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DRDB Newsletter #23 - February 4, 2005

Details of all these stories are available on the DRDB website at www.drdb.org or the consumer site at www.digitalradionow.com



1.272 million DAB radios in UK homes

Sales of DAB digital radios in December exceeded expectations and pushed the cumulative total of products in UK homes to 1.272 million.

Figures from electronics industry auditor GfK showed sales of DAB digital radios in December were 346,400 pushing the cumulative total easily past the one million target set by the DRDB at the beginning of 2004, and surpassing the 1.2 million forecast in its Five Year Forecast published in October.

Says DRDB Chief Executive, Ian Dickens: “The sales figures for 2004 are totally in line with expectations and, as such, add weight and confidence to the DRDB’s Five Year Forecast for set sales. The forecast calls for a further 1.2 million DAB radios to be sold in 2005. Based on the volume of products we know is coming through this year, and an ever increasing consumer interest in DAB, we are confident this target can be met.”

In a Christmas season where retailers struggled in traditional sales arenas, “everything digital” sold well with DAB digital radio sales more than doubling year-on-year. Says DRDB Marketing Director, Mike Spencer: “This is a trend we expect to see continue as consumer demand grows.”

Several elements contributed to the surge in growth in the DAB digital radio market last year. An increase in the number and type of products available from 53 in 2003 to more than 130 in 2004, combined with a £50 price point on some models, for the first time put DAB digital radio squarely in the mass market.

Says Dickens: “Sales of DAB digital radios have been on a ‘hockey stick’ curve since it was commercially introduced with high-end, high priced hi-fi tuners in 2000. Now, with a wide range of models, brands and price-points to choose from, DAB is coming into its own.”



2004 UK Market Highlights

  • 836,300 DAB digital radios were sold in 2004 in the UK.


  • In December 2004, DAB digital radio accounted for 18% of all radio sales by value.


  • Looking at specific form factors, December sales of DAB kitchen portables accounted for 80.1% of the total market by value; and 77.4% of the total hi-fi tuner market by value.


  • In the year ending December 2004, the DAB digital radio market was worth £87 million.


  • DAB digital radio was the fourth fastest growing Consumer Electronics market in 2004, up 159%. The DAB market grew three times faster than the digital camera market.




  • Looking ahead in 2005

    The DRDB’s forecast for 2005 is for sales of 1.2 million DAB digital radios over the next 12 months.

    Based on what manufacturers have told us so far, we can see more than 60 new products on the roadmap for 2005. This number will undoubtedly rise as the year goes on. There are currently more than 140 different products on the market. By the end of 2005, there will be well over 200 to choose from in all form factors.



    DAB in Europe

    Sales of DAB digital radios in Europe are showing encouraging signs as the UK tops 1.2 million units in homes at the end of 2004.

    The WorldDAB Forum reports that many international markets are experiencing similar sales trends as the UK, as promotion is stepped up and receivers are made available on the high streets.

    • DENMARK: Sales increase of 525% in 2004. With 80% population coverage, nearly 20 services broadcasting on DAB, a vigorous marketing campaign from broadcaster Danmarks Radio, and point-of-sale in stores for the first time, 40,000 DAB digital radios were sold in 2004, up from 6,400 at the beginning of the year.


    • BELGIUM: Sales increase of 400% in 2004. An estimated base of 30,000 units sold, up from just 6,000 at the end of 2003.


    • NORWAY: Sales of 4,000 units in December alone. With 70% coverage (growing to 80% within two years) and plans to switch some popular FM services over to DAB only reception, the DAB market in Norway is expected to boom in 2005.


    Kevin Dale, president of market leading DAB digital radio manufacturer PURE Digital, says: "Sales of PURE DAB radios in Europe have started to show significant progress with key territories including Denmark, Belgium, Switzerland and Norway. We are also seeing DAB gaining in popularity in countries outside Europe, such as Singapore and Australia.

    "As the right products are becoming available in these countries we have begun to see the same pick up in public interest in DAB that we saw in the UK 18 months ago. We expect that in 2005 Germany, Sweden, Holland, Italy and other European countries will also begin to take DAB to heart."

    With more than 300 million people around the world estimated to be within range of a DAB digital radio transmitter, the potential for growth is enormous.



    DAB EPG standard approved

    Consumers take control of listening choice; broadcasters connect with listeners in a new way.

    The WorldDAB Forum says that radio listening habits are set to undergo a revolutionary change as a pan-European EPG (Electronic Programme Guide) standard is approved by ETSI (the European Technical Standards Institute).

    The standard, which was approved in January, means that broadcasters using DAB digital radio technology can send details of programming directly to listeners via their radios.

    With a DAB digital radio equipped to receive an Electronic Programme Guide, consumers can easily plan their radio listening. In its simplest form, an EPG lets you see what’s on now and next, to search programmes by genre or time; and to set an advance timer record. In much the same way as Personal Video Recorders (PVR) like Sky+ and Tivo” is used, listeners can highlight programme information on their radio screen, then listen in real time, record in real time or set to record at a later date.

    Radio groups in the UK, Canada, Germany and The Netherlands have been test-broadcasting data using DAB digital radio technology, and chip modules that allow a DAB digital radio to receive EPG data have been developed by such technology companies as RadioScape and Ensigma, a division of Imagination Technology.

    Already, leading DAB manufacturer PURE Digital has a software update available via the Internet for its Bug DAB digital radio, and other manufacturers are expected to announce EPG enabled receivers later this year.

