DAB radio & switchover: the British public speaks its mind

Q. Who will decide if/when digital radio switchover ever happens? The public. Who says so?

In July 2009, BBC ‘head of radio’ Tim Davie had
said:
“… the idea that we would move to formally engaging [digital radio] switchover without talking to listeners, getting listener satisfaction numbers, all the various things we do, would be not our plan in any way.”

In August 2009, BBC Trust chairman Sir Michael Lyons had
said:
“It is an extraordinarily ambitious suggestion, as colleagues have referred to, that by 2015 we will all be ready for [digital radio switchover]. So you can’t move faster than the British public want you to move on any issue.”

In July 2010, Culture Minister Ed Vaizey had
said:
“If, and it is a big if, the consumer is ready, we will support a 2015 switchover date. But, as I have already said, it is the consumer, through their listening habits and purchasing decisions, who will ultimately determine the case for switchover.”

Q. What is the BBC’s strategy for digital radio switchover?

In July 2010, the BBC Trust
told the BBC Executive that it:
“should draw up an overarching strategy for digital radio.”

Q. What is the public’s opinion of DAB radio?

Research published this week by the BBC Trust for the Strategy Review collated opinions voiced in 20 focus groups held in September 2010 in ten locations. Below are excerpts that relate consumers’ experiences with DAB radio and the BBC’s digital radio stations. They make sobering reading ….

Key Findings

The availability of radio services on the move (especially in-car and for those working outdoors) was felt to be of continued high importance. People expect radio to stay portable – at least the range of stations they currently have available on analogue, including local stations which are critically important in-car for their local travel information. In this context especially there was strong resistance to the idea of analogue radio switch-off, and considerable scepticism as to whether or not this will actually happen.

4.2 The range of services provided by the BBC

“Rather than spending money on Radio 57 or whatever, invest more money on the core main programmes.”
35-44, Male, C2DE, Crowthorne

4.3 Attitudes to DAB radio

Many of the distribution issues we set out to discuss in the groups related to the availability of DAB (or of certain stations on DAB). However, what became clear in the groups was that, although we did speak to some real fans of DAB, most licence fee payers we spoke to do not yet view DAB as an essential service in the way they do Freeview, for example. This certainly coloured their reaction to some of the trade-offs they encountered between funding distribution and content.

“I think they should improve the Freeview signal before they start worrying about the radio. Radio is fine.”
18-24, Female, ABC1, Inverness

These attitudes were coloured by a number of factors:
· Limited awareness of what DAB is and what it offers
· Limited awareness and uptake of the BBC’s digital-only radio stations (most digital radio listeners within the groups were using digital radio as a means of listening to stations they would otherwise be able to receive via analogue)
· Most DAB set owners we spoke to had received them as presents – they hadn’t necessarily had a compelling reason to buy one
· Many trialists of DAB in the groups had been frustrated with their experiences – e.g. intermittent/non-existent signals, limited range of their favourite stations available
· Some doubts as to whether DAB technology will be around in the long term

“I did have a DAB radio but I didn’t notice it being any better”
18-24, Female, C2DE, Cheddar

“I find DAB radio can be quite troublesome although that’s not BBC specific. The signal seems to interrupt quite regularly”
45-59, Female, ABC1, Crowthorne

“I don’t find that DAB radio is achieving a lot for me. It’s supposed to be better quality, but because of the size of the set I’ve got, it doesn’t really make any difference.”
55+, C2DE, Derby

“Aren’t we the only ones to use DAB? Europe uses a different system and America too – I don’t see the point of it now so many people have the internet as it’s as cheap to get an internet radio as it is a DAB radio and you can listen to far more stations on it”
25-44, ABC1, Fort William

“You can’t get much [on DAB in the car] – no Radio 1, no Radio 2, no Radio 5 live, no Radio 4, you just get a message saying ‘no reception’. You need to be on top of a mountain to receive it. It’s a complete waste of time.”
55+, C2DE, Derby

There was real confusion and in some cases concern about the idea of a digital switchover for radio, and some debate as to whether the mooted date of 2015 was realistic or not. Certainly in the current circumstances there would be much resistance among participants in these groups to the idea of switching off analogue radio, especially those for whom in-car listening was an important (or the dominant) part of their radio listening.

“They can’t switch off analogue radio – people are really not going to be happy with that”
18-24, Male, C2DE, Belfast

“The idea of making all radios into digital is just ridiculous… It’s not persuading you – it’s just pushing you”
18-24, Female, C2DE, Cheddar

“What about all the car radios – surely we’re not going to replace all those?”
25-34, Female, ABC1, Caernarfon

“Are you telling me my radios will be totally obsolete if they do this? That’s outrageous”
60+, Female, ABC1, Newry

5.1 Availability of services

“I’m going to sound old fashioned but the core product is BBC One, BBC Two and Radios 1 to 5”
35-44, Male, C2DE, Crowthorne

The digital-only radio stations were considered of significantly lesser importance (awareness of these was limited, and listening to them was quite sporadic through the sample). In fact in several groups it was suggested that one solution to the complex problems of making access to digital radio more easily available to people would be to get rid of the stations altogether!

“I don’t think anyone really cares about the digital channels and they won’t until all the non-digital signals have been turned off”
25-34, Male, C2DE, Newry

“It’s limited because digital radio hasn’t really taken off.. they’re talking about changing over in 2015… if it’s half the hassle of the digital [TV] switchover, it will be a dead loss”
45-64, ABC1, Merthyr Tydfil

6.1 Availability of platform choice

There was also a general consensus across the groups that, although the convergence of platforms has started to offer useful additional means of consuming ‘broadcast’ services, as a minimum the BBC’s television services should be available via a television set, and the main radio services via a radio set.

“It’s good enough to be able to get main stations on analogue radio and the others through the TV – I don’t think they need to be able to get all these radio stations on radio only.”
25-34, Female, ABC1, Caernarfon

Lack of availability of BBC Radio Derby on DAB

Local radio was considered to fulfil an important community service, particularly by those in the older group, who remarked that there had been a decline in the range of local media available (local newspapers closing, and the ITV regional television coverage now being focused on Birmingham).

