British broadcaster Channel 4 has abandoned its plans to enter the commercial radio market as it struggles to cope with the financial downturn and the impact on its core advertising revenues.
The broadcaster, which is publicly owned but commercially funded, had planned to launch three national digital radio stations to compete with the dominant BBC.
But the broadcaster, which is known for its sometimes edgy programming such as "Big Brother", said withdrawing from radio would save up to £10 million ($17.28 million) in 2009 and contribute towards the £100 million savings it needs.
"We've taken this decision very reluctantly," Channel 4 chief executive Andy Duncan said in a statement.
"We've pursued our radio plans in good faith. Frustratingly, our plans have been overtaken by a drastic recent downturn in our revenues and we will have to forgo this future profit stream."
Channel 4 is the majority shareholder in the 4 Digital Group, alongside media groups such as BSkyB and Bauer, which won a 12-year licence to operate a digital radio multiplex.
Media regulator Ofcom said it recognised the economic environment was very challenging and said it would meet the other members of 4 Digital Group to discuss what to do next.