    All the systems are now in place to allow broadcasters to provide commercially viable EPG services to their listeners, improving listener loyalty and time spent listening.

    With Christmas 2004 barely out of the way, EPG equipped DAB digital radios are already being tipped by some manufacturers as the hot gift for Christmas 2005.

    The international EPG standard was developed by a special task force of the WorldDAB Forum, chaired by Chris Gould of Unique Interactive, a division of media company UBC, which has developed an EPG management system.

    Says Matthew Honey, Managing Director of Unique Interactive: "The EPG opens up a huge range for opportunities for both public sector and commercial digital radio broadcasters. In conjunction with the BBC, we have been running EPG trial services in the UK and abroad for over 12 months. The consumer demand for a radio EPG is growing fast and we will continue to work with broadcasters and manufactures around the world to launch similar services as DAB continues to be rolled out internationally."



    DAB/DRM products by the end of the year

    RadioScape and Texas Instruments have announced they plan to deliver a multiformat radio receiver capable of receiving DAB, DRM, AM and FM signals by Christmas 2005.

    With pan-European media companies like RTL Group (Luxembourg) committed to DRM, RadioScape’s marketing manager, Andrew Moloney says "We are hoping that DRM can light the fire [under] DAB."

    The RadioScape/TI initiative can bring DRM to the mass market by reducing the price of the radio receivers. RadioScape’s VP Marketing Nigel Oakley says "The goal is to produce multi-band radio that’ll be DRM and all flavours of DAB, FM and AM in one device." The new devices will "take the complexity of the technology away from the user interface, so the user tunes by content rather than worrying about the technology."

    While Eureka 147 is designed for mobile radio and crowded areas, such as cities, it is transmitter-intensive. DRM makes better use of existing analogue frequencies and is, therefore, a more viable option in sparsely populated regions than DAB.



    RadioScape cuts out the middle man

    RadioScape has announced it is to make DAB modules in-house, cutting the time to market for new radios, and allowing significant savings on the costs of the modules.

    The move gives RadioScape’s customers one point of contact for custom software, hardware design and ordering goods. RadioScape expects this integrated approach to "make it much easier to innovate and differentiate, as well as simplifying the supply chain."



    New Products

    Take a look at the new products launched in the UK since mid-December:

    BT Aviator

    From iTECH Dynamic, the BT Aviator kitchen radio comes with DAB/FM/MP3 and pause/rewind functions. Available from BT website at around £129.



    PURE Legato

    A micro hi-fi system from PURE, the Legato delivers DAB/FM reception, plus CD and MP3 playback and comes with Pause and Rewind functionality. Available for around £349.



    Sanyo DC DAB01

    Sanyo enters the DAB market with a micro hi-fi system with DAB/FM and CD player, available for around £160.



    Crown CDR240

    Kitchen radio with DAB and FM available for around £89.



    KISS

    Radio station KISS launches its own branded personal DAB/FM radio, priced around £75.



    Ferguson FRG400

    A micro system with CD exclusive to Dixons and Currys at around £99.



    Matsui products

    Two new products from Matsui including the CD48D DAB only boombox with CD player exclusive to Dixons and Currys at around £79 (pictured above).

    Also new in December/January from Matsui is the R100 kitchen radio. A DAB and mains only product, this one costs just £49.99 from Dixons and Currys.



    Hitachi micro systems

    Two new micro systems from Hitachi: the AXM75DAB delivers AM/FM and DAB, plays CD and is MP3 compatible (pictured above). Available at around £199.

    The AXM32DAB has a lower spec, with DAB/FM and CD, but costs just £129.



    Two from Goodmans

    Two new DAB radios from Goodmans in 2005. The GCD1930 clock radio is DAB only at around £80; the GCDR1955 (pictured above) is another clock radio which delivers FM and DAB and also plays CDs at £89.99.



    Bush CXDAB201

    A DAB/FM/AM boombox with CD and cassette player, all for just £49.99.



    Acoustic Solutions Portal 3

    A DAB/FM radio with pause and rewind for around £99.99.



    Roberts Gemini 18

    A DAB only mains/battery radio from Roberts priced around £70.



    Two from Genus

    Two digital radios from Genus, a new manufacturer to the market. Both the Genus PR1 and PR1i deliver DAB/FM with a CD player and pause and rewind. Additionally, the PR1i has MP3 playback functionality. Both are priced around £149.





    Miscellanous

    MITSUBISHI’S completely revised high-specification L200 Animal Double Cab now comes with DAB digital radio as standard. The JVC DAB radio includes CD, MP3 and WMA playback. Mitsubishi Motors is only the second brand in the UK to offer DAB as standard in a production model.

    ENDS

    February 4, 2005

    The Digital Radio Development Bureau is funded and supported by BBC, Digital One, Emap Digital Radio, CE Digital, MXR (Chrysalis, GMG, Capital and UBC), Capital Digital and GWR’s Now-Digital. The DRDB’s task is to ensure digital radio’s wide accessibility and swift adoption in the UK with consistent and effective marketing.

    Visit the DRDB's consumer web site www.digitalradionow.com, or our Business to Business site, www.drdb.org.



    If you have any news you would like included in the next DRDB news bulletin, please email mandy@drdb.org

    If you do not wish to receive future copies of this news bulletin please email mandy@drdb.org

    Mandy Green
    Press and Publicity Manager
    DRDB
    The Radiocentre
    77 Shaftesbury Avenue
    London W1D 5DU
    020 7306 2636
    07973 184995



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