DAB digital radio – a platform for EuropePatrick Hannon, President, WorldDAB
Represented by: Jacqueline Bierhorst, member Steering Board World DAB
May, 2016
1
Contents
1. International progress
2. Drivers of growth
3. Next steps
2
FM spectrum is full
• No new services
• No innovation
• Long term decline
3
A digital radio wave is moving across Europe
UK
NorwaySweden
Germany
France
Spain
Italy
Switzerland
NL
Bel
Denmark
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
4
Four core markets: UK, Norway, Denmark and Switzerland
UK
NorwaySweden
Germany
France
Spain
Italy
CH
NL
Bel
DK
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
Established markets
5
Followed by Germany (2011), Netherlands (2013), Italy (2014)
UK
Sweden
Germany
France
Spain
ItalyCH
NLBel
DK
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
Norway
Secondwave
6
Poland, France and Belgium – on the move
UK
Sweden
France
Spain
ItalyCH
NLBel
DK
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
Germany
Norway
On themove
7
Trials on air / planned in Austria, Czech, Slovakia and Slovenia
UK
Sweden
France
Spain
ItalyCH
NLBel
DK
Poland
Czech
Austria
Ireland
Portugal
Slovenia
Slovakia
Hungary
Germany
Norway
Trials
8
First countries moving to Digital Switchover (DSO)
UK
Sweden
Germany
France
Spain
ItalyCH
NLBel
DK
Poland
Czech
Austria
Ireland
Portugal
Slovenia
SlovakiaHungary
Digital Switchover Norway
• Norway: 2017
- DSO Jan-Dec 17
• Switzerland: 2020-24
9
Norway: digital switchover in 2017
Source: Digitalradio Norge, Photo Norkring
• DAB coverage: 99.5% (better than FM)
• DSO implementation: Jan - Dec 2017
- all national and larger local FM services will be switched off
10
• DAB+ coverage: 99%
• DigiMig* creating DSO plan
- pre-2020 (consumer marketing)
- DSO implementation (2020-24)
Switzerland: digital switchover in 2020-24
* Industry group of broadcasters, regulators and automotive industry
11
• 40 national DAB services (8 on FM)
- 2nd commercial multiplex launched Mar 16
- major promotional support
• Goal: Digital Switchover1 (which would provide significant boost to sales)
• A decision will follow achievement of
- DAB coverage same as FM (97% today)
- 50% of listening is digital (42% today)
• Expect to achieve criteria by 2018
United Kingdom: “future of radio is digital”
(1) UK Minister of Culture, Feb 2015
12
Germany: long term commitment to DAB+
• Launched DAB+ 2011; coverage today: 95%
• BMVI strong supporter of DAB+
- established industry steering board
- enhanced traffic information services
• Nov 14: ARD committed to DAB+
• April 16: KEF (funding body) announces new four year plan for ARD (2017-20)
13
• Major focus on automotive
• Two national commercial muxes
- 70% population coverage
- 4,500 km of roads
• Coverage rising to 90% by end 2017
Italy: coverage 70% - rising to 90% in 2017Coverage map
14
France: three cities in 2014; national plan published Dec 2015
• Paris, Nice and Marseille launched 2014
• National timetable published Dec 15
• 2016: Lille, Lyon, Nantes, Rouen, Strasbourg and Toulouse
CSA roll-out plan
15
• 28 national services
- 14 digital-only
• All regional services on DAB+
• >60 channels in total
• Coverage: 95%
• Joint marketing activity
- public / private broadcasters & Ministry of Economic Affairs
Netherlands – launched DAB+ Sept 2013
16
Contents
1. International progress
2. Drivers of growth
3. Next steps
17
DAB+ provides benefits to all stakeholders
Benefits of DAB+
Listeners Broadcasters Society
• Clearer sound
• Greater choice
• New data services
• Innovation
• Brand extensions
• Cost-efficiencies
• Greener distribution
• Free to air / universal
• Open standard
• Emergency alerts
18
DAB digital radio offers “the perfect sound”
19
Source: Digital Radio Norge
DAB / DAB+ offers greater choice
5 national FM stations
24 national DAB / DAB+ stationsNational radio in Norway
20
Annual cost to broadcasters of transmission per service1, $k
385
925
1645
68 98 128
Owned site Regional site Metro site
FM DAB+
Source: GatesAir. Note: (1) Opex costs; on DAB+, assumes 18 services on multiplex; for further information, see: http://www.worlddab.org/public_document/file/441/2014-02-19_Harris_comparison_DAB__to_FM_and_DRM_final.pdf?1392974163
DAB+ is extremely cost effective
-92%
-89%
-82%
Up to 18 services on a single DAB+ multiplex
21
Analogue and digital Digital-only services
For broadcasters: opportunity to extend brand portfolios
22
DAB / DAB+ and connectivity should work together
DAB Digital Radio
• Free to air
• Universal
• Reliable in emergency
• Interactive
• Personalised
• eCall and M2M
IP
Audio and traffic information services
23
DAB is mass market proposition – over 40 million receivers sold
Global DAB receiver sales (domestic & auto), cumulative, million
1.3 2.95.0
7.49.9
12.515.3
18.522.5
27.2
33.9
41.3
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Industry bodies, WorldDAB analysis(1) http://digitalradio.de/index.php/de/digitalradios-geraete
In Germany, 485 models available today1
24
% of new cars with DAB+ digital radio
Source: Digitalradio Norge, SMMT / CAP, MCDT
In leading markets, digital radio is standard in many cars
Technology- tried and tested
65% 63%
UK Switzerland Norway
80%
25
% of new cars with DAB+ digital radio
Source: Digitalradio Norge, SMMT / CAP, MCDT, VDA
Newer markets - at earlier stage of development
UK Switzerland Norway Germany
80% 65% 63% 13%
Germany expected to grow significantly
from 2017
26
Contents
1. International progress
2. Drivers of growth
3. Next steps
27
DAB / DAB+ population coverage
99% 99% 98% 97% 95% 95%
70%
Norway Switz-erland
Denmark
UK NL Germany
Italy
Source: WorldDAB
DAB established as European standard
Seven countries: 60% of new car sales in Europe
28
Key to success is collaboration
Industry collaboration
Content Coverage Cars ConsumersConsumer devices
Policy & regulation
29
International collaboration growing in importance
Poland ItalyFrance Belgium
DenmarkNetherlands Australia
Norway SwitzerlandUK Germany• Share best practice
• Share marketing collateral
• Especially for international audiences, e.g. car and handset manufacturers
30
Markets are sharing marketing concepts
DU FAR MER I EN DIGITAL RADIO DIE ZUKUNFT DES RADIOS
31
Ministers: working together to accelerate DAB in Europe
• Ed Vaizey, UK Minister of State for Culture and the Digital Economy,
• Dorothee Bär, German Parliamentary State Secretary at the Federal Ministry of Transport and Digital Infrastructure (BMVI)
• Dutch Government strongly supportive
32
Conclusions
Priority is to drive growth in established markets – and open up new territories
3
In Europe, DAB backbone is established1
Digital Switchover is a game changer2
33
Thank you
For further information, please contact:www.worlddab.org