A presentation made to the EBU Digital Radio Conference in June 2009 by Grant Goddard that assesses the progress made to date and the challenges ahead for DAB digital radio broadcasting in the UK market.

1. Digital Radio In The UK:
Progress & Challenges
Grant Goddard
radio specialist
www.grantgoddard.co.uk
EBU Digital Radio Conference
June 2009

2. Grant Goddard
Grant Goddard
radio specialist
30 years’ experience in radio management and consultancy
Strategies for successful radio formats and new radio stations:
KISS FM (London), Radio Juventus (Hungary), Radio 7 (Moscow), Radio City
(India)
Strategies for radio owners and shareholders:
EMAP Radio & DMGT (London), Metromedia (US), Star TV (India), BBC World
Service Trust (Cambodia)
Informing public broadcasting policy:
Radio Authority/Ofcom, Competition Commission, Digital Britain
Writer/journalist on radio, music & broadcasting industries:
1000+ articles published in trade and consumer magazines
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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3. Grant Goddard
Agenda
radio specialist
UK digital radio overview
UK digital radio forecasts
UK digital radio challenges
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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4. Grant Goddard
radio specialist
UK digital radio overview
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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5. Grant Goddard
UK digital radio overview
radio specialist
% of adults who claim to own a DAB radio receiver at home
32.1
29.7
28.7
27.3
2008Q2
21.7
16.0
15.3
2006Q3
11.1
10.5
15.3
4.5
2004Q3
5.3
4.4
2004Q2
5
3.9
2004Q1
8.1
10
9.1
15
2006Q2
13.6
20
20.3
19.5
25
22.3
27.3
30
2008Q1
32% of UK adults claim
to own a DAB radio
35
2009Q1
2008Q4
2008Q3
2007Q4
2007Q3
2007Q2
2007Q1
2006Q4
2006Q1
2005Q4
2005Q3
2005Q2
2005Q1
2004Q4
0
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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6. Grant Goddard
UK digital radio overview
radio specialist
67.9%
69.6%
68.8%
70.1%
73.7%
75.7%
67.3%
80%
72.8%
BBC Radio - hours listened by platform (% of total hours listened)
60%
20% of listening to
BBC radio is via
digital platforms
11.9%
12.8%
12.8%
12.5%
9.3%
9.0%
13.8%
20.8%
20.2%
17.6%
18.3%
17.4%
17.0%
15.3%
12.0%
20%
13.4%
40%
0%
all analogue
2007Q2
2007Q3
all digital
2007Q4
2008Q1
2008Q2
unspecified
2008Q3
2008Q4
2009Q1
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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7. Grant Goddard
UK digital radio overview
radio specialist
67.5%
67.8%
68.4%
69.2%
72.0%
69.6%
65.0%
80%
72.1%
Commercial Radio - hours listened by platform (% of total hours listened)
60%
20% of listening to
commercial radio is via
digital platforms
12.9%
13.2%
12.7%
12.5%
9.6%
9.8%
13.6%
21.2%
19.6%
19.0%
18.9%
18.4%
18.4%
18.1%
20%
16.8%
13.8%
40%
0%
all analogue
2007Q2
2007Q3
all digital
2007Q4
2008Q1
2008Q2
unspecified
2008Q3
2008Q4
2009Q1
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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8. 135
780
2004 Sep
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
2009 Mar
9,011
8,528
9 million DAB receivers
sold to date in UK
2008 Dec
7,665
7,300
6942
6452
UK digital radio overview
2008 Sep
5488
5125
4826
4444
8,000
2008 Jun
2008 Mar
2007 Dec
2007 Sep
3648
6,000
2007 Jun
2007 Mar
2006 Dec
2006 Sep
3340
10,000
2006 Jun
3053
2715
2034
1740
1535
4,000
2006 Mar
2005 Dec
2005 Sep
2005 Jun
2005 Mar
1290
646
2004 Jun
2,000
2004 Dec
544
2004 Mar
2003 Sep
433
250
2003 Jun
2003 Dec
197
2003 Mar
0
158
2002 Dec
Grant Goddard
radio specialist
UK cumulative DAB receiver unit sales (‘000 units)
[source: Digital Radio Development Bureau]
8

