M E A S U R E T A R G E T M O N E T I Z EM E A S U R E T A R G E T M O N E T I Z E

#RDE13 #RDE13

James CridlandModerator

Digital FutureWhere does digital radio stand today?

Digital Radio in GermanyARD Project Office Digital Radio

Michael ReichertRadiodays Europe

Berlin, Mar 18th 2013

Digital radio – future radio is real – not only a vision

+ Just digital radio is attractive state-of-the-art radio!

+ Digital Radio is a new product with new content

+ Digital radio is easy to use on a great number of attractive

(and reasonable priced) devices

+ Internet and broadcast technologies go hand in hand

+ Goal: Hybrid strategy (i.e. seamless media experience)

State borders © Federal Agency for cartography and geodetics, Frankfurt on the Main

Digital radio in Germany – status quo

+ Great variety (football radio, culture, religion)+ 13 national programmes+ More than 60 ARD-programmes+ 27 regional commercial programmes+ 23 local commercial programmes

(in Bavaria)

Total coverageRev: Apr/2013

+ Great variety (football radio, culture, religion)+ 13 national programmes+ More than 60 ARD-programmes+ 27 regional commercial programmes+ 23 local commercial programmes

(in Bavaria)

Total coverageRev: Apr/2013

Digital radio in Germany in brief:+ More stations, more content, more variety+ Simple (terrestrial) reception via aerial+ More than 240 different digital radio receivers available+ Coverage: ARD-network (72.4% area / 83.7% population)+ Coverage: national programmes (63.4% area / 77.7% population)+ Total coverage: (81.9% area / 90.1% population)

Digital radio in Germany – status quo

State borders © Federal Agency for cartography and geodetics, Frankfurt on the Main

National programmes ARD-programmes

Interactive Slideshow - use cases ++++ latest news +++++ + More than 500,000 digital radio devices sold in 2011/2012

+ Sales expected in 2013 around 650,000 devices (GFK panel research)

+ In Dec 2012 five percent of all radios sold were DAB+ radios

(Compared to 0.5% in Jan 2011)

+ gfu: “Portable digital radios are a sales hit – bucking the trend!”

++++ latest news +++++ + Chip Industry: by 2014 multi-standard chipsets in devices

+ VW and Honda to offer first line-fit digital radio (Skoda/Civic)

+ BMW to equip UK Mini with digital radio

+ ARD network to provide categorised slideshow by mid 2013

+ ARD network and Media Broadcast to extend transmitter network

Now it‘s all about marketing!

+ Marketing body: Initiative “Digitalradio Deutschland”:+ Cooperation between ARD, Dradio, Media Broadcast & commercial broadcasters+ Funded by all partners+ Goal: Nationwide impact of all marketing activities

Now it’s all about marketing!

+ ARD project office digital radio+ Planning and accomplishment of events (e.g. expert forums)+ Handling, coordination and realisation of B2C campaigns + Maintenance of mutual website (www.digitalradio.de)+ Coordination, development and support for ARD-campaigns+ Presentation on B2C tradeshows (e.g. IFA, IAA)+ Being involved (e.g. EBU, EU, WorldDMB, RadioDNS)

+ Retailer liaison office+ Planning and accomplishment of B2B events+ Maintaining contacts at point-of-sale + Presentation on b2b-tradeshows (e.g. Expert, Conrad, EP, Opico)

Now it‘s all about marketing!

Marketing strategy – KISS+ Different broadcasters, but consistent outbound appearance

+ Easy to use marketing tools

+ Mandatory use of basic elements

+ Free use of additional elements

+ Free to use – no costs for all

+ Reference for all: Website with all essential details

Central platform - www.digitalradio.de

+ Coverage tool with postcode checker(www.digitalradio.de/empfang)

+ Online device configurator(More than 240 devices available)

+ News, Events, Newsletter+ Promotional leaflets etc. for download+ Trading and Repeater area

(Marketing materials and repeater order for use at POS)

EXAMPLE Genre Marketing – basic elements

+ Logo “Digitalradio – Radio der Zukunft”+ URL www.digitalradio.de+ Blue background and checkered grid

