DIGITAL RADIO TOOLKIT - KEY FACTORS IN THE DEPLOYMENT OF DIGITAL RADIO - DECEMBER 2014
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DIGITAL RADIO TOOLKIT KEY FACTORS IN THE DEPLOYMENT OF DIGITAL RADIO DECEMBER 2014
DIGITAL RADIO TOOLKIT PRODUCED BY THE MEDIA INTELLIGENCE SERVICE (MIS) OF THE EUROPEAN BROADCASTING UNION, IN COLLABORATION WITH THE RADIO UNIT DECEMBER 2014 MEDIA INTELLIGENCE SERVICE The EBU's Media Intelligence Service (MIS) provides your broadcasting organization with the latest market data, research and analysis needed to plan your future strategies and stay ahead of the game. Our experts cover a broad range of topics, including TV and radio trends, new media developments, market structure and concentration, funding and public policy issues. HEAD OF THE MEDIA INTELLIGENCE SERVICE Dr Roberto Suárez Candel suarez.candel@ebu.ch SENIOR MEDIA ANALYST DEVELOPMENT & COMMUNICATIONS Dr Florence Hartmann Rachel McGowan hartmann@ebu.ch mcgowan@ebu.ch SENIOR MEDIA ANALYST SENIOR MEDIA ANALYST Francesca Cimino Alexandra Brenkman cimino@ebu.ch brenkman@ebu.ch SENIOR MEDIA ANALYST VISITING RESEARCHER Dr David Fernández Quijada Riikka Lätti fernandez.quijada@ebu.ch latti@ebu.ch CONTACT www.ebu.ch/mis mis@ebu.ch CONFIDENTIALITY: The information contained in this document is confidential and only for EBU Members internal use. In the case of non- Members, the same and/or specific conditions apply. Public communication – oral, printed or electronic – is strictly forbidden without previous authorization by EBU-MIS. In addition, please avoid any unnecessary redistribution of this information within your company. If you have any doubt about how to use these data, please contact the Media Intelligence Service at EBU (mis@ebu.ch). DISCLAIMER: Please note that the EBU or the MIS are not liable for any errors or inaccuracies in data provided by third-parties. DIGITAL RADIO TOOLKIT 2
INTRODUCTION
Digital distribution has been an issue This project builds on the EBU’s Obviously, national contexts are
for the radio industry for about two Recommendation on Digital Radio significant in the radio market. General
decades. While digital is a reality for Distribution in Europe (EBU R 138), social conditions such as each country’s
platforms such as the Internet, mobile which suggests the deployment wealth or its citizens’ ICT awareness
devices and even TV, radio remains primarily of DAB+ services and, only if affect the uptake of digital radio.
analogue in the most cost-effective and DAB coverage is not possible, the use of Other specific issues play an important
primary distribution platform for free-to- DRM as a broadcasting alternative. As a role, such as the level and nature of
air services, terrestrial broadcasting. further step, this report offers guidelines competition, the relative strength of
on how to launch digital terrestrial radio, public service media organizations,
To build the case for digital radio, the based on the experiences at the three the co-existence and share of national,
EBU’s Radio Unit commissioned the countries leading this process in Europe: regional or local networks and stations,
Media Intelligence Service to examine Norway, Switzerland and the United the size of the advertising market, or
the key success factors for radio Kingdom. policies and regulations.
digitization. Entitled the Digital Radio
Toolkit, the research was carried out The report focuses on good practices Even taking into account the specificities
with the collaboration of various radio for introducing digital radio; however, of each national context, the experiences
industry stakeholders (see annexe) and there is no one-size-fits-all solution. analysed in this report can be helpful
this report details the results. Consequently, it describes various ways when introducing national policies and
to handle the main digitization issues by broadcasting strategies for launching
highlighting 30 factors that contribute digital radio.
to positive acceptance of digital radio
by listeners. Each of these key success
factors is illustrated with a specific
national example.
DIGITAL RADIO TOOLKIT 3
NEVER
UNDERESTIMATE
,,
THE SIMPLICITY
OF RADIO
Knut-Henrik
Ytre-Arne (NRK)
DIGITAL RADIO TOOLKIT 4
CONTENT
6 20
METHODOLOGY SWITCHOVER PROCESS
7 22
EXECUTIVE SUMMARY PUBLIC COMMUNICATIONS
8 24
INSTITUTIONAL STRUCTURE CONSUMER ELECTRONICS
10 26
POLICY AND REGULATION CAR INDUSTRY
12 29
CONTENT AND OFFER ANNEXE – LIST OF EXPERTS
INTERVIEWED
16
TECHNOLOGY
DIGITAL RADIO TOOLKIT 5
METHODOLOGY
This research project was designed for between May and July 2014. The and the car industry. As many aspects
EBU Members and other radio industry interviewees included top and middle are interrelated and boundaries are
stakeholders in response to the growing managers in public service media increasingly blurred between areas, there
momentum of digital radio in some organizations, commercial broadcasters, are frequent cross-sectional references
countries. network operators, government throughout the document.
departments dealing with radio issues,
Following a first phase of desk research regulatory authorities, industry trade Finally, a terminological consideration
to define the most relevant markets, bodies, and car manufacturers. A needs to be clarified. In this report, the
Norway, Switzerland and the United complete list is provided as an annexe to term digital radio is used as a synonym
Kingdom were chosen as national this report. for digital terrestrial radio, as it is
case studies, as they are forerunners commonly used as such by industry
in launching digital radio (in offer, The report is divided into eight practitioners. Nowadays, digital radio
penetration and development of sections, each of them tackling a services are also available on other
regulation). key element for the digitization of platforms, such as the internet, mobile
radio: institutional structure, policy and television networks, but terrestrial
The bulk of the project was based on and regulation, content and offer, delivery is still (and is forecast to remain
34 semi-structured personal interviews technology, switchover process, public so for the coming years) the main
with relevant stakeholders conducted communications, consumer electronics distribution platform for radio services.
