Norwegian switchover strategy

Speech 10. April 2014 at Poznan Media Expo 2014 Conference

By Rolf Brandrud, Radiodays Europe & NRK

My background

• 1980ies – started in radio and stayed there• 1990ies – internet pioneer in NRK• 2000ies – lobbyist for digital switchover for TV• 2010ies – organizer of Radiodays Europe

Where is radio now?

1920 – Monopolies

1990 – Public/privatecompetition

2010 – Radio challenged by new media

6 - 7 years ago

Now

What is the challenges?

• Developing multi channel strategies• Reaching the young• Telling compelling stories• Interacting with the audience – social media• Getting into the smartphone• Finding radio’s new place in the car• Developing radio for screens

What is the answers?

• Not standing still with FM only• Certainly using the net and social media• Not choosing radio OR internet,

but Radio AND internet• We need broadcast radio for efficient,

mass distribution AND supplementing net interactivity

Digitalisation of radio in Europe

Different stages from southeast to northwest1. FM only2. FM + net + webradio3. DAB in test4. DAB in market5. DAB with defined switchover date - Norway6. Digital switchover implemented

Courage!

How?

Collaboration!

How?

Coverage!

How?

Content!

How?

Cars!

How?

The Norwegian timeline

• 1995 startup – gradually prices of DAB receivers have come down

• 2011 – decision about switchover date 2017• 2013/14 launch of new, attractive channels• 2015 – fullfilling the criteria• 1.1.2017 – Digital switchover date• 1.1.2019 – Alternative switchover date – extra

cost 200 mill, 2 mill a week, 300 k a day

The conditions for FM shut down

• Three absolute conditions1. NRK: Coverage as for NRK P1 on FM2. Commercial radio: 90 per cent3. Added value to listeners

Capacity and networks in Norway• FM

– 1 channel per transmitteror network

– Frequencies for 4 DAB networks:• Public service network (7 regions)• Commercial national network

(”National 1”)• Commercial national network

(”National 2” - not built yet)• Commercial regional network (37

regions)

– 5 FM networks• 3 NRK• 2 commercial

– Various local radio network

• DAB– DAB up to 10 channels per

network (mux)– DAB+ up to 20 channels per

network (mux)– Moving towards DAB+

Now

Now

Digital added value

+ 20 channels in Oslo/Akershus

22 national channels(FM typically 3-6)

The conditions for FM shut down

• Three absolute conditions1. NRK: Coverage as for NRK P1 on FM2. Commercial radio: 90 per cent3. Added value to listeners

• 2017 or 20194. At least 50 per cent of daily radio listeners must

use digital platforms, exclusively or in combination with FM-radio• Digital platforms: web, DAB, digital tv, mobile etc

Digital use

Q4 12 Q1 13 Q2 13 Q3 13 Q4 14

DABDigital TVInternet

1,23 million Norwegians

14

10

13

15

16

10

18

11

15

19

9

14

31 34 36 36 40

23

10

13

The conditions for FM shut down

• Three absolute conditions1. NRK: Coverage as for NRK P1 on FM2. Commercial radio: 90 per cent3. Added value to listeners

• 2017 or 20194. At least 50 per cent of daily radio listeners must

use digital platforms, exclusively or in combination with FM-radio• Digital platforms: web, DAB, digital tv, mobile etc

5. Affordable and technically satisfactory solutions for in-car radio reception must be available• Half of the municipalities and all counties must have an offer

of retrofitting adapters

2015

Where? (previous listening session)

Home39%

In car47%

Other home2%

Work8%

Buss, train, etc1% Other places

3%

Source: TNS Gallup, Digitalradioundersøkelsen Q4 2013 Base: n = 1068

The challenge

2 - 2,5 million cars need an aftermarket solution

Sales of DAB-radios

• In total, 511.000 DAB-radios sold 2013– Incl. car-radio

• More than double of 2012

2009 2010 2011 2012 20130

100

200

300

400

500

600

Car radiosPortable radiosHifi tunersTable radio w/speakerMusic systems

Source: Trade organisation for electronics importers and retailers

Summary• We digitize to secure radio’s position in the media market• The success lies in collaboration and a strong political plan

communicated to all stakeholders• Norway is on schedule for transition to digital radio in 2017

– Great coverage– New content, wide range of channels– 40 per cent of daily listeners use digital radio

• Close to 60 per cent of all sold radios are digital• Focus on car industry• Highest priority now is DAB aftermarket products for cars

Arena for exchange ofradio experiences and strategies

rolf.brandrud@radiodayseurope.com

www.radiodayseurope.com