As such, BBC Radio Derby was felt to be important to giving the city a sense of identity. Sports coverage was an integral part of this (for the men especially), and Derby-specific coverage was felt to help ensure that they don’t live in the shadow of nearby Nottingham. Frequently, they felt, Derby is treated like a poor relation next to Nottingham; the availability of BBC Radio Nottingham (but not BBC Radio Derby) on DAB was yet another manifestation of this, they believed.

A number of them had bought DAB radio specifically with the intention of listening to BBC Radio Derby and had thus been extremely disappointed not to be able to find it.

“I asked for a DAB set for Christmas, specifically so I would be able to listen to Radio Derby, nice and clear, around the house – not realising that you can’t get Radio Derby on DAB at all… I only found out when I pressed the ‘auto-scan’ button… Leicester, Nottingham, loud and clear, but no Derby… I felt really let down.”
55+, C2DE, Derby

“My wife bought me one for Christmas. It wouldn’t work next to the bed – we thought it was broken. We ended up just using it as an alarm clock. It never occurred to me that it might not work depending on where you live.”
40-54, ABC1, Derby

There was little awareness or understanding of the reasons why this is the case (the lack of a local commercial multiplex operator), so some participants were upset that the BBC appeared to be viewing Derby as a lower priority than neighbouring areas. Others had assumed that this was a technical issue (reception problems), rather than the station not being broadcast on DAB. (There was some awareness of a promised launch date of July 2010, but they claimed that this date had been and gone with no further update on what was happening.)

“What makes me angry is that Radio Derby comes out as one of the best local news stations in the country, but it’s not available on the latest technology.”
55+, C2DE, Derby

“If you can get the others, you’d just assume that you can get Radio Derby as well. Whose decision is it not to have it?”
40-54, ABC1, Derby

Some of the participants had experimented with some of the BBC’s digital-only stations on DAB. Radio 7 in particular was well-liked by some of the participants in the older group, and some of the younger men had used 5 live Sports Extra, but their overall impression with DAB was one of disappointment. The absence of BBC Radio Derby was a significant contributor to this, along with poor reception quality.

“The way they sell DAB it was going to be the be-all-and-end-all of radio listening, but it’s just been a great disappointment.”
55+, C2DE, Derby

Although many were disappointed with DAB in general, the absence of BBC Radio Derby from DAB was not felt to be a major problem for them as long as the station remains available on analogue (many were listening out of home in any case – traffic reports in the car, or match commentary when out and about at the weekend).

However, in line with most other groups, these participants would be extremely upset if the analogue signal were switched off and BBC Derby only then available online.

Radio Foyle on DAB

Many participants felt that they get a better reception with DAB than on analogue (in the home). Many of the older group in particular claimed to have experienced reception problems with Radio Foyle in particular on analogue, especially in bad weather. However it was not a case of a having had a desperate need to get a digital radio because they got no analogue signal previously, more that the sound was not always great and they sometimes experienced reception problems.

“DAB radio… I got it out of curiosity… everybody said it was better than analogue… the analogue sometimes you can’t tune in because you have got high pressure or rain or wind. The DAB you can pick it up.”
50+, ABC1, Londonderry

Most assumed that Radio Foyle was already on DAB, as they insisted they were listening to it on their DAB radios – it is not entirely clear whether this is confusion between DAB and analogue signals on the same set, or they have been experiencing the ‘dynamuxing’ test.

“No I didn’t know that because when I press it comes up on my DAB radio so I thought it was. I just took it that all the stations I can pick up on my DAB are digital.”
50+, ABC1, Londonderry

“Foyle on an ordinary radio is still poor I think. I am right in Derry. On the digital they do both seem clear to me.”
30-49, C2DE, Londonderry

When it was explained to them that ‘dynamuxing’ the two stations would result in two mono (as opposed to one stereo) stations, reactions were somewhat mixed. Although some participants were adamant that going from stereo to mono would compromise their listening experience, particularly when listening to music, others admitted that they were not sure what mono sound is, and probably wouldn’t be able to tell the difference! It is also worth noting that, from the description they gave of their DAB sets, the majority of participants in the groups were listening to DAB on mono-only sets anyway.

On balance, all participants would prefer both stations to be available, even if this meant mono-only broadcasting. The younger group, who were more loyal Foyle listeners, were happy enough with the availability of Foyle on analogue only, but would be concerned by the prospect of an analogue radio switch-off, in which case continued availability of Foyle would be vital.

Poor DAB coverage (in Fort William)

Most of the participants in the groups are used to struggling with coverage issues. Lack of DAB coverage is just the latest manifestation of issues they have experienced historically with analogue television and radio signals.

“I live over in a rural area completely surrounded by hills so there is no radio reception at all so all our radio listening is done through the TV box or the internet”
25-44, ABC1, Fort William

“I tried a DAB radio but it wasn’t very good – it would go for a bit then completely cut out and we have no FM signal at all out in the glens where I am”
45-64, C2DE, Fort William

As a result, satellite (by which most really meant Sky, as awareness of Freesat was very low) had become the default standard for most to receive television, especially for those outside the main town of Fort William itself, and many were increasingly using the good broadband services that are now available to them as a more reliable means of accessing media content.

“We’ve been up there seven years now and when we first moved we had a reasonable medium wave signal for Radio Scotland but then that tailed off but we get no FM and there was no TV until satellite came on stream… We had very young children at the time and they were happy just watching DVDs… There are about 250 people in our village and many of the surrounding communities have the same issues… There used to be a mast for the TV but that was turned off and now everyone has a satellite dish… satellite has been a godsend for us – especially for the radio – but we are now even more likely to be listening online. Our broadband is excellent – 8Meg – and now we even have wi-fi radios in the house.”
25-44, ABC1, Fort William

Some participants in the groups had been drawn to DAB, but left frustrated by the experience.

“I won a DAB in a Radio Scotland competition and I was really excited about being able to listen to 6 Music but there was absolutely no signal so I gave it to my dad down in Glasgow and he’s really happy with it”
25-44, ABC1, Fort William

Limited availability of Radio Wales and Radio Cymru on DAB

In common with many of the research locations across the country, issues surrounding the lack of availability of Radio Wales and Radio Cymru were caught up in other issues around the quality of DAB signal in general.

While some participants (for example, one lived near a mast) were experiencing extremely good reception via digital, others were having problems based on their location and even the prevailing weather conditions.

