Nova chief, Paul Thompson, has confirmed DMG Radio wants to develop a second brand in Australia.

After acquiring the new Sydney FM licence and then Brisbane, to complete a national network of youth oriented Nova stations, DMG’s second Sydney station is certain to target a different market.

Thompson has told ‘Business Sunday’ that it does not make sense to position the new station as a Nova competitor: “We really believe the over 40 market in Sydney, particularly on FM, is very significantly under catered for and there are some wonderful opportunities there. We just have to decide which one.”

When asked if DMG is looking, eventually, at having two brands, he said: “I think that’s what we’d like to do.”

Thompson admits the Sydney and Brisbane licences were expensive, but says they reflect the market value and DMG would have been willing to pay slightly more: “We hadn’t reached our limit in either place, but we didn’t have a long way to go.”

On the same program, Macquarie Network investor, Mark Carnegie, said the joint venture with Richard Branson remains serious about developing a broadly based media business: “It’s right to say the original plan was a Virgin network of FM radio licences. (That) is not going to happen now because the prices paid were just ones we couldn’t sustain.”

Austereo chief, Michael Anderson, says the company will withstand new competition and move forward: “That’s the first thing that happens when you have new competitors come in. It flattens the industry a little bit and makes the whole industry more competitive. As market leader, we have the most revenues, clients and listeners and so, if you are coming in and wanting to grow, we’re the natural target.”

For a full transcript of the three Business Sunday interviews, click on the link below.