EXAMPLE Genre Marketing – basic elements + claim

+ Campaigns+ Tradeshows+ Point-of-sale+ Special events

EXAMPLE Genre Marketing – basic elements + claim + motif

+ Motifs from tool-box+ Motifs shapeable

EXAMPLE Genre Marketing

EXAMPLE Genre Marketing – online teaser (static/animated) EXAMPLE Genre Marketing – online teaser (clips)

EXAMPLE Programme Marketing – online teaser Mobile booth equipment (e.g. for tradeshows)

Digital Radio in Germany – indicators and core messages

+ More and more devices – 240 different models+ 1,000,000 devices sold in 2013 + Digital radio in cars – standard and optional equipment+ Support from government – working groups + European overall support – initiatives ongoing+ More countries to launch digital radio in Europe

Digital Radio in GermanyARD Project Office Digital Radio

Radiodays EuropeBerlin, Mar 18th 2013

DIGITAL FUTUREWhere does digital radio stand in Norway?

This is Norway

Population : 5 millionLanguage: Norwegian, Sami

Germany Denmark Norway

765

13092

385

43

357

13

128

230

Population density/km²Area in 1000 km²DAB transmitters

Population, area and DAB transmitters

2013

2014

2015

2016

2017

2018

2019

Launch new content

Measurement:DAB distribution

Car solutions 50% reach

FM switch off DelayedFM switch off

2012

We are here:

Timeline

Listeners ONLY via FM receivers69%

Listeners via digital radio30.9%

Digital reach 2012

2011 2012 2013 2014 2015

50%

100%100%

69%75%

50%

0%0%

31%25%

Digital FM

We need to move faster

LAUNCH NEW CONTENT

Digital vs FM

25% 31%50%

National radio stations in Norway

OtherOther

Other

Local

Local

Local

Local

Local

Local

MTG MTG

MTG

MTG

NRK

MTG

NRK

NRK

NRKNRK NRK

NRK NRKNRKNRK NRK

NRK

SBSSBS

SBSSBS

National radio stations in Norway

Is FM switch off in 2017 realistic?

No Yes, one Yes, more than one Don't know

2%6%

26%

57%

Do you have access to a DAB Digital Radio?

Very unlikely 2 3 4 5 Very likely Don't know

7%

47%

13%9%

5%5%9%

If FM broadcasts are switched off, how likely is it that you would replace the FM radio with a digital radio?

DIGITAL FUTURE

1

Digital Radio Future in the UKFord Ennals

CEO, Digital Radio UK18th March 2013

Agenda

Digital Radio Status

• Communications• Coverage• Content• Cars • Collaboration

Digital Radio UK

CompositionBBC and UK Commercial RadioCar and Radio ManufacturersWork with Government and Ofcom

ObjectivesAccelerating the growth of digital radio Getting digital radio in cars Planning a future digital radio switchover

Spreading the love for Digital Radio

Communications• D Love – digital radio evangelist• Unique collaboration • BBC TV and radio airtime• Commercial radio airtime• Retailer point of sale• Consistent campaign approach

D Love Campaign Digital Radio Progress in UK

Coverage• Expanding National and Local DAB • National BBC expanding to 97%• 100% coverage to all motorways, and primary roads• National commercial expanding to 90% • Plan to extend Local commercial from 70%

– expanding to 90%• Local coverage expansion underway:

– City boosts -London and Manchester 2012– Local launches - 8 new Local DAB multiplexes to be

launched in 2013

Government Digital Radio Plan• Analogue status quo not sustainable• FM is full - capacity to extend and launch stations • Maintain radio as a dynamic growth medium• 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

Digital listening will be 50% by Q1 2016 Digital Radio online and apps

Station Apps

DAB Digital Radio DAB Consumer Benefits

Contentdigital digital-only

Foreign language stations

Success of digital only stations

Cars 33% of new carshave digital radio as standard End 2012 33% of all new cars

End 2013 Majority of new cars

End of 2015All new cars

100% of new BMW modelshave Digital Radio Audi Announcement Today

Audi Digital Radio announcement

The conversion of existing

cars to Digital Radio

Conversion SolutionsIntegrated adapters Fitted adapters

Radio app integrationSelf-fit adapters

Collaboration

• Importance of European standards • EBU Euro–chip campaign• UK minimum specification includes DAB+• Coordinated approach to vehicle and mobile industry• Working together:

