The U.K. is a market leader in digital radio but barriers to its ...

radio the predominant means of delivering radio, what problems are hampering its rollout, and what can be done about them. Audience research shows that as of the first quarter of 2008, digital listening accounted for nearly 18 percent of all radio listening, with digital audio broadcasting (DAB) the most popular format, the DRWG said. Britons own more than seven million DAB radios, a figure predicted to jump to nine million by the end of the year, it said. Moreover, despite the downturn in consumer confidence, DAB device sales outperformed the rest of the consumer electronics market over the past year, it said. But barriers to growth exist. Analog broadcasters carrying radio across several platforms are facing higher costs with little or no financial benefits in return, the DRWG said. There are coverage gaps and signal problems which must be resolved if DAB is ever to be viewed as a replacement for analog radio. There’s some harmonization of digital radio taking place at the EU level, but some countries are adopting different variants of the Eureka 147 family, of which DAB is only one. Moreover, the lack of European harmonization, plus coverage problems, are preventing auto makers from choosing digital radios as standard equipment, the DRWG said. There’s currently no obvious digital migration path for all radio because of the amount of spectrum available and the cost of digital broadcasting, it said. While radio over the Internet, satellite and mobile networks have an important role to play, DAB is now the most practical replacement for analog, the group said, because the U.K. already has a well- developed DAB market, it’s currently the most appropriate digital means of delivering portable reception, it’s free, and it gives industry the chance to determine its own future. The DRWG proposed that DAB become the primary platform for all national, regional and large local services, but that community radio and smaller local services remain FM analog for now. It called for a coordinated policy between the radio industry and manufacturers to ensure that all future radios can receive analog, DAB and other variants of the Eureka 147 family. To ease digital migration, the panel recommended that: (1) Broadcasters agree on a unified promotional strategy to sell the benefits of digital radio to listeners. (2) The Office of Communications (Ofcom) and the government make clear their intention to create a digital radio future. (3) No switchover date be set now, but the government clarify to the industry and consumers the circumstances in which migration will begin. Key criteria should be the level of total listening to DAB-enabled devices, and current and planned coverage of DAB and FM. (4) The government consider the uptake of digital radio in cars. (5) Migration be completed by 2020. Culture Secretary Margaret Hodge agreed radio must move to digital to remain relevant, but said several issues must be resolved before a decision can be reached, particularly the impact of digital migration on consumers. The Digital Radio Development Bureau, which seeks to ensure the widespread and quick adoption of DAB digital radio via “consistent and effective marketing,” said the report sets a clear path toward an “agreed vision for the future.” The final report is due later this year. DRWG members include the BBC, Ofcom, the government, commercial radio stations, consumer groups, and representatives from car makers and sellers.