DIGITAL RADIO TOOLKIT 6
EXECUTIVE
SUMMARY
Terrestrial radio is the only Coverage Collaboration
radio distributed universally At the end of the process, digital radio Led by broadcasters, all the stakeholders
and free at the point of use. coverage must be at least the same as must work together in the technological
At the same time, it is also the analogue radio, including along major and communications sectors. Their
roads. Listeners will not accept losing involvement may vary according to the
only platform that guarantees
coverage in comparison with analogue stage of the process but all of them are
the delivery of public service services. necessary. This relationship must be built
content and its associated on trust and confidence.
democratic values. In its Content
current analogue form, there Communication
The content needs to be strong, with
seems to be no more room clear added value when comparing Public communication is essential
for development in most of the digital and analogue portfolio of to make citizens aware of the new
services. This means more services but platform and its associated services.
the European countries. The also more diversity, targeting unattended It is also a central tool in involving the
future is not just broadcasting audiences. related industries. The message must
but broadcasting will be be consistent and avoid confusion in the
the backbone of this future. Costs market.
This is why a switchover to The launch of digital radio has
digital transmission is highly associated costs, mainly distribution
This 5 Cs formula leads to a sixth:
costs and production costs for new
important. content. Carefully planning and
commitment from all stakeholders. This
commitment clearly shows the goals
building economies of scale will help
and ambitions of the industry and sends
Summarizing, there are 5 Cs broadcasters deal with these additional
the strongest possible signal, helping to
that digital radio needs if it is costs. Returns are not immediate. If the
generate momentum among listeners.
process is managed successfully, these
to succeed: costs are outweighed by long-term
For them, digital radio represents an
expanded offer of services, not just
benefits.
limited to traditional programming but
as a driver of other audio innovations in
broadcasting and on IP platforms.
DIGITAL RADIO TOOLKIT 7
1. INSTITUTIONAL
STRUCTURE
The radio market includes a variety
of stakeholders, each with particular
Ideally the long-term benefits of the
transition should outweigh the initial
COMPETE ON
interests. Conflicts and divergence
are therefore common among these
investment and interviewees repeatedly
pointed out that the cornerstone of
CONTENT,
players. Any uncertainty arising from their whole strategy was ‘competing COOPERATE IN
technological transitions creates on content, cooperating in technology’.
additional tensions, so understanding the This approach enables broadcasters to TECHNOLOGY
logic of the radio environment is crucial
to achieving effective coordination
focus on creating appealing content for
audiences while outsourcing non-core IS THE SHARED
among all stakeholders. tasks to other stakeholders.
VISION BETWEEN
The digital switchover is not an issue that
broadcasters can tackle individually. As
Similarly, tackling digitization lets
broadcasters manage their own
PUBLIC AND
PRIVATE
,,
it affects the entire industry, it requires transition while limiting the opportunities
coordinated actions. Yet often the for a disruptive new entrant.
difference arises less out of differing BROADCASTERS
needs for digitization but more because Finally, public service broadcasters have
the players involved cannot afford the the opportunity to broaden their remit
costs involved. and better serve their audiences, while
commercial broadcasters might obtain
Public intervention in this area must seek additional revenues from expanding their
to create win-win situations in which all activities. Governments and regulators
players can find incentives to embrace can also benefit from this transition
digitization. To that end, three main by simplifying standards or correcting
actions are necessary: misalignments in the market. Obviously,
network operators, manufacturers and
– identifying benefits for all stakeholders
retailers are keen to offer new products
– foreseeing risks and uncertainties and and services, to expand their business
managing their potential impact areas. Balancing these opportunities will
help to promote digital terrestrial radio
– creating opportunities for everybody
and generate momentum.
DIGITAL RADIO TOOLKIT 8
KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Involve all stakeholders Set up an industry body Unified message to the
authorities
Stakeholders need to see an achievable As an example of collaboration,
benefit for their involvement in the creating industry bodies involving Once cooperation is established and
digitization process: better serve their key stakeholders has proved to be an strategies aligned, a single joint message
audiences, expand their coverage, effective tool to drive radio digitization. needs to be sent to the government
broaden their range of services and These organizations usually focus on and the regulators, so the appropriate
business, offer new products and non-core activities for broadcasters, regulations and policies can be drawn up
services, reduce costs in the long-term, such as enabling coordination among (see section 2). A unified and coherent
etc. Collaboration among public and stakeholders, public communications discourse makes the case for digital radio
private broadcasters, network operators, (see section 6), marketing and stronger, and it is then more difficult for
regulators and governments needs to engagement with retailers and the authorities to ignore the industry’s
be established before the launch, during manufacturers. approach. The sooner there is consensus
the planning stage. Once launched, this and the stronger it is, the more effective
commitment needs to be extended to this approach will be.
other stakeholders, such as retailers and
manufacturers in related industries.
NATIONAL EXPERIENCE 2
Digital Radio UK
NATIONAL EXPERIENCE 3
Digital Radio UK is an industry body
DigiMig
set up by broadcasters and the
NATIONAL EXPERIENCE 1
network operator Arqiva. It includes In Switzerland, a working group called
Business case for commercial
representatives from the automotive the Digital Migration (DigiMig) was set
radio
industry and radio manufacturers. up to make recommendations to the
Commercial operators might feel Its main goal is to boost digital Swiss government based on the radio
uncomfortable with opening up markets radio listening. Its activities include industry’s views. It comprises public and
to new entrants. While competition is coordinating public communications and private broadcasters, working together
already increasing on other platforms public relations campaigns, activities to for the first time, and chaired by the
(streaming services, internet radio, apps, engage with manufacturers and retailers, media authority acting as a facilitator.
etc.), broadcasters could retain control and managing the Digital Tick Scheme Between 2013 and 2014, DigiMig
of the terrestrial digital radio market. (see section 6). It also collaborates with studied technical, legal and public
This is the approach in Norway and the the government in several key areas communications solutions to promote
UK, where the incumbent operators of the Digital Radio Action Plan, the opportunities for the success of digital
have been allowed to increase their offer roadmap for digital radio in the UK. In radio and propose a route map to the
in digital radio, creating more choice Norway and Switzerland, Digital Radio government.
for listeners without creating more Norge and MCDT play a similar role.
competition for broadcasters.