9. Grant Goddard
radio specialist
UK digital radio forecasts
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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10. Grant Goddard
UK digital radio forecast – Digital Radio Development Bureau
radio specialist
DAB receiver penetration (% adults, % households)
55
50
45
40
21.7
32.1
29.7
28.7
22.3
2007Q4
20.3
16.0
2006Q4
2007Q2
15.3
2006Q3
19.5
15.3
2006Q2
13.6
11.1
DAB receiver
penetration close
to forecast
5.3
2004Q4
2005Q4
4.5
2004Q3
10.5
4.4
2004Q2
5
3.9
2004Q1
10
9.1
8.1
15
2005Q3
20
2007Q1
25
2007Q3
30
27.3
27.3
35
RAJAR actual (% adults)
2010Q4
2010Q3
2010Q2
2010Q1
2009Q4
2009Q3
2009Q2
2009Q1
2008Q4
2008Q3
2008Q2
2008Q1
2006Q1
2005Q2
2005Q1
0
DRDB 2007 forecast (% households)
[source: RAJAR, Digital Radio Development Bureau]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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11. Grant Goddard
UK digital radio forecast – Digital Radio Development Bureau
radio specialist
Cumulative DAB receiver unit sales (million at year-end)
25
20
15
10
8.53
6.45
5
actual
2004 DRDB forecast
2005 DRDB forecast
2006 DRDB forecast
2007 DRDB forecast
4.44
2.72
0
1.29
2004
2005
2006
2007
DAB receiver
sales lower than
forecasts
2008
2009
2010
[source: Digital Radio Development Bureau]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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12. Grant Goddard
UK digital radio forecast - Ofcom
radio specialist
Radio listening via digital platforms (% of radio listening at year-end)
100
90
80
70
60
50
40
Radio listening
via digital much
lower than
forecast
30
16.6
20
11.0
10
18.3
12.5
actual (RAJAR year-end)
5.9
Ofcom forecast (Novem ber 2006)
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
0
[source: RAJAR, Ofcom]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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13. Grant Goddard
UK digital radio forecast - RadioCentre
radio specialist
Commercial radio listening via digital platforms (% of commercial radio listening at year-end)
50%
50%
45%
40%
35%
30%
30%
25%
Commercial radio
listening via
digital lower than
forecast
20%
16%
15%
18%
19%
14%
10%
11%
5%
actual (RAJAR year-end)
5%
RadioCentre target (Jan 2007)
0%
2004
2005
2006
2007
2008
2009
2010
2011
[source: RAJAR, RadioCentre]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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14. Grant Goddard
UK digital radio forecast – Digital Radio Working Group
radio specialist
Radio listening via digital platforms (% of radio listening at year-end)
actual (RAJAR year-end)
55
50
DRWG aspirational tim etable (Jan 2009)
50
trendline
45
Most recent
government
forecast of digital
listening unlikely
to be achieved
40
35
30
25
5.9
5
11.0
10
12.5
15
18.3
16.6
20
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
0
[source: RAJAR, Digital Radio Working Group]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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15. Grant Goddard
UK digital radio forecast – Digital Radio Working Group
radio specialist
DAB radio receiver sales (% of total radio receiver sales)
55%
50%
50%
45%
40%
Most recent
government
forecast of DAB
radio receiver
sales unlikely to be
achieved
35%
30%
25%
22%
20%
20%
18%
15%
13%
10%
5%
actual (DRDB four-quarter m oving average)
DRWG aspirational tim etable (January 2009)
8%
trendline
0%
2005 Q1
2006 Q1
2007 Q1
2008 Q1
2009 Q1
2010 Q1
2011 Q1
2012 Q1
2013 Q1
2014 Q1
2015 Q1
2016 Q1
2017 Q1
[source: Digital Radio Development Bureau, Digital Radio Working Group]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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16. Grant Goddard
Digital radio forecasts – Eureca Research & Deloitte
radio specialist
Eureca Research forecasts:
2004: 40 million DAB radios sold in Europe by 2010, 17.5 million sold in UK by 2010
2006: 145 million DAB radios sold worldwide by 2012, 110 million sold in EMEA (75% of total) by 2012
2009: 70 million DAB radios sold worldwide by 2015, 34 million sold in UK (49% of total) by 2015
Deloitte UK (8 May 2009):
In 2009, digital radio set penetration forecast to rise by 2 to 3 % points to maximum 28% by year-end
Recession likely to make premium-priced DAB sets increasingly unattractive
Few reasons for consumers to upgrade to DAB due to incomplete geographic coverage and limited range
of exclusive content
UK government proposals unlikely to boost penetration in the short-term
Government target of 50% digital listening by 2015 unlikely to be reached
A full transition to digital remains a distant prospect
“The enduring appeal of analogue radio, combined with the growing power of internet radio, may
ultimately lead many consumers to sidestep DAB technology altogether”
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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17. Grant Goddard
radio specialist
UK digital radio challenges
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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18. Grant Goddard
Fragmentation of radio listening
radio specialist
Types of radio listening:
Live broadcast radio
Time-shifted previously broadcast programmes delivered on-demand (‘listen again’)
Time-shifted previously broadcast programmes delivered by download (‘podcasts’)
Non-broadcast programmes delivered on-demand (‘streams’)
Non-broadcast programmes delivered by download (‘podcasts’)
Personalised radio content delivered by internet (Last.fm, Spotify)
Radio delivery platforms:
Analogue terrestrial broadcast (FM, AM, LW, SW)
Digital terrestrial broadcast (DAB, DRM)
Digital broadcast via TV (Freeview)
Digital broadcast via cable (Virgin Media)
Digital broadcast via satellite (Sky, Freesat)
Internet (dial-up, broadband)
Mobile cellular (3G, GSM)
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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19. Grant Goddard
Access to digital radio
radio specialist
Access to digital radio platforms (% of UK households)
90
87%
80
Consumer
accessibility of
digital radio
platforms in
the UK is
relatively high
Cable
70
12
67%
60
38
Terrestrial
50
40
57
Broadband
30
27%
20
37
Satellite
10
27
9
0
Dial-up
internet
digital TV
DAB radio
[Source: Ofcom, Q1 2008, Communications Market Report 2008, p.282, Figure 4.59, 14 August 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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20. Grant Goddard
Challenge #1 – lack of consumer awareness of digital radio
radio specialist
Take-up of digital radio services (% of adults 15+)
100
90
87
83
80
79
60
39
40
“This highlights
the continued
lack of
awareness
among
consumers of
ways of
accessing
digital radio”
Ofcom
39
36
32
20
0
2005 Q2
2006 Q2
access to digital TV and/or internet
2007 Q2
2008 Q2
claim ed ow nership of digital radio
[source: Ofcom, ‘The Consumer Experience’, p.40, Figure 59, 25 November 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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21. Grant Goddard
BBC radio listening by platform
radio specialist
Listening to BBC radio by platform (% of adult 15+ listening)
BBC share:
DAB = 15%
digital: internet,
1.9%
digital: unspecified,
Internet = 2%
digital: DTV, 2.7%
0.7%
digital: DAB, 14.9%
unspecified, 11.9%
all analogue, 67.9%
Satellite
Dial-up
[source: RAJAR, Q1 2009]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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22. Grant Goddard
Commercial radio listening by platform
radio specialist
Listening to commercial radio by platform (% of adult 15+ listening)
Commercial
radio share:
digital: internet,
2.2%
DAB = 10%
digital: unspecified,
3.3%
Internet = 2%
digital: DTV, 4.2%
digital: DAB, 9.9%
unspecified, 12.9%
all analogue, 67.5%
Satellite
Dial-up
[source: RAJAR, Q1 2009]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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23. Grant Goddard
Challenge #2 – RAJAR metric is limited to linear radio
radio specialist
The RAJAR metric only measures:
Live broadcast radio from UK sources
Live simulcasts of broadcast radio from UK sources
The RAJAR metric does not measure:
Time-shifted previously broadcast programmes delivered on-demand (‘listen again’)
Time-shifted previously broadcast programmes delivered by download (‘podcasts’)
Non-broadcast programmes delivered on-demand (‘streams’)
Non-broadcast programmes delivered by download (‘podcasts’)
Personalised radio content delivered by internet (Last.fm, Spotify)
Outcome:
The increasing amount of non-linear, non-broadcast radio listening is not measured within RAJAR
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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24. Grant Goddard
All radio listening by platform
radio specialist
Weekly reach of radio platforms (% of adults 15+)
20
9.3
11.9
15
14.0
13.5 15.3
17.8
This separate annual RAJAR survey (which includes
non-linear radio consumption) demonstrates that
internet-delivered radio reaches almost as much of the
UK population as the DAB platform
7.3
10
2.7
3.6
5
internet platform
DAB platform
2009 Q1
2008 Q4
2008 Q3
2008 Q2
2008 Q1
2007 Q4
2007 Q3
2007 Q2
2007 Q1
2006 Q4
2006 Q3
2006 Q2
2006 Q1
2005 Q4
2005 Q3
2005 Q2
2005 Q1
2004 Q4
2004 Q3
2004 Q2
2004 Q1
2003 Q4
2003 Q3
2003 Q2
2003 Q1
2002 Q4
2002 Q3
0
digital TV platform
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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25. Grant Goddard
Radio receiver ownership
radio specialist
Ownership of analogue radio sets (% of households)
100
10
9
12
90
10
10
10
80
70
The average
household
owns 2.4
analogue radio
receivers. 42%
own three or
more radios
22
22
22
60
50
27
24
28
30
32
30
UK
rural UK
urban UK
40
30
20
10
0
None
One
Tw o
Three
Four
Five +
[source: Ofcom Communications Tracking Survey 2007]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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26. Grant Goddard
Challenge #3 – the volume of legacy analogue radios
radio specialist
There is a massive quantity of analogue radios in the UK market:
“…. The sheer number of analogue radio receivers currently in use means that FM and AM will be with
us for some while yet.” (BBC R&D Annual Review, March 2004)
Households own multiple radios:
The average UK household owns 2.4 analogue radio receivers (excludes radios in mobile phones)
The lifecycle of an analogue radio is long:
The lifecycle of an analogue radio is often a decade or longer
Analogue radios remain the global standard in audio/mobile/in-car equipment
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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27. Grant Goddard
UK radio receiver sales
radio specialist
UK radio receiver sales – four quarter moving average (‘000 units per annum)
10,550
10,169
9,892
Q3 2005
Q4 2005
Q1 2006
Q2 2006
4,000
2,070
7,657
Q4 2008
10,657
Q2 2005
9,495
10,611
Q1 2005
6,000
10,678
8,000
Only 22% of new
radios sold in the
UK are DAB. The
remaining 78%
are analogue
7,284
8,030
Q3 2008
2,125
2,174
8,227
Q2 2008
2,180
2,114
8,209
Q1 2008
7,906
Q3 2007
2,006
1,824
7,854
Q2 2007
8,140
1,761
7,978
Q1 2007
Q4 2007
1,734
8,062
Q4 2006
1,680
10,000
1,575
1,566
1,493
1,407
1,208
1,051
951
12,000
DAB receivers as percentage of total receiver sales
8% 9% 10% 12% 13% 14% 14% 17% 18% 18% 19% 20% 20% 21% 21% 22% 22%
2,000
[source: GfK/DRDB]
analogue radio unit sales ('000)
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
Q1 2009
Q3 2006
0
DAB radio unit sales ('000)
27

