02/12/2004 - DAB Digital Radio is Here to Stay

An international response from WorldDAB to the recently published statement by the Berlin and Brandenburg Media Authority (MABB).

London, December 1, 2004 - The Media Authority of Berlin and Brandenburg is becoming more and more isolated from the rest of Europe – and, indeed, the world – in its support for other technologies at the expense of DAB Digital Radio.

The Authority, which regulates media in the region, recently called for DAB Digital Audio Broadcasts to be scrapped in the Länder, saying the technology is “outdated” and a new standard should be adopted for digital radio by 2007.

Elsewhere in Germany, DAB broadcasting enjoys the support of local regulators and broadcasters. In this context, it might have been wiser for MABB to address the real
issues with DAB in Germany, which have nothing to do with the technology itself.

The existing strong industry support must be corroborated by the introduction of DAB promotion on the FM network, an increase in transmission power to improve indoor reception and an increase in available spectrum in Band III. These criteria will finally allow DAB to fully succeed in a country that has heavily invested in a technology that is robust,
reliable, flexible, established and ridden with opportunities for future developments, such as in the world of multimedia content delivery and
telecommunications.

Prof. Dr. Wolf-Dieter Ring, President of BLM, the authority responsible for commercial broadcasting in Bavaria, explains: “DAB is the ideal system for the digitalisation of Radio and for the broadcast of data services. The problem does not lie in the DAB standard, but rather in the lack of consumer awareness and of effective
marketing. BLM is fully committed to building widespread DAB awareness amongst German consumers.”

Along the same lines, Prof. Siegle of IMDR, the Digital Radio Marketing Initiative, says: “There is no better system than DAB to take Radio digital. The standard was adopted in Germany in 2000, and like all new technologies, we need to allow for a certain time-span before a full market is created. DAB plays a crucial part in the world of digital technologies, and the whole industry, in Germany and elsewhere,
recognises that”.

In the UK, it is estimated that DAB radios will be in some 1.2 million homes by the end of 2004. Ian Dickens, chief executive of the UK’s Digital Radio Development Bureau says: “’In the UK, retailers are committed to DAB, manufacturers are committed to DAB, broadcasters are committed to DAB and, as a result, the radio market has been rejuvenated as more and more listeners discover the broad array of benefits DAB delivers over old analogue technology.”

Denmark, Italy, Spain, Norway, Belgium, Switzerland, Singapore, Taiwan, Canada,just some of the countries where DAB is supported by government and legislation; where DAB services are growing in popularity; where manufacturers are eager to ship product to meet an increasing demand. To date DAB has been adopted or tested in 40 countries worldwide.

Katja Marcuslund, responsible for Digital Radio marketing at Denmark’s Radio and Chair of the WorldDAB Marketing Committee, says: “DAB is progressing fast in Denmark. All the criteria for success are in place. We have 17 DAB-only channels – 20 by 2005 - good indoor coverage, full political back up and DAB receivers can be
found in almost all retailers. Our marketing campaign is proving very successful. DAB awareness amongst the Danish population has been rising dramatically and next year we expect to reach more than 50.000 radios sold”.

Multi-national manufacturers such as Sony, Panasonic, Sharp, Blaupunkt, Philips,
LG, Hitachi, Sanyo, Samsung, all household names in consumer electronics across the world, have DAB digital radio products in the market, with 123 types of receivers available to-date and 137 expected by year end. Major car manufacturers such as Vauxhall/Opel (General Motors) are line fitting DAB radios in many 2005 models. Leading broadcasters including the BBC, are embracing DAB digital radio as the way forward for audio services.

Annika Nyberg, President of the WorldDAB Forum says: “DAB continues to grow around the world and to gather successes. More and more countries are showing their full commitment to DAB and Digital Radio and consumer awareness is growing
steadily. Legislation is in place and receiver manufacturers are constantly motivated to penetrate new markets. DAB is an established worldwide reality ”

For the MABB to fly in the face of so much international cross-industry support for DAB digital radio is quite extraordinary. To call for an infrastructure that already exists in the region to be dismantled in favour of an expensive and commercially unproven technology is economically dangerous. And to ignore the evangelical enthusiasm for DAB digital radio among consumers in other parts of the world is
short-sighted.

Half a Million DAB Radios Drive Car Manufacturers (16th April 2004)

Figures released today (April 16) by the DRDB (Digital Radio Development Bureau) reveal that dramatic growth in DAB digital radio sales over the past 12 months has pushed UK penetration over the half million mark.

