At the Financial Review’s Radio Summit this week, WorldAudio CEO Andrew Thompson gave an overview of his company’s progress and an insight into digital radio’s success in the UK.

The main points about WorldAudio from his speech include:

· We currently have 15 am transmission sites broadcasting commercially across Australia in every capital and the main regional centres.

· In the next four months we will deploy up to a further 12 sites broadcasting on free-to-air am frequencies 1611, 1620 and 1629am.

· Worldaudio’s Radio 2 was the first commercial radio network to broadcast free-to-air digital on channel 9 vhf band III in Australia. We are currently conducting a DRB trial in Melbourne with Broadcast Australia, supplying content in line with other providers such as the ABC, SBS, and Sport 927.

· And Radio 2 is the only radio network on the new national Foxtel / Austar digital subsciption pay tv platform forming part of the audio/video basic package of services.

Turning to the Digital world, Thompson gave an overview of the progress of digital terrestrial and satellite radio in America. He said:

· One might expect the USA to be leading the world in this space. However, having already deployed the Eureka147 platform for military use, they had to invent something else.

· They came up with IBOC or in band on channel. A system that uses existing am and fm frequency bands for the propagation of a digital signal. The only problem is – it doesn’t work.

· XM Satellite radio has 121 channels and 1.2 million subscribers paying US$9.99 u.s. per month. XM has recently gone “commercial free”

· Sirius has almost ½ million subscribers paying US$12.99 per month and is commercial free.

· The US experience shows listeners in the USA at least, will pay for unique services.

Thompson also surveyed the digital radio landscape in Europe and the UK, making the following observations:

· The DAB footprint now covers most of the uk with combinations of local, regional, and national multiplexes now span the UK.

· The content available and choice of brands extends beyond what FM and AM have previously offered. These services are now available to the majority of UK listeners

· “Niche” FM brands have found new impact on digital

· The BBC has created unique new national brands

· New audio brands have been created from print and internet platforms

· AM brands have evolved on the digital platform

· FM brands have migrated from analogue.

· “Traditional” analogue brands and formats have not attracted early take-up on the digital platform

· Rajar measured digital listening in the UK is a “bundled” combination of: Dab, Freeview (BBC, digital tv), D-sat (sky satellite through tv), Dir (digital internet radio), Cable (pay tv)

“While technology is changing the ways we can broadcast Content is king in the digital world,” says Thompson, who believes new and unique brands are attracting greatest usage.

“Digital is not just the domain of the young… adult brands on digital are attracting strong usage and different peaks of
listening to the analogue platform listening week.

“Digital is attracting around 5 million listeners a week in the UK, aboujt 10% of the potential national audience.”

In his presentation Thompson analysed the success of various brands broadcasting in digital:

· Kerrang! and Smash Hits! Are successful “young male” and “young female” music magazines that have evolved from the emap publishing stable. They have successfully transferred magazine demographic profiles to digital broadcast usage.

· After one year on digital and no analogue exposure Kerrang! Reaches on average 800,000 listeners a week nationally. Smash hits is reaching an average of around 750,000 listeners a week.

· AM stations also are building a digital audience.

· Emap’s “magic”… Capital’s “gold” network… and GWRr’s “classic gold” network all attract “25-54” listening.

· The Magic ILR AM network reaches 2,192,000 listeners a week… with 400,000 on digital.

· Capital’s Gold network reaches
1,745,000 listeners a week… with 331,000 on digital.

· GWR’S Classic Gold network reaches 912,000 listeners a week with 262,000 listening on digital.

· Kiss is a unique FM brand not replicated elsewhere in the UK that has almost doubled its audience with the advent of digital.

· Kiss is a dance/rhythmic dj mix London FM brand targeting “15-34.” Until digital, it was only available to listeners in the greater London region.

· As of Rajar 4/03, Kiss reaches 1,381,000 listeners a week in London. Kiss reaches a further 997,000 listeners a week elsewhere across the UK exclusively on digital.

· The UK’s Rajar surveys report 18.6% of the adult population listen to radio via the tv, and 61% of those people tune in once a week.

Thompson took part in various panels as well as his main speech where he discussed his company’s interest in being part of the future developments of digital radio in Australia.

WorldAudio is currently participating in the Melbourne Digital Radio trials with Broadcast Australia.