the wider view: australia
TRANSCRIPT
Population 25 million
ABC = Big audiences, big moments
ABC = Making an impact with Digital
More content, services and platforms…
…at a lower cost than 30 years ago
What’s happening in the audio space?
1.DAB+ Digital Radio expansion
2. Growth in streaming
3. Decline of the AM Band (yes, we still have AM)
4. Rise of Podcasts & Podcast Industry Partnerships
5.Uptake of smart speakers
6.Spotify’s growth in popularity
We are in a golden-age for audio
East coast to West coast Australia
North to South coast Australia
Sydney to Geneva
4030 km
3685 km
16,764 km
The tyranny of distance
Australia is vast
Broken Hill
Muswellbrook
Wollongong
Mildura
WodongaBallarat
Bendigo
Darwin
Sydney
Brisbane
Melbourne
Hobart
Adelaide
Perth
Alice Springs
Mt Isa
Longreach
Pt Lincoln
Warrnambool
Mt Gambier
Horsham
Renmark
Pt Augusta
Pt Pirie
SheppartonNowra
Bega
Sale
Morwell
LauncestonBurnie
TamworthDubbo
NewcastleErina
Orange
Wagga Wagga
Lismore
Coffs Harbour
Pt Macquarie
Toowoomba
Maroochydore
Gold Coast
Cairns
Katherine
Townsville
Mackay
Rockhampton
Gladstone
Bundaberg
KalgoorlieGeraldton
Karratha
Broome
Kunanurra
Bunbury Esperance
Wagin
Albany
Canberra
ABC Local Radio station
Why 86% of people live within 50km of the coast
But AM radio is in decline.
It sounds awful
The audience is largely 60+
AM recruits no new listeners
AM radio’s geographic reach has suited Australia’s enormous
geography – powerful transmitters reaching far into the outback
Why AM?
DAB+ timeline in AU
1999 2005 2009 2018 2019
OTHER CAP CITIES
Hobart, Darwin and Canberra commence full time services
SERVICES START
Commercial and Public Broadcasters commence services in Sydney, Perth, Melbourne, Brisbane and Adelaide
DIGITAL RADIO PLAN
First genuine plan for Digital Radio was released
FIRST TRIALS
DAB was tested in Sydney and Melbourne
FIRST REGIONAL MARKETS
Commercial sector looking to commence services in some regional locations
DAB+ snapshot
10 years 4.5m 47% 36%
Since the launch of DAB+ in Australia
DAB+ enabled devices sold to
date
DAB+ in 47% all new cars
sold in Australia
36% listening is to DAB+ where
available
In 2018, more than 4.2 million Australians listened to radio via a DAB+ digital radio each week (up from 3.6 million in 2017)
2.2 million listened online on a connected device such as a mobile phone, computer or tablet (up from nearly 1.9 million).
There was little change in place of listening. In 2018, 42% of commercial radio listening took place at home, 36% in the car, 20% at work and 2% elsewhere.
The Australian Radio Market
• DAB+ radio as a source of listening has grown at a faster rate than streaming via the internet
• Fragmentation of audio listening via growing listening options is driving pressure on weekly TSL
• There is increased competition for ears from podcasts, global radio and music streaming services
• 36% of all radio listening in Australia occurs in a vehicle. It is essential that Radio maintains a prominent place in the car – very interested in how RadioDNS may assist
The Australian Radio Market
> 45 vehicle brands with DAB+
Cumulative sales of vehicles sold with DAB+ in AustraliaSlow and steady. The average life of a car in Australia is 12 years meaning vehicle churn has taken a while to ramp up.
16,8
10,17,9
20,6
12,510,2
29,5
21,7
12,2
31,7
24,2
12,1
33,9
26
13
35,1
26,6
13,8
39,5
30,4
16,1
Combined DAB+ Radio & Internet DAB+ Radio Internet
2012 2013 2014 2015 2016 2017 2018
• While radio listening via AM/FM radio remains dominant across major networks, listening via DAB+ Radio and the Internet has increased, especially since last year.
• Depending on their location, and which device they are using, Australians can listen to radio via multiple sources across a week.
Radio listening via DAB + has shown stronger growth than internet listening
What impedes DAB+ growth in Australia?
01
02
03
04
05
Massive country and universal access for PSM means significant challenge for Regional Australia
For weather emergencies, geographic reach is important
Until recently, has not had a strong revenue case.
Geographic limits, many feel “too little too late”
Everything on the phone, but this brings infinite competition and added complexity
GEOGRAPY
EMERGENCIES
REVENUE
LOW FAITH IN DAB+
LEAP OF FAITH IN IP
DAB+
Digital RadioStreaming via
the Internet (websites & apps)
AM/FM
Radio
Radio Aggregator streaming Apps
ABC Digital Products
ABC Radio Player/
websites & Apps
Digital
TV sets
Double J & ABC Jazz
Podcast downloads via ABC Digital products and 3rd party services
Ways of listening to ABC Radio
Local talk Current Affairs Network
Classical music Network
Youth music Network
Rolling news Network
AM/FM, DAB+, IP audio
Alt pop/rock New music Jazz Country Sport Kids
DAB+, IP audio
ABC Radio Apps
All of the above stations streamed live with various on-demand choices –including digital first content
Safe Separate
ABC listen is Australia’s leading Radio streaming App
624K
9.5M
15
ABC Listen App Tunein app iHeartRadio app RadioApp
Reach
Total Sessions
Sessions / user
2018 monthly
382K
2.4M
7
354K
4.7M
13
72K
1.2m
NA
70% of visits are to live streams
Smart speaker ecosystem could change consumer behaviour, especially in-car
Google72%
Amazon15%
Apple5%
Other8%
16%of Australian households are using smart speakers (Dec 2018)Main brand used is Google
Alexa plays any of 300 Australian radio stations
Play your favourite station by name or
frequency
Alexa, play ABC MelbourneAlexa, play Smooth FM
Alexa, play 103.5Alexa, play SBS Pop-Asia
“Alexa, play ABC Sydney”
Live radio accounts for a dominant 62.3% share of all audio listening
- Tomorrow is a mixed model – both IP audio and broadcast- Audiences seek frictionless experiences
- True 5G speeds are some time off- Massive infrastructure play required, for “4.5G” first- But 4G is fine for audio and will keep getting cheaper
- DAB+ has few champions in Australia- Needs more advocacy IMO
- Where do the various forms of digital audio fall on Gartner's Hype cycle?
Reality check