DIGITAL RADIO TOOLKIT 9
2. POLICY AND
REGULATION
The traditional reason for broadcasting
regulations and granting broadcasting
– nature of the licensing regime
IT IS ESSENTIAL TO
– criteria for allocating licences
licences was spectrum scarcity and
the need to organize airwaves to – renewal or expiration of analogue
FIND THE RIGHT
avoid interference. Thanks to digital licences (with different durations REGULATORY
technologies, this scarcity has become depending on the country, including
less acute and so the licensing system indefinite duration) INCENTIVES TO
has shifted focus towards content
delivery issues: what content is seen by
– possible uses of the analogue FOSTER THE
frequencies being released
INVOLVEMENT OF
,,
the legislator as essential for a healthy
democratic, diverse and pluralistic – need to maintain, amend or introduce
society. In the analogue era content
requirements were part of the licences
a must-carry principle for some public
service radio stations
BROADCASTERS
awarded in most countries. Now they
– public subsidies for digital
have become their core element.
transmission or for specific stations
(typically local or community stations)
Digital radio policy aims to enable the
radio industry to take advantage of – decisions regarding stations deciding
the new opportunities provided by not to migrate to digital transmission
technology and give its listeners a better
service. This is crucial if radio is to remain Policies and regulations can foster the
relevant in the digital age. As the FM deployment of digital radio by providing
spectrum is saturated in most European appropriate incentives for broadcasters,
countries, digitization is also the only which are highly sensitive to regulatory
option for growth. conditions.
Among the various policy tools,
regulation has proved to be the most
suitable way of driving the digitization
of radio. The most relevant issues settled
by regulation include:
DIGITAL RADIO TOOLKIT 10KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Provide regulatory incentives Rethink your licensing system Correct regulation
Broadcasters mainly avoid digitizing The appearance of multiplex operators The transition to digital radio represents
radio to protect their analogue business. in digital radio has forced regulators a unique opportunity to correct
Regulatory incentives are therefore to rethink the licensing regime. In the regulatory misalignments in the
necessary to encourage them to do so. countries studied, digital terrestrial radio market or to introduce new regulatory
There is a wide range of possibilities: licences are awarded to the multiplex modalities. Together with the incentives,
operators instead of the broadcasters, the authorities can strengthen the
– extension of analogue licences (as in
as was traditionally the case. This democratic, social and/or economic
Switzerland and the UK)
means that the broadcasters need to value of radio and act on sensitive areas
– protection from new entrants reach a commercial agreement with such as pluralism, diversity or universal
the multiplex operator to be included in service. A public debate on these issues
– reduction of the licence fees paid by
its portfolio of services. Consequently, might help as well.
broadcasters
there are no broadcast licences (or they
– relaxation of the current regulatory are awarded without a public tender, as
regime (local content requirements in in Norway) and therefore no chance to
the UK) lose them. This also reduces the cost of
regulation since the number of beauty
– direct subsidies for rolling out digital
contests (comparative selection) is NATIONAL EXPERIENCE 3
networks (Switzerland and partially in
reduced to a minimum. Swiss key regulatory areas
the UK)
In its recommendations to the Swiss
– clear and early calendar for the
government, the DigiMig interest group
switchover, which offers certainty for
suggested that several issues needed to
the required investments and reduces
be resolved as a result of digitization:
the cost of simulcasting
NATIONAL EXPERIENCE 2 – use of analogue frequencies no longer
Norwegian licensing regime operated by radio broadcasters
The licensing regime in Norway – adapting the must-carry principle
comprises three kinds of licences:
– need for public subsidies for digital
spectrum (right to use the spectrum),
NATIONAL EXPERIENCE 1 transmission or for specific stations
facility (right to set up transmission
British regulatory incentives (typically local or community stations)
facilities), and broadcasting licences
In the UK, regulatory incentives were (right to broadcast). Facility and – status quo for stations that decide not
provided at the very outset of radio spectrum licences were awarded to migrate to digital transmission.
digitization. The automatic renewal together in an auction (jointly held by
of analogue licences for broadcasters the Media Authority and the Postal
launching DAB services was one Authority). Broadcasters interested
of the first measures implemented. in DAB must contact the holder of the
Furthermore, regulation was relaxed, facility and spectrum licences to reach
for instance reducing local content a commercial agreement on renting
requirements. A third incentive was a capacity. Once this has been obtained,
funding hub set up for the roll-out of these companies can apply to the Media
local DAB transmitters, including partial Authority for a broadcasting licence.
public subsidies. When the agreement is terminated the
broadcasting licence is also revoked.
The broadcasting licence has no content
requirements but needs to be obtained.
Content requirements can be included
in the facility licence for the multiplex
operator, so diversity is ensured when
the latter negotiates with broadcasters.
DIGITAL RADIO TOOLKIT 113. CONTENT AND
OFFER
Offering an attractive radio service is a
challenge not only in terms of creativity
Strong content, capable of engaging
listeners, is a requirement for avoiding
A BALANCE
and marketing but also of costs. At the
same time, the increasing number of
the funding issue described above.
Simulcasting on analogue stations is
IS NEEDED
competitors beyond broadcasting makes necessary to ensure that no listeners BETWEEN AN
it tougher to find a relevant audience experience a loss. But this is not enough:
niche. listeners need to perceive digital radio as ATTRACTIVE
For digital radio to succeed, its content
more and better radio.
CONTENT
needs to be different from analogue
radio. Something new and valuable
Together with specific research, a
knowledge of the internal market and
PROPOSITION
needs to be added. This can be achieved the lessons learned from other countries AND ITS
,,
not only with new radio channels and can help broadcasters design a new,
programmes but also with visuals, attractive portfolio of services that is ASSOCIATED
multimedia, metadata, sound quality, not just a secondary platform but is
interactivity, etc. By combining all integrated into the station’s overall offer. COSTS
of them in an increasingly hybrid In this section, the various key success
environment, digital radio can provide factors are closely related and in many
greater value for audiences. cases several of them have been applied
together.
