Digital radio challenge to broadcasters
Kiwis would get more and better radio services if the country invested in a digital radio network and now would be a good time to make a decision on the investment, says state-owned enterprise Kordia.
Chief executive Scott Bartlett said Digital Audio Broadcasting (DAB) had taken off overseas and it would cost less than $10 million for New Zealand to set up a transmission network.
DAB – not to be confused with internet radio – is the audio equivalent of digital television, which New Zealand moved to in 2013.
It provides clear reception, allows more radio stations to be packed into the same number of radio frequencies, and lets listeners choose stations by name.
Kordia has been running DAB trials in Auckland and Wellington since 2006 but so far the radio industry has not developed a business case for a nationwide roll-out.
Bartlett said the technology was ‘‘clearly proven’’ and more cars were coming into New Zealand with digital radios installed as standard.
That meant many Kiwis would be able to enjoy the benefits of DAB without having to spend hundreds of dollars on new radios.
One of the commercial challenges of DAB is that the technology can increase competition to existing FM broadcasters and reduce the value of their FM licences, making it less likely they may fund the necessary transmission infrastructure.
Bartlett agreed that might have been an issue 10 years ago, but thought attitudes had changed because the internet had forced media businesses to become ‘‘multi-platform’’.
‘‘It does feel like now is the time for the industry and other stakeholders to give DAB some serious thought,’’ he said.
‘‘Now is probably the time that as an industry and as a country that we either adopt DAB, or say it is time for the trials to come to an end.
‘‘DAB would allow us to bring dozens if not more types of content to the market, not all of which needs to be commercial.’’
Kordia was seeing interest from community groups, overseas organisations and different ethnic groups.
‘‘Kordia is ready to invest. We are willing to put some money down on the table to bring these services to market if there is a consensus that it is the smart thing to do.’’