Category: dab digital radio

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dab digital radio radio

George Lamb – Saviour of Digital Radio?

Applause by svenwerk @ flickr

George Lamb is the mid-morning presenter on 6 Music, one of the BBC’s Digital radio stations. 6 Music has a tendency to take itself, and its music, rather seriously. It was apparently born from (or heavily influenced by) the ashes of BBC Radio London when that station reinvented itself as a more news & current affairs station called BBC LDN. Indeed, the previous occupant of the 10am – 1pm slot on 6 Music, Gideon Coe, was a luminary of BBC Radio London and somewhat of a music guru. 6 Music is under the wing of Lesley Douglas, who’s main job is looking after BBC Radio 2.

George’s arrival certainly shook up 6 Music, and generated plenty of heated debate by the music loving listeners to the station. He’s suffered criticism like few other presenters have, and he’s borne it well. His show is best described as unique, and somewhat less reverential about music than some of the other 6 Music presenters.

So why is George Lamb potentially “the Saviour of Digital Radio”?

In many ways, for the same reason that Chris Moyles can claim to be “the saviour of Radio 1”. George invokes serious passion in people; love him or hate him, everyone has an opinion on him, and his fame spreads way beyond the 520,000 people who listen to 6 Music each week. Just this week, I grabbed an Arena magazine (for a surprisingly long flight to Sweden – who’d have thought it was nearly 3 hours from Bristol?), and there was an article entitled “Black Sheep” all about George. People are talking about George Lamb, and the radio station he’s on.

George Lamb is the best marketing 6 Music has got. And in turn, it’s the best marketing Digital Radio has had in years.

A lot of earlier marketing about Digital Radio was pretty functional. “Buy a radio and get more channels“. Unsurprisingly, the mention of individual stations was very vague, because nobody wanted to promote a competitor’s station. Audience levels across the board were small, and it was virtually impossible to buy a radio, so nobody wanted to invest in station specific marketing.

But now Digital Radio is maturing, it does make sense to start marketing stations, and what a great way to promote a station by employing brilliant new talent, and talent that invokes passionate discussion – good and bad. (Given a choice, I would much rather manage a difficult but brilliant presenter who invokes polarising feelings in his/her listeners, than someone easy, bland and unassuming).

6 Music aren’t the only station investing in presenters as marketing. Planet Rock (560,000 listeners per week) has had stars like Alice Cooper, Rick Wakeman and Gary Moore on its presenter lineup.

The cleverest way to continue to grow Digital Radio listening is to make it the home of great new talent.

For the next stage of Digital Radio’s growth, I don’t believe we need to spend millions of pounds on “above the line” marketing like billboards or bus-sides or TV. Word-of-mouth about great talent spreads through the Internet, through Facebook and Bebo and onwards, particularly if it is a bit niche and a bit hard to get hold of. And given the relatively low revenue levels on Digital Radio, this risk involved with trying out new people is way lower than it is on analogue.

Commercial Radio, for once, has a level(ish) playing field; as many people can listen to Commercial Digital radio (through DigitalOne, or the considerable coverage offered by the network of local digital multiplexes) as can hear the BBC. If Commercial Radio can start stations that can house great talent, and work the PR and the exposure right, then it stands to gain as much as the BBC. It just needs to get comfortable with the idea of working bigger in an industry that previously considered “big” to be Capital FM. (A previous home to Chris Moyles, along with a string of local commercial radio stations incidentally). That doesn’t overcome the massive funding difference between the BBC and Commercial Radio, and the BBC’s ability to offer radio presenters routes into TV, but Digital Radio has narrowed the gap.

The appointment of Tim Davie (who has a marketing background) to replace Jenny Abramsky as Director of BBC Audio and Music, could be the catalyst for the BBC to do more to promote its digital radio services. The BBC Trust noted in its recent annual report that awareness of BBC Digital Radio services (at 41%) is perceived to be low, and that surely is a cue for the corporation to start working harder and smarter at promoting the services it spends quite of lot of money making.

Lesley Douglas said at the Radio Festival that it was time to stop talking about the technology of Digital Radio and start talking about content, and by George, Mr Lamb is content to talk about.

Photo: Applause by svenwerk @ flickr

[UPDATE 23-Jul-2007]

My post about a controversial person seems to have generated quite a lot of controversy, judging by the comments (and this is the most commented post so far).

