DR's headquarters spell trouble.

Amidst an increase in foreign investments in the Danish media and the upcoming digitalization of airwaves, the Danish Broadcasting Corporation (known as DR) could be facing a crisis. But the source of the company's financial woes is neither foreign investments nor the planned 2009 digitalization, but rather the building of a flashy new headquarters and symphony hall, which is turning out to be more expensive than originally intended. Cost overruns and construction delays at the Oersted, Copenhagen-based facility have accounted for more than 220 million euro (U.S.$245 million) and resulted in 300 job cuts (representing 10 percent of the total payroll). Experts fear that DR is now ill-prepared for the competition that will inevitably come with digitalization.

Additionally, this financial nightmare will likely lead to programming cuts that will affect award-winning radio reportage programs, live concert transmissions, and even 2008 Olympics coverage.

When the plan to build the new headquarters (and the 1,600 seat symphonic hall) was first conceived in 1999 it enjoyed political backing. The idea of consolidating radio, television and online staff as well as the upgrade in technology was welcomed. The government was eager to convince high-profile companies to make Oersted their base. But things began to go awry in 2004, when DR first appealed to the government for loans to cover its exploding budget.