DAB Catching On With Commercial Broadcasters

Michael Hedges July 11, 2005

Danish and Swiss private, commercial radio broadcasters announce new DAB plans. But a UK broadcaster is resisting more multiplexes.
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Public service broadcasters (PSBs) took the lead as long as a decade ago, when the price of a DAB receiver – if one could be found – was more than ten times what it is today. Slowly commercial broadcasters accepted that their businesses would eventually migrate from analogue to digital platforms but only reluctantly put investment behind the words. The partnership that developed between the BBC and private broadcasters is credited with setting in motion the growth of digital radio in the UK.

Leading Danish commercial broadcasters Sky Radio and Talpa Internationals’ Radio 100FM announced plans to broadcast on DAB from September. Until now only PSB Danmarks Radio (DR) has pursued digital broadcasting in Denmark.  DR has increased its DAB output over the last seven years to nearly 40 channels, 18 exclusively DAB channels. DR has also created and launched successful DAB marketing and promotional campaigns. DR will reportedly give up a few channels to allow the commercial counterparts space in the digital spectrum. DAB receiver sales in Denmark increased 525% between 2003 and 2004. In the most recent quarterly TNS Gallup audience survey, 135, 000 Danes were listening to DR’s DAB channels.

Swiss PSB SSR-SRG, sales house RadioTele and private media owner TAMedia announced (July 7) plans to launch a second DAB multiplex covering the Swiss German speaking cities Zürich, Basel and Bern in 2006, assuming approval from Swiss regulator OFCOM. Significant to this venture is the inclusion of RadioTele, a dominent media sales company. Obviously somebody sees revenue potential.

TAMedia owns Zürich television station TeleZüri, radio station Radio 24, Basel radio station Radio Basilisk as well as newspaper giant Tages Anzeiger. SSR-SRG currently offers three DAB exclusive channels, covering about 60% of Switzerland, and plans more offerings and greater coverage by 2007.

As much as the expansion of DAB in the UK has encouraged more support for digital broadcasting elsewhere, the thought of more digital multiplexes – and, therefore, more competition – has not pleased super-company GCap Media. Executive Chairman Ralph Bernard, speaking to the Future of Broadcasting conference in mid-June singled out for ire virtually every UK commercial radio company as “free riders,” seeking new digital multiplexes. Sir Ralph was Chairman of GCap predecessor GWR, the primary partner with the BBC in DAB multiplex operator Digital One.

"Chrysalis, GMG, Virgin Radio and Emap were all perfectly capable of deciding to apply for the national multiplex license in 1998,” he fumed. "But they didn't. Now we and the BBC have created a market, albeit still in a fledgling state, but with a good prospect of success, and they want to join in as free riders." Bernard suggested that local broadcasters be given preference over big companies in any new DAB platforms.

Last week GCap Media suggested it might take UK regulator OFCOM to court, citing an “exclusivity deal” when the Digital One multiplex received its license. OFCOM Chief Executive Stephen Carter told the Edinburgh Radio Festival audience that one or two more digital multiplexes could be licensed.

Outside of the UK, Europe’s private sector broadcasters have generally lagged behind public broadcasters in commitments to digital audio broadcasting (DAB). German broadcasters, public and private, have launched many DAB channels. Some have been discarded for lack of interest or lack of revenue. Some, like Bavaria’s Rock Antenne, have seen strong audience increases but little revenue growth. Finland’s PSB YLE has all but abandoned DAB as mobile phone giant Nokia rushed an alternate technology to market. DAB in most countries is no longer simply on hold.

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OFCOM Votes For Reality in Digital Standards - April 3, 2007

The world’s technical geniuses are hard at work improving and upgrading everything. Regulators, typically, want to offer the latest and greatest to their broadcasters, listeners and viewers. The world thrives on “better, faster, smarter.”

The ever-faster speed of innovation has raced past the speed of adoption. (refer to that old calculus textbook, rotting in the attic)

UK media regulator OFCOM has set a new criterion for digital broadcast standards: do no harm. The UK leads the world in digital radio development – real development, meaning consumers buying and using DAB radio. The technical wizards – forgive them – and their patent lawyers – shun them – are pushing adoption of new, improved, more efficient encoding.

With millions of DAB receivers in use in the UK – and a few elsewhere – a change in encoding means – Whops! – Momma can’t hear the Archers any more. Old DAB receivers are rendered useless with the new DAB+ (AAC+/Mpeg4) encoding.

Now “old” is a relative term. The great majority of DAB receivers have been purchased in the last two years. In most households (engineering families not typical) items purchased in recent memory are considered “new.” OFCOM – likely not the technical department – said “wait.”

“If we were to adopt the new standard,” said its spokesperson, “we would have a severe effect on existing users.”

Exactly.

Australia has adopted DAB+. Other national regulators are looking into it and every other digital standard and platform. Where digital radio has shown no real uptake the effect of changing the encoding is less on consumers directly and more on receiver makers. Certainly new chipsets for receivers will be available for both encoding in new receivers.

Technical wizards (and their patent lawyers) care not a twit whether their innovations are actually adopted by real people in real time. Innovation will always have its market. But consumers drive the market, not the innovators. It’s the new rule.