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Digital Radio Toolkit Key Factors in the Deployment of Digital Radio

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Digital Radio Toolkit Key Factors in the Deployment of Digital Radio 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 [email protected] SENIOR MEDIA ANALYST DEVELOPMENT & COMMUNICATIONS Dr Florence Hartmann Rachel McGowan [email protected] [email protected] SENIOR MEDIA ANALYST SENIOR MEDIA ANALYST Francesca Cimino Alexandra Brenkman [email protected] [email protected] SENIOR MEDIA ANALYST VISITING RESEARCHER Dr David Fernández Quijada Riikka Lätti [email protected] [email protected] CONTACT www.ebu.ch/mis [email protected] 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 ([email protected]). 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
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