“If you get a rain cloud overhead, or worse than that the snow, you might as well chuck it in the bin.”
45-64, ABC1, Merthyr Tydfil

“People who live in the dips – they can’t get any kind of digital radio reception at all… they’ve got to do something to help them.”
25-44, C2DE, Merthyr Tydfil

This frustration was a manifestation of a broader dissatisfaction with digital reception in general. Many were experiencing problems with their television reception (especially, but not exclusively through Freeview). Lack of a reliable television signal was seen by most as a more significant problem than lack of a reliable radio signal.

“They said the digital signal was going to be better – that you’d be able to get S4C and Channel 4 – but it’s actually worse.”
25-44, C2DE, Merthyr Tydfil

“Wales has always got problems, we get worse service with the digital, the broadband, the post… We pay the same, we have a right to the same service.”
25-44, C2DE, Merthyr Tydfil

As a result many in the groups considered themselves to be disgruntled licence fee payers.

Most could understand that there are diminishing returns in terms of building out the transmitter network, and that those in the more mountainous parts of central Wales (for example) might not be able to have access to the same choices as people in more densely populated areas. However, in these groups the argument was most strongly made that people in these areas should have some kind of discount from their licence fee in recognition of the reduced service they receive.

“They [the BBC] can’t please everyone, they’re doing the best they can, but If people can’t get the service, why should they pay the full money.”
45-64, ABC1, Merthyr Tydfil

“You shouldn’t be penalised for living in an area where they can’t provide these services, because we have to pay extra to get Sky, for example, to be able to receive it.”
45-64, ABC1, Merthyr Tydfil

DENMARK: "DAB radio: we do not use it here!"


‘DAB radio: we do not use it here!’ said the headline in daily newspaper Ekstra Bladet last month, noting that the proposed digital radio switchover in Denmark has been postponed indefinitely.

Danish state radio, Danmarks Radio [DR], confirmed that it will half its number of DAB radio channels, reducing its total radio services from 23 to between 10 and 12 by next year. In April 2010, the government had insisted that state radio should, in future, focus on quality rather than quantity [see earlier blog]. Despite having launched its DAB channels in 2002, in aggregate they achieve less than a 10% share of radio listening in Denmark.

Mikael Kamber, media director of Danmarks Radio, commented: “It was a great idea when we introduced so many DAB stations at that time. Then, they were a public service channel assignment. DR helped launch digital listening. But I will say that, today, we can state: mission completed.”

Kamber suggested that, with the growth of online music players such as Spotify and TDC Play, consumers now had lots of other options to find exactly the music that suits their tastes. He explained: “Anyone listening can go online and find exactly what interests him. If you want to hear saxophone music, then there are plenty of opportunities to find it. You can even find saxophone music from the New York school on the web “.

One of the factors limiting DAB usage has been listener inertia. In 2009, nine out of ten Danes listened to only one or two radio stations each week. “New figures show that only 6% of listeners to [youth station] P3 change channel,”
said Danmarks Radio media researcher Dennis Christensen. “The remainder listen to P3 whenever they turn on their radios.”

GERMANY: DAB "is not financially viable", internet radio on the rise

“DAB or DAB+, in its current form, is not financially viable for commercial radio stations,” said Stefan Schmitt, managing director of RTL’s Berlin radio stations, in Promedia magazine. He pointed out that user numbers were increasing steadily for the internet, wireless via PC, laptops and smartphones. “Under these circumstances, I do not know where exactly the added value is for DAB,” he said.

Schmitt argued that the whole radio business model is still based on FM broadcasting and will remain so “for the foreseeable future.” He believes that the best alternative to broadcasting is currently ‘online radio’: “We are achieving market penetration [with online] much more rapidly than with DAB, which is not market driven.”

In Germany, a dispute continues to rage over the funding of DAB radio. The CDU party’s media expert Thomas Jarzombek has argued that “more than €200m of public funds were wasted on DAB” and that “these resources should be used for technologies that are well received by the public.”

Negotiations have been proceeding for months over a further €42m of public funds earmarked to be released to re-launch DAB radio nationally using the DAB+ codec, following the failure of the earlier launch using the older DAB codec. Initially, the contracts between transmission provider Media Broadcast and the station owners were meant to have been signed on 22 July 2010. Then, the subsequent 22 September 2010 deadline for negotiations passed without agreement, as a result of commercial radio’s unwillingness to commit financially to broadcasting on DAB+. This deadline has been extended again to 15 December, which experts in Germany
now suspect is “the last chance for DAB+.”

At its annual conference on 12 November 2010, the German association of commercial broadcasters, VPRT, reiterated its opposition to the government forcing the introduction of DAB+ radio upon the German market. Outgoing VPRT vice president Hans-Dieter Hillmoth
said: “The current draft of the new Federal Telecommunications Act ignores the existing interests of commercial radio in the functioning infrastructure, whose core business is FM radio.”

New
research in Germany by the Frankfurt Link Market & Social Research Institute has demonstrated the increasing popularity of listening to radio via the internet platform. Consumers’ preference for radio delivered to a PC or laptop increased 84% year-on-year, and is now exceeded only by traditional radio hardware – car radios, kitchen radios and stereo systems. Amongst 14-29 year olds, radio via a PC/laptop scored second only to the car radio.

The question put to respondents was: “Radio can now be received on many different types of appliances. Please indicate which appliances you particularly appreciate, regardless of duration of usage.”

Which? advises: two of "seven Christmas gifts to avoid" are DAB radios

A reader comment appended to an online newspaper story this week about the decision of some commercial radio station owners to launch an anti-DAB radio marketing campaign said jokingly:

“Now all that’s needed before Christmas is for ‘Which’ to warn consumers of moral hazard in purchasing DAB radios.”

In fact, last month, ‘Which?’ [the UK consumer organisation] published its list of ‘Seven Christmas gifts to avoid’, two of which were DAB radio receivers. According to Which?:

“Argos Value Range CDAB8R digital radio and Roberts CRD-37 digital radio. Sound on both of these DAB radios is disappointingly poor.”

One of the enduring problems that has contributed to the slow take-up of DAB radio in the UK has been the consistently high retail prices of DAB radio receivers compared to analogue models. The radio industry has promised repeatedly over many years that the retail price of DAB radios would fall. It has, but nowhere near as much as hoped.


