[cma-l] 24 reasons why DAB might not make it

[LOL GELLOR]

Quite right Bill I am considering spreading the word - through the medium of popular music - perhaps the Community Media Allstars - "We've got 24 problems but the DAB should not be 1".
OK it was just an idea!

Lol

--- On Tue, 13/4/10, Bill Best <bill.best at commedia.org.uk> wrote:

From: Bill Best <bill.best at commedia.org.uk>
Subject: [cma-l] 24 reasons why DAB might not make it
To: cma-l at commedia.org.uk, comradio-l at commedia.org.uk
Date: Tuesday, 13 April, 2010, 16:53

Jack Schofield, The Guardian, Monday 12th April:

http://www.guardian.co.uk/technology/blog/2010/apr/12/dab-radio-problems

\\\

In theory, the Digital Economy Act has put the UK on track to switch
mainstream radio from FM to DAB, but that does not mean the problems
have gone away…

Now that the Digital Economy Act has been adopted, the UK is on track
to switch its mainstream radio stations from FM to the DAB digital
radio system developed about 20 years ago and, technically, already
obsolete. (DAB has been overtaken by DAB+, which is being adopted in
those parts of the world that don't feel they are already so far into
a DAB roll-out that they can't back out.)

The target date for a switchover announcement is 2015, which seems
unlikely. In a blog post, radio expert Grant Goddard says: "The
reasons that digital radio migration/switchover will never happen are
no different now than they were before the Digital Economy Bill was
passed into law. For the consumer, who seems increasingly unconvinced
about the merits of DAB radio, this legislation changes nothing at
all. Those reasons, as itemised in my written submission to the House
of Lords in January 2010, are…"

You can download Goddard's submission as a PDF from parliament.uk
(http://www.parliament.uk/documents/upload/GGoddard.pdf), but his list
of 24 reasons is reproduced below, with his permission. It shows the
scope of the problem. You're welcome to add further points in
comments.

1. Existing FM radio coverage is robust with close to universal coverage

• 50 years' development and investment has resulted in FM providing
robust radio coverage to 98.5% of the UK population

2. No alternative usage is proposed for FM or AM radio spectrum

• Ofcom has proposed no alternate purpose for vacated spectrum

• There is no proposed spectrum auction to benefit the Treasury

3. FM/AM radio already provides substantial consumer choice

• Unlike analogue television, consumers are already offered a wide
choice of content on analogue radio

• 14 analogue radio stations are available to the average UK consumer
(29 stations in London), according to Ofcom research

4. FM is a cheaper transmission system for small, local radio stations

• FM is a cheaper, more efficient broadcast technology for small,
local radio stations than DAB

• A single FM transmitter can serve a coverage area of 10 to 30 miles radius

5. Consumers are very satisfied with their existing choice of radio

• 91% of UK consumers are satisfied with the choice of radio stations
in their area, according to Ofcom research

• 69% of UK consumers only listen to one or two different radio
stations in an average week, according to Ofcom research

6. Sales of radio receivers are in overall decline in the UK

• Consumer sales of traditional radio receivers are in long-term
decline in the UK, according to GfK research

• Consumers are increasingly purchasing integrated media devices (mp3
players, mobile phones, SatNav) that include radio reception

7. 'FM' is the global standard for radio in mobile devices

• FM radio is the standard broadcast receiver in the global mobile phone market

• Not one mobile phone is on sale in the UK that incorporates DAB radio

8. The large volume of analogue radio receivers in UK households will
not be quickly replaced

• Most households have one analogue television to replace, whereas the
average household has more than 5 analogue radios

• The natural replacement cycle for a radio receiver is more than ten years

9. Lack of consumer awareness of DAB radio

• Ofcom said the results of its market research "highlights the
continued lack of awareness among consumers of ways of accessing
digital radio"

10. Low consumer interest in purchasing DAB radio receivers

• Only 16% of consumers intend to purchase a DAB radio in the next 12
months, according to Ofcom research

• 78% of radio receivers purchased by consumers in the UK (8m units
per annum) are analogue (FM/AM) and do not include DAB, according to
GfK data

11. Sales volumes of DAB radio receivers are in decline

• UK sales volumes of DAB radios have declined year-on-year in three
consecutive quarters in 2008/9, according to GfK data

12. DAB radio offers poorer quality reception than FM radio

• The DAB transmission network was optimised to be received in-car,
rather than in-buildings

• Consumer DAB reception remains poor in urban areas, in offices, in
houses and in basements, compared to FM

13. No common geographical coverage delivered by DAB multiplexes

• Consumers may receive only some DAB radio stations, because
geographical coverage varies by multiplex owner

14. Increased content choice for consumers is largely illusory

• The majority of content available on DAB radio duplicates stations
already available on analogue radio

15. Digital radio content is not proving attractive to consumers

• Only 5% of commercial radio listening is to digital-only radio
stations, according to RAJAR research

• 74% of commercial radio listening on digital platforms is to
existing analogue radio stations, according to RAJAR research

16. Consumer choice of exclusive digital radio content is shrinking

• The majority of national commercial digital radio stations have
closed due to lack of listening and low revenues

• After ten years of DAB in the UK, no digital radio station yet
generates an operating profit

17. Minimal DAB radio listening out-of-home

• Most DAB radio listening is in-home, and DAB is not impacting the
37% of radio listening out-of-home

• Less than 1% of cars have DAB radios fitted, according to DRWG data

18. DAB radio has limited appeal to young people

• Only 18% of DAB radio receiver owners are under the age of 35,
according to DRDB data

• DAB take-up in the youth market is essential to foster usage and loyalty

19. DAB multiplex roll-out timetable has been delayed

• New DAB local multiplexes licensed by Ofcom between 2007 and 2009
have yet to launch

• DAB launch delays undermine consumer confidence

20. Legacy DAB receivers cannot be upgraded

• Almost none of the 10m DAB radio receivers sold in the UK can be
upgraded to the newer DAB+ transmission standard

• Neither can UK receivers be used to receive the digital radio
systems implemented in other European countries (notably France)

21. DAB/FM combination radio receivers have become the norm

• 95% of DAB radio receivers on sale in the UK also incorporate FM radio

• 9m FM radios are added annually to the UK consumer stock (plus
millions of FM radios in mobile devices), compared to 2m DAB radios,
according to GfK data

22. DAB carriage costs are too high

• Carriage costs of the DAB platform remain too costly for content
owners to offer new, commercially viable radio services, compared to
FM

• Unused capacity exits on DAB multiplexes, narrowing consumer choice

23. DAB investment is proving too costly for the radio industry

• The UK radio industry is estimated to have spent more than £700m on
DAB transmission costs and content in the last ten years

• The UK commercial radio sector is no longer profitable, partly as a
result of having diverted its operating profits to DAB

24. DAB is not a globally implemented standard

• DAB is not the digital radio transmission standard used in the most
commercially significant global markets (notably the United States)

BB
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