[cma-l] 4 Digital radio partners in crisis talks

[CMA-L]

4 Digital radio partners in crisis talks

John Plunkett http://www.guardian.co.uk/media/2008/oct/14/radio-channel4

The remaining partners in the 4 Digital radio consortium have held
emergency talks following the exit of majority shareholder Channel 4,
but the future of their proposed digital radio services looks bleak.

At least six of the 4 Digital group's proposed 10 new national radio
stations will now not launch, including the three Channel 4-branded
stations, with serious doubts over the future of the remaining four.

4 Digital BSkyB, Bauer, TalkSport parent UTV, UBC Media and Carphone
Warehouse were understood to have held conference calls over the
future of the venture yesterday and discussions may continue into
today.

However, the indications emerging from the big radio groups were less
than encouraging.

A spokesman for UTV said it was reviewing its options with regard to
the TalkRadio launch – no investment in the new station has yet taken
place.

BSkyB said it was "unlikely" to find the new partner it required to
launch Sky News Radio.

Bauer Radio is understood to have its plans for a digital radio
spin-off of its successful women's magazine, Closer, on hold.

In the current economic conditions, Bauer's plans and those of its
fellow stakeholders in 4 Digital are likely to remain on hold for some
time to come.

The successful 4 Digital application for the second national
commercial digital radio multiplex listed 10 services.

None of the three Channel 4-branded stations – Channel 4 Radio, E4
Radio and Pure4 - will launch following the broadcaster's decision to
pull the plug on its entire radio project last week.

Three other proposed stations had already been withdrawn. Canadian
media group CanWest, which was due to launch an album music station
aimed at 40- to 59-year-olds, has pulled all its radio activity from
the UK, while Virgin Radio has axed plans for a women's service,
Virgin Radio Viva.

Sky News' plans to launch Sky News Radio were hit by the withdrawal of
its original partner, Chrysalis Radio, after it was bought by Ashley
Tabor's Global Radio.

The remaining four stations are made up of TalkRadio, Closer, Radio
Disney and Sunrise Radio.

A spokesman for BSkyB said: "Following the closure of Channel 4's
radio business and with the resulting uncertainty over the 4 Digital
multiplex we think it is unlikely that we will be able to find an
advertising sales partner to support Sky News Radio."

In a statement, TalkSport parent UTV said: "We remain committed to DAB
[digital audio broadcast]. We are reviewing our options in regards to
TalkRadio and its future launch."

4 Digital had pledged £4.5m of investment in general marketing for
digital radio in the first three years of the licence, plus the
equivalent of more than £25m of advertising airtime from the
consortium's backers to promote the launch of individual stations.

Channel 4 was a 55% shareholder in 4 Digital.

This article was first published on guardian.co.uk on Tuesday October
14 2008. It was last updated at 07.16 on October 14 2008.