In order for unit prices to fall further, DAB radio receivers would have to be manufactured in production runs of millions in factories in China. Because the notion of DAB radio has failed to excite consumers during the last decade, not only in the UK but across Europe, those high production runs have not been achieved, so that the unit prices remain relatively high (average price paid in Q1 2010 was £91).

The problem with trying to produce low-price DAB radio receivers is that something inside them has to be sacrificed to keep costs down. Whereas the UK’s FM transmission system is sufficiently robust to permit usable reception of radio stations on even the cheapest hardware, the DAB transmission system is still not robust enough for usable reception in many circumstances. Additionally, with analogue radio, poor reception equals background noise and interference. Whereas, with DAB radio, poor reception equals no audio whatsoever.

This issue has long been known by the UK radio industry, but it proves a lot easier to ignore it than to fix it. So, the £55m marketing campaigns to persuade consumers to purchase DAB radios continue, despite the radio industry being aware that many consumers are likely to have unsatisfactory experiences with their newly purchased DAB radios.

At the Digital Radio Stakeholders Group meeting on 1 November 2010, UK manufacturer Roberts Radio admitted to pulling the plug on several receiver projects, including the industry’s long promised ‘£25 DAB radio’, because they could not meet Roberts’ minimum quality standards. Leslie Burrage, chief executive of Roberts Radio, told the meeting that there had been a 35 to 40% consumer return rate for its in-car DAB radio adapters.

Roberts Radio, unlike competitor Pure Digital, has been outspoken about its concerns that DAB radio is being marketed wrongly to UK consumers. Owen Watters, sales/marketing director of Roberts Radio, told the Digital Radio Stakeholders Group that he felt such campaigns should be advocating the merits of the DAB radio experience, rather than threatening consumers with the prospect of digital radio ‘switchover’.

The government’s Consumer Expert Group [CEG] raised these issues in its critical report on DAB for the government in September 2010. The government published its response to those criticisms on 30 November 2010:

Consumer Expert Group: “A clear and balanced public information campaign needs to be implemented through a trusted body, independent of the industry.”
Government: “If a decision is made to implement a digital radio switchover, we agree that a clear and balanced consumer information campaign will be important. A strategic plan for such a campaign is a central component of the Digital Radio Action Plan and we have invited representatives of the CEG to play a key role in advising on its development, for example through representation on the Market Preparation Group.”

Consumer Expert Group: “Emphasis should not be placed on driving down costs unless the sound quality and functionality of cheaper DAB sets are at least equal to analogue.”
Government: “There is clearly a balance to be struck between reducing the cost burden on the consumer of a digital radio switchover, and ensuring devices are of a good standard and offer additional benefits to the listener. We want to see a competitive market for receivers which offers consumers choice on innovation and price.”

These government responses seem to qualify as ‘non-answers’ of exactly the type we have become all too used to when difficult, but important, issues have been raised about DAB radio implementation in the UK. The prevailing philosophy justifying DAB seems to be: ‘ask me no questions, I tell you no lies.’

Roll up! Roll up! Enjoy the radio industry pantomime: 'DAB Radio'

The Ministerial Group for the government’s Digital Radio Action Plan will meet tomorrow. That meeting has all the hallmarks of a radio industry seasonal pantomime, with participants dressed up in their gladrags to play the appropriate parts. A select audience has been hand picked, though the ending of the story has still to be written.

Pantomime often brings out a sense of déjà vu, of having seen the same thing during previous Christmases. This winter’s DAB radio marketing campaign has that feeling. The 2010 slogan is:

“There’s a digital radio for everyone this Christmas”

While the UK radio industry’s Christmas campaign for 2009 had been:

“Struggling to think of the perfect gift for Christmas? There’s a digital radio for everyone …”

Pantomime often stages a sleight of hand, where you are not quite sure if what you saw was real or just some cheap trick. This winter’s DAB radio marketing campaign has that feeling. On 18 November 2010, the press story was:

“The commercial radio campaign [for DAB], which breaks on November 22, covers Global [Radio], Bauer [Radio], Guardian Media Group [Radio], Absolute [Radio], UTV [Radio] and many local commercial stations.”

But, within days, that story had changed so that the campaign:

“… will run across major commercial groups” and “commercial radio stations including Absolute, UTV, Orion.”

What happened to Global Radio, Bauer Radio and Guardian Media Group Radio? Well, every pantomime has its jesters who do their best to spoil the rest of the cast’s fun. This winter’s DAB radio marketing campaign has that feeling. Two days after the Christmas DAB campaign had started, The Telegraph broke the story that:

“Leading commercial radio groups [Global Radio, Guardian Media Group] have refused to promote DAB radio …”

Every pantomime has its bully, who picks on people mercilessly and prevents them from going to the ball. This winter’s DAB shenanigans have that feeling. Commercial radio trade body RadioCentre offered its story as to why its members, Global Radio and Guardian Media Group, had pulled out of the marketing campaign:

“Commercial radio operators are currently in discussions with government about the funding of local DAB coverage. Until those discussions are resolved, we understand that some stations felt it would be inappropriate to run the digital radio Christmas campaign.”

Er, isn’t that blackmail rather than negotiation? Is it not transparent that, if you really cared about making DAB radio a success, you would think twice about cutting off your nose to spite your face by deliberately NOT promoting the very DAB platform that you have been attempting to palm off on the public for the last decade? In essence, you are trying to convince consumers that you care so much about your backward 10-year old offspring that you intend to starve it to death. In pantomime, such a tragedy might give the audience a laugh. In reality, it would be time for Social Services to intervene. It cannot be good PR for the commercial radio industry to be so convincingly playing the part of The Wicked Witch of The West.

RadioCentre’s lack of parenting skills has been evident in recent weeks:
· Its children had refused to attend the government’s Digital Radio Stakeholders Group meeting on 1 November [see earlier blog]
· Last Friday, its children refused to participate in a Westminster conference on ‘the future of UK digital radio’ organised for 7 December, resulting in the event’s postponement until April 2011.

And here is what the school notes said to explain these absences:
· “Following the announcement of the [BBC Licence Fee] settlement, RadioCentre has been in discussions with Government about the funding of local DAB coverage. As these discussions are ongoing, RadioCentre members felt it would be inappropriate to attend the Digital Radio Stakeholder meeting.” [Campaign]
· “Sensitivity of current negotiations on the future of digital radio” for the conference pull-out.

