Ofcom Publishes Reasons For DAB Multiplex Licence Award
Ofcom has published the reasons behind its decision to award the second national digital radio multiplex licence to 4 Digital Group (4DG).
Ofcom’s Radio Licensing Committee (RLC) decided that the 4DG bid, which went head-to-head with a bid from National Grid Wireless (see Battle For The Second DAB Multiplex), was best calculated to promote the development of digital broadcasting in the UK, with 4DG’s shareholders also offering good opportunities for the promotion of the platform.
Ofcom said: “The RLC felt that the shareholders in 4DG, which include significant media companies for whom this national radio multiplex service will represent their first substantial investment in radio (eg Channel 4 and BSkyB) alongside experienced broadcast radio operators (eg Emap, Chrysalis), are able to offer a breadth of marketing and cross-promotional opportunities and resources through their existing portfolios of services and brands which should help to give DAB digital radio a strong boost at this important time for the platform.
“The Committee also noted that 4DG had developed partnerships with, among others, receiver manufacturers, retailers and the BBC, and felt that these relationships would assist in the promotion of DAB digital radio.”
In addition, the fact that 4DG had signed commitments from all of its proposed service providers, which put the consortium in a strong position to meet its proposed timetable for launching the multiplex service, also counted in its favour.
The Committee added that the proposed Channel 4 Radio and E4 Radio stations, broadcasting ‘contemporary public service speech’ and ‘youthful interactive entertainment’ respectively, would be likely to provide strong competition for the BBC, whilst it also welcomed the prospective return of a rolling news service (Sky News Radio) to a national radio platform.
The appeal of the E4 brand to younger listeners also played a part, said Ofcom, particularly with the declining level of radio listening amongst younger people.
Simon Cole, chief executive of UBC Media and one of the directors of the 4DG consortium, spoke exclusively to NewsLine when the announcement was first made and he said that the innovations which 4DG would be bringing to radio would “move the game on” (see Multiplex Win Signals New Era For Radio).
“The future of radio is about Electronic Programme Guides, about being able to download podcasts, to purchase music, to interact with your radio in a way that hasn’t been possible before. I think that’s a very powerful signal,” said Cole.
4DG intends to use a network of 174 transmitters, estimating that these will provide ‘outdoor’ coverage of 86.6% of the adult (15+) population of the UK, and plans to spend £4.5 million on marketing in the first three years of the licence, together with over £25 million marketing spend to support the launch of individual new radio services.
Ofcom: 020 7981 3040 www.ofcom.org.uk 4 Digital Group: www.channel4.com/radio/4digital/