Norwegian switchover strategy

Report
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/private
competition
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 northwest
1. FM only
2. FM + net + webradio
3. DAB in test
4. DAB in market
5. DAB with defined switchover date - Norway
6. Digital switchover implemented
How?
Courage!
How?
Collaboration!
How?
Coverage!
How?
Content!
How?
Cars!
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 conditions
1. 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
• DAB
– 1 channel per transmitter
or network
– DAB up to 10 channels per
network (mux)
– DAB+ up to 20 channels per
network (mux)
– Moving towards DAB+
– 5 FM networks
– Frequencies for 4 DAB networks:
• 3 NRK
• 2 commercial
– Various local radio network
• Public service network (7 regions)
• Commercial national network
(”National 1”)
• Commercial national network
(”National 2” - not built yet)
• Commercial regional network (37
regions)
Now
Now
Digital added value
22 national
channels
(FM typically 3-6)
+ 20
channels
in
Oslo/Aker
shus
The conditions for FM shut down
• Three absolute conditions
1. NRK: Coverage as for NRK P1 on FM
2. Commercial radio: 90 per cent
3. Added value to listeners
• 2017 or 2019
4. 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
31
34
36
36
40
13
16
18
19
23
1,23 million
Norwegians
DAB
Digital TV
10
10
11
9
10
14
15
15
14
13
Q4 12
Q1 13
Q2 13
Q3 13
Q4 14
Internet
The conditions for FM shut down
• Three absolute conditions
1. NRK: Coverage as for NRK P1 on FM
2. Commercial radio: 90 per cent
3. Added value to listeners
• 2017 or 2019
4. 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)
School
0%
Buss, train, etc
1%
Work
8%
Other places
3%
Other home
2%
Home
39%
In car
47%
Source: TNS Gallup, Digitalradioundersøkelsen Q4 2013
Base: n = 1068
The challenge
2 - 2,5 million cars need an aftermarket solution
Sales of DAB-radios
600
• In total, 511.000 DABradios sold 2013
– Incl. car-radio
• More than double of
2012
500
400
Car radios
Portable radios
300
Hifi tuners
Table radio w/speaker
Music systems
200
100
0
2009
Source: Trade organisation for electronics importers and retailers
2010
2011
2012
2013
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
Arena for exchange of
radio experiences and strategies
www.radiodayseurope.com
[email protected]

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