Toward Market-Driven Digital

Michael Hedges June 29, 2009 Follow on Twitter

Digital media’s odyssey, beginning in the last century, has hit a few bumps, potholes and crossroads. Allegiance has been sworn, full stop, to the digital dividend, however it’s perceived. Dismal economics is more than just a bump in the road.

Germany’s private sector broadcasters effectively withdrew last week (June 26) from the planned digital radio re-launch previously agreed on the DAB+ platform. Digital radio, in that form, said German private broadcaster association VPRT, “is not market driven.”

“The conditions required for a successful introduction, always a prerequisite, have not been met,“ said the statement. “For VPRT’s private radio companies the significant initial and operating costs are too great. Against the backdrop of the economic crisis, such investments are a certain risk. “

“The VPRT member radio companies have, therefore, concluded that DAB+ has no economically viable future. Even with significant promotion of the system by public funds for at least the next five to ten years and under regulatory pressure there is only a slim chance of partial recovering (the costs) within the market. Against this background, the VPRT speaks against the planned introduction of DAB+ in the autumn of 2009.”

Within hours private sector broadcasters in Switzerland responded.  “Today's ruling by the VPRT makes even more difficult the launch of DAB+ in the whole German-speaking world and VSP recommends that all members use realistic calculations before beginning,” said the VSP statement. The association projects broadcasters’ start-up cost for DAB+ introduction between CHF 5 and 8 million (about €3.25 and €5 million).

The German and Swiss broadcasters’ groups adamantly oppose an imposed analogue (FM) shut-off. Some Swiss broadcasters – not all – favor digitizing existing FM transmission through the HD Radio (IBOC) technology.

"If Germany refuses, it is also very difficult for DAB+ in Switzerland," said electronic media institute IGeM CEO Ueli Custer to Klein Report (June 27). Automobile manufacturers, themselves in a bit of turmoil, may hesitate offering digital radio as a factory installed option while confusion remains over standards. Virtually every automobile sold come equipped with an FM radio.

The recently released Digital Britain framework from the UK Culture Ministry pointed to “successful” launching of DAB in Switzerland and Germany’s planned relaunch of the digital radio platform to bolster supporting arguments favoring DAB in the UK to succeed analogue (FM) radio. Support for the DAB platform among the UK’s private sector broadcasters has withered and some have withdrawn completely.

While commercial broadcasters in the UK and the BBC came together, originally, for the launch of DAB as the digital radio platform of choice nearly a decade ago, a similar agreement between German private and public sector broadcasters has only been tentative. Swiss private sector broadcasters were given little option as the massively dominant public broadcaster simply took the lead with considerable investment.

In recent weeks tensions – never far from the surface – between German private and public broadcasters have flared over a number of issues, one being digital radio. Private sector broadcasters point to dismal economics. German public broadcasters have countered with ‘so was!’ – too bad.

“Digital terrestrial (radio) is not so easily buried,” said Deutschlandradio Director Willi Steul to Digitalmagazin (June 27). Deutschlandradio produces two national public radio channels. “I fully understand our commercial competitors’ declining advertising revenue and problems refinancing long-term investment. ARD in Germany evaluates the lack of marketability differently.” ARD is the blanket public broadcasting organization in Germany.

If private sector broadcasters back away from older digital radio platforms in favor of waiting for a less costly solution – and consumer economies to improve - it remains to be seen if public broadcasters will ‘go it alone’. All broadcasters, private and public, and all national regulators follow each other carefully. German private sector broadcasters have lobbed a shell across the bow of DAB. Who follows and who doesn’t remains the question.

Media in Spain - Diverse and Challenged – new

Media in Spain is steeped in tradition. yet challenged by diversity. Publishers hold great influence, broadcasters competing. New media has been slow to rise and business models for all are under stress. Rich in language and culture, Spain's media is reaching into the future and finding more than expected. 123 pages, PDF. January 2018

Order here

The Campaign Is On - Elections and Media

Elections campaigns are big media events. Candidates and issues are presented, analyzed and criticized in broadcast and print. Media is now more of a participant in elections than ever. This ftm Knowledge file reports on news coverage, advertising, endorsements and their effect on democracy at work. 84 pages. PDF (September 2017)

Order here

Fake News, Hate Speech and Propaganda

The institutional threat of fake news, hate speech and propaganda is testing the mettle of those who toil in news media. Those three related evils are not new, by any means, but taken together have put the truth and those reporting it on the back foot. Words matter. This ftm Knowledge file explores that light. 48 pages, PDF (March 2017)

Order here

More ftm Knowledge files here

Become an ftm Individual or Corporate Member to order Knowledge Files at no charge. JOIN HERE!