1. DAB The future or a dead end in Hungary? Miklós Vaszily MTVA – Hungary 05/10/2016

2. Changing Market Environment  Quick  Flexible  Low production costs  Easy to access  Efficient advertising tool  Considered as the ’most humane’ type of media Advantages of Radio over other types of media in the 20th Century → Internet is faster → Fewer programs, less opportunity → Internet is even less expensive (cable TV) → Mobile internet, WI-FI → Online: immediate feedback, measurable → Mobile …

3. Digitalization of Broadcasting - TV  88.2 percent of households in Hungary had cable tv before analogue switch off,  Switch off in two phases: June 30 and October 30 2013,  Analogue television switch off in 2013 had impact on 11.2% of households, and only 0.5% of households remained without digital terrestrial television broadcasting,  New generation television sets are able to receive digitally transmitted channels, and older sets only need to be connected to cheap set-top boxes. State authorities provided funding for those families who could not afford purchasing those devices.  State infrastructure was ready before 2013 Differences between the television and radio market

4. Digitalization of Broadcasting - Radio  With the switch off all equipment needs to be changed,  There are no cable operators in radio broadcasting, listeners are connected directly to the service providers,  An average listener uses 4-5 different devices in different places (home, workplace, car, public places, while walking or doing sport, etc.) listening to the radio,  Switching from analogue to digital radio requires purchasing multiple devices, or the change of habits, giving up listening in certain places. (let’s see some statistics)  Commercial service providers are not prepared for operating 6-8 channels at the same time. (Public service radio is prepared, we already have 7 stations.) Differences between the television and radio market

5. Radio listening habits in Hungary  Hungarians mostly use analogue radio sets for listening,  Internet radio listenership is about 30%,  66% of Hungarians listen to the radio while driving, 63% of them have traditional radio sets at home,  23% have Hi-Fi sets, and 19% of listeners use mobile/smart phones,  Some of them use PCs (9%), MP3 and MP4 devices (8%), laptops (7%), tablets (3%) for listening. Nearly half of those who use their smartphones have downloaded radio applications

6. Digital Radio in Hungary  DAB + technology: T-DAB (Terrestrial Digital Audio Broadcasting) provides better quality and more channels on digital terrestrial VHF and L frequencies than analogue FM  According to former strategies 94% coverage was the goal in 2014. The National Info Communications Authority opened only one digital frequency tender in 2008. (Winner: Antenna Hungaria for 12 years. Other applicant: Hungarian Radio.)  DAB+ digital radio service in Budapest since December, 2008. (3 broadcasting spots, 30% coverage) DAB+ provides opportunity up to 18 channels. - No further developments.

7. Digital Radio in Hungary – No Deadline  Operating digital radio stations: Kossuth, Petőfi, Bartók, Dankó, Magyar Katolikus Rádió, Klubrádió, Lánchíd Rádió, Inforádió. (First as test-stations, then officially licensed stations since March 15, 2015)  In 2011 Antenna Hungaria was calculating 47 stations by the end of 2014  Currently no developments are going on  No official deadline  According to GE’06 (Geneva Regional Frequency Assignment Plans) switching from analogue to digital must be done sooner or later

8. Digital Radio

9. Digital Radio vs. Online Radio  DAB+ does not need mobile internet. It is reliable and it is not affected by the number of users/listeners. Underpopulated areas, roads are covered as well.  Online radio needs broadband mobile internet everywhere. Free and community Wi-Fi access also needs to be developed.  DAB, DAB+ technology means free access and is free of charge for all users.  Online radio requires internet access, subscription and paying fees.  DAB+ still means radio transmission (but multiplatform and multiple channels)  Online radio could also mean interactivity.  New services and marketing opportunities.  Digital radio: no single standard technology: DAB, DAB+, DVB-T2  Online radio: single standard, multiplatform technology. Does not need new equipment to purchase. Young audience already have smartphones.

10. Advantages of Online Radio  No new equipment is needed. All service providers get closer to mobile equipments.  Interactive opportunities, supplementary services  Integrated services (For example CarPlay provides voice route assistance for commercials)  Cross media solutions (For example: video clips to radio playlists, etc.)  100% technological coverage, 80% penetration

11. Interactive radio – New platforms in Hungary