Cliff Crown has been featured in Campaign Magazine, 7 November 2008, for his letter on Channel 4 investing in digital radio:
Dear Editor,
In light of recent economic events, Channel 4’s decision to defer plans for multiple digital radio stations is hardly surprising. The channel is just one of the broadcasters to fall victim to a drastic decline in advertising revenues, and the £10m investment in this project is no longer realistic.
Initial forecasts indicate that brands reduced advertising spend by as much as 20 percent throughout September year on year, and this decline has naturally impacted upon new investment decisions. Short-term growth plans are now the desired option as broadcasters want a quick return on investment when other more traditional revenues are reduced.
As such, choosing to invest in new areas such as digital radio is a risky business when companies are trying to conserve funds. While the broadcaster’s withdrawal could be seen as a blow to the development of digital radio, the channel needs to continue to operate profitably and should consider where best to invest money to promote positive cash flow.
Over the next year, up to 150 jobs could be cut across the Channel 4 organisation but rather than reducing resource, the broadcaster should be exploiting other available media including online, while plans to enter digital radio are put on hold. By developing an efficient business strategy, including ways to entice viewers in attempts to boost advertising revenues, the channel can hope to profit in an unstable economic climate. Profits now will lead the way for further diversification later.
For further information please contact Cliff Crown, Head of Vantis' Media Group, or complete and submit the online form below.