Patrick Hannon Poznan 10 th April 2014 Contents Introduction to WorldDMB Radio today Business case Critical success factors Notforprofit membership organisation Developed DAB technical standards ID: 254832
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Slide1
DAB+ business case and critical success factors
Patrick Hannon
Poznan: 10
th
April 2014Slide2
Contents
Introduction to WorldDMB
Radio today
Business caseCritical success factorsSlide3
Not-for-profit membership
organisation
Developed DAB technical standards
Promote digital radio (DAB / DAB+) around the worldWorldDMB – who we areSlide4
Over 80 members from 22 countries
Broadcasters
Networks / regulators
Technology
Automotive
Devices / equipmentSlide5
Policy makers and regulators
We work with players across the radio ecosystem
Broadcasters
Network operators
Devices
Automotive
Silicon providers
RetailersSlide6
Contents
Introduction to WorldDMB
Radio today
Business caseCritical success factorsSlide7
Digital music services
Smart devices
Competition for FM radio
Online music services
For broadcasters, the competitive landscape is
changingSlide8
Changes in
youth per
capita listening hours,
2006-10
1
Note: (1) Definition of youth varies by market; e.g
.
Sweden (9-19s), UK (15-24s); US
data 2006-08 & 2009-11 (new methodology
in
2009). Source
: EBU (Europe), Arbitron (US
).
Younger audiences are listening lessSlide9
In many markets, FM spectrum is
full – difficult to innovate
Overloaded
airwaves
No capacity for new services
Difficult to
innovateSlide10
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
HungarySlide11
Four core markets: UK, Norway, Denmark and Switzerland
UK
Norway
Sweden
Germany
France
Spain
Italy
Switzerland
NL
Bel
Denmark
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
Established marketsSlide12
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
marketsSlide13
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
marketsSlide14
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
Potential
markets
Poland?Slide15
Annual cost of transmission
1
, $k
Source:
Harris Broadcast
Note: (1)
Opex
costs; on DAB+, assumes 18 services on multiplex
DAB+ distribution costs about 10% of FM for a single service
-92%
-89%
-82%Slide16
DAB / DAB+ radios now mass market
Prices from
$
29Slide17
Power consumption of in-use devices, W
Source:
DCMS /
Intertek
Technical Report, March 2013
Digital radios now consume 20% less power than FM devices
20% lowerSlide18
Automotive brands offering DAB – increasingly as standardSlide19
Contents
Introduction to WorldDMB
Radio today
Business caseCritical success factorsSlide20
Increase audiences
Increase
revenues
Innovation
How can digital radio build value for
broadcasters?
1
2Slide21
Increase audiences
Increase
revenues
Innovation
How can digital radio build value for
broadcasters?
1
2Slide22
Sound quality
Choice
Additional
features
Benefits of
DAB / DAB+
Benefits for listenersSlide23
UK, % benefits of digital radio
Source:
Ofcom
Sound quality and choice are top two benefitsSlide24
UK
Australia
Germany
Electronic
music
Classical
Decade
Country
Unsigned bands
Classic Rock
Specialist music services – for niche audiencesSlide25
Sport
Drama & comedy
Science
Specialist speech services – e.g. sports or archive
Germany: live football
Up
to 5 matches simultaneously
UK: archive from the BBC
Germany: higher education for younger audiencesSlide26
Strong brands – key to successSlide27
Energy on FM
Hamburg
Berlin
Nuremberg
Stuttgart
Munich
Rhein
-Main
Potential to extend geographic reach
Energy on DAB+Slide28
Analogue and digital
Digital-only services
Extend the brand portfolioSlide29
Weekly
listening hours, m
Source:
RAJAR
+95
%
Absolute’s listening
hours
- up 95%Slide30
Source:
RAJAR
+37%
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 2011Slide31
Increase audiences
Increase
revenues
Innovation
How can digital radio build value for
broadcasters?
1
2Slide32
Sponsorship opportunities – youth audiencesSlide33
Branded stations take sponsorship to new level
Branded channels – aimed at housewives target audienceSlide34
Pop up stations – for range of events Slide35
Sponsorship opportunities – music tour & digital radio stationSlide36
Sponsorship opportunities – music tour & digital radio stationSlide37
Colour screen devices create new opportunities
Revo
PixisSlide38
C
olour images for additional informationSlide39
Hybrid radios with Bluetooth connectivity – from €59
John Lewis Spectrum DuoSlide40
Hear new song on radio
Hit
button
for info
add to playlist
share with friends
New songSlide41
Hear ad on radio / see visual display
Tag to interact
access more information
register interest
AdvertisingSlide42
Contents
Introduction to WorldDMB
Radio today
Business caseCritical success factorsSlide43
Policy and regulation
Critical success factors
Coverage
Content
Retailers
Cars
Consumer devices
ConsumersSlide44
Policy and regulatory framework
Policy
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)Slide45
Government
Network providers
Regulator
Commercial broadcasters
Public broadcasters
Coverage – work together to create cost-effective plan
Start on major population centres
Define strategy for major roadsSlide46
17 services on AM and FM
Over 40 on DAB+
Digital content proposition must be stronger than FM
Sydney analogue services
Sydney digital servicesSlide47
Devices available from wide range of suppliers Slide48
Retail activity
Consumer marketing
Consumer advertising encourages
footfall
and inspires
confidence in retailers
Retail (with the right product, point of sale and trained sales people) delivers sales
Marketing activities must be co-ordinated and sustainedSlide49
TV ads, heavy FM promotion and device give-aways
Source: BBC and
Bayerische
RundfunkSlide50
Devices available in-store
MediaMarkt
, Berlin, March 2013
Must have strong retail support for DAB+ radio
Devices on shelves
Training for staff
Post-code checker
RepeatersSlide51
Educate local importers and dealers
c
onsumer benefits
coverage plans
l
ong term commitment to DAB+
Work with international partners
Automotive – work with manufacturers to fit DAB+ as standardSlide52
Policy makers and regulators
Industry
stakeholder body
Key to success is collaboration
Broadcasters
Network operators
Devices
Retailers
Automotive
ConsumersSlide53
Thank you
For further information, please contact:
www.worlddab.orgSlide54
Source: CAP/SMMT
Q1 10
Q4 10
Q1 12
Q1 13
Q1 14
4%
10%
22%
35%
45%
In UK,
45%
of new
cars have DAB as standard