Mobile Purchasing Is Key To Digital Radio’s Future

Last week’s announcement that UBC Media would invest in digital music technology that allows listeners to buy music from radio stations via a handheld mobile device, received a positive boost today at the annual Radio Festival in Cambridge.

In a session discussing radio’s future funding, the ability of radio stations to offer instant opportunity to purchase tracks was highlighted as a key revenue earner for the future.

“Radio is not in this space but it should be now, it is so well positioned,” said Fru Hazlitt, chief executive of Virgin Radio.

“We need to work shoulder to shoulder with the music industry,” added Natalie Schwarz, director of radio at Channel 4.

At the moment the only technology on offer is UBC’s (see UBC Media To Invest In Digital Radio Download Technology). Simon Cole, CEO of UBC, told MediaTel’s NewsLine correspondent that three major station brands were now in early discussion with UBC to use the newly announced technology, which launches a trial with Heart in the Midlands next month, targeting Heart’s female 25+ audience.

Cole believes the technology offers potential revenues of £95 million by 2012. His calculations are based on 25% of the population owning DAB-enabled phones by 2012, and 10% of those purchasing an average of six tracks a month online.

His estimates are based on just five radio companies taking up the technology. Judging by today’s session, it could be many more.

The technology was first demonstrated by Cole at MediaTel’s Radio Seminar last December (see New Technology Offers Glimpse Of Radio’s Future).

UBC Media Group: 020 7453 16001 www.ubcmedia.com