Amanda Andrews, Media Business Correspondent
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A deadline for the switchover of analogue radio to digital across Britain's national, regional and larger local stations should come no later that 2020, according to recommendations released yesterday.
As the industry strives to make a success of digital radio, which has not grown at the same speed as digital television, eagerly anticipated proposals have been put to the Government to try to boost digital radio sales.
The recommendations have come from the Digital Radio Working Group, a body that includes representatives from the Department for Culture, Media and Sport; Ofcom; the BBC; commercial radio and set manufacturers. It was formed six months ago to discuss the future of digital radio.
The working group has proposed that all national, regional and larger local stations should switch from analogue to digital radio by 2015 if possible and no later than 2020.
However, smaller local and community radio stations will remain analogue. The working group decided that analogue is still the most effective, and cheapest, way of delivering radio to smaller geographic areas.
Only a small number of stations will remain analogue. Community radio accounts for less than 1 per cent of listening hours, while smaller local radio stations account for about 5 per cent.
There has been increasing pressure on the working group to suggest a date for digital switchover. Radio groups facing both analogue and digital transmission costs are particularly concerned.
“We believe that the industry cannot indefinitely support the increased transmission costs of broadcasting on analogue and multiple digital platforms,” Barry Cox, chairman of the Digital Radio Working Group, said in the report. “In the context of falling advertising revenues and a tight licence fee settlement for the BBC, the increased transmission costs are challenging the traditional radio business models.”
A date would also demonstrate to radio and car manufacturers that the industry is committed to the Digital Audio Broadcasting (DAB) platform.
Car manufacturers are seen as the key to boosting sales of DAB radios, but many have been wary about including digital radio as a standard feature, partly because of a lack of clarity on the industry's commitment to the medium. There are more than 100 million analogue sets and only a tiny proportion of the country's 30 million cars have DAB radio sets.
Andrew Harrison, the chief executive of Radiocentre, the body that represents commercial radio, said: “This is obviously an interim report, but I'm delighted that we have an aligned plan along with other stakeholders.”
The working group proposed that there should be a unified promotional strategy across the radio industry to push the benefits of digital radio.
“Radio stuck in an analogue world risks becoming increasingly irrelevant, particularly to young listeners, as consumers' expectations for interactivity, quality and choice grow,” Mr Cox said.
However, the working group acknowledged the present gaps in coverage being a potential barrier to some listeners adopting digital radios.
“While the current coverage of the national DAB networks is around 90percent of the population, we believe that this must increase if DAB is ever to be seen as a replacement for analogue radio,” it said.
It added that, whatever the final timetable, consumers should be given at least two years' notice before the migration process begins.
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