the London radio market as an adult contemporary
station.

Instead of broadening its appeal from a jazz audience, Smooth has found
itself unsuccessfully competing with the likes of Heart, Magic and
Capital for the ears of the 20 and 30-something audience.

The proposed music mix will take in Herb Alpert, Petula Clark, Glen
Campbell, Bread, Brenda Lee, Louis Armstrong - and, yes, Frank
Sinatra.

In its Ofcom submission, GMG argues there are three million Londoners
aged over 55 and the vast majority of radio targeting involves younger
listeners.

GMG is right to move from the overcrowded mid-market - especially after
last week's poor audience figures, which saw Smooth listening nearly
halve year on year.

Chief executive John Myers is a canny operator. Can it be coincidence
that this is proposed at the same time that Saga - which also targets
the over-50s - is selling its four stations in the Midlands, Glasgow and
North East? GMG is splashing the cash again, having spent £60m
buying the two Century stations from GCap to add to its network of
regional Real stations.

Is it too far-fetched to think the clever Mr Myers envisions two
networks - not only Real/Century aimed at the regional mid-market, but
also the easy listening Smooth with the addition of Saga? It seems the
perfect fit.

Review by Paul Chantler, senior partner, United Radio international
consultants, www.unitedradio.co.uk.