No viable digital radio business-models worldwide - LOL!
IBOCcrock
“Digital terrestrial radio: already dead?” enquired the headline of a
French news web site early on Thursday morning 26 November 2009. It
proved to be prophetic.
Only hours later, a press release was published by the Bureau de la
Radio (a radio trade group comprising the largest commercial radio
owners) which effectively hammered another nail into the digital radio
coffin in France. It stated: “As it stands, the Bureau de la Radio
estimates that the cost of the [digital radio] project is not
compatible with the economics of the radio medium and does not allow
plans for the launch of digital radio to proceed under positive
conditions”.
On Monday 23 November, more than 70 stakeholders from the radio sector
had met at the offices of the CSA [France’s media regulator] to
discuss digital radio. Afterwards, the CSA had issued a press
statement which claimed that, during the meeting, all those present
had endorsed the launch of digital terrestrial radio in France. The
meeting had decided to establish four working groups to examine:
resource planning, the rollout timetable, transmission signals and
data content. A further meeting was planned for February 2010.
However, the Bureau de la Radio has now stated its “regret that the
question of the [digital radio] economic model is not being addressed
centrally” and has called on the CSA to pursue more detailed work on
this issue with stakeholders.
Reflecting the seriousness of this announcment, Agence France-Presse
headlined its news story “Digital Radio: commercial radio opposes the
launch of digital terrestrial radio”.
There are some interesting parallels between developments in France
and the situation in the UK, even though we are already ten years
further down the digital terrestrial radio road. Just as in France,
the UK government (through its DCMS department) and media regulator
(Ofcom) have both been insistent that digital terrestrial radio must
replace FM/AM radio broadcasting, without seeming to pay sufficient
attention to the pre-requisite for an economic model to make it work.
In the UK:
• industry data points to minimal consumer demand for DAB, which I
documented two months ago in this blog entry
• industry data points to minimal revenues from digital commercial
radio stations, which I documented three months ago in this blog entry
• industry data suggests that the faster the take-up of DAB radio is
accelerated, the faster commercial radio will lose more listening
share to the BBC, which I documented recently in this blog entry
• the development of DAB has already proven disastrous for the
financial health of the UK commercial radio industry.
After ten years of DAB radio development in the UK, precisely the same
question needs to be answered here as is being asked in France this
week:
Why has nobody published a realistic economic model for digital
terrestrial radio which demonstrates convincingly that it is
financially worthwhile?
Perhaps because one does not exist?"
http://grantgoddardradioblog.blogspot.com/2009/11/france-digital-radio-already-dead.html
Keep up the great work, Grant! Your blog is getting a huge amount of
exposure, including Taylor at Radio-Info, and on my blog's blogroll! I
love it! Digital radio mongers expect the General Public to float
their declining industries through digital radio receiver sales for
inferior systems - LOL!
IBOCcrock
>
> Keep up the great work, Grant! Your blog is getting a huge amount of
> exposure, including Taylor at Radio-Info, and on my blog's blogroll! I
> love it! Digital radio mongers expect the General Public to float
> their declining industries through digital radio receiver sales for
> inferior systems - LOL!
Can we say Bob "Rubel" Struble? LOL!
HD Radio Farce
>
> Keep up the great work, Grant! Your blog is getting a huge amount of
> exposure, including Taylor at Radio-Info, and on my blog's blogroll! I
> love it! Digital radio mongers expect the General Public to float
> their declining industries through digital radio receiver sales for
> inferior systems - LOL!
Grant has been quoted in the UK's "The Register" numerous times:
http://www.theregister.co.uk/2008/12/29/grant_goddard_drwg_analysis/
Fail, digital radio, fail - LOL!