There is speculation within the industry that GCap is to sell off its controlling share in the Digital One multiplex. New chief executive Fru Hazlitt will unveil her strategic vision for the company to the City on Monday, and downscaling in digital activity is expected.
According to Media Week, GCap is understood to be considering selling their 63% stake in the national multiplex, according to a source close to the radio company.
Digital One is a joint venture, backed by GCap Media and Arqiva. It broadcasts services across the UK, including Classic FM, Virgin Radio, talkSPORT, BFBS Radio, theJazz and Planet Rock.
According to some industry figures, Hazlitt may go further. Matt Deegan, Creative Director of [link=http://www.foldermedia.com]Folder Media[/link], suggests in a recent [link=http://www.mattdeegan.com]blog entry[/link] that pulling investment from Digital One could lead to cuts in the company's digital services: "It will allow her to shut down either Planet Rock or theJazz or maybe even both of them. Whilst both these stations are building decent audiences they probably cost the firm 3m to £4m in total to operate."
GCap has already scaled back its digital operations in recent weeks with the closure of Core.
