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Channel 4 abandons digital radio move

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Date: Friday 10 Oct 2008

LONDON (ShareCast) - Broadcaster Channel 4 has abandoned plans to move into digital radio, blaming a slump in advertising for the decision.

The broadcaster was set to launch three new digital radio stations, at a cost of around £10m, but said the credit crunch and financial downturn hit advertising revenues by 5%.

“We've taken this decision very reluctantly," Channel 4 Chief Executive Andy Duncan said in a statement. "We've pursued our radio plans in good faith."

"Frustratingly, our plans have been overtaken by a drastic recent downturn in our revenues and we will have to forgo this future profit stream. We can no longer afford the short-term investment necessary given that we are having to cut so deeply across all parts of the organisation.”

Channel 4’s decision will result in the loss of 15 jobs.

The broadcaster is the majority shareholder in 4 Digital Group, which also includes BSkyB, Bauer, Carphone Warehouse and UBC Media, which had been awarded a licence to operate a multiplex by Ofcom in July 2007.

Ofcom said it would hold talks with the remaining investors to asses the future of the project.

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