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Digital Radio Is In An ‘Unlockable Downward Spiral’, Says DMB Chief

Enthusiasm for digital radio, heralded as the future of radio, today took another blow as one of only two groups believed to be applying for the national digital multiplex pulled out at the last minute.
Digital Media Broadcasting (DMB) said earlier in the year (see New Company To Enter Bids For National Digital Radio Licence) that it would make a bid for the national digital licence which is advertised by the Radio Authority. The deadline for applications is this morning and it is believed that only one consortium, Digital One, has submitted a proposal.
DMB, headed by European Klassik Rock managing director, Peter Leutner, says that, “neither the radio industry or [sic] the DAB [digital audio broadcasting] manufacturers are sufficiently prepared for a national launch. The fact that other players such as Capital, EMAP and Ginger have dropped out one by one is an indication of this.”
Leutner goes on to say that there is a lack of committment to DAB by hardware manufacturers caused in turn by manufacturers’ suspicion of a lack of interest in the radio industry as a whole. “It seems to have become an unlockable downward spiral,” he said.
Along with Emap and Capital (see Emap Radio’s Local Licence Masterplan), DMB has decided to concentrate its efforts on making multiple regional and local multiplex applications later in the year. By this time, says Leutner, “DAB will either have become a reality gathering some real momentum or the current national advertisement will have been aborted due to insufficient interest. Either way, there should eventually be a far more positive atmosphere for DMB’s partners to feel more confident about placing the significant investment needed.”
Leutner’s position now is to ‘remain poised to act’ but only when ‘the environment is right.’
Digital One, the consortium comprising GWR Group (57%), NTL (33%) and Talk Radio (10%) handed its application to the Radio Authority at 12:30 this afternoon. The Radio Authority will release details of any other applicants later today, and these will be published on Newsline when available.
Digital Media Broadcasting: 01233 750 516