MediaTel

It is feared that continued delays to the launch of Viacom Outdoor's XTP cross-track projection system could cost the outdoor industry £10m in revenue this year.

The XTP system, which projects digital images onto special screens in London Underground tunnels, was supposed to have launched at the beginning of April after four years of development, but was delayed due a technical fault (see Viacom Outdoor Delays Launch of XTP). Viacom's advertising partners were told they would have to wait until the end of this month for trials to begin, but the company has now issued a statement saying that the system will not be ready until June, due to issues of finance.

Nick Maddison of media buying company Blade says that the delay is a significant set back for the digital media industry and could cause outdoor revenue for 2002 to be £10m lower than predicted.

He said: "We were expecting a significant amount of revenue to come from Viacom and now this won't happen until the last quarter of the year. XTP was expected to kick-start digital media and its delay will have a direct effect on the outdoor industry."

Viacom is insisting that the XTP initiative will still go ahead, but DHJ, the Swedish company responsible for installing and maintaining the digital advertising screens, is experiencing "financial difficulties" and Viacom is waiting for a third party to take over its responsibilities within the project.

A spokesperson for Viacom said: "Trials are due to begin in late June and the system should be ready to roll out in full later in the autumn."

Viacom Outdoor: 020 7482 3000 www.viacom-outdoor.co.uk

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