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)
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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
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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
THANK YOU
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+