28. Grant Goddard
Challenge #4 – the declining UK radio receiver market
radio specialist
The market for UK radio receivers is in long-term decline:
The DAB platform has not stopped the decline
Purchase of traditional radio receivers is being replaced by:
Mobile phones that incorporate music players and FM/internet radio
Personal audio players that incorporate FM radio
New multifunction devices that incorporate ‘radio’ (‘Slacker’ in the US)
Televisions that are ‘home entertainment systems’
Connected devices that deliver radio via IP
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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29. Grant Goddard
UK DAB radio receiver sales
radio specialist
964
Quarterly DAB receiver sales (‘000 units per quarter)
1,000
200
863
179
180
796
162
750
121
119
160
681
153
140
120
366
299
358
363
382
308
287
338
294
134
102
60
28
34
38
17
40
18
13
5
100
80
21
40
20
20
4
1
Year-onyear
growth in
DAB radio
receiver
sales has
entered
negative
territory
-1
-10
53
39
111
183
250
205
245
500
483
489
510
101
0
0
quarterly DAB receiver sales ('000) [left axis]
2009 Q1
2008 Q4
2008 Q3
2008 Q2
2008 Q1
2007 Q4
2007 Q3
2007 Q2
2007 Q1
2006 Q4
2006 Q3
2006 Q2
2006 Q1
2005 Q4
2005 Q3
2005 Q2
2005 Q1
2004 Q4
2004 Q3
2004 Q2
2004 Q1
2003 Q4
2003 Q3
2003 Q2
-20
year-on-year change (%) [right axis]
[source: Digital Radio Development Bureau]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
29

