The launch of digital broadcasting in January 2009 is not expected to produce a dramatic lift in the number of people listening to radio or an in increase in advertising spending. According to industry experts in a report in the Australian Financial Review, the $300 million investment in the new technology won’t trigger a big increase in listeners or revenue.

CRA chief executive Joan Warner said that the radio industry had not researched how much extra revenue the move may or may not generate.

“We haven’t started talking to advertisers about the benefits of digital radio, such as extra audio channels, the ability to run logos on screens, and so on. We’re hoping digital will bring in extra ad revenue, but don’t know at this stage.”

DMG Radio Australia executive chairman Paul Thompson doubts digital technology would draw a large number of listeners, adding that the radio sector did not need to hook new consumers.

“The industry is much stronger from a listening point of view than it was six years ago and is not desperately searching for a kick,digital might provide some type of
lift in time spent listening, but we’re not expecting much.”

“It will create new advertising opportunities, but the big challenge will be getting new digital receivers to the market. Convincing people to switch will take time.”

Warner disagrees with the Governments view that analogue will continue indefinitely as digital radio is a replacement technology and not a supplementary technology.