The evident paradox in this radio pantomime is that:
· The radio industry is spending £55m between now and 2015 to try and convince the public that DAB radio is the best thing since the cat’s whisker [see earlier blog]
· The radio industry big boys will not stand up in front of other stakeholders in the media sector, or in front of a conference, and explain what, why or how they are pursuing (or not really pursuing at all) the government’s DAB dreams
· Commercial radio has been demanding for several years that the BBC pays for fixing the deficiencies in commercial radio’s own DAB local transmission system. (Yes, this is the same BBC that RadioCentre has lambasted for years about its interference in commercial activities. Yes, these are the same commercial radio big boys who invested heavily in DAB in the 1990s in the hope of making profits for their shareholders.)

Pantomime is pure theatre, and tomorrow’s meeting will doubtless provide much entertainment for all involved. The only unresolved issue is how it will all end. Will the government Minister play the part of Scrooge, insisting that the commercial radio big boys should work longer hours for their living and must pay for improvements to their DAB system themselves? Or will the government play the wicked stepmother, compromising the BBC’s independence by forcing it to pay for an expensive sticky plaster to fix a commercial media sector DAB problem that has been all of its own making?

My feeling is that, in these austere times, it would be opening up another big black hole for public money to now finance such massive deficiency issues with DAB radio that could and should have been anticipated and fixed a decade ago. It is simply too expensive to commit unknown quantities of cash to transform the ugly DAB frog into a handsome prince who might never be fit enough to rival FM radio. Anyway, the BBC has already made a public commitment to not spend any more Licence Fee money on yet another ‘makeover’ show. In which case, our Cinderella DAB may not be going to the ball.

Or is all of the above just a pantomine within a farce? Is all this play-acting merely intended to allow commercial radio to walk away from DAB altogether, pointing the finger of blame elsewhere (and smug that the Classic FM automatic licence renewal is nearly almost within its grasp)?

BBC head of radio: "I'm not going to give you a date" for digital radio switchover

Feedback, BBC Radio 4, 26 November 2010 @ 1330 [excerpt]

Roger Bolton, interviewer [RB]
Tim Davie, director of BBC audio & music [TD]

RB: Tim Davie is the BBC’s director of audio and music. I asked him if the campaign to get decent DAB coverage in 90% of the country by 2015 is still realistic.

TD: I think 2015, and I’ve said it before, is highly ambitious. The BBC would not want to see any [digital radio] switchover unless you had clear evidence of mass listening to digital, and good penetration of digital devices. I think the idea that we force a lot of listeners to a situation where they have to get rid of FM devices and not have something to listen to on digital is clearly not in the interests of the head of BBC radio [laughs].

RB: When would you say, without doubt, we will have digital switchover …

TD: [interrupts] I’m not going to give you a date. I’m not going to give you a date. I’m …

RB: … not ten years, not fifteen years, not twenty years?

TD: I think there will be a switchover. I think it’s been extremely helpful to put a stake in the ground and say ‘could we get to 2015?’ I say that’s ambitious. I quite like ambitious targets. We’ll see how we go.

RB: And there’s concern about coverage. What about quality? Because there are still a lot of our listeners who are not persuaded that the quality [of DAB] is superior, in that digital is actually sometimes worse than FM.

TD: In terms of the areas that are covered by a digital signal, I would be the first to say that we’re not there yet. So, you know, I know some of the listeners out there will say ‘well, I just can’t get a good signal’. Let’s be clear. Before the radio industry would say to people ‘we’re moving away from FM’, we must have full coverage of a DAB signal …

RB: And yet, despite this, you are running a campaign, or rather supporting a campaign, which says ‘digital radio: more to love’ [and] pushing it hard. You’re pushing something …

TD: [interrupts] Absolutely.

RB: … which you have reservations about.
TD: When you say ‘reservations’, I don’t think it’s quite the right word. I’m saying we’re building out coverage. I would not endorse a switchover unless coverage were as good as FM. At this point, I think it is utterly appropriate for me, as the BBC head of radio, to say: those people in areas of coverage – and it is important, by the way, when people buy radios, they check that they are in an area of coverage, we absolutely say that repeatedly – but, if they are in an area of coverage, I would absolutely say ‘buy a digital radio’ because you can get Radio 7, the joys of 6 Music, etcetera.

RB: But, in terms of this campaign, let me quote something said by William Rogers, the UKRD chief executive – part of the commercial radio network. He says it was ‘fundamentally immoral and dishonest to run the campaign, knowing that DAB infrastructure is not good enough, and knowing full well that when people buy a DAB radio, it may not work when they get it home. The BBC should be ashamed of themselves for running this ad. They are telling their listeners to buy something which they know isn’t ready for us yet.’

TD: Well, I mean, it is one voice, and I say ‘one voice’ among many in commercial radio and …

RB: [interrupts] And there are quite a few others who, again, refuse to run the ad.

TD: Absolutely. And, well, I think their beef is, by the way, slightly different to that articulated by William, but it’s really straightforward. 88% of the people in the country can get a signal. If you can’t get a good signal, I wouldn’t recommend digital radio. If you get that coverage, we would absolutely recommend – I think it’s utterly appropriate – to say to people: ‘go and get a digital radio to enjoy the full range of services.’

RB: But the commercial radio sector, or some of it anyway, is saying ‘this is precisely the thing the BBC should be doing. It should be investing and spending so that everybody can get digital coverage.’

TD: Mmm. We’ve said, in the last few weeks, and part of the BBC [Licence Fee] Agreement with the government was to build out national coverage of DAB services. The debate with local radio – just to be clear, and this is a bit complex, so apologies, but – is around the local layer of DAB. And we are negotiating out those costs at the moment. While that negotiation goes on in pretty tough financial circumstances for the BBC, it’s understandable that people say ‘well, we need a bit more clarity.’ I agree with them.

RB: Can I ask you, though, whether the BBC’s enthusiasm for the potential of digital, in terms of stations, is waning. For example, you did propose the closure of 6 Music and the end of the Asian Network, at least as a national station. Are you still in love with digital?

TD: It’s a fair point. The idea around looking at the line-up of stations was never about taking money off the table for digital. We want to keep investing in digital and, I think, in terms of our commitment to digital, this not just about DAB, this is about internet services. We’ve just said, on Radio 3, we’re launching HD sound, which will be a wider signal through internet radio. I think, as the head of BBC radio, I really want to see radio develop into a more competitive marketplace so that it can grow. The idea that the BBC just sits on FM spectrum, and there’s no growth in radio, to me, seems a pretty limited vision of the future for the industry.