I just wanted to clarify two things about the original post:

  • I am neither a fan nor not a fan of George Lamb. I’ve not heard enough of his show to make a judgement, and I rarely listen to 6 Music. I wasn’t intending to pass comment on George’s talent or lack of it. The reason I picked George was because I’d just read a big article (in a popular mainstream culture magazine) about him, and the digital radio station he worked on, and that’s a big deal for those of us who are tracking the development of digital radio globally. It’s a significant point in time to be able to say that digital radio stations have to got a point where the personalities on those stations can garner coverage and exposure for what they do on their radio shows. I hope more digital radio stations can use that to their advantage, and to the advantage of the medium as a whole.
  • When I talk about preferring to manage difficult but talented personalities, I’m not referring to anyone in particular. I’m going back to when I used to be a programme controller (of both analogue and digital stations) and was working alongside, and for, other successful radio programmers. Managing a great talent who polarises opinion is very hard work, and can be immensely frustrating, but you have to believe that it’s the right thing to do. Managing personalities is very hard. By contrast, managing unassuming, safe, competent radio presenters is pretty simple, but it doesn’t make radio that makes people laugh, cry, amused, amazed or enraged. And if it’s not doing that, what’s the point?

So please forgive me for inadvertently straying onto the battlefield, and consider me limping off, tending my wounds. But I’m still glad that it’s a digital radio station that’s creating such controversy.

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dab digital radio real life technology

The Radio Festival 2008

Where are we going again?

Radio Festival – the three days where the entire UK radio industry gathers to discuss the future of the radio industry, address the topics of the day, and indulge in the unprecedented transfer of value from wallets to bars. (Although this year’s free bars have been widely praised).

So where and how did Digital feature in this celebration of radio, and what did Lesley Douglas (Controller, BBC Radio 2) say that was the most insightful and valuable contribution of the whole event?

Twelve years ago, DAB warranted a token primer session in Techcon. (“Here is a picture of a mul-ti-plex. You can transmit many stations on one mul-ti-plex. It uses au-dio en-cod-ing called Emm-Peg Two”). I drove people around Birmingham in a Black Thunder demonstrating a DAB radio the size of a small beer fridge.

This year, ITIS and Fraunhofer presented useful and interesting applications for DAB. ITIS explained the many varied uses of TPEG, including the very topical FPI (Fuel Pricing Information) service (complete with early 2008 diagrams with references to sub £1/litre fuel – how we sniggered). If GPS mapping is the next big thing in terms of mobile technologies, then DAB allows those maps to be populated with large amounts of really useful real-time data. My hunch is that POI (Points of Interest) will itself become a Point of Significantly Valuable Commercial Interest to commercial radio stations (can I register the acronym POSVCI? No?). Fraunhofer demo’ed their Journaline applications, which is a lightweight browseable text service, something like a RSS Reader but delivered over DAB. Neat, but I wonder if it’s aiming at a class of radio (simple text display) that the radio industry is trying to get beyond now?

Festival proper started on Tuesday, with brilliantly produced an fabulously creative session on the Digital Radio Working Group (producer, Nick Piggott, GCap Media plc). Ahem. Look, it was never going to wow people when the report had already been out a week. The discussion (when it finally got going – the crowd took time to warm up this year) focused a lot on in-car receivers, and I felt that Peter Davies got away rather too easily with side-stepping the question about what to do about the punitively high transmission costs being suffered by commercial broadcasters at the moment. There also wasn’t enough discussion about coverage strengthening. But then, it was the first session, and the bar had been open the night before.

There was the obligatory session on music rights, where PPL and PRS/MCPS explain that they’re really only trying to help, but then get nailed (quite rightly) by everyone who asks a question from the crowd, and big kudos to Jay Crawford for exposing the levels of desperation to claw money from people to such an extent that they set up call centres to do mass enforcements of “workplace” music licences. A quick conversation with the landlord of the local hostelry confirmed that he’d been strong-armed into getting a licence because his chef occasionally has the radio on in the kitchen. Madness, from the people who brought you “let’s sue 12 year olds”.

But the really interesting thing about Festival now is that Digital crops up everywhere. It’s just part of life. (I don’t think it got mentioned in Matthew Bannister’s amusing session on compliance, made even more hysterical by Muff Murfin using at least three words from the seriously banned list unaware that two school kids had been ushered into the hall behind him for the next session).

On Wednesday, we had a session on visualising radio, which just served to highlight the commonality of the vision for radio in the future. I was on the panel next to Ben Chapman (Radio 1), and the fact is that we pretty much agree. Ben’s got different ideas on what his visuals will be, and in that respect it’s the very embodiment of “agree on technology, compete on content”. Radio is going to visualise, so the race is on to see who does it first, and who does it best (clearly, GCap will do both). There were some slightly random contributions from Westwood about his YouTube successes. (I wonder if he’s called that because of Westwood Hill, Sydenham, SE26). Chris North of Wise Buddah reminded us (as only an agent can) that artistes have finite time, so we need to bear that in mind when we come up with endless digital extensions to work on.