- Securing future of radio sector - Delivering better radio

#spreadthelove @digitalradiouk

Thank you

Digital radio across the world

Per G Borga, Teracom Group

17th March 2013

Terrestrial broadcasting offers advantages

• Robust and reliable• A true mass market delivery system

• Everyone, everywhere: also cross borders

• No need for costly subscriptions

• Your integrity is safe

• Difficult for radio to innovate

• No significant growth • Younger audiences are listening less

• Interference and bad reception

But - FM spectrum is full

• More choice • More cost efficient• Greener • New features: text, images, interactivity

• Better reception

Digital radio offers the solution

IP is a complement but no substitution

• Not a sustainable business case to substitute terrestrial with IP on nationwide scales

• Who will pay for the data? • What about scenarios and listeners that cannot be reached behind a SIM card?

• Bottomline: It is a question of democracy

Established markets

New market

Potentialmarkets

Digital Radio is being adopted across Europe

• EBU has made it clear that DAB/DAB+ is the technology that is ready and recommends its immediate deployment

EBU recommendation 138 United Kingdom

• 42% of households have DAB

• 80% of new portable radios are digital

• 33% of new cars have digital tuners

• FM switchoff decision expected for 2013

Norway

• 29% of households have DAB

• DAB coverage: 84% of population

• 70% of most popular cars offers DAB

• FM switch-off in 2017 or 2019

Germany

• Re-launched DAB+ in August 2011

• DAB coverage: 88% of population

• Obliged to reach 99% by end of 2014

• DAB+ supported by automotive industry

• 41% of households have DAB

• DAB coverage: 100% of population

• DAB listening 3 times bigger than via IP

• FM switch-off proposed for 2019

Denmark

• 34% of households have DAB/DAB+

• 99% network coverage

• Over 1m receivers sold

Switzerland

• Has adopted DAB+

• Regular DAB+ services launched in Q4-2012

• Trial broadcasts cover 60% of the population

Italy

• NPO will extend its existing DAB-coverage from 70% to 95% in the coming next years

• NPO and private broadcasters in strong collaboration

• DAB+ re-launch planned for Sept 2013

Netherlands

• 100% DAB network coverage

• All motorways and main roads are covered

• RTBF and commercial broadcasters in strong collaboration to launch DAB+

Belgium

• Proposal from government that SR shall expand DAB+ coverage from 35% to 95%.

• DAB+ licensing process for private broadcasters ongoing. Decision in 2013.

• SR and private broadcasters in strong collaboration

Sweden

• Licenses for DAB+ recently issued to 106 radiostations

• 60% network coverage

• Obligation to start DAB+ broadcasts in 2013

• Radio France, RTL, NRJ and Lagardère pausing

France

• Australia: One of the most successful DAB+ launches worldwide. Coverage 80%. Over one million DAB+ receivers sold. Listening via DAB+ more than twice that of Internet

• South Korea: The biggest market so far with more than 60 million receivers sold – most of them mobile phones.

• Regular services in China and Hong Kong

• DAB+ demonstrations and trials are being carried out in the entire region: Thailand, Indonesia, Malaysia, Vietnam, New Zealand...

Asia

Devices available from €20 and more than80 million devices sold on a global scale

Support from all major automakers

Sales

% of population (mobile coverage)

Network coverage continues to grow

Conclusion• Terrestrial broadcasting has

advantages but FM spectrum is full

• IP is complementary but cannot be a substitute

• DAB+ is the fastest growing, most popular digital radio standard

• Get involved and shape the future; join your national digital radio organisation and the global forum WorldDMB

Looking to become a Member or run a Workshop?Contact WorldDMB:rebecca.keene@worlddab.org

Thanks!

Questions or Answers?Contact Per G Borga:Per.g.borga@teracomgroup.se @pgborga

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