1. Norwegian switchover strategy Speech 10. April 2014 at Poznan Media Expo 2014 Conference By Rolf Brandrud, Radiodays Europe & NRK

2. My background 1980ies – started in radio and stayed there 1990ies – internet pioneer in NRK 2000ies – lobbyist for digital switchover for TV 2010ies – organizer of Radiodays Europe

3. Where is radio now? 1920 – Monopolies 1990 – Public/private competition 2010 – Radio challenged by new media

4. 6 - 7 years ago

5. Now

6. What is the challenges? Developing multi channel strategies Reaching the young Telling compelling stories Interacting with the audience – social media Getting into the smartphone Finding radio’s new place in the car Developing radio for screens

7. What is the answers? Not standing still with FM only Certainly using the net and social media Not choosing radio OR internet, but Radio AND internet We need broadcast radio for efficient, mass distribution AND supplementing net interactivity

8. Digitalisation of radio in Europe Different stages from southeast to northwest 1.FM only 2.FM + net + webradio 3.DAB in test 4.DAB in market 5.DAB with defined switchover date - Norway 6.Digital switchover implemented

9. Courage! How?

10. Collaboration! How?

11. Coverage! How?

12. Content! How?

13. Cars! How?

14. The Norwegian timeline 1995 startup – gradually prices of DAB receivers have come down 2011 – decision about switchover date 2017 2013/14 launch of new, attractive channels 2015 – fullfilling the criteria 1.1.2017 – Digital switchover date 1.1.2019 – Alternative switchover date – extra cost 200 mill, 2 mill a week, 300 k a day

15. The conditions for FM shut down Three absolute conditions 1.NRK: Coverage as for NRK P1 on FM 2.Commercial radio: 90 per cent 3.Added value to listeners

16. Capacity and networks in Norway FM –1 channel per transmitter or network –Frequencies for 4 DAB networks: Public service network (7 regions) Commercial national network (”National 1”) Commercial national network (”National 2” - not built yet) Commercial regional network (37 regions) –5 FM networks 3 NRK 2 commercial –Various local radio network DAB –DAB up to 10 channels per network (mux) –DAB+ up to 20 channels per network (mux) –Moving towards DAB+

17. Now

19. Digital added value + 20 channels in Oslo/Aker shus 22 national channels (FM typically 3-6)

20. The conditions for FM shut down Three absolute conditions 1.NRK: Coverage as for NRK P1 on FM 2.Commercial radio: 90 per cent 3.Added value to listeners 2017 or 2019 4.At least 50 per cent of daily radio listeners must use digital platforms, exclusively or in combination with FM-radio Digital platforms: web, DAB, digital tv, mobile etc

21. Digital use 1,23 million Norwegians 14 10 13 15 16 10 18 11 15 19 9 14 313436 40 23 10 13

22. The conditions for FM shut down Three absolute conditions 1.NRK: Coverage as for NRK P1 on FM 2.Commercial radio: 90 per cent 3.Added value to listeners 2017 or 2019 4.At least 50 per cent of daily radio listeners must use digital platforms, exclusively or in combination with FM-radio Digital platforms: web, DAB, digital tv, mobile etc 5.Affordable and technically satisfactory solutions for in-car radio reception must be available Half of the municipalities and all counties must have an offer of retrofitting adapters 2015

23. Where? (previous listening session) Source: TNS Gallup, Digitalradioundersøkelsen Q4 2013 Base: n = 1068

24. The challenge 2 - 2,5 million cars need an aftermarket solution

25. Sales of DAB-radios In total, 511.000 DAB- radios sold 2013 –Incl. car-radio More than double of 2012 Source: Trade organisation for electronics importers and retailers

26. Summary We digitize to secure radio’s position in the media market The success lies in collaboration and a strong political plan communicated to all stakeholders Norway is on schedule for transition to digital radio in 2017 –Great coverage –New content, wide range of channels –40 per cent of daily listeners use digital radio Close to 60 per cent of all sold radios are digital Focus on car industry Highest priority now is DAB aftermarket products for cars

27. Arena for exchange of radio experiences and strategies rolf.brandrud@radiodayseurope.com www.radiodayseurope.com