30. Grant Goddard
Intention to purchase DAB radios
Intention of purchasing a DAB radio receiver within the next six months (%)
radio specialist
All demographics
exhibit a low
propensity to
purchase a DAB
radio receiver
within the next six
months
[source: Ofcom Research Q1 2007, Communications Market Report 2007, p.242, Figure 3.70, 23 August 2007]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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31. Grant Goddard
Challenge #5 – the UK DAB receiver market is slowing
radio specialist
Growth in DAB radio receiver sales is beginning to falter:
Growth in DAB receiver purchases may be reaching saturation after a decade
The important Q4 showed negative growth for the first time in 2008:
DAB radios are a relatively high-price item compared to FM radios
If the sales momentum is not continued, the digital radio forecasts will not be attained:
Consumer confidence in DAB will be damaged by a slowdown in take-up
The low consumer propensity to purchase a DAB radio requires firm, swift action by:
Digital radio content providers
DAB receiver manufacturers
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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32. Grant Goddard
Mobile phone UK handset data
radio specialist
Availability of radio features within mobile phones
2008 UK market
share
Nokia
Samsung
Sony Ericsson
LG
Motorola
43%
21%
18%
7%
5%
no. of current models
with FM
total
radio
with internet
97
37
72
40
14
34 million mobile handsets sold in the UK in 2008 (est.)
8 million analogue radios sold in 2008
2 million DAB radios sold in 2008
73
18
53
13
9
66
9
27
12
% with FM
radio
75%
49%
74%
33%
64%
Nokia is now the
biggest
manufacturer of
analogue radios in
the world
[source: Mintel (market share); Grant Goddard, January 2009]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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33. Grant Goddard
Mobile phone radio usage
radio specialist
Usage of features on mobile phones
FM radio usage is
low on mobile
phones
[source: Ofcom Research Feb-Mar 2008, Communications Market Report 2008, p.119, Figure 2.71, 14 August 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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34. Grant Goddard
Global growth of FM radio in mobile handsets
radio specialist
Global FM-capable handset market
45% of all mobile
phones worldwide
are forecast to
include FM radios
by 2011
[source: iSuppli taken from NAB, ‘Study Of The Potential For FM Radio To Be A Universal Feature On Cellular Handsets’, p.21, Exhibit IV, 28 May 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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35. Grant Goddard
Challenge #6 – FM radio dominates the mobile phone market
radio specialist
Listening to music is increasingly a mobile phenomenon:
via mobile phones
via portable audio players
via radios incorporated into other devices
Not one single mobile phone in UK market includes DAB radio:
The prototype ‘Virgin Lobster’ DAB phone was scrapped
Mobile phone manufacturers create products for the global market with global standards:
The market for DAB is nowhere near large enough for global production line runs
NAB in the US is campaigning for FM radio to be made universal on cell phones sold in the US
US broadcasters acknowledge that the mobile phone market is the most efficient way to sustain radio
listening
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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36. Grant Goddard
Existing FM coverage
radio specialist
The existing BBC FM transmission system:
Building the FM network started in 1955
230 sites cover 99% of the UK population
Costs £12.3m per annum for 4 national networks (2007/8)
FM signal is very robust using high power transmitters
Poor inner city FM reception supplemented by AM simulcasts
An independent report concluded that it is the 99.9-103.4 MHz part
of FM allocated to commercial radio that is “the least used part of
the band”
[source: Deloitte, The BBC’s Efficient And Effective Use Of Spectrum, December 2007]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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37. Grant Goddard
Challenge #7 – existing FM coverage is universal and robust
radio specialist
There are few complaints about existing FM radio coverage
FM reception is robust in-home, in-car and outdoor
FM transmission costs are economic for small-scale stations
FM receivers are cheap and universally included in audio & home entertainment equipment
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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38. Grant Goddard
The value of FM spectrum
radio specialist
There is no alternate use planned for FM radio spectrum
The government will find it hard to monetise FM radio spectrum the way it did 3G
Ed Richards, chief executive, Ofcom:
“One of the other differences [with TV] is that the value of spectrum to be released by analogue switchoff in television is extremely high….”
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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39. Grant Goddard
Consumer demand for choice in radio content
radio specialist
Average number of stations listened to
Two-thirds of the
UK population
listen regularly to
only one or two
radio stations
[source: Ofcom Residential Tracker 2007, Nations & Regions Market Communications Report, May 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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40. Grant Goddard
Consumer satisfaction with choice in radio content
radio specialist
Satisfaction with choice of radio stations (% of respondents)
88% of consumers
are satisfied with
their existing
choice of radio
stations
[source: Ofcom research Q1 2008, Communications Market Report 2008, p.290, Figure 4.73, 14 August 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
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41. Grant Goddard
Challenge #8 – no incentive exists for FM switch-off
radio specialist
There are no alternative uses proposed for FM spectrum
The government is unlikely to benefit financially from selling FM spectrum for non-broadcast uses
As long as FM continues to be used for radio broadcasting, FM switch-off or ‘digital switchover’ is
unlikely to happen in reality
Sufficient choice for most consumers is already offered by existing analogue radio content
Ofcom has licensed 201 new, non-profit community radio stations since 2004, the majority of which
broadcast on FM
There is insufficient space on DAB to accommodate all existing 300 local commercial radio stations
DAB multiplexes serve much larger coverage areas than small FM stations
DAB can never be a ‘replacement’ technology for FM
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
41

42. Grant Goddard
DAB radio receiver penetration
radio specialist
DAB radio set penetration by local DAB multiplex area
Penetration levels
of DAB receivers
are uneven across
the UK
[source: RAJAR , Ofcom, Q4 2007]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
42