RB: So there’s no doubt about the destination, only the amount of time, the speed of getting there?

TD: Radio’s going digital.

NORWAY: "Yes to radio!" But no to DAB?

In July 2010, a marketing campaign was launched in Norway with the tagline “Yes to radio!” It used 18 celebrities to promote awareness of DAB radio through advertisements in radio, TV, newspapers and social media. The campaign was funded by Digitalradio Norge AS, the lobby group (owned by broadcasters NRK, P4 and SBS) working for a transition from FM to DAB radio in Norway.
Dagsavisen newspaper
commented: “For many years, the major radio companies have attempted to get Norwegians to replace FM radios with digital ones. It has been slow work so far. During the last decade, about 8 million radio sets were sold. Of these, between 300,000 and 400,000 were digital radios, according to figures from the Electronics Industry.”

Rainer Frost of Radio Nero
commented: “’Yes to radio!’ is totally misleading. It gives the impression that the entire radio industry is behind the campaign. In reality, it is only the major players who broadcast on DAB and who are engaged in fierce lobbying. They want to impact public opinion in connection with the white paper on the future of radio published by the Ministry of Culture this autumn. This campaign is the latest initiative from the embattled NRK, P4 and SBS in an attempt to gain support for the Norwegian DAB project, which has been running for 29 years.”

Andreas Reitan, chairman of the Norwegian Association of Local Radio (Norsk Lokalradioforbund),
said: “The Association has not taken a formal position but, as chairman, I am sceptical of the campaign. I am somewhat surprised. I understand the criticisms. The key question for us is the cost issue. The majority of our members are small stations. They have said ‘no’ to digital because of their finances. None of the small stations have the funds to finance a digital radio launch.”

Per Morten Hoff, general secretary of of IKT-Norge,
said: “It’s a vague attempt at lobbying from NRK, P4 and SBS in anticipation of the white paper, it wants people to say ‘yes’ to radio, without saying what it is all about. It is trying to lead the audience towards the light.”

Kristian Aartun, chairman of Radio 3,
said: “We believe the campaign is misleading as it is not clear what the ‘yes to radio!’ really means. In our opinion, this is deliberate deception to further their own interests, not the radio industry’s or society’s interest.”

Rainer Frost
again: “Digital radio’s future as a whole is in the balance. The biggest problem is the costs associated with the DAB radio network. A new DAB network for local radio would have to be financed by us. That is something we cannot afford. The DAB network will not be built. A decision on digital switchover has not been taken. The money is not there. People increasingly prefer FM radio over DAB at home. But this campaign argues, however, that everything will be fine with DAB. The reality is much more complicated than that.”

Ole Jørgen Torvmark, head of Digitalradio Norge,
responded to criticisms of its campaign: “[We] believe it is important for all parties concerned to put in place a clear plan for the transition to digital radio, particularly for listeners who buy new radio receivers. Such a plan, which we believe will be 6 to 7 years, must lead to the shutdown of analogue radio broadcasts, perhaps with exceptions for smaller stations in the least populated areas, such as in the UK.”

Online news source Nettavisen commented: “IKT-Norge has been one of the strongest critics of the DAB initiative in Norway. They believe that Norway is now struggling to implement DAB, because NRK [the state broadcaster] has invested too much money in an outdated technology that more and more European countries are walking away from.”

Per Morten Hoff, general secretary of IKT-Norge,
added: “NRK refuses to state how much money they have spent on DAB but, based on figures from Sweden, I have assumed that they have spent around 400 million [krone] on that system in Norway.”

Writing in daily newspaper Dagbladet, one commentator
said:

“Does this summer’s ‘Yes to radio!’ campaign, organised by lobbying group Digitalradio Norge, really want us to believe that anything other than a wholehearted embrace of digital radio is a kind of betrayal of radio? And that a ‘no’ to the introduction of DAB technology and the closure of FM networks is also a ‘no’ to all the voices, moments, images and insight that radio gives us?

Dear Digitalradio Norge and the owners of NRK, P4, Radio 1, The Voice and Radio Norge. Do not insult us. We love radio. We say ‘yes’ to radio. It is DAB that we are lukewarm to.

Yes, we know that digital radio also includes internet radio and radio delivered by digital TV, but the political battle is about the closure of FM radio and DAB. Fifteen years after trial broadcasts began, more than ten times as many FM radios are still sold as DAB radios. There are probably between 20m and 25m FM radio receivers in Norwegian homes, compared to a few hundred thousand DAB receivers.”

[with thanks to Eivind Engberg]

DAB radio lies: lobbyist claims 40% of listening to Radio 4's 'Today' show is via DAB

The Today Programme, BBC Radio 4, 22 November 2010 @ 0735
Ford Ennals, chief executive, Digital Radio UK [FE]

Q: Doubts persist over this particular digital standard [DAB], don’t they? Let’s just go through some. First of all: that it’s a stop-gap and that we’d all be better off with internet radio, which will become possible in cars and all over the place, and that there will really be no need for DAB at all.

FE: Well, look, what is certain is that the future of radio in the UK, and right across Europe, is digital. And what that’s going to bring is more choice, more competition, and more innovation …

Q: [interrupts] But your particular ‘digital’ is DAB digital, isn’t it …

FE: [interrupts] Well, no. It’s …

Q: … and there are other technologies available?

FE: No, not at all. We’re here to support and promote the transition to digital radio in all its forms, whether it be online, whether it be on TV, or whether it be DAB. DAB is one of those platforms. But, what we do see is great certainty that DAB is, if you like, the broadcast transmission backbone of radio, not just in the UK, but in Europe. There are 40% of all your listeners this morning listen to this programme, are listening on a DAB radio. And, I think, the simple fact is that, if they were all listening online, it couldn’t be supported and the internet would crash. So, right now, IP, as you call it, or online, just isn’t the right technology. It can’t sustain broadcast transmission of radio, and it’s not cost-effective, and it isn’t an option in the short or medium term.

Q: [incredulous] 40% of our listeners are listening on digital? Does that include listeners in cars, because I don’t know a single person who has got a digital radio in their car, I don’t think?

