Made in Kent Radio’s parent company has ceased trading following sustained financial pressures linked to business rates and licensing costs.
The business says a prolonged dispute with Dartford Borough Council and the government valuation office over business rates was a significant factor. According to the company, it spent more than a year challenging what it believes were incorrect and disproportionately high rates, which it says were higher than those applied to much larger organisations.
In addition to rates, the company says it faced a sharp increase in its music licensing costs. It reports that its annual licence fee from PRS for Music rose by 2,678 per cent. The business says it was unable to absorb the increase, which it describes as unexplained, and that this contributed further to the decision to cease trading.
PRS for Music has recently introduced a new pricing scheme. For commercial internet radio stations funded through sponsorship or advertising, the licence fee is now calculated using either a percentage of revenue or a charge based on subscribers or total listening hours.
The percentage rate applied is the same for all commercial stations, regardless of business size. As a result, larger and more profitable stations will pay a higher overall fee than smaller operators. PRS for Music says this approach is designed to be fair both to broadcasters and to songwriters, ensuring payments reflect the scale of music use.
For non-commercial and not-for-profit internet radio stations, a tiered pricing structure applies based on monthly listener hours. The fee is £193 for up to 800 listener hours per month, rising to £386 for between 801 and 1,600 listener hours. If listening exceeds this level, the total fee is £386 plus £0.02 per additional listener hour above the cap.
On Made in Kent closing, a PRS spokesperson told RadioToday: “While we do not comment on individual cases, the figures quoted do not reflect our understanding. There are different licensing routes depending on how a station is set up, including tailored options designed for smaller and not-for-profit services.
“We always encourage stations that are concerned about costs to contact us directly so we can help ensure they’re on the correct licence for their needs.
“Online radio plays a vital role in helping audiences discover music – the purpose of our internet radio licence is to reflect how modern online stations operate and to make sure creators are fairly rewarded for the music that powers those services.
“All new licences are developed through a rigorous process that includes extensive research, legal advice and market consultation.”
Made In Kent Radio launched five years ago and focused on supporting local businesses and showcasing local talent across the county. In a statement, the company said the combined impact of these financial pressures made it impossible to continue operating in its current form, despite efforts to keep the station running during a challenging economic period.
The company confirmed it is now in the process of appointing administrators to manage the limited company. It added that the radio station output will continue to broadcast for the time being, with existing advertising and sponsorships remaining on air while potential new ownership options are explored.