However, it was Lesley Douglas who really contributed significantly to the digital debate this year, in the dying moments of the festival. In a session where a panel of key industry people (Andrew Harrison, Tony Moretta, Lesley Douglas) take questions from the audience, one question prompted the discussion “has the UK picked an out of date digital technology?”. The conclusion, as usual, is no – when you properly consider all the elements that lead to success, there’s no better choice than DAB/Eureka 147. But Lesley closed the panel by saying something along the lines of:

I hope that this is the last year we have to discuss the technology, and that next year we’ll be talking much more about the content of digital radio, which is what matters far more to listeners.

I couldn’t agree more.

Categories
dab digital radio DMB radio

Unbiased advice on DMB, DAB and DAB+?

Confusion by LuluP @ Flickr

It’s really great to meet radio people from around the world, and talk with them about their own plans for digital radio. But I’m often surprised about how much confusion surrounds DAB, particularly the (mis)information about DMB.

It’s important that radio people inform themselves properly and independently about the technology choices they are making. This isn’t as easy as it seems.

Follow the money

What isn’t widely understood is how money flows around the business of consumer electronics these days. You might think that a manufacturer makes money through retail margins – selling radios at a price higher than it cost to produce them. That’s certainly true, but the economics of the last decade or so have eroded retail margins to be incredibly slim. You don’t make much money simply by selling radios.

One of the issues that is new to radio people is IPR – Intellectual Property Rights. IPR represents some “cleverness” that a company (or group of companies) has thought up to make technology work better/cheaper or both. Legally, they “own” that idea or process, and they can choose to licence it to third parties. A modern consumer electronics device (like an MP3 player) may have IPR from twenty or thirty companies in it, and everyone of those companies is entitled to a licence fee. There has recently been a case where consignments of MP3 player have been seized because the manufacturers have not been paying the IPR for using the MP3 technology.

Here’s a specific example: To enable DAB+ or DMB requires an audio encoding technology called HE AAC, combined with a technology called SBR (Spectral Band Replication). These two technologies cost €1.60 and €0.15-€0.20 to licence per receiver respectively. So every DAB+ or DMB enabled receiver generates €1.80 to those companies who own the IPR rights. Multiply that across every radio sold in the world, and that’s a substantial amount of revenue. Put it another way, if you sell a DAB+ radio for €20, as a manufacturer you might get €0.50 from the retail margin, but as an IPR licensee you might make €1. Making radios is not as profitable as making the technology to go into radios.

But here’s an interesting thing. A DMB device also needs another technology called MPEG II Transport Stream. That adds another $0.50 per device. So a DMB device automatically has a higher cost, even if it only ever decodes audio. And there’s another $0.50 per device flowing to an IPR holder (or group) somewhere.

So who owns this IPR?

It’s not always clear who benefits from these extra licensing fees. But it does stand to reason that the companies who have IPR rights in a particular technology will be those companies most enthusiastic about promoting it and getting it widely adopted. And boy, there’s no wider adoption than radios. (100m radios in the UK alone – only 70m mobile phones). It’s a vast vast opportunity. If you’re an IPR holder, even if it’s only a total of €0.10 per device, you could be looking at millions and millions of Euro in licence revenues for decades to come – just by persuading someone to use your technology.

So now it makes sense why a technology company might fly people around the world, and make expensive “prototype” devices to encourage uptake of that technology in which they might have IPR rights -both declared and potentially hidden too. A few hundred thousand Euro in airfares, flights and prototypes might net millions of Euro return.

(It would be like the petro-rich countries encouraging the development and universal adoption of the internal combustion engine. Whatever the development and marketing costs were, they would quickly be dwarfed by the petro-dollars rolling in for decades and decades).

Take your technology advice carefully

Here’s a harsh statement – don’t trust technology suppliers to give you impartial advice. They might benefit substantially from your decision. They are selling you a solution, and your consumers will be paying for it with every device they buy, for ever.

So now you have an insight to the motivation of technology suppliers, who can give you impartial advice?

Well, the answer is that few people can give you genuinely impartial advice. But I would suggest that other broadcasters probably have objectives more similarly aligned to your own, and rarely have an IPR interest, so their advice might be far less prone to distortion. But of course, they don’t make any money from their advice, so sometimes it’s hard to justify spending a few hundred Euro one a flight and a hotel to discuss these things.

I’m disappointed that our colleagues in France have an expectation of Digital Radio that’s virtually identical to ours, but have been sold a completely different set of technologies to delivery it – technologies that will add about €0.75 in IPR to every single digital radio sold around the world. We can’t afford to make that mistake again.