Investments need to be scaled over
time. The return on investment will
not be short-term, as it rarely is with
new technologies. Consequently,
broadcasters have used various
strategies to avoid a chicken-and-
egg situation, in which new cycles of
funding are not provided because the
return on the previous ones has not
been satisfactory. There is a difference
between seeing this funding as a cost
and seeing it as an investment, between
short-term and long-term management.
DIGITAL RADIO TOOLKIT 12KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Add value to your offer Find unattended audiences Rely on familiar and well
positioned brands
The feature of digital radio listeners most Broadcasters may find audiences that are
appreciate is the availability of additional not catered for with the analogue offer. Existing well positioned brands are a
stations. A good, varied portfolio of Society’s changing tastes, behaviours huge asset for broadcasters. Relying
channels is the pillar of a strong content and habits, together with the limited on them to drive audiences to digital
proposition. Sound quality is also seen as analogue spectrum, mean that there are listenership has proved to be effective.
relevant although it is not a clear driver; minorities that are currently not being At the same time, this strategy also
it is more in terms of the stability of the served. This represents an opportunity favours the broadcaster, as it can market
digital signal compared to analogue, for broadcasters to find an audience its new services more efficiently.
especially in-car. niche.
NATIONAL EXPERIENCE 3
NATIONAL EXPERIENCE 1 NATIONAL EXPERIENCE 2 BBC’s extra channels
Oslo digital offer P1+ senior target
Three of the new digital-only BBC
In Oslo, the 27 FM services have become Through its research, the Norwegian stations are extensions of analogue
40 digital stations; half of which are public broadcaster NRK identified brands. Like BBC Radio 1, BBC 1Xtra
exclusively digital. The increased offer is growing disenchantment with its main targets young adults, although it focuses
even more apparent in terms of airtime radio station, P1, among seniors as it was on black music and ethnic minorities.
since several stations that previously becoming younger, especially in style. As BBC Radio 5 Live Sports Extra extends
only broadcast a few hours in FM have a result, they created a more traditional the news and sports focus of BBC Radio
expanded their output in digital. As a channel, P1+, to target this unattended 5 Live. Finally, BBC Radio 4 Extra was
result, the added value in comparison audience. As a result, one week after the originally branded BBC Radio 7 with
to the analogue offer is obvious for launch it had become the sixth largest limited success. After rebranding it
listeners. radio station in Norway. Radio 4 Extra, the same type of content
achieved a 37% increase in weekly
listening hours in just six months.
DIGITAL RADIO TOOLKIT 13KEY SUCCESS FACTOR 4 KEY SUCCESS FACTOR 5 KEY SUCCESS FACTOR 6
Exploit economies of scale Design a product strategy, not a Drive people to digital
platform strategy listenership
Broadcasters can limit the costs of new
digital services by exploiting economies The biggest incumbent radio players Broadcasters are developing various
of scale. Examples include producing try to bundle a comprehensive portfolio strategies to drive listenership to digital
the same output (a radio programme of radio stations throughout their platforms. As their main asset is the
or station) for a larger distribution or various distribution platforms rather content offered and valued by the
sharing the costs of production among a than providing a platform-based audience, these strategies mainly involve
larger number of stations (e.g. by airing offer. Bundling leads to synergies and moving this content onto digital radio.
the same radio show with customized therefore cost savings. At the same This can be done at different levels:
music for each network). time, it allows commercial broadcasters stations, programmes or even DJs and
to maximize advertising revenue by journalists.
offering a more attractive range of
outlets for advertisers.
NATIONAL EXPERIENCE 4
Imported content from other NATIONAL EXPERIENCE 6
platforms Musikwelle’s move to digital
NATIONAL EXPERIENCE 5
For many years, Swiss public broadcaster In German-speaking Switzerland, SRG
Absolute Radio’s bundled offer
SRG SSR had jukebox-like radio services SSR had to shut down its traditional
for satellite and cable, with major In the UK, the commercial group AM music station MusikWelle due to
penetration in the country. Making these Absolute Radio has bundled an offer of environmental issues. In order to keep
channels available through broadcast digital-only music radio stations that the service broadcasting, SRG SSR
networks for the first time emerged as a accounts for most of its listenership. The decided to transform it into a DAB
natural option for filling part of the new segmentation is clear and covers most channel. As the station is aimed at senior
DAB offer at zero cost. of the radio audience. The stations are citizens, this decision encouraged a
organized in decades: Absolute Radio group that was usually behind on new
60s, 70s, 80s, 90s, 00s and Absolute technologies to adopt digital radio.
Radio Classic Rock. This portfolio
enables listeners to clearly identify the
output of each station while helping the
commercial team to market the services.
DIGITAL RADIO TOOLKIT 14DIGITAL RADIO TOOLKIT 15
4. TECHNOLOGY
Unlike analogue, digital technology
evolves rapidly and media organizations
In this context, broadcast is still seen by
the industry as the backbone of present
HYBRID
are therefore faced with constant
innovation. The multiplication of delivery
and future radio services, which are
becoming increasingly hybrid. There is
RADIO BRINGS
platforms and receiving devices makes no longer any room for purely broadcast TOGETHER THE
this situation more complex, especially in strategies: broadcasting is cost-efficient
terms of distribution strategy. In addition, for the broadcaster and for the listener. EFFICIENCY OF
the enhanced capabilities of digital
devices, such as additional screens
In addition, reception devices are energy
efficient, even though in today’s media BROADCASTING
or their increasing multifunctional
nature, pose challenges in terms of
environment they are also relatively
unsophisticated. Broadband can add
AND THE
,,
broadcasters’ traditional services. sophistication, including personalization. SOPHISTICATION
Relying purely on analogue technology IP delivery does not appear to be a OF INTERNET
limits radio’s ability to innovate on its suitable replacement for broadcast
main distribution platform while digital transmission. The potential audience
transmission allows local stations to for IP in national markets is still smaller
expand their coverage. At the same time, than the almost universal coverage
broadcasters do not want third-party provided by broadcast. At the same time,
operators to become the gatekeepers broadcast delivery is 40 times more
of their services. This is why digital cost effective than broadband because
broadcasting is seen as the logical future once a broadcast network is up and
of the radio industry. running, the cost of adding listeners is
zero. With IP distribution, each additional
Broadcast networks are the main listener also means an additional cost for
platform for radio services, even in the broadcaster, and often also for the
the markets where online and mobile listener.
services are more developed. It is the
only free-to-air, easy-to-use platform
that is available everywhere. Its coverage
still outpaces mobile networks and
will do it for many years to come, also
because of the robustness of its signal.
