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DAB+ business case and critical success factors Patrick Hannon Poznan: 10 th April 2014.

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Presentation on theme: "DAB+ business case and critical success factors Patrick Hannon Poznan: 10 th April 2014."— Presentation transcript:

1 DAB+ business case and critical success factors Patrick Hannon Poznan: 10 th April 2014

2 1 Contents 1.Introduction to WorldDMB 2.Radio today 3.Business case 4.Critical success factors

3 2 Not-for-profit membership organisation Developed DAB technical standards Promote digital radio (DAB / DAB+) around the world WorldDMB – who we are

4 3 Over 80 members from 22 countries Broadcasters Networks / regulators TechnologyAutomotive Devices / equipment

5 4 Policy makers and regulators We work with players across the radio ecosystem Broadcasters Network operators DevicesAutomotive Silicon providers Retailers

6 5 Contents 1.Introduction to WorldDMB 2.Radio today 3.Business case 4.Critical success factors

7 6 Digital music services Smart devices Competition for FM radio Online music services For broadcasters, the competitive landscape is changing

8 7 Changes in youth per capita listening hours, 2006-10 1 Note: (1) Definition of youth varies by market; e.g. Sweden (9-19s), UK (15-24s); US data 2006-08 & 2009-11 (new methodology in 2009). Source: EBU (Europe), Arbitron (US). Younger audiences are listening less

9 8 In many markets, FM spectrum is full – difficult to innovate Overloaded airwaves No capacity for new services Difficult to innovate

10 9 A digital radio wave is moving across Europe UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary

11 10 Four core markets: UK, Norway, Denmark and Switzerland UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets

12 11 Followed by Germany (2011) and Netherlands (2013) UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets New markets

13 12 Several potential markets UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets New markets Potential markets

14 13 Poland: first services on air UK Norway Sweden Germany France Spain Italy Switzerland NL Bel Denmark Poland Czech Austria Ireland Portugal Slovenia Slovakia Hungary Established markets New markets Potential markets Poland?

15 14 Annual cost of transmission 1, $k Source: Harris Broadcast Note: (1) Opex costs; on DAB+, assumes 18 services on multiplex DAB+ distribution costs about 10% of FM for a single service -92% -89% -82%

16 15 DAB / DAB+ radios now mass market Prices from $29

17 16 Power consumption of in-use devices, W Source: DCMS / Intertek Technical Report, March 2013 Digital radios now consume 20% less power than FM devices 20% lower

18 17 Automotive brands offering DAB – increasingly as standard

19 18 Contents 1.Introduction to WorldDMB 2.Radio today 3.Business case 4.Critical success factors

20 19 Increase audiences Increase revenues Innovation How can digital radio build value for broadcasters? 12

21 20 Increase audiences Increase revenues Innovation How can digital radio build value for broadcasters? 12

22 21 Sound qualityChoice Additional features Benefits of DAB / DAB+ Benefits for listeners

23 22 UK, % benefits of digital radio Source: Ofcom Sound quality and choice are top two benefits

24 23 UKAustraliaGermany Electronic music Classical DecadeCountry Unsigned bandsClassic Rock Specialist music services – for niche audiences

25 24 SportDrama & comedyScience Specialist speech services – e.g. sports or archive Germany: live football Up to 5 matches simultaneously UK: archive from the BBC Germany: higher education for younger audiences

26 25 Strong brands – key to success

27 26 Energy on FM Hamburg Berlin Nuremberg Stuttgart Munich Rhein-Main Potential to extend geographic reach Energy on DAB+

28 27 Analogue and digitalDigital-only services Extend the brand portfolio

29 28 Weekly listening hours, m Source: RAJAR +95% Absolute’s listening hours - up 95%

30 29 Source: RAJAR +37% Rebranding as “Radio 4 Extra” added 37% listening Weekly listening hours, m Radio 7 (DAB), sister station to Radio 4 (FM) Rebranded as 4 Extra in 2011

31 30 Increase audiences Increase revenues Innovation How can digital radio build value for broadcasters? 12

32 31 Sponsorship opportunities – youth audiences

33 32 Branded stations take sponsorship to new level Branded channels – aimed at housewives target audience

34 33 Pop up stations – for range of events

35 34 Sponsorship opportunities – music tour & digital radio station

36 35 Sponsorship opportunities – music tour & digital radio station

37 36 Colour screen devices create new opportunities Revo Pixis

38 37 Colour images for additional information

39 38 Hybrid radios with Bluetooth connectivity – from €59 John Lewis Spectrum Duo

40 39 Hear new song on radio Hit button -for info -add to playlist -share with friends New song

41 40 Hear ad on radio / see visual display Tag to interact -access more information -register interest Advertising

42 41 Contents 1.Introduction to WorldDMB 2.Radio today 3.Business case 4.Critical success factors

43 42 Policy and regulation Critical success factors CoverageContent RetailersCars Consumer devices Consumers

44 43 Policy and regulatory framework Policy Clear vision and commitment to a digital future from Government / regulators Public radio Success of digital radio depends on active support of major broadcasters – needs to be funded Private radio Link between commitment to DAB+ and renewal of FM licences For digital services, reduce regulation (fewer restrictions)

45 44 Government Network providers Regulator Commercial broadcasters Public broadcasters Coverage – work together to create cost-effective plan Start on major population centres Define strategy for major roads

46 45 17 services on AM and FMOver 40 on DAB+ Digital content proposition must be stronger than FM Sydney analogue services Sydney digital services

47 46 Devices available from wide range of suppliers

48 47 Retail activity Consumer marketing Consumer advertising encourages footfall and inspires confidence in retailers Retail (with the right product, point of sale and trained sales people) delivers sales Marketing activities must be co-ordinated and sustained

49 48 TV ads, heavy FM promotion and device give-aways Source: BBC and Bayerische Rundfunk

50 49 Devices available in-store MediaMarkt, Berlin, March 2013 Must have strong retail support for DAB+ radio Devices on shelves Training for staff Post-code checker Repeaters

51 50 Educate local importers and dealers -consumer benefits -coverage plans -long term commitment to DAB+ Work with international partners Automotive – work with manufacturers to fit DAB+ as standard

52 51 Policy makers and regulators Industry stakeholder body Key to success is collaboration Broadcasters Network operators DevicesRetailers AutomotiveConsumers

53 52 Thank you For further information, please contact: www.worlddab.org

54 53 Source: CAP/SMMT Q1 10Q4 10Q1 12Q1 13Q1 14 4% 10% 22% 35% 45% In UK, 45% of new cars have DAB as standard


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