DAB, DAB+ and DMB

Sometimes it appears that technology suppliers would prefer the simplicity of DAB to be obscured from broadcasters. It obviously helps them sell a solution if the solution looks hard.

DAB isn’t complicated, but you do have to know your options.

Everything in DAB starts with the multiplex, and the multiplex can support a mix of technologies all co-existing in the same set of spectrum and on the same infrastructure. The most prominent DAB applications are:

  • DAB – confusingly, the same name as the multiplex. DAB refers to the original method of broadcasting radio using the MPEG Layer II audio encoder, and this is now largely superseded by DAB+. You can add visuals to DAB using Slideshow at frame rates of up to 1fps.
  • DAB+ – the way to transmit Digital Radio. DAB+ is a direct upgrade of DAB. The great thing about DAB+ is it supports exactly the same data services as DAB, so there is a clear migration path for countries using DAB now (like the UK) into DAB+ without starting from scratch again.
  • DMB – the way to transmit mobile TV. DMB is substantially more complicated and expensive to transmit, and on the receiver, than DAB or DAB+. Unless you absolutely need to transmit TV (moving pictures with synchronous audio), you should not be considering DMB at all. The extra IPR load on the receiver of DMB is nasty, and makes the idea of a €50 radio with a colour screen virtually impossible.

I don’t think I can make it clearer than that. Don’t use DMB for radio, as it’s unnecessarily complex and expensive for radio, even radio with visuals. Use DAB+, as it was beautifully developed (largely by broadcasters with no IPR interests) to work brilliantly for radio. DMB was knocked up in a hurry to support mobile TV – it works, but it’s not elegant. But you can mix them all together in the same DAB multiplex just fine.

Radio companies of the world need to stick together

Together there is enough knowledge and understanding of the technology within broadcasters not to have to rely solely on technology suppliers for advice. The problem is that we appear to be really lousy at talking to each other about it. The WorldDMB Technical Committee helps a bit, but often decisions are being taken at higher levels than that, and there simply aren’t enough commercial radio broadcasters participating in WorldDMB.

That needs fixing before we fall into another IPR trap that will cost us all money.

Categories
dab digital radio

Planet Rock – will it soar as a standalone?

GWR Digital Production Suite

What a weekend for writing about radio stations changing hands. In the last 3 days, there have been two confirmed changes of ownership, and further speculation about the imminent future of Planet Rock. James has written up his thoughts on the sale of Virgin Radio to Absolute / TIML and the dropping of the “Virgin Radio” name, and XFM South Wales has been sold (7 months after it went on-air) to Jason Bryant’s Town and Country Broadcasting, and has been re-branded “Nation Radio” with immediate effect.

One change of ownership that is unlikely to involve a name change is the supposedly imminent sale (by GCap Media) of Planet Rock. The name of Malcolm Bluemel, an entrepreneur, has been mentioned in a report in The Times, although this is wholly unconfirmed at this stage. It’s certainly caused some ripples this week, as it appears that Brian May (of Queen fame) was rather surprised/disappointed to find that he wasn’t the only person willing to save the station. This Report also speculates that Mr. Bluemel will acquire the station for a “nominal sum”, which seems surprising for a station with 560,000+ listeners a week, and with a remarkable profile for a radio station which has spent virtually nothing on marketing in its eight and a half year existence.

I must admit to feeling a bit sad to see it leave home (although physically it’s not going very far); Planet Rock (along with Core) was one of the Digital Stations I started back in November 1999, and whilst I’m no big champion of classic rock music, I was involved in the research process behind the formation of Planet Rock and it’s left me in no doubt whatsoever that this is a radio station that talks to a very definite, passionate, and affluent audience, who – most importantly – are not traditional users of Commercial Radio. (Radio 2 and Radio 4 were the primary radio stations of most Planet Rock listeners).

I think Planet Rock could do much better, and realise its true potential, in an environment where everyone is focused and passionate only about the success of that station, and its standing with the (classic) rock community. Where influence is measured by audience figures, Planet Rock (and Core) always suffered from being a strange anomaly within GCap Media – national radio stations, but with regional radio station audience sizes. It’s understandable that the focus is selling Classic fm’s 6.8m listeners per week and the revenue expectations form that, rather than tending to and growing the Planet Rock brand.

One issue won’t change, at least as part of this deal, and it’s the unrealistic economics of the DigitalOne multiplex. If I was running Planet Rock (which I haven’t done for many years), I’d seriously be looking at the options to find it another DAB home. The reason that D1 is now half empty is that the costs of being on it appear virtually insurmountable. In my opinion, it’s a terrible business model for the wider radio industry, although I can understand D1’s attachment to, and defence of, it.

