The successful launch of digital radio broadcasting in the UK makes it difficult for other regions to follow suit
The successful launch of digital radio broadcasting in the UK makes it difficult for other regions to follow suit
The number of global regulations is increasing, but the automotive industry has not yet determined which digital radio broadcasting specification will definitely win. In order to be accepted by the automotive industry, the digital radio broadcast format must not only be stable and reliable and suitable for mobile high-speed applications, but also must have active support from the entire digital radio value chain.
Worldwide efforts are being made to establish viable digital terrestrial radio networks, and some broadcasting authorities may be concerned about the successful experience of British digital radio broadcasting and use it as a model. However, for many reasons, the factors that successfully created the UK digital broadcasting market cannot be replicated elsewhere in the world.
With the cooperation of the British Broadcasting Corporation (BBC), the British government launched a campaign to announce digital broadcasting, promising the company a digital future and shutting down analog TV broadcasting by 2012. In addition, the BBC made a strategic decision to provide digital-only radio stations to attract users away from analog broadcasting. These digital exclusive channels include music and major sports events. Finally, DAB has no competition from satellite broadcasting in the UK.
Broadcasting using the DAB + format greatly improves the existing quality of service of broadcasters, because the initial DAB format is relatively inefficient, forcing broadcasters to sacrifice sound quality to output more stations. Another advantage is that DAB + is based on Eureka 147. Eureka 147 allows DAB and DAB + to coexist in a single mulTIplex without causing a drop in service quality and without adversely affecting current listeners.
Ibiquity Digital Corp. is a licensee of high-definition (HD) radio broadcast format. The company introduced iSuppli to its position in the market and the challenges it encountered in delivering HD radio information to consumers, equipment suppliers, and automotive OEMs.
The company acknowledges that the future success of HD radio broadcasting will largely depend on the broadcast format adopted by the mass market of the automotive industry.
Although car buyers can get HD radios in 2007 and 2008, it is usually regarded as one of the optional items when consumers buy new cars. This requires consumers to determine whether their vehicle needs this feature, which leads to a relatively low adoption rate. However, the number of manufacturers that provide HD radio as a standard configuration or part of an entertainment information upgrade package has increased significantly, and the image of HD radio has changed from a niche product to a more mainstream function.
At the same time, iSuppli believes that the merger of Sirius and XM has eliminated many of the uncertainties in the minds of system planners-especially in the automotive industry, and will be able to promote roll-out strategies. Many system planners may have shelved these strategies previously, waiting for the regulator's decision. However, a major problem faced by the two satellite providers after the merger is how to maintain consumer enthusiasm after the initial free promotion period ends.
Both Sirius and XM are satellite providers in the United States. Both have a subscription-based service model, with monthly fees ranging from $ 8 to $ 13, depending on the duration of the subscription and the services purchased. Each company provides 80 to 90 music channels and more than 160 radio channels. After they merged, many of these contents have been integrated into comprehensive programs, and XM and Sirius broadcast similar content on similarly named channels. Only high-end content such as Oprah, Howard Stern and Martha Stewart remain separate, mainly due to contractual reasons.
Since satellite digital audio radio service (SDARS) technology is designed to support data channels, both Sirius and XM have begun broadcasting value-added services that support additional data and telematics platforms. These services involve capturing and sending data to infotainment systems, including stock quotes and weather forecasts, traffic conditions and accident information, images, text and video. Although from the perspective of subscription and operating income, SiriusXM's entertainment content still greatly exceeds its data content, but the data services in the market have expanded significantly.
ONDAS Media is a satellite-based pan-European digital radio company, very similar to Sirius XM. What they have in common is that ONDAS has proposed a comprehensive subscription-based service with up to 150 music, sports, news and entertainment channels. The proposed data and remote communication services include automotive functions such as CRM, fleet data and diagnostics. Services also include driver information such as gaming, sports and news, as well as enhanced data applications such as traffic conditions and navigation.
Digital satellite programs provided by Worldspace include combined content such as news, sports, music, branded content and educational programs. Some of these programs are developed in-house, and some come from channels such as BBC and CNN InternaTIonal. However, Worldspace is now in bankruptcy protection under Chapter 11 of the Bankruptcy Law.
Now, the company plans to continue operations to support its 170,000 users in 10 countries in Europe, Asia and Africa. According to media reports, Liberty Media, an American media and communications group, may be interested in a stake in Worldspace. In 2009, Liberty Media worked to help Sirius XM avoid bankruptcy.
Broadcasters agreed to accept AM and FM as the two major analog broadcast formats for radio, which almost clearly explains why these technologies have achieved great success worldwide. In sharp contrast to this, digital radio is trying to introduce several incompatible specifications, and some specifications are hardly accepted by overseas regions.
Whether they can comply with relevant standards means that the degree of market dispersion is large or small. However, the market is at a loss as to many norms, and there is no majority opinion that favors one norm, even two standards, which has seriously delayed the establishment of standards. Manufacturers are waiting for market consolidation.
In the case of DAB radio, the manufacturer ’s biggest concern is that the hardware currently installed in the car may become outdated in the future, because the specifications of these hardware may be determined before the problems of sound quality and broadband inefficiency emerge in continental Europe. In contrast, receivers with established specifications can now utilize the latest technology to make them backward compatible. However, from a car manufacturer's perspective, choosing the right time to join in and support a new technology when the specifications have not been finalized can be extremely risky.
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