Channel 4 Abandons Digital Radio Venture

Channel 4 has pulled out of its planned digital radio venture with 4 Digital Group.

Shareholders of the national digital multiplex, including BSkyB, Carphone Warehouse, UTV, Bauer Media and UBC were informed by the board’s chairman, Nathalie Schwarz, earlier this morning.

An internal announcement is expected to be made to Channel 4 staff at 11am today.

A statement released by Ofcom said: “Channel 4 has today informed Ofcom of its decision to withdraw from 4 Digital Group, the consortium which was awarded a licence for the second national commercial DAB radio multiplex last year.”

“Ofcom recognises that the economic environment is very challenging and that all organisations need to make decisions in light of the circumstances they face.”

Ofcom said its next step would include a meeting with “the other members of 4 Digital Group over the next few days to discuss how they propose to take matters forward”.

“Ofcom is also in discussions with other multiplex operators and the BBC, to consider how best to secure a viable outcome which is in the interests of radio listeners and the industry,” it added.

Channel 4 confirmed that an announcement about the future of senior executives working on the radio venture would be made in due course.

Bob Shennan was hired as director of radio last December, while Simon Daglish was appointed as commercial director of the digital venture at the end of August.

Both are expected to be hit by Channel 4’s decision to back out of the venture – Daglish is currently on gardening leave.

Channel Four: 020 7396 4444 www.channel4.com