The interesting common thread of all these three sales is that the common consensus seems to be that the stations will fare better with their new owners than the old ones. And in each case, it seems that the new owners are smaller and more passionate about their purchases than the old ones. Maybe the radio industry is about to enter into a new phase of development, where smaller stations succeed through concentrated and focused passion about what they do best.

Update: 4th June – the sale of Planet Rock to Malcolm Bluemel’s “Rock Show” company has been confirmed. Good luck to the Planet Rock team.

(Photo: One of my own, taken on a frankly appalling first generation Digital Camera , of the first home of Planet Rock, Core and The Mix).

Categories
dab digital radio DMB mobile

Free TV on mobiles – Free Radio too?

Samsung DMB Phone

Vodafone Germany appear to have thrown in the towel in the great battle to get mobile users to pay for mobile TV :

They’ve decided that a better plan is to enable reception of the existing Free-To-Air DVB-T service, and bolster their revenues from selling digital content linked to and around FTA TV. This sounds like a smart move to me, as someone else is paying for the network. Clearly it’s more “not good news” for the dedicated mobile technologies of DVB-H and DMB.

So, Vodafone Germany enables Free To Air TV reception via DVB-T, and at the same time Vodafone UK enables Free To Air Digital Radio reception via DAB by signing a network exclusive deal for the Samsung Steel.

(I’m tapping all the contacts I have to get the full info on the extent of DAB support in the Steel – does it do DLS Text, Slideshow, EPG?)

Maybe Vodafone Group is more joined up across Europe than we give them credit for?

Categories
dab digital radio mobile technology

Better than Mobile Internet?

Broadband Gone Down? Blame the Shoes

Joi Ito is an influential guy in new media circles, and he’s fretting about Mobile Internet. In his post “Is mobile Internet really such a good thing?“, he draws attention to some of the fundamental differences in business models between wired Internet and mobile Internet. It may all be IP packets at a technology level, but the way money flows around is very very different, and that’s what Joi is concerned about.

To briefly summarise his thoughts:

  • The mobile internet ecosystem is very regulated; either by government and law, or by the network operators and their own business plans
  • The operators are driven to pursue revenues “above the wire” (from applications) because the cost of their spectrum and networks is very high
  • A significant amount of money goes to vendors to make the network equipment – (infrastructure and, I guess, handsets)

It’s these issues which make Joi wonder if models that work on wired Internet will successfully transfer to mobile Internet.

I think that if we move over to mobile too quickly we’re risking moving our game to a platform where the DNA is not what we’re used to on the Internet and most importantly, putting money in the pockets of people who do not redistribute it to startups, but instead feed giant vendor ecologies instead.

To me, the obvious differences between wired and mobile Internet are:

  • You pay for your computer and you probably expect to keep it for 3-4 years. You don’t pay (directly) for your mobile phone, and you probably want to change it every 1-2 years to keep “in fashion”.
  • Your wired connection is probably pretty cheap for your ISP to maintain, and has a significant amount of capacity that can be dedicated just to you. The spectrum for your mobile connection probably cost your Telco a huge amount of money, has to be shared amongst everyone in your immediate vicinity, and probably isn’t that spacious.
  • Because of the two reasons above, your wired ISP probably doesn’t see itself as a significant content provider and certainly wouldn’t try and take a cut of all the transactions processed across “the Internet”. Your Telco probably needs to create “above the wire” application based revenue to make their business plan stack up, and keep the money flowing to pay for new handsets and new network infrastructure.

It seems to me that the ideal mass-market mobile application would benefit from a network where:

  • The users pay for their own devices, and expect them to last some time
  • The network operator has low infrastructure and spectrum costs, and offers widespread coverage

Hmmmm… I wonder what technology could possibly fit that bill. Answers on a postcard please, copied to Joi Ito.

Seriously, it does serve to highlight again that a broadcast technology has unique strengths, even in a world apparently dominated by bi-directional IP. If you can come up with a set of applications that can be broadcast (or combined with a lightweight use of IP), then you’re going to have a massive advantage over the guys relying on the Telcos to enable their business plans.

Categories
dab digital radio real life

Why In-Car DAB isn’t yet here

JD Power Survey by nickpiggott @ flickr

Of all the questions surrounding the DAB strategy, the “How do we get DAB in-car?” must surely be one of the most contentious (along with “Do we need to set an analogue switch-off date?”).

I must admit, I don’t share some of my colleagues’ concerns about the progress of DAB towards being a standard line-fit item on Europe’s cars. I remember how long it took CD players to be ubiquitous in cars, almost a decade after we all had them in our houses (and quite a few of us had them to carry around). I think the evidence is there that things are moving along OK, and once there’s a more defined commitment to DAB from Germany, France, Scandinavia et al., the market-size requirements seem to be fulfilled.

