Capital Radio has launched a £5 million joint venture to design, manufacture and market a new breed of digital radios for younger listeners, as part of an initiative to drive the market forward.
The scheme will see the creation of an Xfm-branded digital radio set, which will launch in the run up to Christmas with the backing of an extensive marketing campaign targeting the station’s 15 to 35 year-old listeners.
The initiative, formed as part of a joint venture with Hutchinson Whampoa, is intended to explore new ways of using digital technology to create new value from premium content, generate new forms of advertising revenue and build an interactive relationship with listeners.
Capital Radio’s chief executive, David Mansfield, said: “Digital development is a core part of our strategy, and we have made good progress in developing Xfm from a London station into a national brand. This is an exciting and innovative opportunity to position the brand at the leading edge of DAB.”
He added, “The UK has seen significant increase in the sale of DAB sets but most have been sold to people in their 40s. Xfm’s audience profile is attractively positioned 15-34’s and their listeners regularly access the station online and through digital television so we expect this group to lead uptake amongst the younger demographic.”
The announcement comes just weeks after rival commercial radio group, GWR, announced 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.
Both initiatives are intended to drive digital radio uptake, which is increasing at a rapid rate. The latest figures from the Digital Radio Development Bureau show that sales of DAB receivers rose by a staggering 229% year on year in the twelve months to February 2004.
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