Virgin eyes neglected radio medium

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

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