GCap to play no part in radio consolidation

by Sarah Crawley-Boevey, Media Week 20-Mar-07, 09:10

LONDON - GCap Media is "not in a strong enough position" to participate in any imminent consolidation of the radio industry, chief executive Ralph Bernard has admitted.

Speaking exclusively to Media Week last week, Bernard predicted that strategy reviews being carried out at the Chrysalis and Emap radio groups, along with the collapse of the SMG/UTV merger, would definitely result in imminent consolidation, but he ruled his company out of any part in that process.

Bernard said GCap had enough on its plate with getting flagship London station Capital right and ensuring the success of the "two-in-a-row" maximum ad strategy.

Bernard said GCap, which was formed in 2005 when his GWR Group joined forces with Capital Radio, was moving into the second phase of post-merger development.

He accepted criticism that GCap had failed to lead the radio industry in a way expected of the dominant player, but pledged to show more leadership going forward.

Bernard refused to rule out GCap's involvement in a second national digital multiplex bid, which must be submitted by Wednesday, 28 March. He has previously spoken about plans to enter a consortium with BT and Arqiva, but it is believed that this will not now compete with the two bids led by 4Radio and National Grid Wireless.

Bernard said GCap, which is a joint backer of the existing multiplex, Digital One, does not require further space to fulfil its digital plans, but said capacity on a second multiplex could be used to house digital-only stations such as Chill.

In a separate development, GCap Media's Capital 95.8 has signed a six-figure deal with Intel to support the launch of the brand's new Core 2 Duo Processor. The deal will focus on live music and entertainment and include the creation of a live gig at a high-profile location in London, featuring what the operator claims will be one of the hottest new acts of 2007.

On-air activity for the campaign begins today (Tuesday) and will run for six weeks.