sweden switchover seminar stockholm 24 october 2013
TRANSCRIPT
Sweden Switchover Seminar Stockholm
24 October 2013
Agenda
• Background to DRUK and UK Digital Radio - coverage - content - cars - communication• Government Digital Radio Action Plan• Radio switchover and timeline
Digital Radio UK
Composition:BBC and UK Commercial RadioCar and Radio ManufacturersWork with Government and Ofcom
Objectives:Accelerating the growth of digital radio Getting digital radio in cars Planning a future digital radio switchover
FMDAB
DAB+
DAB workingwith IP
Online/AppsRadioplayer
Digital Radio Multi-Platform Vision
Radio on TV
At the broadcasting level At the hybrid level (Radio DNS)
At the digital TV level(YouView)
At the online level(Radioplayer)
Background• Launch of Commercial National Digital Multiplex: 1999• Launch of BBC National Digital Services: 2002
• Digital Radio UK Established: December 2009• Digital Economy Act : April 2010• Digital Radio Action Plan: June 2010
• Radioplayer Launch : April 2011• Vehicle industry commit to fit digital radio: October 2011• Industry connected consumer campaign: December 2011• MoU for local DAB coverage funding: July 2012• Switchover decision and announcement: 16 Dec 2013
Expansion Of National/Local DAB Coverage
• National BBC DAB now 94%: building to 97% by end 2015
• Commercial national DAB now 90%
• Local DAB now 72%: expanding to 90%
• In the last 18 months coverage improved for 8.3 Million people
Strong DAB station line updigital digital-only
Foreign language stations
8
UK Radio In Robust Health
• Remarkable resilience in digital age• 91% of all adults listen • Radio share of audio 76%• Listening 50% BBC / 50% Commercial Radio Strong and strengthening radio brands
9
Radio: Second-Highest Time Spent
Multiple Devices And Options
UK Radio Online• Radioplayer: unique
industry collaboration• Common station radio
player and console • Available online ,
tablet and smartphones• Consistent advertising
opportunities • Opportunity to click and
buy
Digital listening update(Q2 2013 )
• Digital listening share now 37%, 16% up yr on yr• 52% of the population now tunes in via a digital
platform each week• 46% of the population now has a DAB set at home • Analogue listening in home less than 50%• 70% of digital listening is DAB • Listening on DAB 24% , up 18% yr on yr• Listening online/apps 6% , up 31% yr on yr• 15 -24 yr olds online / apps listening 15%
Digital stations show strong growth
• Top 9 digital stations are dual transmission
• BBC 6 Music the leading digital-only station with 1.8 million listeners
• Absolute 80s the leading commercial digital-only station with 1.2 million listeners
• Other digital only highlights - Planet Rock has 1.1 million listeners
Jazz FM has 758 ,000 listeners Capital Xtra launched in October
DIGITAL AUDIENCES (REACH): Q2 2013No. Station Digital Audience
('000s)Year on year
change
1 Radio 2 6,581 25.9%2 Radio 4 5,659 15.4%3 Radio 1 4,135 11.2%4 Radio 5 Live 3,063 8.9%5 Absolute Radio Network 3,000 17.4%6 Capital 2,692 30.8%7 Heart 2,404 14.0%8 Classic FM 2,149 12.3%9 Kiss 2,098 13.7%
10 BBC 6 Music 1,792 29.9%11 Magic UK 1,757 16.6%12 BBC Radio 4 Extra 1,565 9.5%13 talkSPORT 1,423 32.0%14 Planet Rock (inc Kerrang!) 1,140 N/A15 Smooth UK 1,126 8.4%16 Radio 1 Xtra 1,114 9.8%17 The Hits 984 10.1%18 5 Live Sports Extra 947 8.8%19 Smash Hits Radio 932 8.7%20 BBC World Service 911 15.0%
Most portable radios are DAB
Radio In Cars
• Primary listening• In-car is 20% of all listening• 41.5% of all new cars now have DAB/DAB+
digital radio as standard • 100% BMW, VW, Audi, Jaguar, Land Rover,
Mini, Lexus, Volvo • Majority of Ford and Toyota models• All cars can be converted
New cars with digital radio
End 2013 Approaching 50% of new cars
End of 201595%+ new cars
Sep 2013: 41.5% of cars now with digital radio as standard
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
0%
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30%
40%
50%
60%
70%Standard Cost Option Unavailable Unlinked
% MVRIS
Manufacturer
2012 % Market Share
DAB % Standard - Current IDs
DAB % Optional - Current IDs
DAB % Not Covered - Current IDs
