dab+ business case and critical success factors patrick hannon poznan: 10 th april 2014
TRANSCRIPT
DAB+ business case and critical success factors
Patrick Hannon
Poznan: 10th April 2014
2
Contents
1. Introduction to WorldDMB
2. Radio today
3. Business case
4. Critical success factors
3
• Not-for-profit membership organisation
• Developed DAB technical standards
• Promote digital radio (DAB / DAB+) around the world
WorldDMB – who we are
4
Over 80 members from 22 countries
BroadcastersNetworks / regulators
Technology AutomotiveDevices /
equipment
5
Policy makers and regulators
We work with players across the radio ecosystem
BroadcastersNetwork operators
Devices AutomotiveSilicon providers
Retailers
6
Contents
1. Introduction to WorldDMB
2. Radio today
3. Business case
4. Critical success factors
7
• Digital music services
• Smart devices
• Competition for FM radio
Online music services
For broadcasters, the competitive landscape is changing
8
Changes in youth per capita listening hours, 2006-101
-27%
-17%-14% -13%
-9% -7% -7%
Sweden UK USA Italy Germany France Spain
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 less
9
In many markets, FM spectrum is full – difficult to innovate
• Overloaded airwaves
• No capacity for new services
• Difficult to innovate
10
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
Hungary
11
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 markets
12
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
Newmarkets
13
Several potential markets
UK
Norway
Sweden
Germany
France
Spain
Italy
Switzerland
NL
Bel
Denmark
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
Established markets
Newmarkets
Potentialmarkets
14
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
Newmarkets
Potentialmarkets
Poland?
15
Annual cost of transmission1, $k
385
925
1645
68 98 128
Owned site Regional site Metro site
FM DAB+
Source: Harris BroadcastNote: (1) Opex costs; on DAB+, assumes 18 services on multiplex
DAB+ distribution costs about 10% of FM for a single service
-92%
-89%
-82%
16
DAB / DAB+ radios now mass market
Prices from $29
17
Power consumption of in-use devices, W
Source: DCMS / Intertek Technical Report, March 2013
Digital radios now consume 20% less power than FM devices
4.69
3.75
FM radio DAB radio
20% lower
18
Automotive brands offering DAB – increasingly as standard
19
Contents
1. Introduction to WorldDMB
2. Radio today
3. Business case
4. Critical success factors
20
Increase audiences
Increaserevenues
Innovation
How can digital radio build value for broadcasters?
1 2
21
Increase audiences
Increaserevenues
Innovation
How can digital radio build value for broadcasters?
1 2
22
Sound quality ChoiceAdditionalfeatures
Benefits of DAB / DAB+
Benefits for listeners
23
UK, % benefits of digital radio
65%59%
35%
24% 23%
Sound quality Wider choice Easy tuning Textinformation
Extra features
Source: Ofcom
Sound quality and choice are top two benefits
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UK Australia Germany
Electronic music
ClassicalDecade Country
Unsigned bandsClassic Rock
Specialist music services – for niche audiences
25
Sport Drama & comedyScience
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 audiences
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Strong brands – key to success
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Energy on FM
Hamburg
Berlin
Nuremberg
Stuttgart Munich
Rhein-Main
Potential to extend geographic reach
Energy on DAB+
28
Analogue and digital Digital-only services
Extend the brand portfolio
29
Weekly listening hours, m
11.3 9.5 11.2 12.6 12.3
1.7 6.47.613.0
15.818.8
22.825.3
13.010.2
Q4 09 Q4 10 Q4 11 Q4 12 Q4 13
Absolute Radio (core service) Absolute digital-only services
Source: RAJAR
+95%
Absolute’s listening hours - up 95%
30
5.86.7 6.7
9.2
9.2
Q1 10 Q3 10 Q1 11 Q3 11
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 2011
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Increase audiences
Increaserevenues
Innovation
How can digital radio build value for broadcasters?
1 2
32
Sponsorship opportunities – youth audiences
33
Branded stations take sponsorship to new level
• Branded channels – aimed at housewives target audience
34
Pop up stations – for range of events
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Sponsorship opportunities – music tour & digital radio station
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Sponsorship opportunities – music tour & digital radio station
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Colour screen devices create new opportunities
Revo Pixis
38
Colour images for additional information
39
Hybrid radios with Bluetooth connectivity – from €59
John Lewis Spectrum Duo
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• Hear new song on radio
• Hit button
- for info
- add to playlist
- share with friends
New song
41
• Hear ad on radio / see visual display
• Tag to interact
- access more information
- register interest
Advertising
42
Contents
1. Introduction to WorldDMB
2. Radio today
3. Business case
4. Critical success factors
43
Policy and regulation
Critical success factors
Coverage Content Retailers CarsConsumer devices
Consumers
44
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)
45
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 roads
46
17 services on AM and FM Over 40 on DAB+
Digital content proposition must be stronger than FM
Sydney analogue services Sydney digital services
47
Devices available from wide range of suppliers
48
Retail activityConsumer 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 sustained
49
TV ads, heavy FM promotion and device give-aways
Source: BBC and Bayerische Rundfunk
50
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
• Repeaters
51
• Educate local importers and dealers
- consumer benefits
- coverage plans
- long term commitment to DAB+
• Work with international partners
Automotive – work with manufacturers to fit DAB+ as standard
52
Policy makers and regulators
Industry stakeholder
body
Key to success is collaboration
BroadcastersNetwork operators
Devices Retailers Automotive Consumers
53
Thank you
For further information, please contact:
www.worlddab.org
54Source: CAP/SMMT
0%
10%
20%
30%
40%
50% Standard Cost Option
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