This is why it is still considered an
essential resource for communication in
emergency situations, for example.
DIGITAL RADIO TOOLKIT 16KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Ensure good coverage Reduce transmission costs Extend collaboration to all
technical platforms
Good coverage is taken for granted Transmission costs are lower for digital
by most listeners. The minimum than for analogue broadcasting because The technological cooperation agreed
requirements for digital terrestrial radio the network is shared among many in Norway, Switzerland and the UK (see
coverage must therefore be at least the stations. To fulfil this attractive incentive section 1) is not only based on broadcast
same as for analogue transmissions. for broadcasters (see section 1), during technologies but is being extended to
In this sense, network planning and the simulcast period they need to pay for other platforms such as internet and
geographical flexibility can help to both analogue and digital transmission. mobile networks. The collaboration
control costs, especially at an early stage. Investment in digital radio can therefore is not only reflected in specific
The roll-out of digital radio typically be seen as a long-term savings strategy developments but even at institutional
starts in the most densely populated that also depends on additional factors level in organizations such as RadioDNS,
areas and along major roads. While a such as coverage requirements, the focused on coordinating technical
slow extension plan keeps costs low, it topography of the country, the amount standards for hybrid radio.
also shows limited commitment, makes of services in a multiplex or available
public communication more difficult and public funding, for example.
prolongs the transition period.
NATIONAL EXPERIENCE 3
Shared Radioplayer
NATIONAL EXPERIENCE 2
In the UK, the BBC and the main
NATIONAL EXPERIENCE 1 NRK’s transmission planning
commercial players agreed to share a
DAB coverage in Switzerland
NRK has an obligation to cover 99.5% common internet platform. This is the
In Switzerland, outdoor coverage was of population with its 14 digital radio entry point for the audience to the UK
prioritized and nowadays reaches 99% services (DAB+), just as it had to do with radio stations, just as they have in their
of the population. Indoor coverage its FM offer, in a large country sparsely traditional radio set. The Radioplayer
is also very high (96%). Additionally, populated by five million people. To fulfil is run by a jointly owned not-for-profit
commercial stations have expanded this requirement, 762 transmitters are company. The service has been extended
its FM coverage and for the first time needed. Digitization has enabled NRK to connected devices such as PCs,
will be able to cover nearly all their to reduce its transmission costs and tablets and mobile phones, and has even
linguistic areas. This represents a clear increase its offer. Currently about 2,000 developed a prototype of hybrid radio
improvement for listeners. masts are required to distribute three FM adaptor for in-car use that also enables
channels alone. users to receive FM and DAB/DAB+
signals.
DIGITAL RADIO TOOLKIT 17KEY SUCCESS FACTOR 4 KEY SUCCESS FACTOR 5 KEY SUCCESS FACTOR 6
Make the case for local radio Be flexible with the quality Use digital technologies in a
digital way
Local radio is a relevant player in the Along with the receiver, bitrates define
radio industry, probably bigger than the quality of the audio for the listener. Digital technologies do not only mean
its audience figures show. They often A common practice in digital radio is to a change in the transmission signal;
represent one of the few local media assign different bitrates to radio stations they also open up new opportunities:
outlets available in many cities and according to the type of content: lower some typically digital uses of broadcast
towns, are key for local commitment and bitrate for talk-radio than for music technology include the supply of
participation, central for local news and stations and, among these, the highest associated metadata, the creation of
indispensable for local advertisers in the bitrate for classical music. This allows a pop-up stations, the use of electronic
case of commercial stations. more efficient use of radio spectrum. programme guides or the distribution
of visuals to enrich audio content.
This provides broadcasters with
opportunities for business development.
NATIONAL EXPERIENCE 4 NATIONAL EXPERIENCE 5
DAB+ islands NRK’s variable bitrate
Backed by the regulator, DAB+ NRK varies the bitrate of its transmission
NATIONAL EXPERIENCE 6
islands trials have been conducted in depending on external and internal
Pop-up stations
Switzerland. This is a low-cost software factors. The external factor is
solution for local and community radio transmissions from its regional stations: Norwegian and British public service
stations. Local radios want to share the they rarely transmit 24 hours per day, media have experimented with
distribution platform with big stations; freeing multiplex capacity for other temporary, or pop-up, digital stations.
otherwise, they think they will eventually services at certain hours. The internal NRK created a new channel for the
lose their audience. As DAB was factor is the kind of content offered. Christmas season, reaching 13% of the
originally designed for large areas rather This is a result of negotiations between audience. During the 2012 London
than local communities, as is the case for channel strategists and the Technical Olympic Games, the BBC aired BBC
FM, these islands may be a solution. Department. In DAB, bitrates vary from Radio 5 Live Olympics Extra, with a total
a maximum quality of 192 kbps, typically reach of 1.6 million listeners in two weeks.
for the classical music channel, to a In 2014, it bundled its coverage of the
minimum of 16 kbps for the weather Eurovision Song Contest with the four-
channel, which is primarily aimed at day station BBC Radio 2 Eurovision.
fishermen at sea. In DAB+ the highest
bitrate is 80 kbps.
DIGITAL RADIO TOOLKIT 18DIGITAL RADIO TOOLKIT 19
5. SWITCHOVER
PROCESS
Converting analogue to digital radio,
i.e. the switchover process, creates
The switch-off is usually the key element
of the whole switchover process.