FORD 13.79% 76.97% 17.58% 5.45%VAUXHALL 11.36% 11.09% 30.47% 58.45%VOLKSWAGEN 8.96% 84.98% 14.57% 0.45%BMW 6.24% 99.28% 0.67% 0.05%AUDI 6.05% 70.60% 11.95% 17.45%NISSAN 5.18% 0.00% 0.00% 100.00%PEUGEOT 4.87% 20.78% 0.00% 79.22%MERCEDES-BENZ 4.49% 29.71% 61.86% 8.43%TOYOTA 4.14% 58.84% 0.00% 41.16%HYUNDAI 3.63% 0.00% 0.00% 100.00%CITROEN 3.60% 28.02% 1.45% 70.53%KIA 3.26% 0.00% 0.00% 100.00%HONDA 2.65% 26.42% 5.03% 68.55%SKODA 2.62% 36.91% 47.64% 15.45%MINI 2.51% 99.72% 0.00% 0.28%FIAT 2.44% 0.00% 15.08% 84.92%LAND ROVER 2.38% 100.00% 0.00% 0.00%RENAULT 1.99% 0.00% 0.00% 100.00%SEAT 1.90% 18.71% 18.71% 62.59%VOLVO 1.55% 55.10% 44.01% 0.89%
Conversion by 2020
Total parc 35m
Line fit 14.5m
Aftermarket 20m
Conversion: Focus on the aftermarket
Conversion SolutionsIntegrated adapters Fitted adapters
Radio app integrationSelf-fit adapters
Industry communications
• Cross-industry collaboration• Focus on digital radio• Heavyweight BBC and Commercial
Radio coordinated campaign led by Digital Radio UK
• Features D Love, the digital radio evangelist
• BBC TV, BBC Radio, Commercial Radio Retail
D Love Campaign
Communications Campaign• BBC TV, BBC Radio and commercial radio• D Love encourages digital radio lovers to share the love with their friends• Trails on Radio 1/2/3/4/5, over 100 commercial stations, and bespoke
station activity with BBC and commercial radio presenters
Car dealer communications
Government Digital Radio Action Plan
• Government Digital Radio Action Plan 2010• Government switchover announcement 2013• Government criteria:
- 50% digital listening- 90% local coverage
• Criteria to be achieved by end 2015
Chair: DCMS Chair: DRUK Chair: DRUK Chair: OFCOM
Government Digital Radio Action Plan
Government Decision 2013
Industry case for switchover • Government case for switchover:
– FM is full– Fairer access to broadcasters for spectrum– DAB expands consumer choice– Dual transmission unfair and inefficient– Digital is the future
• Broadcaster case for switchover: – Ends dual transmission– Enables roll out of DAB coverage– Ensures radio remains relevant– Digital is the future
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DAB penetration
Digital TV penetra-tion
Time
%
DAB household penetration : TV comparison DATE:TV Q4 2005Radio Q4 2015
IN-PRINCIPLE:TV Q3 2003Radio Q4 2013
SWITCHOVER:TV Q2 2008Radio Q3 2018
• DAB penetration until Q2 2013 = actuals, thereafter = projections• Assumes in-principle announcement Q4 2013, and date announcement Q4 2015 • Assumes switchover starts Q3 2018 (England)• DAB penetration in Q2 2013 is equivalent to DTV penetration in 2003 (46%)
2003/2013
2005/2015
2008/2018
• Platform for Government Announcement• 220 attendees registered to attend from:
• Broadcasters• Government and regulators• Retailers• Radio manufacturers• vehicle manufacturers
16 December: “Switchover’s on its way”
Government announcement
• A confirmation of radio’s digital future• Confirmation that switchover will definitely happen • Confirmation that timetable will be consumer-led
and that help will be available for those who need it• A confirmation that FM will be sustained and that
the future of local stations is secure• An announcement that national and local DAB
coverage will be expanded towards FM• Commitment to car conversion affordability• An announcement of a new national multiplex
Government car criteria announcement
“Before a switchover, we need to see significant progress on car conversion. All new cars will come with DAB as standard and we will ensure that converting your car is affordable, easy to do and that products are widely available”
Car conversion challenges• Having the right products available at a suitable price
• Ensuring products are widely available from a range of outlets and suppliers
• Outlets carrying out conversions are properly skilled and provide a good experience
• Ensure consumers understand what a switchover will mean, the benefits of digital radio and how and where to convert their car
• For industry, we need more new players in the market and to maximise the impact of 2013 announcement
Digital radio specification – DAB/DAB+
Certification Mark
Approved Product
Approved Adviser
Registered Installer
Certification Mark
Certification Mark
Future Outlook• UK Radio is in robust health • BBC / Commercial Radio
collaboration• Digital is the future of radio• Digital future is DAB and IP• Specification for UK digital radios:
DAB/DAB+• Importance of common technology
standards• Government decision 2013• Criteria achieved 2015• Switchover 2018 - 2020