A new multiplex, a new era for radio?

Sarah Crawley-Boevey looks at how the 4Digital Group will add momentum to a sector on the rise.

From the moment Channel 4 unveiled its multiplex plans and consortium line-up, there has been little doubt which of the bids Ofcom would favour. But Friday's announcement that 4 Digital Group has won the licence means the broadcaster now has a lot of hype to live up to.

Having established itself in the hearts of the youth TV market, Channel 4 is better placed than most to get DAB radio on the agenda of the young people that advertisers are so desperate to reach.

From today, all eyes will be on 4 Digital Group, which includes virtually every radio group in the country as well as mobile companies, technology groups, newspapers and minority organisations such as Gaydar and Sunrise, not to mention BSkyB.

Turning tide

Nathalie Schwarz, director of radio for Channel 4, said: "Emap Radio will be the first to launch in the summer of 2008. Channel 4 Radio, which will be a public service alternative to the BBC, with speech, news, current affairs, comedy and drama, will go on air in December 2008, and Pure4, a mix of intelligent speech and a broad range of music, will launch in July 2009."

In total, the group will be launching 10 new stations and hopes to drive DAB and grow commercial radio's market share.

Andrew Harrison, chief executive of the RadioCentre, says: "Lots of things are beginning to come together to give momentum and structural change to the sector.

"The formats in the C4 bid will give commercial radio the chance to build audience and compete with the BBC for the first time."

Harrison believes the inclusion of so many non-radio media companies in the C4 consortium is testament to the potential the rest of the industry now realises is in radio.

The multimedia mix goes across several sectors - not only is the consortium leader traditionally a television company, but Emap's women's magazine Closer will be expanded into a radio service, while podcast providers include The Financial Times and publishing house Penguin.

Sectors may now be merging into one mass media, pushing the brand rather than the platform, but does that mean the brains behind the content will merge into one as well? Might we see more formalised alliances, such as the pooling of sales teams, content or even stations?

Mark Story, head of programming at Emap Radio, says Closer Radio will not be created by the radio team, nor by the magazine's editorial team, but that the approach will be led by the brand.

The RadioCentre's Harrison thinks it's too early for any deeper alliances. "I don't anticipate a rush, but the multiplex inevitably brings new providers in and, with it, the opportunity for cross-industry initiatives, which is all part of the new phase of radio evolution," he says.

Likewise, he is not expecting the DAB radio set to become peripheral in favour of mobile devices and digital television any time soon.

"The radio set will remain an important part of how people consume radio and I don't think that will change," he says, but he acknowledges the pressing need to get DAB in cars, and hopes 4 Digital Group will help "trigger a response" from manufacturers to get digital radio as standard in new cars.

The need to get people buying DAB sets faster is greater than ever as services on alternative technology such as Freeview and satellite devices are limited.

Digital marketing

4 Digital Group has pledged to spend £4.5m on general marketing of digital radio, including a joint initiative with the BBC.

With finance coming largely from advertisers, Channel 4's Schwarz is hoping the 4-branding will attract companies that have traditionally shunned radio in favour of TV.

Mark Middlemas, managing partner at Universal McCann, says: "4Radio is starting from an open brief, with no relationships in terms of trading - it can start from top and do what it wants.

"From a sales team perspective it can deliver ideas more quickly and powerfully than stations that are out there now - and it comes with a brand, which is so important now."

With the selection of C4 for the second digital multiplex, and its ability to give the BBC a run for its money, radio has turned a corner.

4 Digital Group's win has been called a "shot in the arm" for commercial radio - now it is time for the shot to take effect.

ANATOMY OF A MULTIPLEX

4 DIGITAL GROUP SHAREHOLDERS

- Channel 4 Radio

- Emap Digital Radio

- UTV Radio

- BSkyB

- Chrysalis

- The Carphone Warehouse Group

- UBC Media Group

STATION PROVIDERS

- Channel 4 Radio

- BSkyB/Chrysalis Radio

- Emap Radio

- UTV Radio

- CanWest MediaWorks

- The Walt Disney Company

- SMG

- Sunrise Radio

PODCAST PROVIDERS

- Club Asia

- Colourful

- The Financial Times

- Gaydar

- NME

- Penguin

- Media Trust

- The Prince's Trust

- IMG

STRATEGIC PARTNERS

- BBC

- Universal Music Group

- The Cloud

- iriver

- ITIS Holdings

- BT Movio.

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