DAB in crisis talks

Major broadcasters have been meeting to discuss the future of DAB after Capital Radio owner GCap announced it is to close several of its stations.
The profit-stricken company is in the process of dismantling its DAB operation and said it will be closing Planet Rock and The Jazz and selling off its XFM licences fro Scotland, Manchester and South Wales. It is also selling its stake in the Digital One multiplex to Arqiva.
Channel 4 is believed to be re-assessing its plans for entering digital radio after purchasing a licence for the second digital multiplex in July last year.

Three stations were planned but concerns have arisen over DAB’s low penetration rates, weak advertising and the lack of switchover date for digital radio.
According to a report in the Financial Times, a rescue plan for DAB could involve transferring Radios 1, 2, 3, 4, and Five Live to DAB over a prolonged period.
Other ideas include using public money to fund a digital switchover campaign and subsidies for the elderly and those on low income to buy new radios. It is thought the money could come from the £250m which the National Audit Office has predicted may be left over from the £800m given to the BBC to help the elderly and disabled switch to digital TV.