Marketing Week U.K. waxes sanguine about radio deals:
The commercial radio industry is braced for a “momentous week”, according to industry observers. Global Radio’s £375m acquisition of GCap Media has been welcomed by the industry as the second real wave of consolidation.
Jonathan Barrowman, head of radio at Initiative, points out that if the Global and Virgin deals go ahead, all radio groups will have changed hands in the last five years.
However, Paul Carolan, deputy sales director at Virgin Radio, believes that this will “secure the future of radio”. He adds: “Having a strong market leader is very important and having that extra investment will be a good thing.”
Mark Story, Bauer managing director of national brands, also believes that the deal is good for the industry. He adds: “The consolidation of the industry has led to more ‘genre-fication’ across the heritage stations so we are doing more sponsorship and promotions together.”
Will these media property shake ups have the predicted effects? We will have to wait and see. I’m sure that there is major change on the wind, especially once the dust clears and Global announces its intentions in regard to digital audio broadcasting.