Global sells Digital One to Arqiva
Global Radio has today confirmed the sale of its majority stake in the national digital radio platform Digital One to fellow shareholder Arqiva.
Transmission company Arqiva, previously a 37% shareholder, is understood to have paid a nominal sum for Global Radio’s 63% stake.
However, in return Global expects cheaper transmission costs for its digital stations from Arqiva.
Digital One is now the only national platform for digital radio after plans for a second multiplex, which was set to operated by Channel 4 and backed by 4 Digital Group, collapsed last year.
As a result, Digital One will have a key role to play if DAB radio becomes a “primary distribution network” for radio, as outlined in Lord Carter’s interim Digital Britain report (see Broadband for all by 2012).
The platform currently only has one DAB-only commercial national station in the UK – Planet Rock – despite having the capacity for around a dozen stations.
It is hoped that Arqiva’s sole ownership will kick-start the platform, which broadcasters have previously complained charged too much for carriage.
Paul Eaton, director of radio at Arqiva, said: “As an independent operator, Arqiva is in a good position to realise the full potential of the multiplex and encourage new services to launch on the DAB digital radio platform.
“We believe in the long term future of DAB, and this deal with Global extends both of our companies’ commitments to digital radio well into the future.”
Yesterday, Ofcom’s submission to the government, in response to Lord Carter’s report, encouraged the continued growth of DAB, but said it will be vital to “overcome some of the obstacle that might hinder any future digital migration” (see Ofcom calls for regulatory changes to ensure future of commercial radio).
“Digital technologies offer consumers great control, quality and – with very little spectrum available for new analogue radio services – potentially greater choice,” Ofcom said.
The regulator agrees with the Digital Radio Working Group in proposing a government policy that DAB should be the primary distribution platform for UK-wide and large local radio stations, and calls for a migration of listening to DAB over the next 10 years.
Ofcom said it shares the government’s vision of DAB as the primary digital radio platform because DAB’s technology is best placed to provide “free-to-access universal provision of digital radio services, across the country, via affordable portable and mobile devices”.
However, the media regulator argues that “regulation and legislation will need to change to facilitate the continued growth of the DAB platform”.
Ofcom also said that “these changes alone will not be sufficient: action by industry stakeholders, both BBC and commercial will also be necessary, notably improvements of coverage and reception, a more consistent offering of high quality content, and greater use of the other consumer benefits DAB can offer in terms of programme guides, text and data services”.
In the latest RAJAR release, for Q4 2008, listening via DAB was up from 114 million hours to 116 million period on period (see DAB enjoys rise in listening hours).
DAB radio also increased its share of listening on digital platforms, from an 11.3% share in Q3 to an 11.4% share in Q4 2008.
In what was a good quarter for digital radio, DAB’s weekly reach rose 1.1 percentage points period on period to 18.9%, while ownership of DAB sets was up one percentage point period on period, to 29.7%.