03 15-1200 patrick hannon - going for a digital future
Post on 30-May-2015
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The world in which radio competes is changing
•Media consumption habits are shifting
-especially younger listeners
•Greater competition for advertising revenues
•Analogue radio has limited ability to innovate
Digital music services with power to disrupt
4 Note: (1) French-speaking part
Sweden: planning for DAB+
Denmark: 34% have digital radio
Germany: DAB+ launch 2011
Norway: DSO planned for 2017
UK: 40% have digital radio
NL: planned migration to DAB+
Belgium1: creating DAB+ strategy
Switzerland: 25% have digital radioFrance: by end 2012,
10 cities DAB+
Across Europe, the footprint of digital radio is expanding
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Consumer Automotive
Benefits of experience
• Over 20% of listening is in-vehicle
• New cars: in UK, digital as standard
-Q4 2011, 21% of all new cars
-by 2015, 75-85%
• Other countries following, e.g. Toyota Lexus in Australia
• Aftermarket solutions being developed and refined
• Device prices falling
-Chip prices falling
-Economies of scale
-Jan 2013, DAB royalty ends
Newer territories can benefit from the experiences of other markets
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Sound &ease of use
ChoiceAdditional
functionality
Consumer benefits
• Lack of interference
• Clear, consistent sound
• Easy tuning
• Scrolling text / info
• Visuals
• Pause / rewind / record
• Detailed traffic info
• EPG
• Interactivity (smart radio)
• Extra stations
• Specialist stations (e.g. live sport)
• Pop-up / event stations
Listener benefits can be classed in three areas
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Sydney analogue services Sydney digital services
17 services on AM and FM 40+ on DAB+
Digital radio offers listeners significantly greater choice
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• Exclusive live rights to German football
• Up to 5 matches simultaneously
Germany Australia Hong Kong
• Comedy radio station • Digital Money
-business news / stock market reports
-horse racing
Providing a range of new speech-based services…
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UK Australia Germany
Electronic music
ClassicalJazz Country
Unsigned bandsClassic Rock
… and music services designed for the tastes of specific audiences
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Existing radio groups can retain share on digital radio
Share of listening by platform, %
Note: (1) includes analogue services broadcast on digital-only outside their analogue licence areaSource: RAJAR, PH analysis
98%83%
66%
19%
15%14%
3%2%
UK AM / FM UK DAB UK online
AM / FM services (simulcasts) Incumbent digital-onlyNew entrants and others
1
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Geographic coverage
Develop portfolioDeepen user experience
Strategic options
• Extend beyond analogue licence area
• Value add through
-Text
-Visuals
- Interactivity
• Analogue stations in digital quality
• Niche and temporary stations
• Cross-promotion
How can digital radio build value for commercial broadcasters?
21 3
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First, digital radio can enable broadcasters to extend their geographic coverage – potential to create national brands
XFM – UK coverage
•XFM on FM in London and Manchester
-14m population
•XFM on DAB in many regions
-40m population
•Listening up by 22%
FM and DABDAB-only
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Analogue and digital Digital-only services
Second, broadcasters can use digital to extend their brand portfolio
15
Absolute Radio, weekly listening hours, m
11.4 11.3 11.1 11.6 11.6
1.2 2.04.412.6 13.3
15.5
19.020.3
8.77.4
Q4 09 Q2 10 Q4 10 Q2 11 Q4 11
Absolute Radio (core service) Absolute digital-only services
Source: RAJAR; four quarter moving average
Classic Rock and Extreme
80s replaces Extreme
Launch of 90s
Launch of 00s
+60%
New digital-only services have increased Absolute’s listening hours by 60% in two years
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Third, broadcasters can enhance the user experience – for example through colour screens
• Top-end devices typically over €150
• This year, in Germany, new colour screen devices will be available
-expected prices from ~€100
Revo Axis(launched 2009)
Pure Sensia(launched 2009)
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Stations in UK, Germany and Australia use colour images to provide information and cross-promote services
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Smart radio(connected)
New song
Advertising
Listen later
Looking ahead, smart radio (broadcast and IP) will provide new listener benefits - and create new revenue opportunities
2
1
3
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New song – no longer a passive relationship
•Hear new song on radio
•Use IP to
-access info
-add to playlist
-share with friends
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•Listening to programme is interrupted
•Tag and listen later
-same or different device
Listen later – on any connected device
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•Hear ad on radio / see visual display
•Use IP to
-access more information
-register interest
Hybrid radio gives access to online and mobile marketing budgets
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Collaboration between various industry groups, government and regulators is essential
Policy and regulation
Broadcasters & stakeholder
body
Network operators
Broad-casters
Consumer devices
Cars Retail Consumers
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Thank you
Patrick Hannon
VP Corporate Development Frontier Silicon
patrick.hannon@frontier-silicon.com
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5.6
6.7
5.4
6.7
8.6
9.2
5.7 5.8
Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Radio 4ExtraRadio 7
Radio 7 / Radio 4 Extra weekly listening hours, m
The BBC has also seen significant benefits from co-branding, cross-promotion & smart scheduling
Note: rebranding coincided with increase in cross-promotion and greater emphasis on complementary scheduling Source: RAJAR
37%increase
Service rebranded1 April 2011
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