Digital Radio importer Graeme Redman has been around radio for a long time, and now represents the Pure company in Australia, which has a range of new products ready to sell to eager digital radio consumers once the new transmission technology is launched in May this year. He is hopeful that the excitement created by the launch publicy for digital radio will drive uptake of new receivers, particularly in Melbourne, where AM reception is poor, and for SBS listeners who will have particular reasons to listen to new digital channels.
Pure has 11 digital radio models available, in stock, in Australia right now (see picture below for two of the most recent Pure models). He expects to have about 14 different receiver models available by launch date. “We will have plenty of product by April and we have a road map for another half dozen products by Christmas.”
Redman, who spoke to radioinfo this week, thinks the Pure radios will be the most plentiful in the market at launch date, but has “no idea” how many other manufacturers have product in Australia. iRiver is likely to be at least one other significant receiver supplier in the early stages of digital radio sales.
Redman expects that his radios will be in major retail stores at the time of launch:
“We are talking to major retailers such as Harvey Norman, Dick Smith, Clive Peeters, Myer, and others. They are seriously committed.
“Others, like KMart and Target are sitting on the fence, they will wait to see how it unfolds I guess. If there is an opportunity for them they will get in on it as soon as they see a trend. The thing that has held them back so far has been the uncertain nature of the launch and the shifting dates. Some retailers got browned off, but they have said, come and talk to us nearer the day, so now the launch date is near it may get their interest again.”
Redman is not sure which networks will drive receiver the most sales, but from what he knows so far, there is a good chance that AM stations, SBS and the early movers such as Austereo, will be responsible for a majority of the initial radio set sales:
“I don’t really know too much because the networks have not yet broken cover, they are keeping their power dry. But I can comment on what we know so far:
* Austereo’s move to launch a new channel is very positive;
* AM stations in Melbourne such as 3AW and ABC774 will benefit by going digital because the quality of the AM reception in this city is very poor, so their listeners will want to buy digital radios to hear those stations better, there will be a big uptake in Melbourne;
* SBS Radio’s plans to offer new services to language groups will be a significant driver in a lot of small but important market segments.”
Redman says that in the UK the 35+ audience were big consumers of digital radios when they were first introduced, so that market segment may become early adopters here too. But in the UK there are now more than 50 digital radio stations and each one drives sales in each of their demographics.
Redman believes “it’s a god-send for SBS because they will have more channels and will extend to new cities,” allowing the national ethnic broadcaster to focus more finely on their audience segments, giving an advantage for programmers and for sales of radio sets. Ethnic listeners have proven they will buy special radios to hear programs in their first languages (currently many language groups buy special radios to hear FM side band transmissions from language narrowcasters), so Redman expects they will certainly be part of the early adopters group if SBS offers them a range of new channels.
Offering new services and promoting digital radio’s “crystal clear interference free” digital signal will be the most successful way to market digital radio in its early days, according to Redman. Pure will offer a range of new radios that will also be internet enabled, so that listeners can hear FM, digital or wi-fi internet radio, and can plug in their iPods as well.
Redman is confident that the awareness campaign, soon to be launched by CRA and individual radio networks, will make listeners aware of the new technology and ready to buy the new sets that will soon be on the market. He is optimistic about radio’s new digital future.
“It is an exciting time for radio. There are a few nay-sayers out there who get a lot of press from people who don’t really know much about the radio industry, but there is also a good news story to tell about this new technology and the industry will soon see the results of all the work put in so far,” says Redman.
Contact for Graeme Redman: [email protected]