43. Grant Goddard
Commercial radio DAB local multiplex rollout
radio specialist
Timetable of Ofcom licence awards for local commercial DAB multiplexes
market
Herts, Beds & Bucks DAB
Derbyshire DAB
Hereford & Worcester DAB
Northeast Wales & West Cheshire DAB
Northamptonshire DAB
Oxfordshire DAB
North Yorkshire DAB
Gloucestershire DAB
Lincolnshire DAB
Surrey & Northern Sussex DAB
Somerset DAB
North Wales DAB
Mid & West Wales DAB
coverage area
(15+
population)
1,829,329
846,520
586,300
646,638
504,775
494,390
695,431
460,042
670,376
1,411,122
481,268
311,146
400,065
None of these DAB
multiplexes have yet
launched, some two years
after their licensing
licensing date
12 June 2007
5 July 2007
6 September 2007
6 September 2007
11 October 2007
8 November 2007
13 December 2007
22 January 2008
19 February 2008
22 April 2008
21 May 2008
24 June 2008
18 March 2009
[source: Ofcom]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
43

44. Grant Goddard
Challenge #9 – DAB roll-out timetable is delayed
radio specialist
Consumers are voicing frustration at the delayed rollout of local DAB multiplexes
National DAB marketing campaigns have a negative impact in UK areas without DAB coverage
Existing local
multiplexes
Existing regional
multiplexes
Delays impact the availability of both BBC and commercial local stations which share multiplexes
Next
local multiplexes
Consumer confidence in the DAB platform affected
Sample explanation from website of MuxCo DAB multiplex operator:
We’ve had a number of emails here at MuxCo HQ asking about the launch dates of our multiplexes. Some of
these have been spurred on by some updates on BBC local radio station websites, for example from our
friends at BBC Radio Gloucester:
“The new Gloucestershire “multiplex” will be on air by early 2009. The operator’s timetable has changed
slightly due to technical refinements that are being made to frequency planning across the UK”.
Now, what exactly does that mean?
Well, actually there are two issues that are causing our multiplex launch dates to move. The first is our
negotiations with our transmitter operator and the second, as alluded to above, are some ongoing industry
discussions.
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
44

45. Grant Goddard
Challenge #10 – no common DAB geographical coverage
Geographical coverage of DAB multiplexes
radio specialist
Uneven coverage
of UK by BBC and
commercial DAB
multiplexes
[source: Ofcom, Nations & Regions Communications Market Report 2008, May 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
45

46. Grant Goddard
Challenge #11 – poor quality DAB reception
radio specialist
There are several aspects of poor DAB reception:
DAB transmitter power outputs are too low
Poor DAB reception in built-up areas
Poor DAB reception in-home (notably ground floors and basements)
DAB transmitters are mostly located outside cities
Why?
DAB transmission was implemented to optimise in-car reception with an externally mounted aerial
Grae Allen at TechCon conference (July 2006):
“…. [the] Wiesbaden 1995 [radio conference] and all the other DAB planning dealt with mobile reception –
in-car and portable outdoors. It made assumptions about aerial heights being just above ground level
and, to provide good service to 99% of locations, the conclusion was that it required 58dbųV per metre
to maintain that quality of service, and it made some assumptions about the performance of receivers
and aerials.”
Digital Radio Working Group Final Report (December 2008):
“…. It is important that the robustness of the coverage, in those areas of the country already technically
covered by its transmitters, of the national commercial multiplex is improved as quickly as possible”.
“…. action is needed to improve the quality and robustness of the existing local multiplexes’ coverage”.
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
46

47. Grant Goddard
DAB owners’ reasons for DAB purchase
radio specialist
Factors that persuaded buyer to purchase DAB radio over analogue radio
0%
10%
20%
30%
40%
To receive new digital stations
74%
Improved reception of existing stations
74%
60%
70%
80%
75%
Better sound quality
50%
53%
Easy to tune
Text and information (DLS text, EPG)
25%
Value for money
The main
motivation for
DAB receiver
purchase is to
access
exclusively
digital content
25%
18%
Product design
New radio functions (e.g. pause/rewind)
12%
Other
5%
Preferred brand now available
3%
[source: DRDB online survey, October 2007 taken from presentation by Paul Brown, DRDB, ‘The success of DAB in Europe is hugely important to DRDB and DAB Digital Radio in the UK’, 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
47

48. Only 5% of
Grant Goddard
commercial radio
listening is to
radio specialist
exclusively digital
content
Commercial digital-only radio stations
Listening to commercial digital-only radio stations
6
4.6
4.7
3.6
3.9
4.0
3.3
3.5
3.2
3.0
30%
33%
30%
26%
2.3
2.1
40%
36%
28%
27%
24%
Only 23% of
commercial
listening via digital
platforms is to
exclusively digital
content
0.7
0.6
2
1.9
2.1
2.1
2.7
3
3.0
3.4
4
4.5
5.2
5.0
5
1
5.1
5.5
5.5
50%
23% 20%
10%
[source: RAJAR]
2009Q1
2008Q4
2008Q3
2008Q2
2008Q1
2007Q4
2007Q3
2007Q2
2007Q1
2006Q4
2006Q3
2006Q2
2006Q1
2005Q4
2005Q3
2005Q2
2005Q1
2004Q4
2004Q3
2004Q2
2004Q1
2003Q4
2003Q3
2003Q2
0%
2003Q1
0
listening to commercial digital-only radio stations as % of all commercial radio listening [left axis]
listening to commercial digital-only radio stations as % of digital listening to commercial radio [right axis]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
48