IN THE
uncertainty about the best strategy and
pace for achieving the goals. Uncertainty
Actually, one of the key decisions of
the process is whether the goal of the
SWITCHOVER
is not good for the management of process is to achieve analogue switch- PROCESS,
any activity so the radio industry tends off or not; AM and FM services have
to avoid it. This creates an additional coexisted for decades in many countries STAKEHOLDERS
challenge for the players involved. although AM has now been switched
off in several European territories. In MUST REDUCE
To address this issue, planning is
essential. It enforces commitment, sets
the event of a switch-off, criteria play
an essential role, giving certainty to
UNCERTAINTY
guidelines and sends a powerful signal
about the commitment of stakeholders.
stakeholders, setting the milestones to
be achieved and thus guiding the steps
ABOUT THE
One strategy used in some countries of the stakeholders. These criteria must FUTURE BY
,,
has been to differentiate between pre- be clear, well-defined and measurable.
launch and post-launch. The pre-launch Additionally, a permanent data collection SETTING
phase lets the stakeholders set the is necessary to monitor the progress of
technical and regulatory conditions that the process. GUIDELINES
will enable digital radio to be launched.
This means that broadcasters need to The experience of the early adopters
work closely with network operators, the will help newcomers to digital radio, as
government and the regulatory authority. many of the challenges have been faced
In the post-launch phase, the focus shifts and solutions tested. The learning curve
onto consumers, public communications, therefore accelerates for everybody.
retailers and manufacturers. Here, the
specific digital radio industry body and
the related industries take on a more
central role alongside broadcasters (see
section 1).
DIGITAL RADIO TOOLKIT 20KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Plan the process Fix a clear calendar Set realistic criteria for the
switch-off
The switchover is a long and complex The industry bodies and the related
process. So careful planning, based on industries in particular require a clear The switch-off date is one of the most
lessons learnt elsewhere, can save a calendar for the whole transition process. sensitive decisions of the transition.
lot of time and money by setting out However, broadcasters and regulators Realistic and measurable criteria are
procedures and inspiring strategies. tend to be more cautious to avoid a needed, based on serious research.
Although with different levels of situation where it is not possible to Data must be collected systematically
detail, all the countries analysed have meet the deadlines; this could be seen in order to monitor progress; this will
set guidelines or action plans for the as a failure and create a negative image make it easier to take measures to
transition. Having a plan also generates for digital radio. In any case, a clear correct misalignments. Setting criteria
momentum. calendar sends a strong signal about the also generates interest in digital
commitment of the radio industry and its radio among listeners and sends the
stakeholders. strongest possible signal to retailers,
manufacturers and importers.
NATIONAL EXPERIENCE 1
Digital Radio Action Plan
NATIONAL EXPERIENCE 2
In the UK, the industry and the
Norway’s calendar NATIONAL EXPERIENCE 3
government worked together to produce
Norway’s switch-off criteria
the Digital Radio Action Plan. From In an official white paper, Norway
2010 to 2013, information was gathered proposed a calendar combining a clear Norway was the first country to set
for a well-informed decision by the commitment to switchover but with criteria for an analogue switch-off.
government on whether to switch off flexibility. Analogue switch-off was set Three of them are absolute: digital
analogue broadcasts. The plan was for 2019 but the possibility for an earlier coverage of public broadcaster must be
built around consumer choice, quality, switch-off was possible if additional equivalent to that of its main FM channel;
affordability, accessibility and awareness, criteria were met. The calendar included digital coverage for national commercial
producing publicly available documents additional milestones such as a date broadcasters must reach at least 90%
in different key areas. for defining some of the criteria, the of the population; and digital radio
evaluation date of the criteria and a must add value for the listeners. Two
calendar to assess the situation of local additional criteria could allow an earlier
radio. switch-off: 50% of daily reach via digital
platforms and availability of affordable
and technically satisfactory solutions for
in-car radio.
DIGITAL RADIO TOOLKIT 216. PUBLIC
COMMUNICATIONS
The average citizens are not aware of the
technicalities of radio. They just need to
Broadcasters’ core know-how is in
creating appealing content and not
RAISING
know how to tune in to their preferred
radio programme or station and to be
public relations. That is why all the
countries analysed have created a
AWARENESS
aware of the advantages of digital radio. specific industry body (with different AMONG THE
kinds of stakeholders and ranges of
Public communication is a useful tool activities). Public communication is PUBLIC AND
for broadcasters and other stakeholders
involved in digital radio for two reasons:
in all cases one of its more critical
tasks and that’s why a specialised and PERSUADING
first, to raise awareness among the public
about the availability of digital radio and
wholly dedicated team is needed.
They do business-to-consumer (B2C)
THEM TO SWITCH
its characteristics; second, to persuade
them to switch from analogue to digital.
communication to inform citizens as
well as business-to-business (B2B)
TO DIGITAL
communication to inform the related RADIO ARE KEY
,,
This effort needs to be sustained over industries. The most important message
time and scope, backed by evidence for driving listeners to digital radio is COMMUNICATION
and based on trust. Strategy can change to show them that there is something
from one campaign to another but needs unique in digital radio, a strong content GOALS
to rely on broadcasters’ own outlets, proposition (see section 3). For B2B,
including powerful tools such as cross- the key message is to show the business
promotion from current FM services or opportunity for them.
television services within the same media
group, or third-party media.
DIGITAL RADIO TOOLKIT 22KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Communicate a single, clear Plan promotion Target the related industries
and accurate message
To ensure consistency in messages about The radio industry is not isolated from
Messages to citizens and related digital radio across channels and regions other businesses. Consumer electronics
businesses need to be straightforward. and their effectiveness, promotion provide most of the necessary devices
As people are attached to programmes needs to be coordinated, perhaps even to access radio content while the car
and not to technology, the message centralized. This enables the promotion industry provides one of the main
should focus on the clearly perceivable effort to be sustained over a long period listening locations. These are important
added value, such as new stations. while sharing the efforts among the players within the industry and need
Quality should be used as a secondary various stakeholders. A coordinated to be targeted early in the process of
feature or for specific purposes, such as approach also ensures that retailers have introducing digital radio in a country.
in-car reception. Similarly, it is advisable enough stock and show it prominently They include manufacturers, importers/
to promote ‘digital radio’ instead of ‘DAB’ while campaigns are running. distributors and retailers, where the key
or ‘DAB+’ as it is easier to understand. targets are marketing and sales staff.
