Government Announces Review Of Digital Radio
The Government has announced plans to review the digital radio industry, in a move that could produce a switch off date for the analogue signal.
Culture Secretary, Tessa Jowell, told a London conference on digital radio yesterday that the BBC and the industry regulator would report on the progress of digital radio in the four years since the award of the first national digital radio multiplex licence.
It is understood that the review will examine the role of the BBC versus the commercial players, technology content and whether the Government can provide incentives to stimulate the development of the market.
Unlike television, which is supposed to be completely digital by 2010, there is currently no switch-over date for the analogue radio signal. The review will look at whether such a Government-imposed time table for radio would be viable. It is understood that the industry is considering 2015 as an unofficial deadline.
One key issue the study will also have to address is the shortage of digital radio sets in this country. Not a single Japanese manufacturer has a mass market product available in the UK and this Christmas saw sales of digital radios increase significantly, with leading retailers struggling to get enough stock to meet demand (see Digital Radio Sales Boom In Pre-Christmas Period).
Research shows that sales of DAB digital radios increased by 165% in 2002 and the industry predicts that this growth will continue, with sales of digital receivers set to double over the next year (see Sales Of DAB Digital Radios Boom In 2002).
Jowell said: “The success of Christmas sales means that the debate has shifted. After long years of having more people broadcasting digital services than listening to them there is at least a real sense that the market is moving.”
The BBC has just announced plans to launch a major marketing campaign to promote its portfolio of digital only stations, which includes 1Xtra, BBC Five Live Sports Extra and the Asian Network (see BBC To Promote Digital Radio Portfolio). Commercial broadcasters have also invested millions in advertising their digital radio services and last month Capital Gold unveiled the biggest ever promotion for DAB Digital radio, in an attempt to raise awareness of the medium (see Capital Gold Launches Biggest Ever DAB Digital Promotion).
The analogue radio industry was given a boost this week with news that the Government is proposing the launch of 32 new FM radio stations, which could provide services to a number of key cities over the next few years (see Raft Of New FM Radio Licences Proposed).
DCMS: 020 7211 6200 www.dcms.gov.uk
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