49. Grant Goddard
BBC digital-only radio stations
Only 3% of BBC
radio specialist
radio listening is to
exclusively digital
content
Listening to BBC digital-only radio stations
4
[source: RAJAR]
1.6
1.7
1.6
1.4
2.6
2.8
2.7
20%
22%
19%
1.2
1.1
0.9
0.8
0.7
30%
16% 16% 16%
17%
15% 14%
Only 14% of BBC
listening via digital
platforms is to
exclusively digital
content
10%
2009Q1
2008Q4
2008Q3
2008Q2
2008Q1
2007Q4
2007Q3
2007Q2
2007Q1
2006Q4
2006Q3
2006Q2
2006Q1
2005Q4
2005Q3
2005Q2
2005Q1
2004Q4
2004Q3
2004Q2
2004Q1
2003Q4
0%
2003Q3
2003Q2 0.0
2003Q1 0.0
0
0.7
1
0.6
1.1
1.2
1.5
2
2.4
2.5
2.2
2.6
3
2.9
3.2
40%
listening to BBC digital-only radio stations as % of all BBC radio listening [left axis]
listening to BBC digital-only radio stations as % of digital listening to BBC radio [right axis]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
49

50. Grant Goddard
Listening to digital-only radio stations
radio specialist
Adult listening (15+) to digital radio stations (‘000 hours per week)
45,000
Listening to digitalonly radio stations
is already levelling
out
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
TOTAL (com m ercial + BBC)
COMMERCIAL RADIO
2009Q1
2008Q4
2008Q3
2008Q2
2008Q1
2007Q4
2007Q3
2007Q2
2007Q1
2006Q4
2006Q3
2006Q2
2006Q1
2005Q4
2005Q3
2005Q2
2005Q1
2004Q4
2004Q3
2004Q2
2004Q1
2003Q4
2003Q3
2003Q2
2003Q1
0
BBC RADIO
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
50

51. Grant Goddard
Listening to digital vs. analogue stations
radio specialist
Adult listening (15+) to national digital and analogue stations
station
RAJAR Q4 2008
% share of
total radio
listening
DIGITAL STATIONS
BBC7
Planet Rock
The Hits
BBC 6 Music
Smash Hits Radio
BBC 1Xtra
BBC Asian Network
BBC Five Live Sports Extra
Mojo Radio
Heat
Chill
The Arrow
Absolute Radio Classic Rock
Q
NME Radio
Absolute Radio Xtreme
TOTAL
0.53
0.48
0.45
0.31
0.25
0.25
0.20
0.14
0.12
0.12
0.10
0.10
0.09
0.07
0.04
0.03
3.28
station
RAJAR Q4 2008
peak halfhour
audience
68,000
89,000
94,000
69,000
42,000
36,000
29,000
175,000
31,000
20,000
21,000
15,000
14,000
14,000
8,000
8,000
% share of
total radio
listening
ANALOGUE STATIONS
BBC Radio 2
BBC Radio 4
BBC Radio 1
BBC Radio Five Live
Classic FM
TalkSport
BBC Radio 3
Absolute Radio
15.8
12.4
10.1
4.8
4.0
1.8
1.3
1.2
peak halfhour
audience
3,068,000
2,693,000
2,260,000
1,001,000
625,000
244,000
175,000
184,000
Digital radio
stations are
not
attracting
significant
audiences
TOTAL
51.4
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
51

52. Grant Goddard
Challenge #12 – digital radio content is not proving attractive
radio specialist
Digital content is not successfully driving consumers to purchase DAB radio receivers
Less than 20% of listening via digital platforms is to exclusively digital content
Most DAB radio users are still listening primarily to stations available on analogue
DAB is in danger of being merely a supplement to FM/AM listening
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
52

53. Grant Goddard
DAB station choice
radio specialist
Indicative availability of DAB digital radio services
Consumer choice of
digital radio stations is
considerably narrower
outside of London
[source: Ofcom taken from presentation by Peter Davies, Ofcom, ‘Digital Radio – The View From The UK’, 10 April 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
53

54. Grant Goddard
Challenge #13 – DAB content choice is largely illusory
radio specialist
London is unique in being served by two national DAB multiplexes and 3 local DAB multiplexes
However, of the 50 services available on DAB in London:
23 are simulcasts of analogue services available in London
2 are simulcasts of analogue services available outside London
7 stations serve ethnic audiences
2 stations are religious
1 is part-time for children
1 is ‘birdsong’
That leaves 14 exclusively digital stations:
9 are commercial (5 play rock music)
5 are non-commercial (including Traffic News and BFBS)
Outside London, choice of content on the DAB platform is much more limited
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
54

55. Grant Goddard
Number of DAB-only radio stations available
radio specialist
Number of DAB-only radio stations available
60
50
50
40
38
40
The number
of digital
radio
stations
available on
the DAB
platform is
declining
30
20
10
0
2006
2007
2008
[source: Ofcom, The Consumer Experience, p.55, Table 5.1, 25 November 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
55

56. Grant Goddard
National digital radio stations
National digital radio stations
radio specialist
NATIONAL DIGITAL-ONLY RADIO STATIONS
2002
2002
2003
1999
2003
2002
2002
2008
2002
2003
2003
2005
2004
2008
2005
2001
2005
2003
2003
2006
2000
2000
2000
1999
2002
2000
2000
2000
2000
2000
BBC
BBC
Bauer
Bauer
BBC
BBC
BBC
Bauer
Bauer
Global
TIML
TIML
Global
Folder
BBC7
BBC 6 Music
The Hits
Planet Rock
Smash Hits Radio
BBC 1Xtra
BBC Asian Network
Jazz FM
BBC Five Live Sports Extra
Heat
Q
Chill
Absolute Radio Classic Rock
NME Radio
Absolute Radio Xtreme
The Arrow
Fun Radio
Mojo Radio
Yarr Radio
TheJazz
Capital Life
Oneword Radio
Virgin Radio Groove
Core
Capital Disney
3C
PrimeTime Radio
The Storm
Talkmoney
ITN News
TOTAL % SHARE OF ALL RADIO LISTENING
internet
FreeSat
digital platforms
Freeview
station
local DAB
group
national DAB
launched
RAJAR Q1 2009
% share of
total radio
listening
0.5
0.4
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.0
0.0
% adult
weekly
reach
1.9
1.3
2.6
1.3
2.0
1.2
0.8
0.8
1.3
0.8
0.6
0.4
0.4
0.4
0.1
closed 2008
closed 2008
Many
commercial
digital radio
stations have
closed
closed 2008
closed 2008
closed 2008
closed 2008
closed 2008
closed 2007
closed 2007
closed 2006
closed 2006
closed 2003
closed 2002
3.4
[source: RAJAR]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
56

