MediaCommunications

MediaCom View: New RAJAR results spell good news for Heart 106.2 - not only for retaining the number 1 spot in London, but for the very first time, beating Capital and Johnny Vaughan at Breakfast. This follows news that Gcap have just re-signed Johnny Vaughan for a further 3 years - which although was initially controversial, does show that Gcap have adopted a long term strategy, highlighted by the fact that despite losing the top spot, Johnny has grown his audience by 4% period on period. Digital radio's continued growth has increased slightly - and is set to grow further by next quarter, when the effect of DAB radios bought at Christmas will be shown. Commercial radio now takes a 62% share of digital only listening - with growth in both reach and hours set to continue. The commercial radio market is down marginally overall verses the BBC, but has increased its share in London (accounting for 71% share of listening) and the digital market. The benefit of digital's multiple platforms (e.g. DAB, DTV, Internet, Mobile phones etc) increasing accessibility for listeners will help boost growth in this area.

MediaCom View: Virgin Media, the new company formed from ntl:Telewest, Virgin.net and Virgin Mobile have joined together this week and launched their new bundled household service offering. It combines a digital TV, broadband, phone and mobile proposition. Quad Play packages range from £20-£80 per month. This is a new start for NTL who have suffered from bad customer service in the past. Customers will now have a raft of choice for household communication and media services. Sky, BT and Orange all offer varying scope of bundled deals.

MediaCom View: thelondonpaper has increased their ratecard on the back of a circulation increase of approximately 100,000 copies a day to nearly half a million. However, whilst the paper suggests the extra demand exists; questions have been raised over the authenticity of their additional readership. It is essential now that thelondonpaper prove their readership and that the increase in circulation will not dilute the quality of their core audience, and that readers are actively digesting the newspaper. The London papers are also currently facing interrogation from Westminster City Council for generating three tonnes of waste in the borough each day. The additional circulation will only add fuel to the fire unless both parties take steps to resolve this issue.