NATIONAL EXPERIENCE 2
NATIONAL EXPERIENCE 1 Promotion calendar NATIONAL EXPERIENCE 3
Get Digital Radio B2B activities in Norway
In the UK, two big annual campaigns are
In the UK, the national information and coordinated and scheduled by Digital Communications activities targeted to
promotional campaign is coordinated Radio UK. In summer, the first focuses related industries in Norway include
under one single message: ‘get digital on the content available; just before garages, professional visits, speeches,
radio’. Originally it focused on DAB but Christmas, the second insists on the idea leaflets, articles in professional
this was later seen as a mistake and the of radio as a gift, focusing on sales. Both magazines, etc. Most of this activity
label used was changed to digital radio, campaigns include commercial radios targets the car and consumer electronics
including on other platforms. Digital and BBC radio and television airtime as industry. As an example, by mid-2014
is a concept familiar to many citizens part of the broadcasters’ contribution more than 80% of Norwegian car
and normally has positive connotations to the process. The new car registration dealerships had been visited by the
for them. With D-Love, they also periods are also taken into account since industry trade body Digitalradio Norge
created a popular figure to increase the this is a period when car sales jump. Then at least once. The focus then shifted
promotional effect. the focus is on in-car receivers. The effort towards other car-related businesses
is sustained throughout the year, with such as petrol stations or tyre repair
differing levels of intensity. shops, making them aware of the
business opportunity of providing
aftermarket in-car adaptors (see
section 8).
DIGITAL RADIO TOOLKIT 237. CONSUMER
ELECTRONICS
The role of the consumer electronics
industry in the transition to digital radio
In order to address this challenge,
broadcasters are joining forces
WORKING WITH
is to provide the necessary equipment.
While many different options are
with consumer electronics and
semiconductors manufacturers, as
MANUFACTURERS,
available at professional level, with they are all interested in consumers’ IMPORTERS
consumer equipment critical issues purchasing new devices; broadcasters
need to be addressed. These issues are to distribute their digital services and AND RETAILERS
mainly related to the availability and
affordability of radio sets.
manufacturers to sell their products.
FOSTERS THEIR
Clearly, consumption changes
These manufacturers are international so
the bigger the scale of the production,
INVOLVEMENT
,,
matter. The way listeners can access
radio services is evolving with the
the cheaper the devices will be on the
market. A major effort has been made
AND THE TAKE-UP
multiplication of platforms and devices. in pioneering countries but there is a OF DIGITAL RADIO
In some countries a decline in the sales need to target retailers and importers
of radio receivers can be observed. in each country to create demand for
This does not mean that fewer people devices. Working with them, normally
are accessing radio but that they are through a common industry trade
diversifying the devices they use. body (see section 6), will help to foster
the involvement of these players and
In line with the EBU’s Smart Radio consequently improve take-up of digital
initiative, the aim is to have free-to-air radio.
broadcast in all radio-capable devices
equipped with both FM and digital
tuners in order to ease the transition to
digital radio. This includes domestic and
in-car radio sets as primary devices as
well as smartphones, tablets and other
digital gadgets.
DIGITAL RADIO TOOLKIT 24KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Make affordable devices Offer future-proof devices Ensure a good buying
available on the market experience
Citizens do not want to buy a radio set
Cheap devices are needed on the market and realize that it has become outdated Retailers need to keep three basic things
to provide affordable access to digital after just a few years. Consumer interest in mind: sales people need to be trained
radio. This will give low-income listeners must be kept in mind when producing, to explain main features of digital radio
access to digital radio and might also importing and selling radio receivers. to consumers; radios must be displayed
encourage undecided people to give Otherwise, a bad experience will create at the point of sale (and a prominent
digital radio a try given the low economic a negative image for digital radio. This position will boost sales); and in-store
barrier. Additionally, a range of devices is can be done directly by introducing repeaters should be considered an
needed at a variety of price and quality mandatory digital tuners or indirectly option for demonstrations.
levels to cater to all listener target through information campaigns or
groups. certification marks for tested products.
This requires close cooperation between
broadcasters, manufacturers and
retailers. Consumer regulations can also
apply. NATIONAL EXPERIENCE 3
In-store repeaters
NATIONAL EXPERIENCE 1
Some of the biggest British retailers,
Entry level prices
such as John Lewis, or specialist
In the summer of 2014, DAB devices in consumer electronics shops, such
the UK had an entry price close to GBP as Currys, use in-store repeaters to
NATIONAL EXPERIENCE 2
15 (just over EUR 20) in the main chains guarantee a clear reception of DAB
Tick Mark Scheme
selling radio sets. Countries joining the signals for their demonstrations. This is
transition later will have the advantage The UK’s Digital Radio Certification done with the acknowledgement of the
of the economies of scale created by Mark or simply Tick Mark identifies regulator and consumers are reminded
the frontrunners since manufacturers radio devices that meet minimum to check coverage at home to avoid a
have international scope. The same can requirements through a test, assuring disappointing experience.
be expected for in-car radio devices, buyers that the product is future-ready
including aftermarket units. and will enable them to receive DAB,
DAB+ and FM radio stations. The mark
can appear at the retail point of sale,
on packaging, online and on other
marketing materials. It is managed by
the trade body Digital Radio UK (see
section 1).
DIGITAL RADIO TOOLKIT 258. CAR INDUSTRY
Although radio is closely related to
the car industry it is not one of its core
As agreed by our contacts, both content
and safety can be used as arguments
IN-ROAD
concerns. It is therefore important
to make the case for in-car digital
to involve this stakeholder. The reasons
for digital include the extra content (see
SAFETY AND
radio highlighting the added value for section 3) but also the opportunities of INFORMATION
customers. The international scope using digital radio networks for improved
of the car industry, compared to the information and travel services, such as PROVIDED BY
national scope of broadcasters, is an
additional challenge.