GfK figures to the end of February 2004 show significant percentage growth of 229% year-on-year and put penetration at 509,000 units.

Driven by consumer enthusiasm for new, digital radio stations, the level of sales has motivated several key car manufacturers to offer DAB as an option in 2004 models. Vauxhall’s New Astra, GM Daewoo’s Lacetti and many MG and Rover cars, along with the Lotus Elise 111R and several TVR models all offer DAB as an option to new car buyers. Says DRDB Chief Executive, Ian Dickens, “With 500,000 DAB radios in UK homes, it is inevitable consumers will want to take that digital listening choice into their cars. This is the first step towards car manufacturers fitting DAB as standard.”

Following record sales over Christmas 2003, when two DAB products were sold every minute in December, sales have maintained pre-Christmas levels. GfK also reveals the overall top three brands of kitchen radio sold in December were DAB products.

After several years of high prices and form factors limited to hi-fi tuners and kitchen radios, DAB is now available across the entire audio range, including boomboxes, pocket radios, clock radios, micro systems, home cinema, and in-car units. DAB radios are now available from around £60.

Familiar brand name manufacturers from Japan, including Sony and Sharp have announced they will launch DAB product this year, joining the likes of Philips, Samsung, TEAC, Grundig and Hitachi who are already in the market.

Using Claritas in-box questionnaires, the DRDB has gathered information from more than 12,000 DAB radio owners. Satisfaction levels with sound quality, new station choice, and ease of use have consistently been in the 90th percentile over the past year.

Says Ian Dickens: “Consumers like this technology – they like the wider station choice and they like how easy it is to use, and they’re proving it by continuing to buy in record numbers. Manufacturers and retailers like this technology – they like a revitalised audio market and they like making good margins on radio for the first time in years. And broadcasters like this technology – they like being able to extend their existing radio brands and they like bringing new formats to market.

“DAB digital radio continues to move ever closer to mass market, and achieving half a million sales is a significant step on that road.”

The DRDB expects sales of DAB radios to double by the end of 2004, achieving a cumulative penetration of one million units.

Record Breaking Sales of DAB Digital Radios (8th January 2004)

Sales of DAB digital radios jumped by 222% in 2003 as consumers discovered new radio stations and interference-free listening.

The Digital Radio Development Bureau today released figures showing digital radio sales of 133,300 in December 2003, with the majority coming in the kitchen portable radio sector. The figures were compiled by GfK, independent auditors of the home electronics market.

At the end of 2003, DAB digital radios were in 435,000 UK homes, an increase of 222% in one year.

300,000 digital radios were sold in 2003 and, at an average price point of £100, this translates to £30 million worth of sales.

Retailers reported record breaking sales over Christmas. In Dixons Group stores, DAB radios outsold analogue radios in the portable sector for the first time ever, and accounted for 85% of sales by value.

More than 50% of all Comet portable radio sales in 2003 were DAB products, and in quarter four, DAB sales accounted for 77% of sales by value.

And the John Lewis Partnership achieved its best ever radio sales in December via DAB digital radio.

Awareness of DAB digital radio jumped by 30% in quarter four 2003 following promotional campaigns from the BBC and commercial radio. Awareness currently stands at 43% of the population, that’s 25 million people.

The growth in sales and awareness of DAB digital radio was aided by manufacturers doubling the number of different products available to consumers. In 2003, more than 30 new products were launched, and prices dropped to a low of around £65.

Already in 2004, five new products have arrived, including the first micro hi-fi system – it’s from Hitachi and is their first foray into DAB. Ministry of Sound’s new micro hi-fi system is also in stores. Also, new from Acoustic Solutions are the Portal 1 and Portal 2 kitchen style radios, with the lowest ever entry price point of £69.99 for the Portal 1. For the first time, DAB digital radio is available in all form factors across the radio range, including in-car models.

New manufacturers, including some familiar big brand names from Japan, Europe and Korea will launch more product throughout 2004, doubling the range once more. And the DRDB predicts by December 2004 there will be more than 1 million DAB radios in UK homes.

This weekend (January 31/Feb1) saw the launch of two new multiplexes: Capital Radio’s Sussex Coast multiplex and The Wireless Group’s Swansea multiplex. There are now 362 services broadcasting on DAB; 149 different brands; and for the first time the number of services available only with a DAB radio (190) is higher than those services that are straightforward simulcasts (172).

The above text is reproduced from the Digital Radio Development Bureau - www.drdb.org