Taken for Granted

We haven’t visited Grant Goddard’s Brit blog recently, here, and have missed his wry wit in describing the European version of the de-BOC-le (as one radio-board wag called our own IBOC). His writing always entertains and contains more than a kernel of truth relevant to the new-world whitewash that is HD radio. For instance, this tidbit from his latest post:

Northamptonshire is one of 13 local DAB multiplex licences that Ofcom awarded in 2007 and 2008 that have failed to materialise by their required launch dates. In 2007, Ofcom also awarded a national DAB multiplex licence to a consortium, led by Channel 4 television, that similarly failed to launch (all trace of which has been erased from the Ofcom web site)….

Despite three years of broken promises to the people of Northamptonshire by Ofcom, NOWdigital, GCap Media, Global Radio and Arqiva that a local DAB radio multiplex will be launched for their area, they were not excused from this year’s Christmas radio industry campaign to sell more DAB receivers. DAB marketing organisation Digital Radio UK was interviewed by BBC Radio Northampton last week, though it was unable to offer even a vague date when either the local DAB multiplex for Northamptonshire will be launched, or when the signal of the existing DAB national multiplexes will be improved.

Although Digital Radio UK is funded jointly by the BBC, commercial radio and Arqiva, these heavyweight stakeholders could offer nothing more concrete to the people of Northamptonshire than platitudes and more promises about DAB . . . always in the future tense.

In an earlier post, Grant commented on the effort to get Germany to sign on to “digital revolution.” Note the reference to the total lack of return on investment realized by these stations — so reminiscent of HD channels stateside:

One week earlier, British company Frontier Silicon, “market leading supplier of digital radio technology worldwide”, had announced that, in order to persuade four commercial radio broadcasters in Germany to persevere with DAB, it had promised them it would purchase an unspecified amount of their advertising airtime for the next four years.

Anthony Sethill, Frontier Silicon CEO, put a positive spin on an act that some might perceive as little more than legalised bribery in the face of desperation to sell DAB hardware in Germany: “We are delighted that our innovative approach to supporting the roll out will help everyone working on this new radio service to bring their efforts to fruition.”…

Those five German commercial broadcasters should understand that even Frontier Silcon’s subsidy might not prevent them losing money hand over fist for the entire ten years of their transmission contract with Media Broadcast. The evidence is already there from the UK market. Not one commercial digital-only radio station has yet made an annual operating profit from the DAB platform in the UK, even after eleven years, let alone come close to recouping its investment.

Grant adds this quote from German writer Cristoph Lemmer, writing in Radioszene magazine:

“With this decision, DAB will now actually be introduced by those who have succeeded, smelling a quick buck, in selling Germans a new sort of equipment, with millions to be sunk into to a new transmission network. Our old radios will be useless for DAB. Those who want to continue listening to the radio will need a new receiver.“

“It does not take a prophet to suspect that the private radio industry has shot itself in the foot by agreeing to sign the DAB contracts. A few shekels subsidy from a chip manufacturer who wants to install as many of its chips in DAB receivers – that is what has led to this. You, dear people, were not considered in the end. Do you really believe that devices with DAB will ever be as numerous as FM radios are today?”

“No one will understand what [DAB] is and why it is good. Because, with DAB, you have solved a problem that did not exist. The existing technological distribution of radio programmes is excellent and widely used. You did not have to change anything. The argument that DAB will create new radio channels with lower entry barriers is specious, as long as media regulators continue not to award licences for technically available [analogue] frequencies because they do not want additional competition in the market.”

Grant then concludes with this: “It is hard to recall a comparable technology whose proponents were still pushing for its launch three decades after its invention. DAB proponents argue that, simply because DAB is ‘digital’, it is inevitable that it will replace analogue radio. History indicates otherwise.”

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One Response

  1. OT, but Radiosophy is out-of-business. Their radios on Amazon indicate “unavailable,” Radiosophy’s website is down, and their phone number has been disconnected.

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