Channel 4 scales down digital radio plans as cost cuts bite

Channel 4 is scaling back its digital radio plans, with only one of three of its originally planned stations, E4 Radio, now confirmed for launch.

As the broadcaster deals with the pressures of a declining TV ad market and uncertainty over its future public funding, Channel 4 Radio is the latest area of its business to face cutbacks.

Last week, the company announced plans to axe 150 jobs to save £100m over this year and in 2009.

Channel 4 conceded that it is scaling back its investment in radio "in line with its proposal to reduce its cost base by £100m in the next two years". A spokesman said it is focusing digital radio investment on E4 Radio, "which we believe represents the quickest prospect of a commercial return from radio".

Chief executive Andy Duncan told Media Week: "We are now looking at a more staggered plan and deferring stations. The focus in the short term is E4 Radio, but we are involved in industry-wide chats about the future of digital radio."

The admission comes just days before an industry-wide summit, aimed at mapping out the future of digital radio in the UK. At the meeting, Global Radio's group chief executive Ashley Tabor and 4DG group chairman Nathalie Schwarz are expected to finally sign a deal that will merge the operations of the UK's two digital radio multiplexes - Digital One and 4DG.

Channel 4 insisted the role of Bob Shennan, the broadcaster's director of radio and former BBC Radio Five Live executive, remains unchanged, despite the mothballing of its planned speech radio station.