Virgin eyes neglected radio medium

<p>HONG KONG: The Virgin Group has targeted the overlooked radio </p><p>medium to expand in Asia, and it has teamed up with Greater China </p><p>venture capital firm ChinaVest to roll out a regional FM network. </p><p><BR><BR> </p><p>Virgin said the partnership would allow it to expand in a medium which </p><p>was still in a development phase compared with the West, where it was </p><p>more matured. </p><p><BR><BR> </p><p>Virgin regional chairman and chief executive, Andrew Craissati, said: </p><p>"In mature markets, the advertising expenditure in radio is usually </p><p>north of eight per cent. In Asia, it's between four and four-and-a-half </p><p>per cent. The discrepancy is accounted for by quality, management, </p><p>leadership, inspired programming and third-party listenership </p><p>research." </p><p><BR><BR> </p><p>The Asia venture is taking its lead from the UK, where Sir Richard </p><p>Branson's radio operation has become one of the country's largest </p><p>national commercial radio stations since launching in 1993. </p><p><BR><BR> </p><p>"I am keen to explore how our success with Virgin Radio in the UK can be </p><p>coupled with our growing businesses in Asia to bring more innovation and </p><p>a fun experience to the radio listener in Asia and also great reward to </p><p>the local advertiser," Branson said. </p><p><BR><BR> </p><p>The new operation is in talks to acquire equity and management control </p><p>in existing radio stations in Hong Kong, Singapore, Taiwan, China, </p><p>Thailand and India. The initial focus will be on Greater China, India </p><p>and Thailand, with the ultimate objective being to have a presence </p><p>throughout the region, except Japan. </p><p><BR><BR> </p><p>Craissati said China is among the biggest challenge for the group </p><p>because foreign ownership of media entities in not allowed. </p><p><BR><BR> </p><p>"In China, we will work with local partners who operate a radio station. </p><p>The plan is for these stations to be rebranded as Virgin stations and we </p><p>will physically manage them. At the moment, we are ensuring that we are </p><p>operating within the regulatory framework of not only China but also </p><p>other markets of the region." </p><p><BR><BR> </p><p>Virgin's radio target audience will be the youth market, forming a </p><p>perfect match for Virgin, said ChinaVest chairman Robert Theleen. </p><p><BR><BR> </p>