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Channel 4 radio: six feet under - Venture Insights

Report Overview

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Channel 4 radio: six feet under

PublisherEnders Analysis.
Publish Date October 10, 2008
Sector Music and Radio.
Company Channel 4.

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Channel 4 has announced the immediate withdrawal of its majority stake in 4 Digital Group, a new venture that was awarded the licence by Ofcom in 2007 to build the UK’s second national commercial radio DAB multiplex, and Channel 4 will not be launching its promised portfolio of broadcast radio channels.

The obvious culprit is the weak economy, with mobile telecoms seeming to be more vulnerable to consumer cutbacks than previously thought, a hypothesis supported by recent consumer research.

With European economic growth forecast to decline further, revenue growth is likely to drop below zero by the beginning of 2009, and then progressively worsen through 2009 as regulatory effects worsen, creating a very tough environment for mobile operators to preserve margins.