1. Sweden Switchover Seminar Stockholm 24 October 2013

2. Agenda Background to DRUK and UK Digital Radio - coverage - content - cars - communication Government Digital Radio Action Plan Radio switchover and timeline

3. Digital Radio UK Composition: BBC and UK Commercial Radio Car and Radio Manufacturers Work with Government and Ofcom Objectives: Accelerating the growth of digital radio Getting digital radio in cars Planning a future digital radio switchover

4. FM DAB DAB+ DAB working with IP Online/Apps Radioplayer Digital Radio Multi-Platform Vision Radio on TV At the broadcasting levelAt the hybrid level (Radio DNS) At the digital TV level (YouView) At the online level (Radioplayer)

5. Background Launch of Commercial National Digital Multiplex: 1999 Launch of BBC National Digital Services: 2002 Digital Radio UK Established: December 2009 Digital Economy Act : April 2010 Digital Radio Action Plan: June 2010 Radioplayer Launch : April 2011 Vehicle industry commit to fit digital radio: October 2011 Industry connected consumer campaign: December 2011 MoU for local DAB coverage funding: July 2012 Switchover decision and announcement: 16 Dec 2013

6. Expansion Of National/Local DAB Coverage National BBC DAB now 94%: building to 97% by end 2015 Commercial national DAB now 90% Local DAB now 72%: expanding to 90% In the last 18 months coverage improved for 8.3 Million people

7. Strong DAB station line up digitaldigital-only Foreign language stations

8. UK Radio In Robust Health Remarkable resilience in digital age 91% of all adults listen Radio share of audio 76% Listening 50% BBC / 50% Commercial Radio Strong and strengthening radio brands 8

9. Radio: Second-Highest Time Spent 9

10. Multiple Devices And Options

11. UK Radio Online Radioplayer: unique industry collaboration Common station radio player and console Available online, tablet and smartphones Consistent advertising opportunities Opportunity to click and buy

12. Digital listening update (Q2 2013 ) Digital listening share now 37%, 16% up yr on yr 52% of the population now tunes in via a digital platform each week 46% of the population now has a DAB set at home Analogue listening in home less than 50% 70% of digital listening is DAB Listening on DAB 24%, up 18% yr on yr Listening online/apps 6%, up 31% yr on yr 15 -24 yr olds online / apps listening 15%

13. Digital stations show strong growth Top 9 digital stations are dual transmission BBC 6 Music the leading digital- only station with 1.8 million listeners Absolute 80s the leading commercial digital-only station with 1.2 million listeners Other digital only highlights - Planet Rock has 1.1 million listeners Jazz FM has 758,000 listeners Capital Xtra launched in October

14. Most portable radios are DAB

15. Radio In Cars Primary listening In-car is 20% of all listening 41.5% of all new cars now have DAB/DAB+ digital radio as standard 100% BMW, VW, Audi, Jaguar, Land Rover, Mini, Lexus, Volvo Majority of Ford and Toyota models All cars can be converted

16. New cars with digital radio End 2013 Approaching 50% of new cars End of 2015 95%+ new cars Sep 2013: 41.5% of cars now with digital radio as standard

18. Conversion by 2020 Total parc35m Line fit14.5m Aftermarket 20m Conversion: Focus on the aftermarket

19. Conversion Solutions Integrated adaptersFitted adapters Radio app integrationSelf-fit adapters

20. Industry communications Cross-industry collaboration Focus on digital radio Heavyweight BBC and Commercial Radio coordinated campaign led by Digital Radio UK Features D Love, the digital radio evangelist BBC TV, BBC Radio, Commercial Radio Retail

21. D Love Campaign

22. Communications Campaign BBC TV, BBC Radio and commercial radio D Love encourages digital radio lovers to share the love with their friends Trails on Radio 1/2/3/4/5, over 100 commercial stations, and bespoke station activity with BBC and commercial radio presenters

23. Car dealer communications

24. Government Digital Radio Action Plan Government Digital Radio Action Plan 2010 Government switchover announcement 2013 Government criteria: -50% digital listening -90% local coverage Criteria to be achieved by end 2015

25. Chair: DCMS Chair: DRUK Chair: DRUK Chair: OFCOM Government Digital Radio Action Plan Government Decision 2013

26. Industry case for switchover Government case for switchover: – FM is full – Fairer access to broadcasters for spectrum – DAB expands consumer choice – Dual transmission unfair and inefficient – Digital is the future Broadcaster case for switchover: – Ends dual transmission – Enables roll out of DAB coverage – Ensures radio remains relevant – Digital is the future

27. DAB household penetration : TV comparison DATE: TV Q4 2005 Radio Q4 2015 IN-PRINCIPLE: TV Q3 2003 Radio Q4 2013 SWITCHOVER: TV Q2 2008 Radio Q3 2018 DAB penetration until Q2 2013 = actuals, thereafter = projections Assumes in-principle announcement Q4 2013, and date announcement Q4 2015 Assumes switchover starts Q3 2018 (England) DAB penetration in Q2 2013 is equivalent to DTV penetration in 2003 (46%) 2003/ 2013 2005/ 2015 2008/ 2018

28. Platform for Government Announcement 220 attendees registered to attend from: Broadcasters Government and regulators Retailers Radio manufacturers vehicle manufacturers

29. 16 December: “Switchover’s on its way”

31. Government announcement A confirmation of radio’s digital future Confirmation that switchover will definitely happen Confirmation that timetable will be consumer-led and that help will be available for those who need it A confirmation that FM will be sustained and that the future of local stations is secure An announcement that national and local DAB coverage will be expanded towards FM Commitment to car conversion affordability An announcement of a new national multiplex

32. Government car criteria announcement “Before a switchover, we need to see significant progress on car conversion. All new cars will come with DAB as standard and we will ensure that converting your car is affordable, easy to do and that products are widely available ”

33. Car conversion challenges Having the right products available at a suitable price Ensuring products are widely available from a range of outlets and suppliers Outlets carrying out conversions are properly skilled and provide a good experience Ensure consumers understand what a switchover will mean, the benefits of digital radio and how and where to convert their car For industry, we need more new players in the market and to maximise the impact of 2013 announcement

34. Digital radio specification – DAB/DAB+ Certification Mark Approved Product Approved Adviser Registered Installer Certification Mark

35. Future Outlook UK Radio is in robust health BBC / Commercial Radio collaboration Digital is the future of radio Digital future is DAB and IP Specification for UK digital radios: DAB/DAB+ Importance of common technology standards Government decision 2013 Criteria achieved 2015 Switchover 2018 - 2020