Norwegian switchover strategy
Speech 10. April 2014 at Poznan Media Expo 2014 Conference
By Rolf Brandrud, Radiodays Europe & NRK
My background
• 1980ies – started in radio and stayed there• 1990ies – internet pioneer in NRK• 2000ies – lobbyist for digital switchover for TV• 2010ies – organizer of Radiodays Europe
Where is radio now?
1920 – Monopolies
1990 – Public/privatecompetition
2010 – Radio challenged by new media
6 - 7 years ago
Now
What is the challenges?
• Developing multi channel strategies• Reaching the young• Telling compelling stories• Interacting with the audience – social media• Getting into the smartphone• Finding radio’s new place in the car• Developing radio for screens
What is the answers?
• Not standing still with FM only• Certainly using the net and social media• Not choosing radio OR internet,
but Radio AND internet• We need broadcast radio for efficient,
mass distribution AND supplementing net interactivity
Digitalisation of radio in Europe
Different stages from southeast to northwest1. FM only2. FM + net + webradio3. DAB in test4. DAB in market5. DAB with defined switchover date - Norway6. Digital switchover implemented
Courage!
How?
Collaboration!
How?
Coverage!
How?
Content!
How?
Cars!
How?
The Norwegian timeline
• 1995 startup – gradually prices of DAB receivers have come down
• 2011 – decision about switchover date 2017• 2013/14 launch of new, attractive channels• 2015 – fullfilling the criteria• 1.1.2017 – Digital switchover date• 1.1.2019 – Alternative switchover date – extra
cost 200 mill, 2 mill a week, 300 k a day
The conditions for FM shut down
• Three absolute conditions1. NRK: Coverage as for NRK P1 on FM
2. Commercial radio: 90 per cent
3. Added value to listeners
Capacity and networks in Norway
• FM– 1 channel per transmitter
or network
– Frequencies for 4 DAB networks:• Public service network (7 regions)• Commercial national network
(”National 1”)• Commercial national network
(”National 2” - not built yet)• Commercial regional network (37
regions)
– 5 FM networks• 3 NRK• 2 commercial
– Various local radio network
• DAB– DAB up to 10 channels per
network (mux)– DAB+ up to 20 channels per
network (mux)– Moving towards DAB+
Now
Now
Digital added value
+ 20 channels in Oslo/Akershus
22 national channels(FM typically 3-6)
The conditions for FM shut down
• Three absolute conditions1. NRK: Coverage as for NRK P1 on FM
2. Commercial radio: 90 per cent
3. Added value to listeners
• 2017 or 20194. At least 50 per cent of daily radio listeners must
use digital platforms, exclusively or in combination with FM-radio• Digital platforms: web, DAB, digital tv, mobile etc
Digital use
Q4 12 Q1 13 Q2 13 Q3 13 Q4 14
DABDigital TVInternet
1,23 million Norwegians
14
10
13
15
16
10
18
11
15
19
9
14
31 34 36 36 40
23
10
13
The conditions for FM shut down
• Three absolute conditions1. NRK: Coverage as for NRK P1 on FM
2. Commercial radio: 90 per cent
3. Added value to listeners
• 2017 or 20194. At least 50 per cent of daily radio listeners must
use digital platforms, exclusively or in combination with FM-radio• Digital platforms: web, DAB, digital tv, mobile etc
5. Affordable and technically satisfactory solutions for in-car radio reception must be available• Half of the municipalities and all counties must have an
offer of retrofitting adapters
2015
Where? (previous listening session)
Home39%
In car47%
Other home2%
Work8%
Buss, train, etc1% Other places
3%
Source: TNS Gallup, Digitalradioundersøkelsen Q4 2013 Base: n = 1068
The challenge
2 - 2,5 million cars need an aftermarket solution
Sales of DAB-radios
• In total, 511.000 DAB-radios sold 2013– Incl. car-radio
• More than double of 2012
2009 2010 2011 2012 20130
100
200
300
400
500
600
Car radiosPortable radiosHifi tunersTable radio w/speakerMusic systems
Source: Trade organisation for electronics importers and retailers
Summary
• We digitize to secure radio’s position in the media market• The success lies in collaboration and a strong political plan
communicated to all stakeholders• Norway is on schedule for transition to digital radio in 2017
– Great coverage– New content, wide range of channels– 40 per cent of daily listeners use digital radio
• Close to 60 per cent of all sold radios are digital• Focus on car industry• Highest priority now is DAB aftermarket products for cars