Download presentation
Presentation is loading. Please wait.
0
DAB+ business case and critical success factors
Patrick Hannon Poznan: 10th April 2014
1
Contents Introduction to WorldDMB Radio today Business case Critical success factors
2
WorldDMB – who we are Not-for-profit membership organisation
Developed DAB technical standards Promote digital radio (DAB / DAB+) around the world Who is WorldDMB? We're an international membership organisation. We define and maintain cutting edge digital radio standards We positively influence policymakers and regulators We promote digital radio
3
Over 80 members from 22 countries
Broadcasters Networks / regulators Technology Devices / equipment Automotive
4
We work with players across the radio ecosystem
Policy makers and regulators Broadcasters Network operators Devices Automotive Retailers Silicon providers
5
Contents Introduction to WorldDMB Radio today Business case Critical success factors
6
For broadcasters, the competitive landscape is changing
Online music services Digital music services Smart devices Competition for FM radio
7
Younger audiences are listening less
Changes in youth per capita listening hours, Note: (1) Definition of youth varies by market; e.g. Sweden (9-19s), UK (15-24s); US data & (new methodology in 2009). Source: EBU (Europe), Arbitron (US).
8
In many markets, FM spectrum is full – difficult to innovate
Overloaded airwaves No capacity for new services Difficult to innovate
9
A digital radio wave is moving across Europe
UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary For RX makers it is a key to have a worldwide market This is the only way to offer radios for a solid price and to continue the evolution of radios We are still having too much hesitations, it would be beneficial for the industry to have a common European approach, DAB/DAB+ implementation everywhere, consolidated definition of radio types (e.g. WorldDMB profiles) and similarity on the transmitted information and data
10
Four core markets: UK, Norway, Denmark and Switzerland
Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets For RX makers it is a key to have a worldwide market This is the only way to offer radios for a solid price and to continue the evolution of radios We are still having too much hesitations, it would be beneficial for the industry to have a common European approach, DAB/DAB+ implementation everywhere, consolidated definition of radio types (e.g. WorldDMB profiles) and similarity on the transmitted information and data
11
Followed by Germany (2011) and Netherlands (2013)
UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets New markets For RX makers it is a key to have a worldwide market This is the only way to offer radios for a solid price and to continue the evolution of radios We are still having too much hesitations, it would be beneficial for the industry to have a common European approach, DAB/DAB+ implementation everywhere, consolidated definition of radio types (e.g. WorldDMB profiles) and similarity on the transmitted information and data
12
Several potential markets
UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets New markets Potential markets For RX makers it is a key to have a worldwide market This is the only way to offer radios for a solid price and to continue the evolution of radios We are still having too much hesitations, it would be beneficial for the industry to have a common European approach, DAB/DAB+ implementation everywhere, consolidated definition of radio types (e.g. WorldDMB profiles) and similarity on the transmitted information and data
13
Poland: first services on air
UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets New markets Poland? Potential markets For RX makers it is a key to have a worldwide market This is the only way to offer radios for a solid price and to continue the evolution of radios We are still having too much hesitations, it would be beneficial for the industry to have a common European approach, DAB/DAB+ implementation everywhere, consolidated definition of radio types (e.g. WorldDMB profiles) and similarity on the transmitted information and data
14
DAB+ distribution costs about 10% of FM for a single service
Annual cost of transmission1, $k -92% -89% -82% Source: Harris Broadcast Note: (1) Opex costs; on DAB+, assumes 18 services on multiplex
15
DAB / DAB+ radios now mass market
Prices from $29 Traditional look with modern technology
16
Digital radios now consume 20% less power than FM devices
Power consumption of in-use devices, W 20% lower Source: DCMS / Intertek Technical Report, March 2013
17
Automotive brands offering DAB – increasingly as standard
18
Contents Introduction to WorldDMB Radio today Business case Critical success factors
19
How can digital radio build value for broadcasters?
Innovation 1 2 Increase audiences Increase revenues
20
How can digital radio build value for broadcasters?
