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The wider view: Australia Jeremy Millar, ABC Sydney [email protected] linkedin.com/in/millarjeremy/ Population 25 million ABC = Big audiences, big moments ABC = Making an impact with Digital More content, …at a lower cost services and than 30 years ago platforms… What’s happening in the audio space? 1.DAB+ Digital Radio expansion 2. Growth in streaming 3. Decline of the AM Band (yes, we still have AM) 4. Rise of Podcasts & Podcast Industry Partnerships 5.Uptake of smart speakers 6.Spotify’s growth in popularity We are in a golden-age for audio The tyranny of distance East coast to West coast Australia 4030 km North to South coast Australia 3685 km Sydney to Geneva 16,764 km Australia is vast ABC Local Radio station Darwin Katherine Kunanurra Cairns Broome Townsville Mt Isa Karratha Mackay Alice Springs Longreach Rockhampton Gladstone Bundaberg Maroochydore Toowoomba Brisbane Gold Coast Geraldton Kalgoorlie Lismore Tamworth Broken Hill Dubbo Coffs Harbour Pt Augusta Muswellbrook Pt Macquarie Perth Wagin Pt Pirie Orange Newcastle Renmark Mildura Erina Bunbury Esperance Pt Lincoln Wagga Wagga Adelaide Sydney Shepparton Wollongong Albany Nowra Horsham Bendigo Wodonga Canberra Ballarat Mt Gambier Bega Warrnambool Sale Melbourne Morwell Burnie Launceston Hobart Why 86% of people live within 50km of the coast Why AM? AM radio’s geographic reach has suited Australia’s enormous geography – powerful transmitters reaching far into the outback But AM radio is in decline. It sounds awful The audience is largely 60+ AM recruits no new listeners DAB+ timeline in AU SERVICES START FIRST REGIONAL Commercial and Public MARKETS FIRST TRIALS Broadcasters commence services in Sydney, Perth, Commercial sector looking to DAB was tested in Melbourne, Brisbane and commence services in some Sydney and Melbourne Adelaide regional locations 1999 2005 2009 2018 2019 DIGITAL RADIO PLAN OTHER CAP CITIES Hobart, Darwin and Canberra First genuine plan for commence full time services Digital Radio was released DAB+ snapshot 10 years 4.5m 47% 36% Since the launch DAB+ enabled DAB+ in 47% 36% listening is of DAB+ in devices sold to all new cars to DAB+ where Australia date sold in Australia available The Australian Radio Market In 2018, more than 4.2 million Australians listened to radio via a DAB+ digital radio each week (up from 3.6 million in 2017) 2.2 million listened online on a connected device such as a mobile phone, computer or tablet (up from nearly 1.9 million). There was little change in place of listening. In 2018, 42% of commercial radio listening took place at home, 36% in the car, 20% at work and 2% elsewhere. The Australian Radio Market • DAB+ radio as a source of listening has grown at a faster rate than streaming via the internet • Fragmentation of audio listening via growing listening options is driving pressure on weekly TSL • There is increased competition for ears from podcasts, global radio and music streaming services • 36% of all radio listening in Australia occurs in a vehicle. It is essential that Radio maintains a prominent place in the car – very interested in how RadioDNS may assist > 45 vehicle brands with DAB+ Cumulative sales of vehicles sold with DAB+ in Australia Slow and steady. The average life of a car in Australia is 12 years meaning vehicle churn has taken a while to ramp up. Radio listening via DAB + has shown stronger growth than internet listening • While radio listening via AM/FM radio remains dominant across major networks, listening via DAB+ Radio and the Internet has increased, especially since last year. • Depending on their location, and which device they are using, Australians can listen to radio via multiple sources across a week. 2012 2013 2014 2015 2016 2017 2018 39,5 33,9 35,1 31,7 29,5 30,4 26 26,6 24,2 20,6 21,7 16,8 16,1 13,8 12,5 12,2 12,1 13 10,1 10,2 7,9 Combined DAB+ Radio & Internet DAB+ Radio Internet What impedes DAB+ growth in Australia? 01 GEOGRAPY Massive country and universal access for PSM means significant challenge for Regional Australia 02 EMERGENCIES For weather emergencies, geographic reach is important 03 REVENUE Until recently, has not had a strong revenue case. Geographic limits, many feel “too little too late” 04 LOW FAITH IN DAB+ Everything on the phone, but this brings infinite competition and added complexity 05 LEAP OF FAITH IN IP Ways of listening to ABC Radio ABC Digital Products Radio Aggregator streaming Apps ABC Radio Player/ websites & Apps Double J & ABC Jazz AM/FM DAB+ Digital Streaming via Radio Digital Radio TV sets the Internet (websites & apps) Podcast downloads via ABC Digital products and 3rd party services AM/FM, DAB+, IP audio Local talk Current Affairs Classical music Youth music Rolling news Network Network Network Network DAB+, IP audio Alt pop/rock New music Jazz Country Sport Kids ABC Radio Apps All of the above Safe Separate stations streamed live with various on-demand choices – including digital first content ABC listen is Australia’s leading Radio streaming App 70% of visits are to live streams 2018 monthly ABC Listen App Tunein app iHeartRadio app RadioApp Reach 624K 382K 354K 72K Total Sessions 9.5M 2.4M 4.7M 1.2m Sessions / user 15 7 13 NA Smart speaker ecosystem could change consumer behaviour, especially in-car 16% of Australian households are using smart speakers (Dec 2018) Main brand used is Google Other Apple 8% 5% Amazon 15% Google 72% Alexa plays any of 300 Australian radio stations Play your favourite station by name or frequency Alexa, play ABC Melbourne Alexa, play Smooth FM Alexa, play 103.5 Alexa, play SBS Pop-Asia “Alexa, play ABC Sydney” Live radio accounts for a dominant 62.3% share of all audio listening Reality check - Tomorrow is a mixed model – both IP audio and broadcast - Audiences seek frictionless experiences - True 5G speeds are some time off - Massive infrastructure play required, for “4.5G” first - But 4G is fine for audio and will keep getting cheaper - DAB+ has few champions in Australia - Needs more advocacy IMO - Where do the various forms of digital audio fall on Gartner's Hype cycle? The wider view: Australia Jeremy Millar, ABC Sydney [email protected] linkedin.com/in/millarjeremy/ .
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