Capital promised "quality pop," making a virtue of the fact that, unlike the BBC's pop network Radio 1, it was in FM stereo as well as on AM. Capital initially played a more adventurous and sophisticated selection of tracks, many of which were album cuts rather than Top 40 singles. The overall station style was largely modeled on adult contemporary FM stations in the United States. The station had some familiar voices, because many of the disc jockeys had previously worked for the BBC and for "pirate" radio; others had gained experience in commercial radio overseas. Nor was the station a continuous diet of popular music. In line with the IBA's demands and expectations, Capital's early programming contained an ambitious schedule of specialist music shows, original drama, arts magazines, children's shows, community action slots, and much more, as well as its own news service and a commitment to public-affairs programming, including phone-ins and documentaries.

     Unfortunately, the station's debut coincided with an economic recession that would have hit advertising revenues for even a successful station. Capital's initial audience figures were disappointing: the first ratings, around Christmas 1973, indicated a weekly "reach" of about 1 million-about a 1enth of the potential audience-and this created a financial crisis at the station. Richard Attenborough later admitted that the station had faced closure within a year of its launch and that he was only able to stave off bankruptcy by offering paintings from his private art collection as collateral against the company's mounting debts. The shareholding structure of the company was also radically changed: in February 1975 the Canada­ based Standard Broadcasting Company became the station's largest shareholder, increasing its share of the company's stock to just under 25 percent.

     The music policy was switched to more or less pure Top 40; within a year the news service was scrapped (although it was restored some years later), to be replaced by the Independent Radio News (!RN) bulletin produced by London rival LBC, and drama was abandoned. The well-known BBC television and radio presenter Michael Aspel was hired to present the 9 A.M. to noon weekday slot aimed at housewives, and Kenny Everett and Dave Cash re-created their successful on-air part­nership of pirate radio days during the vital breakfast time period. Gradually these changes built a strong and loyal lis­tener base. Although programming certainly became more populist, the station did not renege on commitments to its public service broadcasting and charitable commitments, which have endured through major changes in the company's development. By 2002 the Eastertime "Help a London Child" radiothon had raised some £14 million.

     The Capital Radio group has three other charities of its own operated by its stations in different parts of the U.K. From its very early days, Capital Radio has run community social action initiatives, heavily promoted on-air but often providing confidential, personal, advice off-air. "Helpline" and "Jobfinder" were two of the services that helped justify the early "Cuddly Capital" promotional line. In the summer of 2002 the Capital FM network launched "Call a Course" aimed at helping students find appropriate college courses.

     Public service commitments, it appeared, could co-exist happily with a profitable media business, because in 1987 Capital became the first U.K. radio company to float shares on the London Stock Exchange. The public company was in a position to fully exploit the changes in the media and business environment in the late 1980s caused by the govern­ ment's decision to fundamentally change the licensing and regulatory structure of commercial radio: stations were allowed to target their program content to specific audiences and to drop much of their public service and "minority listen­ ing" obligations; many more stations were licensed, creating commercial competition in each area; and services were encouraged-then compelled-to end simulcasting and operate different services on their AM and FM transmitters. Accordingly, in 1988 the company split its services into Capital Gold-featuring oldies from the 1960s through the 1980s, with sport, comedy, and personality presenters-and Capital FM, aimed at a young adult audience and featuring a contemporary hit radio format and big-prize contests. This change had the effect of increasing the overall audience: Capital FM established a seemingly unassailable position as the most listened-to radio service in London (overall BBC and commercial network and local rivals), with Capital Gold often rated number two.

     However, the new century saw this dominance compromised both by increasing ratings success of BBC network services and by other London commercial stations-including the Capital-owned rock service XFM. A new Head of Music for Capital FM was appointed in early 2003 and a more diverse music policy implemented. Press reports noted some spectacular losses to the FM service, especially in the key breakfast slot. This program, hosted since 1987 by Chris Tarrant (also a national TV personality through his hosting of such shows as Who Wants To Be a Millionaire?), became the company flagship and was responsible for around 15 percent of the group's entire revenues. Increasingly lengthy and frequent vacations by Tarrant and rumors that he was about to quit the show contributed to a major fall in the company's share price. During this period, official listening figures showed Capital FM in third overall place in the London market-behind the BBC's speech network Radio 4 and music and personality service Radio 2-with the AM service, Capital Gold, failing to make even the top 10 in market share. Some media pundits even compared the downturn in Capital's position to that of the once dominant Independent Television (ITV) commercial TV network, which had been squeezed by newer commercial rivals and by a more ratings-conscious BBC television. Nevertheless, Capital FM's share was still around 50 percent greater than its nearest commercial rival, and the breakfast show-even though it was surveyed only in the greater London area-had a larger audience than was achieved across the whole country by the equivalent shows on two of the three national commercial stations.

     Deregulation, among other things, meant that commercial radio groups were allowed to acquire other stations. In 1993 Capital bought the Birmingham stations BRMB FM and Xtra AM; a year later Capital added seven stations on the English south coast, followed by Fox FM in Oxford and Red Dragon FM and Touch Radio in South Wales. In 1997 Capital proposed to buy the national commercial rock station Virgin Radio from Richard Branson. However, the deal was referred to the Monopolies and Mergers Commission, and before this investigation could be completed, Virgin was bought by Chris Evans' Ginger Media Group. One of Capital's most controversial acquisitions came in 1999: XFM in London had been awarded a license as a "new music" station, and there were street demonstrations from fans of the original station sound when Capital made major changes to the music output and presenter lineup.

     Capital has also been a major investor in digital radio. By the spring of 2003 it partly or wholly owned the licenses for eleven multiplexes, and provided more than 30 program services, including a simulcast of XFM, and a new children's station (in partnership with the Disney corporation), Capital Disney, to multiplex license-holders, as well as an Adult Contemporary service on the commercial Digital One network.

     Nor are the company's business interests confined to radio services: in 1996 it acquired the My Kinda Town restaurant chain in London, which it renamed Capital Radio Restaurants. However, Capital's radio success was not matched in this venture, and the restaurants were abandoned less than three years later.