Innovation 1 2 Increase audiences Increase revenues
21
Benefits for listeners
Sound quality Choice Additional features Benefits of DAB / DAB+
22
Sound quality and choice are top two benefits
UK, % benefits of digital radio Source: Ofcom
23
Specialist music services – for niche audiences
UK Australia Germany Classic Rock Unsigned bands Electronic music Decade Country Classical
24
Specialist speech services – e.g. sports or archive
Science Drama & comedy Germany: live football Up to 5 matches simultaneously Germany: higher education for younger audiences UK: archive from the BBC
25
Strong brands – key to success
Germany launched DAB+ with services going on air nationwide in August New services continue to go on air and both public and private stations are available on the nationwide network. Germany’s public service financing committee, the KEF, provided funding which allowed public broadcaster Deutschland Radio, to build out a national digital radio network using DAB+ technology. The Deutschland Digital Radio was created to co-ordinate the efforts of all stakeholders; the stations on the national multiplex, the regional public broadcasters (ARD) and Deutschland Radio (the national public station). Five Working Groups were created to guide all areas of digital radio development and roll out. Areas covered include: networks, products, marketing and advertising, traffic and travel and automotive. A marketing campaign in all media is being undertaken by broadcasters, manufacturers and retailers. This has been launched to inform the public and retail staff working in high street shops about the advantages of purchasing a digital radio. There are currently 27 transmitters covering the major towns, cities and motorways. Population coverage from 1 August 2011 is approximately 40 million people with planned coverage reaching 99% of the population by 2014. 19 new transmitters are going on-air in 2012 to extend this coverage, whilst another 40 new or existing transmitters will extend the current network in (Next Slide)
26
Potential to extend geographic reach
Energy on FM Energy on DAB+ Hamburg Berlin Nuremberg Stuttgart Munich Rhein-Main
27
Extend the brand portfolio
Analogue and digital Digital-only services
28
Absolute’s listening hours - up 95%
Weekly listening hours, m +95% Source: RAJAR
29
Rebranding as “Radio 4 Extra” added 37% listening
Weekly listening hours, m Radio 7 (DAB), sister station to Radio 4 (FM) Rebranded as 4 Extra in 2011 +37% Source: RAJAR
30
How can digital radio build value for broadcasters?
Innovation 1 2 Increase audiences Increase revenues
31
Sponsorship opportunities – youth audiences
32
Branded stations take sponsorship to new level
Branded channels – aimed at housewives target audience
33
Pop up stations – for range of events
34
Sponsorship opportunities – music tour & digital radio station
35
Sponsorship opportunities – music tour & digital radio station
36
Colour screen devices create new opportunities
Revo Pixis When haptic and visual impression is important
37
Colour images for additional information
38
Hybrid radios with Bluetooth connectivity – from €59
John Lewis Spectrum Duo
39
New song Hear new song on radio Hit button for info add to playlist
share with friends
40
Advertising Hear ad on radio / see visual display Tag to interact
access more information register interest
41
Contents Introduction to WorldDMB Radio today Business case Critical success factors
42
Critical success factors
Policy and regulation Coverage Content Retailers Cars Consumers Consumer devices
43
Policy and regulatory framework
Clear vision and commitment to a digital future from Government / regulators Public radio Success of digital radio depends on active support of major broadcasters – needs to be funded Private radio Link between commitment to DAB+ and renewal of FM licences For digital services, reduce regulation (fewer restrictions)
44
Commercial broadcasters
Coverage – work together to create cost-effective plan Government Network providers Regulator Commercial broadcasters Public broadcasters Start on major population centres Define strategy for major roads
45
Digital content proposition must be stronger than FM
Sydney analogue services Sydney digital services 17 services on AM and FM Over 40 on DAB+
46
Devices available from wide range of suppliers
47
Marketing activities must be co-ordinated and sustained
Consumer advertising encourages footfall and inspires confidence in retailers Consumer marketing Retail activity Retail (with the right product, point of sale and trained sales people) delivers sales
48
TV ads, heavy FM promotion and device give-aways
Source: BBC and Bayerische Rundfunk
49
Devices available in-store
Must have strong retail support for DAB+ radio Devices on shelves Training for staff Post-code checker Repeaters MediaMarkt, Berlin, March 2013
50
Automotive – work with manufacturers to fit DAB+ as standard
Educate local importers and dealers consumer benefits coverage plans long term commitment to DAB+ Work with international partners
51
Key to success is collaboration
Policy makers and regulators Broadcasters Network operators Devices Retailers Automotive Consumers Industry stakeholder body
52
Thank you For further information, please contact:
53
In UK, 45% of new cars have DAB as standard
35% 22% 10% 4% Q1 10 Q4 10 Q1 12 Q1 13 Q1 14 Source: CAP/SMMT
Similar presentations
