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
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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 only platform that guarantees roads. Listeners will not accept losing involvement may vary according to the 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 Communication current analogue form, there 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 associated costs, mainly distribution digital transmission is highly This 5 Cs formula leads to a sixth: costs and production costs for new important. commitment from all stakeholders. This content. Carefully planning and commitment clearly shows the goals building economies of scale will help and ambitions of the industry and sends Summarizing, there are broadcasters deal with these additional 5 Cs the strongest possible signal, helping to costs. Returns are not immediate. If the that digital radio needs if it is generate momentum among listeners. process is managed successfully, these to succeed: For them, digital radio represents an costs are outweighed by long-term 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 Ideally the long-term benefits of the of stakeholders, each with particular transition should outweigh the initial COMPETE ON interests. Conflicts and divergence investment and interviewees repeatedly CONTENT, are therefore common among these pointed out that the cornerstone of 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 focus on creating appealing content for to achieving effective coordination 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 Similarly, tackling digitization lets PUBLIC AND broadcasters can tackle individually. As broadcasters manage their own it affects the entire industry, it requires transition while limiting the opportunities PRIVATE 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 NATIONAL EXPERIENCE 1 set up by broadcasters and the 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 – nature of the licensing regime regulations and granting broadcasting IT IS ESSENTIAL TO – criteria for allocating licences licences was spectrum scarcity and FIND THE RIGHT the need to organize airwaves to – renewal or expiration of analogue 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 – possible uses of the analogue delivery issues: what content is seen by FOSTER THE frequencies being released the legislator as essential for a healthy democratic, diverse and pluralistic – need to maintain, amend or introduce INVOLVEMENT OF society. In the analogue era content a must-carry principle for some public BROADCASTERS requirements were part of the licences service radio stations 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 10 KEY 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 11 3. CONTENT AND OFFER
Offering an attractive radio service is a Strong content, capable of engaging challenge not only in terms of creativity listeners, is a requirement for avoiding A BALANCE and marketing but also of costs. At the the funding issue described above. IS NEEDED same time, the increasing number of Simulcasting on analogue stations is 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 more and better radio. For digital radio to succeed, its content CONTENT needs to be different from analogue Together with specific research, a radio. Something new and valuable 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 12 KEY 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 13 KEY 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 14 DIGITAL RADIO TOOLKIT 15 4. TECHNOLOGY
Unlike analogue, digital technology In this context, broadcast is still seen by evolves rapidly and media organizations the industry as the backbone of present HYBRID are therefore faced with constant and future radio services, which are RADIO BRINGS innovation. The multiplication of delivery becoming increasingly hybrid. There is 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 In addition, reception devices are energy devices, such as additional screens efficient, even though in today’s media BROADCASTING or their increasing multifunctional environment they are also relatively nature, pose challenges in terms of 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 16 KEY 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 17 KEY 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 18 DIGITAL RADIO TOOLKIT 19 5. SWITCHOVER PROCESS
Converting analogue to digital radio, The switch-off is usually the key element i.e. the switchover process, creates of the whole switchover process. IN THE uncertainty about the best strategy and Actually, one of the key decisions of SWITCHOVER pace for achieving the goals. Uncertainty the process is whether the goal of the 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 the event of a switch-off, criteria play essential. It enforces commitment, sets an essential role, giving certainty to UNCERTAINTY guidelines and sends a powerful signal stakeholders, setting the milestones to ABOUT THE about the commitment of stakeholders. be achieved and thus guiding the steps 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 20 KEY 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 officialwhite 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 21 6. PUBLIC COMMUNICATIONS
The average citizens are not aware of the Broadcasters’ core know-how is in technicalities of radio. They just need to creating appealing content and not RAISING know how to tune in to their preferred public relations. That is why all the AWARENESS radio programme or station and to be countries analysed have created a 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 in all cases one of its more critical involved in digital radio for two reasons: tasks and that’s why a specialised and PERSUADING first, to raise awareness among the public wholly dedicated team is needed. about the availability of digital radio and They do business-to-consumer (B2C) THEM TO SWITCH its characteristics; second, to persuade communication to inform citizens as TO DIGITAL them to switch from analogue to digital. well as business-to-business (B2B) 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 22 KEY 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 23 7. CONSUMER ELECTRONICS
The role of the consumer electronics In order to address this challenge, industry in the transition to digital radio broadcasters are joining forces WORKING WITH is to provide the necessary equipment. with consumer electronics and MANUFACTURERS, While many different options are semiconductors manufacturers, as 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 manufacturers to sell their products. affordability of radio sets. FOSTERS THEIR These manufacturers are international so Clearly, consumption changes the bigger the scale of the production, INVOLVEMENT matter. The way listeners can access the cheaper the devices will be on the AND THE TAKE-UP radio services is evolving with the market. A major effort has been made 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 24 KEY 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 NATIONAL EXPERIENCE 2 as Currys, use in-store repeaters to 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 25 8. CAR INDUSTRY
Although radio is closely related to As agreed by our contacts, both content the car industry it is not one of its core and safety can be used as arguments IN-ROAD concerns. It is therefore important to involve this stakeholder. The reasons SAFETY AND to make the case for in-car digital for digital include the extra content (see 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 TPEG. This standardized traffic protocol additional challenge. enables more and more accurate DIGITAL RADIO information and has already been Digital radio is not important to the car launched through DAB+ in Germany. In- IS ADDED VALUE industry unless it is an incentive or a car digital radio represents more quality FOR THE CAR risk: an incentive for customers to buy a and safety at marginal cost. At the same 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 26 KEY 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 27 DIGITAL 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 EUROPEAN BROADCASTING UNION Case postale 45 L’Ancienne-Route 17A CH-1218 Le Grand-Saconnex Switzerland
T +41 (0)22 717 21 11 F +41 (0)22 747 40 00 E [email protected] www.ebu.ch
DIGITAL RADIO TOOLKIT 30