FE: Well, I think you have highlighted the real opportunity here. Car manufacturers have been slow to put digital radios in cars but, since the passage of the Digital Economy Act and the launch of the Digital Radio Action Programme [sic], they’ve now committed to having all new cars with digital radios in by 2013, and we’ve started to see Ford and Vauxhall and Mini putting them in. And I think that’s very important because …

Q: [interrupts] The ‘40%.’ Sorry, though. The ‘40%’ figure – did that include people in cars?

FE: Yes, urm. The 40% does include people in cars …

Q: Really?

FE: … and the targets that government have set also includes people in cars. So, what government is saying is, and I think supported by industry, is that we want to see 50% of listening to a digital platform, including DAB, before we take a firm decision about a switchover date.

Q: Mmm. Last quarter, digital listening was actually down, wasn’t it? It sort of implies that the message isn’t getting through.

FE: Well, actually, as I said, 40% of listeners are listening on digital. That’s over 20 million people every week listening to digital. This year, we’ve seen it grow by 20%. So, typically, what we see is growth in the first half-year, it slows down in the second half, and then steps up again in the second half [sic]. So, actually, quarter-on-quarter, we’ve seen moderate growth, but 20% growth year-on-year, and we’re looking for a major step at the beginning of next year. And, what I would say to people, if you’re buying a radio for a present this Christmas, make sure it’s a digital radio.


…………………………………………………..

Dear ‘Today’

I was shocked to hear Ford Ennals, chief executive of lobby group Digital Radio UK, proclaim on your programme that:

“there are 40% of all your listeners this morning listen to this programme, are listening on a DAB radio.”

This statement is not merely an exaggeration, it is wholly untrue. The radio industry’s audience data (produced by RAJAR, published by Ofcom for Q1 2010) show that 27% of listening to Radio 4 is via all digital platforms, which include digital television, the internet … and DAB. See graph below.


In-car listening accounts for 19% of total radio usage, but this proportion is likely to be considerably higher during the morning commute period. Because DAB radios are installed in less than 1% of cars, it is probable that much, much less than 27% of listening to the ‘Today’ programme is via DAB.

Ford Ennals’ untruthful statement is only the latest in a long line of disinformation perpetuated by commercial forces that will gain financially from DAB take-up, and which are designed to mislead the public into buying DAB radios.

Yours

Grant Goddard

Trick or treat? £55m to be spent scaring UK consumers into buying DAB radios

The Daily Mail is the perfect medium to scare middle Britain into reaching for its credit card. So it was no surprise to read in Saturday’s edition that:

“Four out of five car radios are expected to become obsolete in less than five years, experts warn.”

Why? Well, according to the Daily Mail, because “the traditional FM and medium-wave signal is due to be switched off in 2015.” To back up this assertion, the Mail quoted Car magazine associate editor Tim Pollard:

“In four years’ time, 80 per cent of car stereos won’t work and many sat-navs will be unable to receive traffic data. If you’re buying a new car, you must tick the option specifying DAB now.”

Wrong. Wrong. Wrong. As the majority of the 83 Daily Mail readers who commented online about this article pointed out, the facts are:
· FM and AM radio are not going to be switched off
· 2015 has not been agreed as a date by anybody for anything
· FM and AM radios will not become “obsolete.”

So why are these untruths being distributed by Car magazine and the Daily Mail? Because they seem happy to regurgitate propaganda produced by commercial companies who, as a last resort, are reduced to scaring the public into buying DAB radios. UK car audio fitters, UK car radio manufacturers and UK audio retailers would all benefit financially from the public suddenly buying DAB radios en masse. Persuasion has failed as a tactic to grow DAB radio take-up over the last decade … so the strategy now is to scare them into putting their hands in their pockets.
This strategy is all part of a DAB radio ‘roadmap’ developed by lobby group Digital Radio UK. Its ‘Phase 1’ activities for 2010/1 include “stimulating the market: preparing cars” or, in plain English, forcing DAB upon car owners through articles like the Daily Mail’s. Digital Radio UK revels in disinformation, consistently referring to ‘digital radio’ in its recent slide presentation to the Digital Radio Stakeholders Group, when its sole imperative is to push DAB radios.
This Digital Radio UK presentation is full of stuff that reads like it was written on the back of an envelope in the pub one lunchtime. The industry has had almost two decades to come up with a powerful ‘brand positioning’ for DAB, yet the best that Digital Radio UK could create is:

· “WHAT WE KNOW. We all love radio and it deserves a future. Radio needs to become more relevant for all audiences, and only digital can do that. Digital radio is radio as you know it, but better – and it gives you more of what you love
· KEY THOUGHT. If you love radio, you’ll love digital radio
· WHAT WE SAY. Digital radio, more to love”

Expect to see these, er, important characteristics of DAB radio espoused in a £0.5m pre-Christmas marketing campaign that will tell consumers: “There’s a digital radio for everyone this Christmas.” Cynics will respond that this is because warehouses are brimming over with crates of unsold DAB radios. 2010 must have been a disastrous year for DAB receiver sales because the industry has kept the figures a closely guarded secret. Pure Digital, which accounts for the lion’s share of DAB receiver sales, said last week that its “revenues are now expected to show a decline compared with the first half of the previous financial year.” In 2009, total UK unit sales of DAB radios had already fallen year-on-year [see my earlier blog].
Between now and 2015, Digital Radio UK plans to spend £55m on campaigns to try and convince consumers once more that DAB radio is a ‘must have.’ At a time when budgets are being slashed in both commercial radio and BBC radio (which fund Digital Radio UK), you might think that somebody somewhere might ask if it is worth throwing more good money after bad. And what is the stated objective of all this effort? According to the final slide of the Digital Radio UK presentation:

“Our ‘destination’ is a healthier radio sector – and that’s good for everyone.”

A healthier radio sector? You must mean a more impoverished UK radio industry, it having already thrown £1bn into the DAB black hole. You must mean digital radio stations, none of which generate a profit because, in aggregate, they attract only 5% of radio listening. You must mean consumers who are being lied to that their FM/AM radios will no longer work in 2015. You must mean frustrated car owners (according to Roberts Radio, a 35-40% customer return rate for in-car DAB radio adapters).