But now I’m a bit more concerned that the automotive industry is making decisions based on incorrect research, to the extent that they might well be getting a completely inaccurate picture of people’s desire to have DAB in their cars.

About a year ago, I bought a new car. Nothing remarkable, a particularly dull brand and a particularly dull model. Of course, I asked if DAB was a dealer fit option. The dealer said that wasn’t possible, but that he’d had a lot of people asking about it. (Good sign). Annoyingly, it’s one of those “fully integrated” dashboards, which makes it virtually impossible to fit a radio myself. Thankfully the PURE Highway arrived, and that solved that problem rather neatly.

Now, a year on, I’ve received a JD Power survey to complete. If you’re not aware, the JD Power survey is the Gold Standard of car surveys, and it is relentlessly thorough. (If timing had been better, I would have scanned the blank one in). It’s clear that a lot of the data goes straight back to the manufacturers.

So let’s be clear; a UK based survey company (Guildford), sends a UK based customer a survey form about a UK purchased and registered car.

To say I was taken aback by Question 14.7 would be an understatement

JD Power survey Q14 by nickpiggott @ flickr

Does your NEW vehicle have…

Satellite Radio : (factory/dealer fit OR aftermarket installed)

After diligently crossing “Satellite” out and writing in “DAB Digital”, I ticked the “aftermarket installed” box.

Then there are hundreds of questions about every aspect of the car, has it ever gone wrong, do it like it, could I like it more. And towards the end, another killer question:

JD Power Survey Q30 by nickpiggott @ flickr

Q30 Features and Options

Please mark the factory installed features you have on your NEW vehicle now and those you want on your next vehicle (my emphasis)

[massive list of items – DVD players, Sat Nav systems, Extra bottle holders, Power sliding doors, remote keyless entry, memory seats, headlamp washers]

27. Satellite Radio : I HAVE it now (Y/N) I WANT IT on my next radio (Y/N)

What does this mean in the UK? Clearly, they’ve cut’n’pasted the US questionnaire, but what on earth does a UK consumer write here, and more interestingly, how are these answers interpreted by the car companies deciding whether to fit DAB Digital Radio into cars in Europe?

In the worst-case scenario, poor confused UK customer says un-equivocally “NO I don’t have Satellite Radio, and NO I Don’t Want One in my next car…. because I’ve never heard of ‘Satellite Radio’ and I want a DAB one, please”. Of course, there’s no way of capturing the second part of that statement. The form just says “Do you have one – NO, (never heard of it) ; Do you want one – NO (ditto)”.

So under what heading does that answer appear as in the cross-tabs presented to the manufacturer. Does it even make it there if nobody says they’re interested? When running the “Top 10 most demanded features on your next car”, satellite radio isn’t going to rate, but neither is DAB.

Next time a manufacturer tells me there’s no evidence of demand for digital radios in cars, I shall point them at the JD Power survey. In the meantime, I’ve written a letter to JD Power asking them what it’s all about; if I get a reply, I’ll post it here.

(Update – miraculously, I received another, blank, questionnaire today – so I’ve replaced the one I’d scribbled all over).

Categories
dab digital radio radio technology

The Internet is not a risk to Radio

Participation Levels in Online Services by EduBlogger @ flickr

I was at the Media Guardian Radio Reborn conference last week, and Claire Enders showed us one of those scary “share of display advertising” graphs. True to form, every sector was either in decline or clearly looking a bit feeble (radio in the latter group). The share of spend was on the vertical axis, and the sectors (TV, National Press, Regional Press, Radio…) along the horizontal access, although “Outdoor” was inexplicably absent.

The only set of bars in growth was the set labelled “Internet”.

But this strikes me as being wrong; it’s an invalid comparison. “The Internet” is just a set of interconnecting networks, using an agreed communication protocol. There’s no business called “The Internet Ltd/plc” (although doubtless Google are working on that right now).

A more accurate set of labels would have been: “ITV & other commercial TV operators”, “Guardian & other national newspaper publishers”, “GCap Media plc & other commercial radio operators”, and… “Google & other search engines”. That would be a far more accurate indication of where the money is going. Money doesn’t go “to the Internet” – it goes to companies who have used “The Internet” as a platform to access consumers that they were previously unable to.

What a more accurately labelled graph would show us is that advertisers are moving their money to where they feel it is more effective, a feeling that’s re-enforced by apparently magical accountability for every display and click. (Can you tell that I’m sceptical?). The problem isn’t “The Internet”; the problem is that traditional media owners have failed to keep up with their clients’ demands, or (and probably more realistically), educated their clients to have more reasonable demands.

