ANALYSIS: MEDIA TRACK - Capital Radio’s acquisition of Beat offers an unguarded route into Central Scotland

Capital Radio last week announced the acquisition of youth radio station Beat 106 for pounds 33.8 million, representing the group’s first move into Scottish radio.

Capital Radio last week announced the acquisition of youth radio

station Beat 106 for pounds 33.8 million, representing the group’s first

move into Scottish radio.



Beat was created to provide ’dance and new rock’ for Central Scotland’s

18- to 35-year-olds. It received backing from a range of investors, from

Emap Radio to footballer Ally McCoist.



Beat is an eight-month-old station and received its first Rajar figures

in March, which showed a weekly audience of 334,000.



For Beat to be snapped up by a major group like Capital less than a year

after its launch clearly shows it to be an attractive proposition.



A glance at radio across Central Scotland shows a conspicuous absence of

the major radio players. The majority of stations are owned by Scottish

Radio Holdings (SRH) and it is only recently that Kelvin Mackenzie’s

Wireless Group moved north of the border with the purchase of the

Independent Radio Group. Strangely, Emap and GWR are not to be found in

Scotland.



The above chart shows the regional stations in Central Scotland that

have a Rajar audience figure. Of the 14, ten are owned by SRH, including

Clyde FM, which has the largest audience of the set. Beat has the fourth

largest weekly audience in the area and can potentially reach 60 per

cent of the Scottish population, including the key cities of Edinburgh

and Glasgow.



Beat will allow Capital to increase its potential audience in the UK to

58 per cent of the adult population and provide the group with a

Scottish base from which to operate its digital Xfm stations.



Beat’s young audience of 2.6 million is also particularly attractive to

advertisers.



It is perhaps surprising that Capital is one of the first key UK radio

operators to move into Scotland. Research shows personal disposable

income in Scotland is the highest in Britain outside London and the

South-east.





MediaTel’s database is available at www.mediatel.co.uk. For more

information contact 020-7439 7575 or e-mail info@mediatel.co.uk.



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