DAB digital radio – a platform for EuropePatrick Hannon, President, WorldDAB

Represented by: Jacqueline Bierhorst, member Steering Board World DAB

May, 2016

1

Contents

1. International progress

2. Drivers of growth

3. Next steps

2

FM spectrum is full

• No new services

• No innovation

• Long term decline

3

A digital radio wave is moving across Europe

UK

NorwaySweden

Germany

France

Spain

Italy

Switzerland

NL

Bel

Denmark

Poland

Czech

Austria

Ireland

Portugal

Slovenia

Slovakia

Hungary

4

Four core markets: UK, Norway, Denmark and Switzerland

UK

NorwaySweden

Germany

France

Spain

Italy

CH

NL

Bel

DK

Poland

Czech

Austria

Ireland

Portugal

Slovenia

Slovakia

Hungary

Established markets

5

Followed by Germany (2011), Netherlands (2013), Italy (2014)

UK

Sweden

Germany

France

Spain

ItalyCH

NLBel

DK

Poland

Czech

Austria

Ireland

Portugal

Slovenia

Slovakia

Hungary

Norway

Secondwave

6

Poland, France and Belgium – on the move

UK

Sweden

France

Spain

ItalyCH

NLBel

DK

Poland

Czech

Austria

Ireland

Portugal

Slovenia

Slovakia

Hungary

Germany

Norway

On themove

7

Trials on air / planned in Austria, Czech, Slovakia and Slovenia

UK

Sweden

France

Spain

ItalyCH

NLBel

DK

Poland

Czech

Austria

Ireland

Portugal

Slovenia

Slovakia

Hungary

Germany

Norway

Trials

8

First countries moving to Digital Switchover (DSO)

UK

Sweden

Germany

France

Spain

ItalyCH

NLBel

DK

Poland

Czech

Austria

Ireland

Portugal

Slovenia

SlovakiaHungary

Digital Switchover Norway

• Norway: 2017

- DSO Jan-Dec 17

• Switzerland: 2020-24

9

Norway: digital switchover in 2017

Source: Digitalradio Norge, Photo Norkring

• DAB coverage: 99.5% (better than FM)

• DSO implementation: Jan - Dec 2017

- all national and larger local FM services will be switched off

10

• DAB+ coverage: 99%

• DigiMig* creating DSO plan

- pre-2020 (consumer marketing)

- DSO implementation (2020-24)

Switzerland: digital switchover in 2020-24

* Industry group of broadcasters, regulators and automotive industry

11

• 40 national DAB services (8 on FM)

- 2nd commercial multiplex launched Mar 16

- major promotional support

• Goal: Digital Switchover1 (which would provide significant boost to sales)

• A decision will follow achievement of

- DAB coverage same as FM (97% today)

- 50% of listening is digital (42% today)

• Expect to achieve criteria by 2018

United Kingdom: “future of radio is digital”

(1) UK Minister of Culture, Feb 2015

12

Germany: long term commitment to DAB+

• Launched DAB+ 2011; coverage today: 95%

• BMVI strong supporter of DAB+

- established industry steering board

- enhanced traffic information services

• Nov 14: ARD committed to DAB+

• April 16: KEF (funding body) announces new four year plan for ARD (2017-20)

13

• Major focus on automotive

• Two national commercial muxes

- 70% population coverage

- 4,500 km of roads

• Coverage rising to 90% by end 2017

Italy: coverage 70% - rising to 90% in 2017Coverage map

14

France: three cities in 2014; national plan published Dec 2015

• Paris, Nice and Marseille launched 2014

• National timetable published Dec 15

• 2016: Lille, Lyon, Nantes, Rouen, Strasbourg and Toulouse

CSA roll-out plan

15

• 28 national services

- 14 digital-only

• All regional services on DAB+

• >60 channels in total

• Coverage: 95%

• Joint marketing activity

- public / private broadcasters & Ministry of Economic Affairs

Netherlands – launched DAB+ Sept 2013

16

Contents

1. International progress

2. Drivers of growth

3. Next steps

17

DAB+ provides benefits to all stakeholders

Benefits of DAB+

Listeners Broadcasters Society

• Clearer sound

• Greater choice

• New data services

• Innovation

• Brand extensions

• Cost-efficiencies

• Greener distribution

• Free to air / universal

• Open standard

• Emergency alerts

18

DAB digital radio offers “the perfect sound”

19

Source: Digital Radio Norge

DAB / DAB+ offers greater choice

5 national FM stations

24 national DAB / DAB+ stationsNational radio in Norway

20

Annual cost to broadcasters of transmission per service1, $k

385

925

1645

68 98 128

Owned site Regional site Metro site

FM DAB+

Source: GatesAir. Note: (1) Opex costs; on DAB+, assumes 18 services on multiplex; for further information, see: http://www.worlddab.org/public_document/file/441/2014-02-19_Harris_comparison_DAB__to_FM_and_DRM_final.pdf?1392974163

DAB+ is extremely cost effective

-92%

-89%

-82%

Up to 18 services on a single DAB+ multiplex

21

Analogue and digital Digital-only services

For broadcasters: opportunity to extend brand portfolios

22

DAB / DAB+ and connectivity should work together

DAB Digital Radio

• Free to air

• Universal

• Reliable in emergency

• Interactive

• Personalised

• eCall and M2M

IP

Audio and traffic information services

23

DAB is mass market proposition – over 40 million receivers sold

Global DAB receiver sales (domestic & auto), cumulative, million

1.3 2.95.0

7.49.9

12.515.3

18.522.5

27.2

33.9

41.3

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Industry bodies, WorldDAB analysis(1) http://digitalradio.de/index.php/de/digitalradios-geraete

In Germany, 485 models available today1

24

% of new cars with DAB+ digital radio

Source: Digitalradio Norge, SMMT / CAP, MCDT

In leading markets, digital radio is standard in many cars

Technology- tried and tested

65% 63%

UK Switzerland Norway

80%

25

% of new cars with DAB+ digital radio

Source: Digitalradio Norge, SMMT / CAP, MCDT, VDA

Newer markets - at earlier stage of development

UK Switzerland Norway Germany

80% 65% 63% 13%

Germany expected to grow significantly

from 2017

26

Contents

1. International progress

2. Drivers of growth

3. Next steps

27

DAB / DAB+ population coverage

99% 99% 98% 97% 95% 95%

70%

Norway Switz-erland

Denmark

UK NL Germany

Italy

Source: WorldDAB

DAB established as European standard

Seven countries: 60% of new car sales in Europe

28

Key to success is collaboration

Industry collaboration

Content Coverage Cars ConsumersConsumer devices

Policy & regulation

29

International collaboration growing in importance

Poland ItalyFrance Belgium

DenmarkNetherlands Australia

Norway SwitzerlandUK Germany• Share best practice

• Share marketing collateral

• Especially for international audiences, e.g. car and handset manufacturers

30

Markets are sharing marketing concepts

DU FAR MER I EN DIGITAL RADIO DIE ZUKUNFT DES RADIOS

31

Ministers: working together to accelerate DAB in Europe

• Ed Vaizey, UK Minister of State for Culture and the Digital Economy,

• Dorothee Bär, German Parliamentary State Secretary at the Federal Ministry of Transport and Digital Infrastructure (BMVI)

• Dutch Government strongly supportive

32

Conclusions

Priority is to drive growth in established markets – and open up new territories

3

In Europe, DAB backbone is established1

Digital Switchover is a game changer2

33

Thank you

For further information, please contact:www.worlddab.org