Digital radio: RIP DAB?

UK broadcaster Channel 4’s recent decision to abandon plans for three new digital radio stations, and radio group Gcap’s decision earlier this year to withdraw its digital only stations, means that digital radio’s commercial viability appears dubious.  This raises larger questions about the future of the digital audio broadcasting (DAB) used in the United Kingdom, and other one-way digital radio standards.

1980s technology

While commercial DAB receivers have been sold only since 1999, the technology underpinning the standard dates from the late 1980s, and is showing its age, particularly in terms of coverage – especially relative to FM – as well as sound quality.  Nonetheless, DAB has become the standard of choice in the United Kingdom and some 20 other countries worldwide.  It is relatively cost effective and flexible -- able to be used across a range of devices, many of which are extremely portable.  Moreover, while initial adoption of DAB has been relatively slow, some 17 million receivers have been sold in the United Kingdom alone, meaning it has gained a firm foothold.

This means that the DAB standard is unlikely to be eclipsed completely.  Indeed, there is potential for it to be developed further, particularly given that its data capabilities are not currently being utilised fully.  One use is to send public transport information via DAB receivers.

DAB+

Nonetheless, DAB technology has been due an upgrade, which it has received in the form of DAB+ last February.  Improvements in the technology, whose codecs date from 1999 are considerable.

DAB+ will be the standard used in digital radio in much of Europe:

• Italy has already started broadcasting DAB+ stations.

• Hungary, Malta and Switzerland are launching DAB+ services this year.

• Germany plans to launch DAB+ next year.

However, the new standard faces a number of difficulties, particularly the fact that DAB radios, such as those currently sold in the United Kingdom are not able to receive DAB+.  While DAB+ sets will be able to receive DAB signals, this still means that large numbers of listeners in relatively early DAB adopters will not be able to take advantage of the new standard.  Moreover, the fact that DAB has a relatively large number of users means that broadcasters have relatively little incentive to invest in making the switch, despite improved sound.

Satellite radio

Even if DAB+ means digital radio takes off across Europe, it remains a far from global phenomenon.  Indeed, while broadcasters in the United States have expressed an interest in digital radio, digital satellite radio has gained greater traction, due largely to automobile manufacturers promoting it aggressively.  Digital satellite radio also seems likely to take off in much of the developing world, with satellite communications company Worldspace creating a network of three satellites to provide services to Asia, Latin America and Africa.

Outlook

In any case, the internet may displace digital and satellite technologies as the standard of choice for radio broadcasting.  Increasing bandwidth and the ever-greater sophisticated of mobile internet devices means that this is likely to become the delivery platform of choice.  While currently only 2% of UK digital radio listening is via the internet, the British Broadcasting Corporation (BBC) launch of its iPlayer last year is a sign it believes this is the way of the future.

Ironically, the growth of internet radio may entrench DAB (and to some extent DAB+) as the standard of choice, as investment in developing alternatives is likely to be relatively limited, and consumers will continue to use their DAB sets.

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