How are these outcomes good for anyone other than the lobbyists and radio receiver manufacturers whose shirts will be saved if, and only if, the public complies by rushing out to buy lots of DAB radios?

[Should you remain unconvinced to buy a DAB radio in December, you can look forward to a January marketing campaign that will proclaim: “If you didn’t get a digital radio for Christmas, now’s the time.” This must be my favourite radio sales pitch of 2010.]

Lobby the EU to mandate Europe-wide digital radio switchover? No chance!

The European Union [EU] has always made its position perfectly clear on radio broadcasting policy for its member states. It will not adopt an EU-wide digital radio strategy. A year ago, Viviane Reding, then EU commissioner for information society & media, reiterated the policy in an interview:

“This issue of EU-wide radio standardisation is still in its infancy. The main reason is that radio, from a political, business and consumer standpoint, is organised primarily as a regional or even local product. This is, in principle, rightly so. The reason the radio landscape in Europe is so fascinating is because it is so diverse and highly innovative. Therefore, EU-wide radio legislation is not advocated.”

“I believe the time is not ripe for a single EU-wide radio FM switch-off, such as we are doing for analogue TV in 2012. I can also well imagine that the 27 EU Member States, given their different levels of development, will want to take their own innovative approaches to digital radio switchover.”

Given this clearly stated EU policy, it was a surprise when World DMB, the lobbying organisation for DAB radio,
announced on 10 November 2010 that one of its three objectives for the coming year was:

“To persuade the European Union to champion switch-over policies at European level …”

Using the forum of the European Broadcasting Union [EBU] Digital Radio Conference 2010 held in Belfast the previous week, World DMB seemed to have persuaded the EBU to endorse a no-hope strategy of challenging existing EU strategy in order that digital switchover be mandated through diktat. This follows the evident failure of World DMB’s bottom-up approach to convince consumers in many EU countries to replace their satisfactorily working FM/AM radios with DAB receivers.

World DMB president Jørn Jensen said in the press release:

“If digital radio is to succeed, then the EBU must show their support for the DAB family, the only technology platform chosen by Germany, UK, France, Italy, Spain and the Nordic countries as the future of digital radio.”

The EBU obliged by issuing its own statement which stressed that its conference had “achieved a significant breakthrough in efforts to accelerate moves towards securing a digital future for radio.” The EBU wording is significant – its public statement talked about ‘digital’ radio but never mentioned the ‘DAB’ platform specifically. Whereas, the World DMB press release went out of its way to interpret ‘digital’ radio narrowly as ‘DAB’, almost to the point of obsession, when Jensen said:

“It’s time to stop talking about less mature standards, EBU needs to promote the Eureka 147 [DAB] family of standards.”

And what exactly did Jensen mean by “less mature standards”? Could he be referring to the platform whose name dare not be spoken amongst DAB lobbyists – THE INTERNET? Coincidentally, five days prior to the World DMB press release, Neelie Kroes, the current EU commissioner for the digital agenda, had admonished content producers who do not adapt their businesses to the internet age in a speech:

“Like it or not, content gatekeepers risk being sidelined if they do not adapt to the needs of both creators and consumers of cultural goods. So who will win the heart of the creators and of the public? It is still too soon to say. Of course, some of the new giants of internet come from another continent. I would wish that more of them were European, but when I see the wealth of creativity gathered in this room, I am optimistic for the future.

I believe that those who will prosper in the digital age are those who understand that convergence is one of the keys. The convergence of media provides an incredible opportunity for the artists and creators of our times, and also for their public – you and me. Just like cinema did not kill theatre, nor did television kill radio. The internet won’t kill any other media either.”

Despite the EU’s enthusiasm for convergence, the internet is still perceived as a competitive threat by some European radio broadcasters, who fear attrition to their audiences from an influx of online audio content from beyond their borders. To them, Last.fm, Spotify and We7 are the antichrists, and they hope that DAB’s walled garden will banish these insurgents from their kingdom. But, although Jensen wants to paint the internet as a “less mature standard”, history books show that it was around long before DAB (I was sending e-mails, before they had that name, across the Atlantic in 1978).

Also, when World DMB promised in its 10 November press release that it would “foster effective partnerships between broadcasters and the automotive sector” over the next year to get DAB radio into cars, it was advocating actions it could and should have taken more than a decade ago. It has long missed the boat. EU commissioner Neelie Kroes had announced on 8 November that IP-connected cars were the current European policy objective:

“Europe leads in wireless communication to and from vehicles. That is critical to improve both safety and efficiency. And to convert this into global market success global cooperation and standardisation will be required. This is where the EU’s Future Internet Public Private Partnership comes in. We need the automotive and ICT communities side-by-side. That way we can seize the opportunities of the next generation of wireless broadband, beyond 3G, to meet the growing demand for connectivity in cars.”

So what chance does World DMB have of achieving these two stated objectives for EU policy during the next year (compulsory digital radio switchover, DAB in cars)? None whatsoever. So why would it set itself objectives that are bound to fail? It can only be sheer desperation at this rapidly deteriorating stage in DAB’s lifecycle.

The third of World DMB’s stated objectives for the next year – “to advance partnerships between public and broadcasters” to make DAB happen – must have been drafted by someone with a wry sense of irony. Such ‘partnerships’ appear to be going nowhere in DAB:
· In the UK, RadioCentre, the commercial radio trade body, has failed in its insistence that publicly funded BBC should pay for the upgrade of commercial radio’s local DAB transmitters
· In Germany, commercial radio has failed to agree with public radio to a new plan to re-launch national DAB radio
· In Spain, commercial radio called DAB “a road to nowhere” despite public radio’s insistence on persevering
· In France, national commercial radio networks have refused to support public radio’s plan to launch digital terrestrial radio
· In Denmark, only one commercial station is broadcasting on DAB, alongside 17 state radio stations (many of which are about to be axed)
· In the Netherlands, national commercial radio stations have had to be forced to broadcast on DAB by the government inserting new clauses in their licence renewals.

World DMB’s rallying call of “let’s just get on with it!” might make more sense if its proposed solutions were practical in any way. Its press release was headlined ‘European Broadcasting Union backs digital radio switch over across Europe.’ Given that all three of its objectives for the next 12 months fly in the face of realpolitik, it would have been more accurate to entitle the press release ‘Three impossible European things before breakfast.’

[with thanks to Michael Hedges at Follow The Media]