ftm Radio Page - November 13, 2009

Digital radio… in conclusion
The financial perspective

Digital radio, as presently configured, has little prospect of becoming reality, says a consultants report to the French government. There isn’t enough money to make it happen. And, even if the money was spent, it’s increasingly apparent that radio users will have moved to newer, more interactive configurations with IP radio and smartphones. More troubling, forcing broadcasters into digital migration could financially destabilize current and new operators.

“There is still time to question the appropriateness of the proposed Digital Terrestrial Radio,” writes Marc Tessier in Les Perspectives de Financement du Project de Radio Numerique Terrestre (Financial Perspectives of the Terrestrial Digital Radio Project) (November 9). “The cost of terrestrial digital radio will have a significant impact on the entire industry, on the order of 10% to 12% of commercial radio’s revenue.” (See more on digital radio here)

“Many groups do not have, in fact, the financial capacity to deal simultaneously with the corresponding investment and those that will result from the digital revolution in all other media.”

“Real alternatives,” says Tessier, should focus on “new formats adapted to (IP and smartphones).”  By the suggested 2019-2020 analogue shut-off dates most radio users, he said, will have moved to more interactive IP radio and smartphones for radio.

Marc Tessier is the former president of public broadcaster France Televisions.

Top stations still on top
It’s in the mix

Staying at the top of the ratings still means hard work. Stations at the top of their game don’t cede much to newcomers or competitors trying harder. In highly competitive markets strong leaders set the rules.

Slovakia’s radio market is an interesting mix. Recently released MML-TGI Median SK audience figures show listening levels over the last year have risen to 76% of persons 14 to 79 years from 71%. Survey results are from Q2 and Q3 2009, March through September. (See Slovakia radio share chart here)

Radio Expres remains the solid market leader with 22.8% share, unchanged year on year. News and information public radio channel SRo1 Radio Slovensko is solidly number 2 with 18.2% share, down slightly from the same period 2008. Third is Fun Radio; 15.9%, up from 13.5%. Jemné Melodie is ranked 4th, 8.2% share, slightly up year on year. Market rankings for the top four haven’t changed. (See Slovakia radio share chart here)

Next – 5th place – is SRo2 Radio Regina, unchanged at 6.5%. It has replaced Radio OKEY, which slipped to 6th place, falling to 5.8% share from 6.7%. Earlier this year Radio OKEY went through DJ lineup changes. Radio Viva (7th) and Radio Lumen (8th) are essentially unchanged.

SRo4 Radio_FM – the alternative music channel from public broadcasters – raised share to 2.1% from 1.5%. Market watchers say its programmers are working on music formats, looking at a more mainstream mix.

Licensing uncertainty made easy
Certainly appealing

Licensing commercial broadcasters has many dimensions, particularly now as regulators must weigh wholesale changes to the broadcast landscape. License renewals are increasingly contentious, as shown by the decision in Hungary replacing two incumbent licensees with new operators. (See more on that story here)  More often than not incumbent licensees are awarded renewals without considerable difficulty.

Like other national regulators Switzerland’s OFCOM has reset frequency allocations for local private broadcasting, opening a few new concessions both for radio and television. The Swiss Federal ministry in charge of communications – DETEC – advertises for and awards broadcast licenses. Earlier this year radio licenses in the Zürich concession zone were awarded resulting in a new licensee – RMC Radio Züri – gaining FM allocations and an incumbent licensee – Radio Energy – failing.

Two criteria have dominated legal frameworks for licensing:  “beauty contest” or auction. Some times, as in Hungary, both are combined in some sort of points system.  Many national regulators don’t recognize incumbency; licenses are awarded for a fixed term after which a new license is awarded.

For the Zürich concession DETEC used, primarily, a “beauty contest” to determine the licensee. Radio Energy’s owners were understandably upset at losing a long held franchise. But, rules are rules: this is Switzerland. The winning licensee has now asked to transfer its concession to Radio Energy, considerations not disclosed. OFCOM – the regulator – issued a statement (November 6) announcing hearings on that transfer. (See OFCOM statement here – in French)

Most – not all – national rules on licensing include prescriptions for programming sufficiency, often including news and public affairs requirements. Broadcasters must align their business plans to those requirements. When fees are involved broadcasters have yet another benchmark.

Broadcasters, certainly, want to protect not only their brands but their investments. Uncertainty about license renewals may seem unfair but, so long as broadcast spectrum is considered scarce, it can – when administered transparently – insure that public interest is served. One certain digital dividend – whenever it arrives – will be an end to the scarcity principle. (JMH)

Radio Page - November 6, 2009

Radio Page - October 30, 2009

Radio Page - October 24, 2009

Radio Page - October 16, 2009

Radio Page - October 9, 2009

Radio Page - October 2, 2009

Radio Page - September 25, 2009

Radio Page - September 18, 2009

Radio Page - September 11, 2009

Recently added radio audience figures

• Czech Republic - Radio Audience (11/11/2009)
  Top 12 stations, national survey, trend
• Slovakia - National Radio Audience (09/11/2009)
  leading stations, market share, trend
• UK - National Radio Audience (29/10/2009)
  market share, trend, sectors
• UK - London Radio Audience (29/10/2009)
  market share, trend
• UK - National Radio Audience (29/108/2009)
  BBC/commercial 'gap'
• Poland - National Radio Audience (24/10/2009)
  national survey, market share, trend
• Poland - Warsaw Radio Audience (24/10/2009)
  Warsaw survey, market share, trend

Also see ftm Knowledge

Europe's Radio – new update

Europe’s media landscape is dotted by 15,000 radio stations and channels. Public, private, digital and even a few MW stations reach upwards of 90% of Europe’s listeners each day. This updated ftm Knowledge file adds new material on digital broadcasting, measurement, regulation, Sweden, Portugal, Poland, Switzerland, France, Germany, Russia and the UK. 195 pages PDF (August 2009)

ftm Members order here

Available at no charge to ftm Members, others from €49
Order

Digital Radio - Forward...slightly

Digital radio is slowly finding its way. Broadcasters are challenged by shifts in business models, audience expectations and regulation limbo. This ftm Knowledge file details the promise of digital broadcasting and the paradigm shifts. 83 pages PDF (June 2009)

ftm Members order here

Available at no charge to ftm Members, others from €49
Order