57. Grant Goddard
Challenge #14 – exclusive digital radio content is shrinking
radio specialist
Digital radio has entered a vicious circle:
DAB requires a compelling consumer proposition
Exclusive content could drive consumer purchase of DAB hardware
Audiences to digital radio are too low for owners to monetise
Digital radio stations are closing
The consumer proposition of DAB becomes less compelling
After 10 years of the DAB platform in the UK, not a single digital radio station has yet generated an
operating profit:
Digital One national DAB multiplex – majority stake sold for £? to Arqiva in April 2009
Planet Rock – aims to be profitable by Xmas 2009, sold for £? in June 2008
Jazz FM - £733,000 operating loss (6 months), sold for £1 in April 2009
Zee Radio – announced closure (London DAB) in April 2009
Focal Radio - announced closure (Stafford DAB) in May 2009
Bauer Radio – moved Q Radio from London to Birmingham and moved Heat Radio from London to
Manchester with redundancies in March 2009
Bauer Radio - removed 5 stations (Kerrang!, The Hits, Q, Heat, Smash Hits) from Sky platform in May
2009
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
57

58. Grant Goddard
Challenge #15 – DAB carriage costs are too high
radio specialist
Carriage on the Digital One national DAB multiplex costs ~£1m
per annum
There is only one non-simulcast service presently carried on
Digital One:
Planet Rock (674,000 listeners per week from potential 50
million)
There is sufficient spectrum for at least seven national services
The present commercial radio sector strategy is to consider
simulcasting two existing local analogue services on DAB
nationally – a London talk station and a London music station
There are no plans within the commercial radio sector to
launch further new national digital-only radio stations
Increasingly, DAB spectrum is being used to broadcast publicly
funded specialist radio projects (Traffic Radio, BFBS),
religious stations and stations targeting ethnic minorities
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
58

59. Grant Goddard
Location of radio listening
radio specialist
Hours listened to radio by location (% of total)
36% of radio
listening takes
place outside
the home
other 1%
in-car 20%
at w ork or
outdoors 16%
in-hom e 63%
[source: RAJAR taken from Ofcom, Communications Market Report, p.289, 14 August 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
59

60. Grant Goddard
Challenge #16 – minimal DAB listening out-of-home
radio specialist
DAB reception on the move is poor compared to FM
Present DAB coverage extends to population areas, but sometimes not the roads between them
There is not a single mobile phone on sale in the UK that includes DAB radio
In-car DAB radios are still rare:
Out of 2.4m new vehicles registered in the UK in 2007, only 20,000 buyers chose to install a DAB
radio
Out of 34m cars on the road in the UK, it is estimated that between 170,000 to 200,000 have DAB
radios fitted
Even if manufacturers agree to include DAB radios in new cars, the timescale is X to Y years to
implement on their production lines
There are very few models of personal audio player available in the UK that include DAB radio (more
include FM)
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
60

61. Grant Goddard
Challenge #17 – legacy DAB receivers cannot be upgraded
radio specialist
The overwhelming majority of the 9m DAB radio receivers sold in the UK to date:
have no facility to upgrade their software
cannot be updated for new audio codecs
will not receive DAB stations if used in European countries using other DAB standards
cannot receive stations encoded with ‘DAB+’
This makes it almost impossible for the UK transmission system to be upgraded from ‘DAB’ to ‘DAB+’:
until the legacy DAB receivers’ lifecycle has expired
until all broadcasters can switch simultaneously from ‘DAB’ to ‘DAB+’ (simulcasting is too expensive
and uses too much spectrum)
This keeps the UK wedded to a DAB standard (mp2) that was invented in the 1980s and which no longer
represents efficient use of spectrum
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
61

62. Grant Goddard
Listening to BBC digital stations
% share of listening on each platform
3
2.5
radio specialist
Digital TV and the
internet are the most
significant platforms
for BBC digital
stations
2.6
2.5
2.3
2.1
2.0
2
1.8
1.1
1
0.9
0.8
0.8
0.8
0
1Xtra
5 Live Sports Extra
DAB
digital TV
6 Music
BBC 7
internet
[source: RAJAR 2007 Q2 taken from presentation by Andrew Caspari, BBC, 14 June 2007]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
62

63. Grant Goddard
DAB ownership
radio specialist
DAB awareness and ownership (% of each demographic)
The average age of a
DAB receiver owner
is 46 years
[source: RAJAR 2008 Q4, taken from presentation ‘UK digital radio overview’ by John Ousby, BBC, 19 March 2009]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
63

64. Grant Goddard
DAB ownership
radio specialist
Age profile of DAB receiver ownership (% of total owners)
27%
to Oct 07
24%
20%
13%
Only 18% of DAB
receiver owners are
aged under 35
9%
5%
0%
14 and
under
15-24
25-34
35-44
45-54
55-64
65+
[source: TGI & DRDB online survey, October 2007 taken from presentation by Paul Brown, DRDB, ‘The success of DAB in Europe is hugely important to DRDB and DAB Digital Radio in the
UK’, 2008]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
64

65. Grant Goddard
Challenge #18 – DAB radio has limited appeal to young people
radio specialist
DAB radio receivers are mostly traditional standalone radios with:
Appeal to older demographics as ‘kitchen’ radios
Limited appeal to younger demographics who desire compact, portable devices
Digital radio stations attract considerable amounts of listening via:
Internet platform
Digital TV platform
Young people are more likely to access digital radio content via:
Time-shifted ‘listen again’
Downloaded ‘podcasts’
Online simulcasts
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
65

