Ginger Leaves Digital Consortium

Chris Evans’ Ginger Media Group (GMG), owner of Virgin Radio, has pulled out of the Digital One consortium which it formed with GWR Group in March (see GWR And Ginger Create Digital Consortium). At the same time cable and communications company NTL has joined the consortium.

Digital One was put together to propose a bid to the Radio Authority for the only national commercial digital radio licence. Presently, GWR, Talk Radio and NTL are part of the group. A rival group called Digital Media Broadcasting, headed by ex-Planet 24 figure Peter Leutner, is also to submit an application (see New Company To Enter Bids For National Digital Radio Licence).

Ginger has apparently withdrawn from the consortium after the different groups disagreed over its structure. It was to have a 10-15% stake in the group.

Chief executive of GMG, David Campbell, says: “Whilst we have decided not to take up the shareholding offered to us within the consortium, Virgin will still have a presence on the digital multiplex, broadcasting alongside the country’s other independent national radio stations.”

Interest in digital radio appears to be fairly low as both Capital Radio and Emap Radio said that they would not be bidding for the national digital licence. They are to team up and bid for local digital licences instead (see Emap Radio’s Local Licence Masterplan).

Furthermore, Talk Radio is currently in the midst of takeover bids from a number of different groups, after 65% stakeholder CLT-ufa put its interests in the UK station up for sale (see MacKenzie Leaves Mirror Group To Bid For Talk Radio).

Digital One will submit its application for the licence to the Radio Authority next Tuesday, 23 June.

GWR Group: 0171 344 2718