GWR To Boost Digital Radio With Multi-Media Initiative
Commercial radio group GWR has revealed plans to invest more than £4 million in the launch of a new digital service that will deliver a range of multi-media content direct to mobile phones.
The new operation, formed as part of a joint venture with BT Wholesale, will distribute news, sport, entertainment and stock market information to mobile phones and personal digital assistants (PDA).
It will also carry a range of digital radio services, in a move that could eventually lead to a significant increase in penetration when DAB digital radio chips are incorporated into mobile devices.
The initiative will be unique in that the content it delivers will not have to be downloaded. Services will be ‘always on’ and in a move that is intended to transform mobile devices into entertainment and information sources.
GWR executive chairman, Ralph Bernard, said: “We stated that we planned to exploit ground-breaking opportunities for interactive datacasting using digital radio broadcasting capacity when we initiated the GWR Livetime project. BT’s communications network, technology expertise and relationships with service providers make it the ideal partner to take this project forward.”
He added: “The introduction of DAB digital radio chips into mobile phones and PDAs will be a major boost for digital radio by significantly increasing penetration, particularly as these types of devices have a much shorter replacement cycle than traditional radios. This innovative convergence project will also provide GWR with an additional income stream.”
The new operation, which is expected to launch sometime next year, is expected to provide a significant new revenue stream for GWR. The current business plans suggests it could bring in an extra £5 million for the commercial radio company in its first year.
However, a potential increase in digital radio listening could benefit all commercial broadcasters, which are currently battling for audience share against the an extremely well funded BBC.
Digital radio up-take is increasing at a rapid rate and the latest research from the Digital Radio Development Bureau shows that sales of DAB receivers rose by a staggering 229% year on year in the twelve months to February 2004 (see Digital Radio Sales Hits Record Number In Last Year).
GWR Group: 020 7284 3000 www.gwrgroup.com
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