european strategies for digital switch-over for radio. radio executives from norway, switzerland,...

Strategies for digital switchover

Trygve Rønningen (CEO and Editor in chief of P4, Norway)Beatrice Merlach (CEO, MCDT, Switzerland)Jan Westerhof (Director Radio, NPO, The Netherlands)

#rde14

Radiodays Europe is an annual conference for public and private radio with 55 sessions and 120 speakers.This presentation was held at the latest event in Dublin 23 – 25 March 2014 which gathered 1300 radio leaders

from 60 countries. Next event will be in Milan 15 – 17 March 2015. Info at www.radiodayseurope.com.

Digital Radio – Norway

Trygve RønningenCEO

P4 Radio Norway

Source: TNS Gallup PPM 2013

The Norwegian market - 2013 (on

group level)

65%

22%

12%

1%

NRK totalMTGSBSOther

If this was a (honest) quiz show......

The questions.....• Can we be sure that radio stays powerful as an analogue

medium surrounded by digital content and interactivity?

• Can we defend our market share with a limited numbers of (expensive) analogue channels?

• Can we be sure that we keep our FM licenses for ever?

Yesorno?

The future of radio is not analogue….

Norway goes digital.....

Digitalization is not a quick fix.....Establishing of World Dmb Forum

(aka EuroDabForum)

Dab testing and live streaming on internet

Parliament supports digital radio

National license for Dab transmission

First Dab recievers in market

Parliament: “50% digital listening before FM shut down”

Parliament: FM shut down confirmed

1994

1995

1997

2000

2004

2007

2011

2017: SHUT DOWN!

Digital?

= DISTRIBUTION

BROADCAST STREAMING (IP)

DAB+ ONLINE APP PORTABLE

= CONTENT!

Enhanced radio: text, picures, videos, interactive ads, playlists etc

A big change for P4: one channel/platform vs. several channels/platforms

²LYTT

NSE

GVELG

)DELTA

CDEL

NOVERALT

LISTEN WATCH SHARE

CHOOSE PARTICIPATE EVERYWHERE

National DAB offering in Norway: 2014• NRK: 14 channels

• P4: 5 channels

• SBS: 3 channels

• Local radio and new content in three areas

Why should a listener buy a DAB reciever?

a) New content; b) good coverage; c) clear message about shut down

Total numbers of DAB receivers in Norway

Q4-2012 Q1-2013 Q2-2013 Q3-2013 Q4-20130

300000

600000

900000

1200000

1500000

1800000

865,000955,000

1,109,0001,204,000

1,468,000

• Base: n= 1092 SSB number of households 2,3 millions

Digital cover – daily use

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13

DABDigital TVInternet

14

10

13

15

16

10

18

11

15

19

9

14

31 34 36 36 40

23

10

13

But still a major challenge...

• 40% of radio listening is in cars• More than 2 million cars will need DAB retrofit

by 2016.....

.....the simple answers.....

1. Say YES to digital broadcast radio

2. Stand together

3. Decide a shut down date asap

Strategies for digital switch over24th March 2014

Béatrice Merlach, CEO MCDT AG

Digitalradio sales 2006 - 2013

Sources: GFK, trade, car importers

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2006 2007 2008 2009 2010 2011 2012 2013

1 million receivers

A unique network

MCDT

Public broadcaster

Trade

Automotive

Commercial radios

Importers

Manufacturers

Audience Authorities

TelcosInternational

• Integration of all involved partners

• Neutral platform

• Common activities

• Close co-operation

• Working group to prepare digital switchover

• Regulatory issues

• Technical issues

• Marketing & communication

• The Swiss way – a pragmatic approach

• Expected – contract with rules & committments

• Timeline

• Start of working group in 2013

• Final report expected 3Q 2014

• Decision expected in 2015 / 2016

• Renewals of frequencies 2019

• Conclusions

• Involvement of the entire sector

• Consistent strategy

• Negociation and committment

• «The approach defines the switch off date»

• Use the window of opportunity

beatrice.merlach@mcdt.ch

THANK YOU

“Switch over”

Radiodays 2014

jan.westerhof@omroep.nl

Jan Westerhof

June 1954 …

June 1954 …

Two-track distribution strategy:IP

• Multicast (no broadcast)

• Possibilities for interaction

• Available on almost all mobile

devices

• Growth in recent years

• Disadvantages: business model,

bandwidth, data bundles,

gatekeepers

Two-track distribution strategy:IP

• Multicast (no broadcast)

• Possibilities for interaction

• Available on almost all mobile

devices

• Growth in recent years

• Disadvantages: business model,

bandwidth, data bundles,

gatekeepers

DAB+

• Successor to AM/FM

• Free to air (FTA)

• Government encouragement of

rollout

• Disadvantages: less interaction,

unawareness within the general

audience, accessibility through

mobile devices?

CLEAR PROFILES FOR RADIO STATIONS

MORE CHOICE FOR THE LISTENER

DAB+ advantages:• Room for more channels: more choice for the listener• Better sound quality (no noise)• Easier tuning• Capacity for additional data services• Less vulnerable infrastructure• Better cost effectiveness than AM/FM

CoverageNPO

CoveragePrivate Broadcasters

Rollout of dab+ Requires a market-wide approach

We have to set up the marketing ourselves

Automotive DAB+ receivers in cars

Telecom operators chip in mobile devices

Retail Portable/home receivers

Consumer familiarize with DAB+