Capital's web radio plan

An internet radio station aimed at computer game players is to be launched by Capital Radio.

The UK-based entertainment group said it would be one of three niche web radio stations to be launched this autumn.

Capital described the new services as "radio with a buy-it button", combining music and editorial to encourage impulse buying.

The draft titles for the web stations are Diva, targeting working women, Rage, aimed at the male PlayStation market and Urban Grooves, a mix of R&B and Soul.

Details were unveiled on the day Capital said it had bought the Scottish station Beat 106 for £33.7m.

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The group is best known for its flagship London station where its line-up of DJs includes 'Who Wants to Be a Millionaire' presenter Chris Tarrant.

Capital's new online stations will operate alongside its other sites, including 95.8 Capital FM, Capital Gold and Xfm.

It is also planning to launch a more personalised online radio service, which it says in theory could give every user their own station.

Mark Frost, managing director of Capital Interactive, said they wanted to "create a new way of delivering music entertainment".

Online rights

To facilitate the move, Capital has signed deals with major record companies EMI-Chrysalis-Virgin, Universal and Jive for online airplay rights.

Technology deals have been signed with Microsoft, IBM and others to provide technical expertise.

The group said last year that it planned to invest £5.5m in its online division this financial year.

It said it expected Capital Interactive to break even in 2005.

Revenue opportunities for Capital Interactive would come through web site sponsorship, advertising and the distribution of web radio stations to other sites such as Handbag.com and through online music sales.

The idea is that listeners would be able to buy music online as they listen.

Traditional radio and digital radio services are strictly regulated by the Radio Authority, with broadcast licences much sought after.

Internet based radio has no such restrictions at the moment.