Classic Gold and Oneword owners UBC have reported losses of £415,000 for the first six months of the year, after pouring money into digital radio and podcasts.
In the same period last year, the group made a profit of £132,000.
Sales during the first half of the 2006-7 financial year at UBC slipped to £9.1m from just under £9.5m the year before.
In a company statement the group said: "The future of the industry relies on the development of new revenue models".
UBC is to start a commercial digital music download service in London early next year, and plans to roll it out across the country from May 2007.