TPEG. This standardized traffic protocol
enables more and more accurate DIGITAL RADIO
Digital radio is not important to the car
information and has already been
launched through DAB+ in Germany. In-
IS ADDED VALUE
,,
industry unless it is an incentive or a
risk: an incentive for customers to buy a
car digital radio represents more quality
and safety at marginal cost. At the same
FOR THE CAR
particular car if digital radio is offered or time, it is the most reliable network in INDUSTRY
a risk of losing them if it is not offered. emergency situations and is capable
In this context, the radio industry’s best of reaching a large number of listeners
partners are consumers, since their without the risk of network congestion.
demands for digital radio will generate a
positive response from the car industry. A final note refers to the connected
car. In future years, radio will lose the
Given the international nature of the car monopoly of the car dashboard with the
industry, it may be difficult to make the wide availability of data connectivity.
case for digital radio nationally. However, This can be a distribution channel for
countries adopting digital radio later will radio but also for other audio providers
have the advantage of the awareness such as Spotify, Deezer, Pandora or
and the economies of scale created by Apple. Other entertainment options
frontrunners’ markets. Once the market could also have an opportunity to take
starts to develop, there is also a snowball over time traditionally devoted to radio.
effect: car manufacturers offer digital However, at this point the connected
radio because their competitors include car is not foreseen by broadcasters as a
it, especially those in the same segment disruptive competitor. On the contrary,
or targeting the same type of customers. as broadcasters see it, the real connected
car combines IP with broadcasting
offering a wide range of hybrid radio
content and added value for drivers.
DIGITAL RADIO TOOLKIT 26KEY SUCCESS FACTOR 1 KEY SUCCESS FACTOR 2 KEY SUCCESS FACTOR 3
Target the car industry early Attend to the aftermarket Ensure a seamless in-car radio
experience
The car industry works with long lead Most of the current radio audience
times so it is necessary to target it will not change their cars during the One of the main concerns of the car
soon. Currently, there are no technical transition period or will not have the industry is to ensure digital radio
constraints to include digital radio, just opportunity to buy a car with a digital coverage of major roads, including
commercial reasons. There is a need to tuner. This means that in-car adaptors tunnels, a key challenge in countries
launch a dialogue with car manufacturers for digital services need to be provided. such as Norway and Switzerland. The
since broadcasters assume that car The aftermarket can be served by the objective is to guarantee that car drivers
manufacturers will install radios as they manufacturers themselves or by the free do not lose coverage during their
have traditionally done so but this may market. It is a new business opportunity journeys. Many digital receivers are able
be naïve when Spotify or Pandora are for them so they will embrace it. Like to switch automatically between FM
paying car manufacturers to be on the other radio sets, affordable adaptors and DAB depending on the quality of
dashboard. with minimum quality requirements are reception. Hybrid systems could add IP
necessary. delivery to this shared reception.
NATIONAL EXPERIENCE 1
Car industry visits NATIONAL EXPERIENCE 2 NATIONAL EXPERIENCE 3
UK aftermarket Tunnel coverage
In Switzerland, the industry body MCDT
heavily targets the car industry, mainly The United Kingdom has been In both Norway and Switzerland, tunnel
through personal visits. Without Swiss particularly active in targeting the coverage is the responsibility of the local
local manufacturers, importers are a in-car aftermarket. In the summer roads administration since it is part of
key target to promote the installation of 2014, entry-level prices started at their safety policy. In Norway, it plans to
of in-car digital radio tuners. As a GBP 50 (around EUR 65). Prices may achieve full coverage in tunnels through
result, in 2013 DAB+ was fitted as vary according to the quality of the a bid to select the best provider. In
standard in 30% to 50% of all new cars. product chosen, the antenna and the Switzerland, where this administration
Dealerships are also visited and specific cost of installation. Adaptors available currently funds FM coverage in tunnels,
in-store staff training sessions are held, include head sets, units fitted into the negotiations are under way to keep this
providing them with brochures and other dashboards, hidden units behind the status for digital signals.
promotional material. dashboard and units integrated into the
dashboard.
DIGITAL RADIO TOOLKIT 27DIGITAL RADIO TOOLKIT 28
ANNEXE LIST OF EXPERTS INTERVIEWED NORWAY Øyvind Christensen (Kulturdepartementet / Ministry of Culture) Hans Petter Danielsen (P4, WorldDMB) Petter Hox (NRK) Jørn Erik Jensen (NRK, WorldDMB) Line Langnes (Medietilsynet / Norwegian Media Authority) Svein Larsen (Norsk Lokalradioforbund / Association of Local Radios) Torbjørn Østli (Norkring) Jarle Ruud (Digitalradio Norge) Ole Jørgen Torvmark (Digitalradio Norge) Knut Henrik Ytre-Arne (NRK) SWITZERLAND Juerg Bachmann (Verband Schweizer Privatradios / Association of Swiss Private Radios) Daniel Gamper (Automobil- und Motoren AG – AMAG) Thomas Gilgen (Digris) Marcel Regnotto (Federal Office of Communications) Thomas Saner (SRG SSR, WorldDMB) Marc Savary (SRG SSR) Rolf Schurter (SwissMediaCast) Lukas Weiss (Union nicht-kommerzorientierter Lokalradios / Association of Non-commercial Local Radios – Unikom) Ernst Werder (Marketing and Consulting for Digital Broadcasting Technologies – MCDT) Philippe Zahno (Radios Régionales Romandes / Regional Radios of Romandie) UNITED KINGDOM Lindsay Cornell (BBC, WorldDMB) Peter Davies (Ofcom) Ford Ennals (Digital Radio UK) Adrian Fitch (Bauer Media) Mark Friend (BBC, WorldDMB) Laurence Harrison (Digital Radio UK) Glyn Jones (Arqiva) Graham Johnson (The Society of Motor Manufacturers and Traders – SMMT, Connects2) Lindsey Mack (BBC) Ian O'Neill (Department of Culture, Media & Sport – DCMS) Nick Piggott (Global Radio, RadioDNS, WorldDMB) INTERNATIONAL BODIES Gunnar Garfors (International DMB Advancement Group, NRK) Patrick Hannon (WorldDMB, Frontier Silicon) Bernie O’Neill (WorldDMB) DIGITAL RADIO TOOLKIT 29
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