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A radio futurologist writing about what happens when radio and new platforms collide

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The future of DAB Digital Radio in Australia

Posted on Tuesday, March 25th, 2008 at 3:01pm. #

The clocks at Flinders Street  station

Last month’s Marketing magazine in Australia contained a two-page round-table piece, entitled “Will there be enough compelling and original content to drive the uptake of digital radio in Australia?”

Here’s my contribution to it:

It’s too easy, when you think of digital radio to
think of content as audio. “More radio stations,
that’s what we need,” says the besuited strate-
gist, straightening his red-framed glasses and
sipping on his latte. “How about a classic rock
station? That researches well.”

DAB Digital Radio has been wildly success-
ful in the UK. Twenty-two percent of adults
now have a digital radio at home, and 6.5 mil-
lion sets have been sold. Listeners with a digital
radio appear to listen to the radio longer, too.

Two things collided to make digital radio
successful. The first was the price of digital sets
falling below the sweet spot of £99. And the
second was the increase of choice. By which, of
course, I mean new radio stations.

Bristol, a city in the south-west of England,
is the same size as Newcastle, in NSW – there
are 14 radio stations available on AM/FM there,
but with a digital radio you’ll find 37 additional
local, regional and national stations.

So, it may be obvious to the strategists that,
in order to succeed, digital radio in Australia
just needs lots of new formats. But that would
ignore, pardon the pun, the bigger picture.

Many consumer devices now sport a large
colour screen. The YouTube generation expects
to interact with their entertainment. Old-
fashioned, screen-less radio is less relevant to
these people than ever. Play a downloaded song
on a new mobile phone, or visualised with
DAB’s slideshow feature, and you get pictures
and animation. Play a song on an FM radio,
and you get nothing.

To make digital radio a long-term success,
the people that own the transmitters need to
think of more than just radio. The problem is
that they’re radio businesses. Will the fear of
the unknown make them ignore DAB data, and
just concentrate on lots of jukebox classic rock
stations?

Also canvassed for their opinions were Jason Malaure from technologists All In Media, Michael Burrows from jingle-makers Brand Music, Wade Kingsley from radio operators DMG Radio, and John Mescall from ad agency Smart. Download the two pages here to read their contributions – and see if you can guess which person doesn’t think consumers want more choice.

Download: Page 1 | Page 2 (pdf).

Thanks to Marketing magazine for asking me, and for kindly giving me permission to post these pages online. The new edition of Marketing is available today, and is guaranteed not to have a picture of me in it this time.

Photo: mine. Flinders Street Station, just like Marketing magazine, is in Melbourne, Australia.

6 comments

Paul
commenting at March 25th, 2008 at 5:27pm

Good stuff James, though I suspect that many both in Australia and at home will be raising eyebrows at the statement “DAB Digital Radio has been wildly successful in the UK”.

Has it? Surely the UK industry made all the mistakes you go on to mention – cramming in meaningless classic rock or pop jukebox stations whilst ignoring the need to give the public something genuinely new and exciting. There have been a few exceptions – ‘chill’ is perhaps a good example, but it remains to be seen if the economics of these will ever add up.

DAB as a platform is capable of so much – IMO the industry in the UK has tried to launch too many new brands and failed to build up its existing offerings. The visual media side is one aspect – but secondary streams and ‘download’ content under the same station banner would work far better than all these new 24 hour standalone stations.

And what about using the same presenter links for streams with different music genres? For example, Virgin Classic Rock and Virgin Xtreme would, I reckon, get a much larger audience if Christian O’Connell was presenting breakfast on them as well. These stations could become secondary streams of the main Virgin Radio. Keep the strengths of the core station but pull in new audiences.

Christopher Elkins
commenting at March 26th, 2008 at 3:03pm

37 *additional* stations on DAB in Brizzle? If only…

James Cridland
commenting at March 26th, 2008 at 11:11pm

Chris: ah, you’re right. Whoops. It was (at the time of writing), 14 stations on analogue, and a -total- of 37 on DAB. Apologies. My fault.

Paul: If you’re telling me that 6.5m sets sold (this Christmas, DAB reportedly outselling the iPod) is in some way a failure, I’m surprised. You’ll be telling me next that Apple has, in some way, failed with its products.

Paul
commenting at March 27th, 2008 at 12:49am

Failure is a strong word James, but the prevailing view I encountered in Australia was that for us to have something like 5% of all listening on a platform that’d been up and running for going on 10 years was pretty dismal. It’s great that the receiver manufacturers are making a few quid but what about commercial success for broadcasters? Has a single DAB station even come close to breaking even? Why aren’t companies lining up to buy Planet Rock and the Jazz now that they’re up for sale?

Rather than comparing with the iPod – a single manufacturer’s product with, let’s face it, limited appeal to anyone over 40 – what about comparing with Freeview? Nearly 10 million receivers sold in 2007 alone – compared to DAB’s 6.5m in ten years – and surely households generally have more radio sets than TV sets? Did Christmas sales really meet the industry’s aspirations? I seem to remember seeing a huge pile of DAB sets selling at half price in my local Sainsbury’s in January.

Don’t get me wrong, I’m a great advocate for DAB on the whole, but I do think “wildly successful” is pushing it a bit. I think it could be wildly successful, but that large swathes of the public are still unsure what exactly the point of it is. I think the industry desperately needs to raise its game and start providing a bit more ‘wow’. Hopefully Channel 4 will be able to do just that.

James Cridland
commenting at March 27th, 2008 at 11:42am

I think comaprisons with Freeview aren’t the fairest thing to do. And yes, I’m aware of many DAB-only stations that do make a profit. I used to work for one.

Patrick
commenting at August 28th, 2010 at 8:36pm

I would like to make the observation that, as a member of the “YouTube Generation” (or, I think I am – I’m 21 – does that count?), I find that the screenless aspect of conventional radio is one of its great strengths.

When I listen to the radio, I don’t want to be drawn into staring at the stupid thing as well; I want to get on with something else and have it as background noise, or close my eyes and let it wash over me.

And I do find that, even if it is just showing what song is playing, I am inexorably drawn to staring at the screen on a digital radio when I would rather be doing something else. That is a big turn-off for me and one of the (many) reasons I am a DAB holdout.

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