Capital Shifts Invesment From Online To Digital

Capital Radio has announced a shift in its investment plans which will see a drop in funds for interactive ventures and an increase in money going into digital radio. Expected spend on digital radio is set to increase by a third, from the £3m spent in 2001 to £4m. Interactive spending will drop from the £3.6m spent this year to £2.5m.

The plans were revealed alongside a discouraging set of full year results last week (see Capital Radio Profits Fall 27% Following Ad Downturn). However, the last twelve months has seen Capital strengthen its position in the digital radio market, gaining 8 digital service licences on its own, while the MXR consortium, in which it has a 14% stake, was awarded a further four local digital multiplexes. This brings the number of Capital’s digital stations to 29.

Capital’s continued investment in digital radio appears to indicate both its confidence that the Government’s upcoming legislation on the media will include a relaxation of ownership rules and that the format will overcome its current uptake problems and become more established as a viable advertising offering.

Capital Radio: 020 7766 6000 www.capitalradiogroup.com

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