Digital radio – digital divide or digital duel

Michael Hedges October 19, 2009 Follow on Twitter

For radio broadcasters, no agony is worse – after declining revenues – than the seemingly endless groaning about digital radio. Technologies have been in place since the last century to bring the digital dividend to radio. Presumably that would include broadcasters… somehow.

Without knowing whom, exactly, this digital dividend benefits – other than chip makers and transmitter salesmen – broadcasters are sharply divided, the knife cutting several ways.  Private sector broadcasters warmed to digital systems, thinking listeners and advertisers would be enticed by clear sound and more channels. Public broadcasters – mostly – whole-heartedly embraced digital radio, expectation being strategic advantage over the private sector. During the course of the last three decades both sides of Europe’s dual system of broadcasting fought, made peace and fought again over territory and money. The digital future could yield more separate than complimentary systems.

Meeting recently in Lucerne, Switzerland (October 15) proponents of HD Radio – known sometimes as IBOC – gathered to compare notes. The European HD Radio Alliance (EHDRA) sponsored the event. (See EDHRA press statement here) HD Radio is the trademarked digital radio technology owned by iBiquity that allows FM and AM (medium wave) analogue transmission to support digital transmission, hence, the old name – IBOC – In-Band, On-Channel. HD Radio is the approved and accepted digital radio transmission standard in the United States. The EHDRA is promoting HD Radio as a lower cost alternative to DAB (digital audio broadcasting) family of standards offered in the UK, Denmark, Norway, Switzerland, Italy and Australia. (More on digital radio here)

Swiss private sector broadcasters plan to launch HD Radio within the next year as the digital option to DAB/DAB+, offered by public broadcaster SSR-SRG. Doing this requires – like everything, it seems, in the digital world – a few new rules. The Swiss regulator OFCOM has proposed changes in regulations for secondary service terms, which bureau chief Marcel Regnotto told the meeting would be approved by the Swiss government.

The rule changes would, in essence, create dual digital radio systems. SSR-SRG channels and new regional private sector channels would occupy the DAB/DAB+ multiplexes while existing local and regional private broadcasters would be free to choose HD Radio.

Wednesday (October 14) a DAB+ multiplex in the Swiss-German speaking region went live. Speaking at that inauguration Mr. Regnotto indicated that OFCOM might be taking a smaller role in technical distribution issues, DAB+ offering greater capacity for channels. “The problem of limited FM frequencies remains,” he added. OFCOM estimates about 300,000 DAB/DAB+ receivers are in Swiss households and offices.

The new DAB+ multiplex is a private sector venture of Swiss Media Cast and offers 11 channels, four of which are simulcasts of SSR-SRG channels. The seven others are a mix of private radio simulcasts and digital only channels. One being tested is called Open Broadcast, a user-generated channel. These are the first private sector radio channels offered on digital radio in Switzerland.

SSR-SRG was an early and generous supporter of DAB (digital audio broadcasting). All of its channels appear on regional DAB or DAB+ multiplexes. By the end of 2009 all SSR-SRG digital radio transmissions will appear on DAB+ multiplexes.

Contention between public and private commercial radio broadcasters over digital radio has grown more heated over the last year. After years of tacit agreement on rolling out some form of digital radio, private sector broadcasters turned to alternatives – like HD Radio - or outright resistance. German private broadcasters rejected DAB earlier this year, many Swiss broadcasters quickly following suit. The expense has more than rattled a few, particularly with ad revenues under stress. Rental space on digital radio multiplexes isn’t cheap. Costs of simulcasting FM and DAB  (or DAB+) with no new revenue streams get a negative nod from the accountants.

The dual public-private broadcasting system, living side-by-side (more or less) on the FM band, has provided huge benefits. Listener choice is (more or less) equal, distribution accessible to all. And, too, receivers of all variety are widely available.

But radio is not television.  Migrating from analogue to digital television, while costly, benefited viewers with higher quality, more channels and new services. Radio listeners don’t perceive a great benefit from digital radio; same channels, expensive receiver to buy, not interactive.

The solution promoted by some has been a switch-off of FM channels, forcing listeners and broadcasters to make the digital move. Private sector broadcasters, forever pinching pennies, began to see a very bleak future. Regulators and policy makers seem more reluctant than ever to set dates for complete FM switch-off; visions of obsolete FM radios by the hundreds of millions stacking up being an environmental problem, visions of irate voters being a political problem.

This newer view of digital radio’s future is getting traction – public channels and bigger national or regional commercial channels to DAB (or DAB+…or something) and local stations remaining on FM. This forces the biggest broadcasters to create channels and formats sufficiently attractive to entice people to buy those new receivers. At the same time local broadcasters can continue to provide their specialty without the heavy financial penalties. And the best part is that radio listeners get to choose.

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