Google & Co. have a substantial audience. OFCOM tells us that 65% of the UK have “The Internet” (of which 86% apparently have “Broadband”, whatever that means). Here’s what’s interesting – whilst the content consumption on the Internet is fragmented beyond belief (and this blog contributes yet another consumption pin-prick on the map), the commercialisation and aggregration of that audience is in the hands of a much smaller number of media sellers. So actually, what Claire was really trying to tell us is that advertisers trust Google to deliver better results on a “per click” model or multimedia display model, than they do with incumbent TV, Radio or Newspaper companies.

The challenge for incumbent media owners is to change the perception of advertisers about “The Internet”. Some of that needs to be through real, demonstrable, product development, and clawing back some of people’s media consumption time that is now spent with Google, Facebook, et al. Incumbents allowed competitors to steal audience from right under their noses because they didn’t think “The Internet” would ever be a platform of significant reach. Now it’s up at 65% coverage, compared with ~90% for TV and Radio, and 50%-60% for Newspapers (national readership survey).

But the second challenge is to offer a commercial proposition that is attractive to those starry-eyed about “Internet” advertising. That’s a mix of really good, effective, communication with consumers, and believable and trustworthy measurement.

I think it’s amazing how much trouble Kelvin Mackenzie caused the radio industry by selfishly trying to derail RAJAR by claiming it was inaccurate. One person created an environment of anxiety about the reliability of RAJAR’s measurements, but everyone apparently finds Google utterly trustworthy and really truly believes that they measure every click and every ad delivery. Maybe they should look at some of the Javascript that delivers the ads, or work how many splogs there are out there? Or survey how many people have ad-blockers? I’m not trying to undermine the on-line advertising ecosystem, but there needs to be some reality about the fallibility of any system.

The radio platform is used by 90% of the population, and commercial radio used by 62% of adults. Commercial radio is about at parity with “The Internet” in terms of reach, but ahead on time spent consuming. With Digital Radio we have a platform that’s capable of delivering a similar digital advertising environment as “The Internet” platform, but is still far more ubiquitous in every part of life. I believe we’re still a long way off, in behaviour terms, people using “The Internet” in the kitchen, bathroom, bedroom; and thankfully economics will continue to make using “The Internet” in mobile environments a great deal more expensive than receiving digital radio. So if we can use Digital Radio to deliver advertising propositions that are the same as the ones delivered on “The Internet”, that can be measured as reliably, and are demonstrably as effective, we stand a chance of revitalising interest in what radio companies can offer advertisers.

Categories
dab digital radio radio technology

Too much technology

YouFM by NickPiggott@flickr

This week I was lucky enough to meet up with my colleagues and peers in the German commercial radio industry, and spend a day at a seminar organised by VPRT in Berlin. It gave me an insight into their world, and their situation, which I’ve been lacking for a long time. It also made me realise that they’re being let down by some technologists.

DAB Digital Radio has been dominated by public service broadcasters, and the membership of WorldDMB is testament to that fact. Of the hundreds of members of WorldDMB, only 3 commercial radio companies are represented; GCap Media (UK), Channel 4 Radio (UK) and Commercial Radio Australia. The UK’s approach of co-operation between the public and commercial sectors has been an exceptional undertaking. Only recently have commercial broadcasters begun to engage with DAB, visibly in Switzerland, France, Australia, Germany, and the mood is changing elsewhere.

What I’ve learnt in my two days with my German colleagues is that they’re asking very good questions, and indeed probably more informed and relevant questions than we did when we kicked off DAB in the mid-90’s. There are lots of questions that need answers, and when those answers have been gathered and assessed, then there will be a decision on a commitment to Digital Radio.

Not unsurprisingly, quite a lot of their questions are about making the right technology choices, and this is where I believe they’re being let down by some technologists.

Technologists love to create technology. There is always a better solution to a problem, a better framework to work within, a new concept, a new library. COMET, XMPP, Ruby on Rails, Java – technologists thrive and survive on new ideas and new, cleverer, solutions to problems. German technologists are no exception, and their innovations have been exceptional – DAB, MP3, RDS – all have significant input from German technologists, and my personal experience is that they have some incredibly agile and intelligent technologists. I would trust my life with some of the guys at Fraunhofer.

But sometimes technologists’ ability to create endless solutions means uncertainty and instability. And sometimes technologists create problems in order to create solutions to justify their existence.

