Digital Radio: What Would Steve Jobs Do?

Michael Hedges July 26, 2012 Follow on Twitter

Digital radio development is, as it has been, up and down. Launches precede re-launches. Promotion has the appearance of trial and error. Supporters see one set of problems, detractors yet another. It’s a tough nut to crack.

At the first year anniversary of digital radio’s official launch in Germany, supporters have become “broader than detractors,” said Digitalradio Deutschland director Willi Schreiner to the Digitalradio 2012 forum (July 18). Bavarian commercial broadcasting regulator BLM organized the conference. The big problems remaining are marketing and mobile use in automobiles.

“We have finally learned to subordinate technology to programming value,” said Digitalradio Project Office director Michael Reichert. “Please sell radio, not a transmission system.” National DAB+ multiplexes began taking form last year and build-outs of local multiplexes continue.

“The mobile use is the key for digital radio,” said Reichert. But the automobile industry is “ein dickes Brett gebohrt werden” (loosely translated, a tough nut to crack; literally, a thick board to be drilled).

In Germany, a digital radio receiver factory installed in an automobile adds about €300 to the purchase price. Two in five automakers currently offer factory installed digital radio receivers, according to BLM studies, the same portion are “planning on it” and one in five have no interest.

Nearly two decades since the introduction of DAB, the original digital radio standard, in the UK, the government, the BBC and commercial broadcasters signed a non-binding memorandum of understanding (July 2) on further local DAB multiplex build-outs over the next five years with a commitment of GBP 21 million (about €28 million). The UK government is set to make a decision in 2013 about the possibility of analogue radio shut-off in 2015, beyond or not.

“This is tantamount to kicking the can down the road and does absolutely nothing to end the uncertainties around the local DAB situation,” responded commercial broadcast operator UKRD chief executive William Rogers, an ardent critic the digital radio scene, quoted in Radio Today (July 2). “We have been waiting for this for months and months and all we get is a meaningless piece of paper devoid of any serious commitment to the necessary funding required or any sensible strategy to deliver certainty to this whole local DAB shambles.”

Last month Austrian media regulator KommAustria invited expressions of interest in operating local DAB+ multiplexes. Deputy director Florian Philapitsch would “not confirm” an underwhelming response after the four week invitation period closed July 2nd, reported Der Standard (July 3). “We are currently sifting through the responses received and we will communicate promptly after completing this examination.”

Earlier this month the French government effectively buried digital radio by cutting funds for French public radio to participate. The big French private national networks withdrew months ago, leaving the problem to under-funded local and community broadcasters. “Digital terrestrial radio is clinically dead,” wrote digital media portal numerama.com (July 3).

Next month Australian broadcasters will celebrate the third anniversary of the DAB+ launch. Promoting the event is a contest across each Australian States to give-a-way new Toyota automobiles fitted with DAB+ receivers. Industry sources report over 800,000 digital radio receivers sold since 2009, listened to by 1.3 million Australians.

Current marketing of digital radio in Germany, specifically the DAB+ variety, leaves something to be desired, said Münich ad man Josef Thaler to the BLM forum. “Don’t look for a unique selling point. You can’t find it. Rely on emotions.” The ‘radio of the future’ meme is less effective, he said, than a focus on the present and the “retro” design of many digital radio receivers “doesn’t create a desire to buy.”

Digital radio could benefit from “cult-like” marketing, Thaler added. Receiving devices “aren’t sexy. There’s no Steve Jobs in the digital radio industry. "

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