8.15am update

Channel 4 wins radio multiplex bid

This article was first published on guardian.co.uk on Friday July 06 2007. It was last updated at 12:42 on July 06 2007.
4 Digital Group

4 Digital Group: included Channel 4, Emap Radio, UTV, UBC Media Group and SMG

Ofcom has awarded the second DAB digital radio national commercial multiplex to the 4 Digital Group consortium led by Channel 4.

Channel 4 is the majority shareholder in the consortium, which includes Emap Radio, UTV, UBC Media Group and Virgin Radio owner SMG under the banner 4 Digital Group.

The consortium can now go ahead with its plan to launch music channels and compete with the BBC in areas such as comedy, drama, and current affairs next year.

As part of its challenge to the dominance of BBC radio, which has a 55% market share, the group also plans a daily rival to Radio 4's Today programme.

Channel 4's bid proposed a 10-channel lineup, with partners such as Carphone Warehouse and BT Movio. It said it would launch next year.

The bid also included digital radio stations offered in conjunction with Disney, for children, and Sky News Radio, a joint venture with Chrysalis.

The aim, said the broadcaster, was to "communicate that there is a new and different world of radio to experience from Channel 4".

Channel 4 hopes its ambitious foray into radio will help make up for an expected downturn in TV advertising revenue.

The 4 Digital Group faced competition for the multiplex from National Grid Wireless, which proposed a 12-station lineup and had an ambitious launch date of February 29, 2008.

Andy Duncan, the Channel 4 chief executive, said: "Winning this licence is a significant strategic milestone for Channel 4 and we are incredibly excited by the opportunity it represents.

"It gives us a platform to extend our innovative and highly diverse public service contribution into radio, challenging the BBC's dominance of the medium, opening up new revenue streams to support our broader public service role and giving our audience access to Channel 4's unique content on another fast-developing digital platform."

Nathalie Schwarz, the Channel 4' director of radio, who led 4 Digital Group's successful bid, added: "The prospect of launching three brand-new national stations and extending Channel 4's spirit of innovation and risk taking into radio is an inspiring one.

"We genuinely believe Channel 4 can add a fresh perspective to radio in the UK while extending choice for listeners and working with our partners to promote the medium and drive consumer take-up."

The chief executive of UBC Media, Simon Cole, said about the win: "This is a very pleasing result.

"We were confident from the beginning that we were part of a hugely compelling partnership of digital radio industry leaders, and it is very exciting that we can now get started on delivering the kind of interactive services that are a core part of our strategy."

Tony Moretta, the general manager broadcast for National Grid Wireless, said: "This was an extremely close contest and we are obviously disappointed at not being awarded the new licence, especially as we believed our proposal offered a cost-effective platform for the expansion of commercial digital radio.

"We have learned a lot from this process and forged many new relationships which will help us in the future as we continue to focus on the provision of the highest quality transmission services to the broadcast industry."

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