66. Grant Goddard
Challenge #19 – DAB/FM combo receivers are the norm
radio specialist
Number of electronics models incorporating radio available from UK retailers
(excludes in-car and mobile phone hardware)
radio platforms
FM and/or AM
FM + DAB
DAB
DAB + FM + internet
DAB + internet
internet
internet + FM
Argos
113
56
2
4
1
3
1
Currys
48
55
9
4
0
2
2
Comet
59
43
10
2
0
0
2
Most DAB radios
sold now in the
UK are in fact
DAB/FM
combination
models
Issues:
Are RAJAR respondents using DAB/FM combo receivers certain whether they are listening to a station
via the FM or DAB platform?
How can FM ever be switched off when so many new DAB/FM combo receivers are being sold?
[source: Grant Goddard, company retail websites, 10 Feb 2009]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
66

67. Grant Goddard
The cost of DAB to the UK radio industry
radio specialist
Estimated cumulative expenditure on DAB (£m)
600
Estimated cost
of DAB to date
in UK is more
than £500m
500
400
300
200
100
0
1999
2000
2001
2002
2003
comm ercial radio DAB cum ulative expenditure (est. £m )
2004
2005
2006
2007
2008
BBC cum ulative DAB expenditure (est. £m )
[source: Grant Goddard estimates]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
67

68. Grant Goddard
The profitability of UK commercial radio
Ad revenue
radio specialist
Share of total ad spend 2004-2008
£0.7B
7.0
7.0%
A recent internal report commissioned by RadioCentre, the commercial radio trade body, found that:
“current estimates suggest the [commercial radio] industry as a whole is now loss-making.”
0.6
6.5
£0.64B
It noted that:
£0.61B
“the larger [radio] groups are marginally profitable£0.60B
before interest payments are taken into
0.6
6.0
account (these payments are very substantial in some instances); all of the smaller groups are either
£0.58B
£0.58B
marginally profitable or loss-making.”
M
AT
Q
3
20
08
20
07
5.0
20
06
0.5
20
05
5.5
20
04
0.6
[source: Ingenious Consulting. Commercial Radio: The Drive to Digital, January 2009, p.2.]
]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
68

69. Grant Goddard
Challenge #20 – DAB investment is proving too costly
radio specialist
Ten years of simulcasting (FM + DAB; AM + DAB) has diverted shrinking operating profits from analogue
radio into a platform (DAB) that has yet to show any financial return
Commercial radio estimates that the cost of ‘fixing’ the technical deficiencies of the commercial DAB
platform will be an additional £10m to £15m per annum
The BBC estimates the cost of DAB transmitter rollout in order to equal the current FM coverage:
Presently covers 86% of the population 96 transmitters, costing £6m per annum
To cover 99% of the population requires 1000 transmitters, costing £40m per annum
The regulatory regime requires most local commercial radio stations to simulcast on DAB (or lose their
licence)
Radioscape, a UK company launched in 1996 to manufacture DAB modules was placed into Administration
on 30 April 2009 citing:
“severe financial constraints on the Consumer [DAB] Receivers business resulting from both pricing
pressure and volume decline”.
[source: Ingenious Consulting, ‘Commercial Radio: The Drive to Digital’, January 2009, p.21]
]
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
69

70. Grant Goddard
Challenge #21 – Digital switchover is unlikely to happen
radio specialist
After a year of deliberations, the government Digital Radio Working Group decided in December 2008
that digital switchover for radio in the UK should take place in approximately 2017
Ten years of simulcasting on FM and DAB (and AM and DAB) is unlikely to end, continuing to absorb huge
expenditure
The BBC is unlikely to unilaterally discontinue FM/AM broadcasts because its Charter requires it to offer
universal coverage of its broadcast services in return for public funding by the Licence Fee
Commercial radio is unlikely to unilaterally discontinue FM/AM broadcasts because the resulting fall in
listening would directly impact revenues
There is insufficient spectrum (and the cost is too great) for many small local commercial FM stations to
switch to DAB
The comparative cost per listener is considerably higher for DAB than for FM/AM, offering no incentive
for station owners to migrate
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
70

71. Grant Goddard
Endpiece – DAB: ‘build it and they will come’
radio specialist
“The mistake [with DAB in the UK] by broadcasters was in not understanding
that ‘build it and they will come’ is no longer practical in this integrated
technological age”.
Quentin Howard, President, World DMB Forum, ‘DAB Digital Radio – A Recipe For Success’, EBU Technical
Review, July 2005
“The opportunity to simultaneously control the means of digital distribution,
and the gateway to it, proved irresistible. After a ‘land grab’, the [UK] radio
groups filled the digital spectrum with their own digital stations, expecting
listeners to flock to channels that initially offered little more than back-toback music. ‘Build it and they will come’ was the maxim. But the crowds
never came, and now the radio companies are gatekeepers to fields that are
almost barren”.
Grant Goddard, ‘Digital Radio Switchover’ analyst report, October 2007
Digital Radio In The UK: Progress & Challenges © Grant Goddard: June 2009
71

72. Grant Goddard
Endpiece – DAB: protectionism
radio specialist
“Whereas the internet radio platform opens up the UK radio market to
competition from unregulated content produced in all parts of the globe, DAB
ensures that we listen to carefully regulated content produced in the UK, and
that we listen on uniquely expensive DAB radios made by UK manufacturers
for our relatively small UK market”.
Grant Goddard, ‘In The Ditch With DAB Radio’, The Register, 29 December 2008
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73. Grant Goddard
radio specialist
contact Grant Goddard:
www.grantgoddard.co.uk
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