One of the difficulties I see my German colleagues grappling with is whether they are using the right technology for Digital Radio. Should it be DAB? Or DAB+? Or “DMB Audio”? Or DAB-IPDC? Or DXB? Or IBOC? Or…..? Nobody wants to make the wrong decision, and buy into an out of date technology. And whenever it looks like the number of choices is narrowing, a technologist pops up and throws another suggestion in the ring. And, of course, they all claim to offer the ultimate, most future proof, elegant, scalable and cheapest solution.

Of course, I can help a bit. Don’t use DAB. It’s out of date. But if the UK had hung on in 1998 waiting for a “better” technology, we’d never have got on-air, never sold 7m+ receivers, and never made a success of DAB. And at least we have a relatively obvious migration path to DAB+.

Indeed, it analogous with buying a computer. Just accept that whatever you buy will be superceded in 6 months (or indeed, may already be superceded). If you keep waiting, you’ll never buy a computer and you’ll still be scratching on stone tablets when everyone else is sending e-mail and chatting on Facebook.

It’s a shame that some technologists can’t be a bit more market aware, and look beyond their ability to cook up new ideas and bring a bit more balanced assessment. It’s not providing a solution to keep creating new solutions. Answer more questions, provide more data. Which solution is most elegant? Most spectrum efficient? Most backwards compatible? Most closely matches the requirements list? (Is the requirements list reasonable?). How much will devices cost? Who will be building them? When will they be available? And of course, who else is using this technology set?

I hope the technology issue in Germany can be closed down fairly soon. They’re definitely suffering from too much technology, and it’s not helping. If they can slim down the candidates against a list of reasonable requirements, say “no” to people trying to bounce new/unproven solutions onto them, and make a technology choice, it will tick another box on the check-list marked “Things To Do To Launch Digital Radio”.

I also caught up with Sebastian Kett and Michael Reichert from SWR, home of the rather marvellous DasDing. A blog on what they’re up to will follow….

Categories
dab digital radio radio

Under New Management

Under New Management by inju @ flickr.com

As the clock passed 17:00 without any official statement, it became clearer that the deal was almost done. At 18:30 it was confirmed by e-mail that Global Radio had made a formal offer to acquire GCap Media plc for £2.25 per share, valuing the company at £375m.

The purchase process won’t be particularly swift, as it requires a vote by shareholders to ratify, and then a period of scrutiny by the Competition Commission. The expectation is that operational transfer will take place in mid-Summer, and until then GCap will retain its own management and plans. (Mirroring the process that Arqiva is close to completing over its acquisition of National Grid Wireless).

There will doubtless be speculation about what this means for the strategy that was outlined on 11th February, and most particularly the very clear stance taken over DAB Digital Radio.

The purchase does not guarantee a clean bill of health for DAB Digital Radio. The structural problems that disturbed the management of GCap continue to exist, and cannot – indeed, should not – be ignored. That merely increases the risk of a unstructured collapse of the eco-system and economics around DAB in the UK.

As GCap starts a new financial year tomorrow, nothing has changed in terms of how much DAB is costing to transmit, and how little its potential is being used to evolve radio and the revenue that underpins it. The bills will keep rolling in, and there’s no reason why decisions to close Planet Rock or theJazz should suddenly be reversed or reviewed.

What a new ownership – an ownership in private hands, and away from the demands of institutional shareholders – should bring is an ability to look beyond the bills of this month and next month, and commit to approaching development of DAB (and other new platforms) on a new basis. We have learnt so much in the last 9 years about what’s good and not good about the current strategy; now is the opportunity, with most of the commercial radio industry in private hands, to take that experience and use it to regroup and reshape the DAB plan for the UK.

To generalise, private equity investors are ruthless on reviewing costs and benefits to customers. There will be pain, and no doubt many people will speculate on “what ifs”. If the potential for DAB can be underpinned with a viable medium-term business plan, then that may justify a renewed commitment to investment. But it’s hard to see how that business plan won’t involve radical change to the existing DAB plan.

It also requires more than just Global and Bauer to commit to change. If Arqiva can’t/won’t contribute meaningfully to cost-reductions re-engineering of DAB infrastructure; if OFCOM can’t tear up the old plan and write a new one; if the BBC are unhappy with changes to DAB for local BBC radio; if receiver manufacturers and consumer electronics manufacturers can’t produce 21st century radio devices – then it’s not going to make the difference that’s required.

I continue to be positive about the potential of DAB. The market is demanding more evolved digital media experiences. Listeners want more “stuff” and more control of it. Advertisers want more compelling, effective and measurable opportunities. Consumer Electronics manufacturers want to add more and more function to devices. The industry can create “new radio”, and of all the technologies that can be used to distribute it, the only one that maintains the ubiquitous, free nature of radio is DAB.