Sales of DAB digital radios in Europe are showing encouraging signs as the UK tops 1.2 million units in homes at the end of 2004.
The United Kingdom has historically been several years ahead of the rest of the world in the roll out and adoption of DAB digital radio. Four years ago, penetration of DAB digital radios in the UK was just 35,000. Today its 1.272 million. Many international markets are experiencing similar sales trends as the UK, as promotion is stepped up and receivers are made available on the high streets. Sales in the UK showed an increase of 122% in 2002/2003; and 178% in 2003/2004. Comparatively, Denmark has shown an increase of 525% in 2003/2004, and Belgium a 400% in the same period.
Kevin Dale, president of market leading DAB digital radio manufacturer PURE Digital, says: “Sales of PURE DAB radios in Europe have started to show significant progress with key territories including Denmark, Belgium, Switzerland and Norway. We are also seeing DAB gaining in popularity in countries outside Europe, such as Singapore and Australia. As the right products are becoming available in these countries we have begun to see the same pick up in public interest in DAB that we saw in the UK 18 months ago. We expect that in 2005 Germany, Sweden, Holland, Italy and other European countries will also begin to take DAB to heart.”
Denmark is a microcosmic example of how market growth can expand when the right elements are in place. With 80% population coverage, nearly 20 services broadcasting on DAB, a vigorous marketing campaign from broadcaster Danmarks Radio, and point-of-sale in stores for the first time, 40,000 DAB digital radios were sold in 2004, up from 6,400 at the beginning of the year.
Says Thomas Schwartz, director of Gizmolink, a distributor of technology products in Denmark: In November and December, DAB really took off. Sales in the New Year are continuing and Gizmolink are expecting to sell another 20,000 in 2005. Already in January we have sold 2,500 units.
Interest in other countries is also growing, with Norway reporting sales of just over 4,000 units in December. With 70% coverage (growing to 80% within two years) and plans to switch some popular FM services over to DAB only reception, the DAB market in Norway is expected to boom in 2005. Already there is strong interest from retailers where sales are reported to be exceeding expectations since promotions began on 1st December. Some shops sold out of DAB products over Christmas, and broadcasters NRK and P4 are experiencing good listener feedback.
There are positive signs in Belgium, which has an estimated base of 30,000 units sold, up from just 6,000 at the end of 2003. Holland is another emerging DAB market, as is Singapore where manufacturers teamed up with retailers and broadcasters to present a series of consumer roadshows, raising awareness of DAB in November and December last year.
While the actual sales figures in all these (and more) markets may be small, it is important to remember that serious promotion of DAB digital radio has not been possible until sufficient coverage and unique content were in place to engage the consumer. Now, broadcasters around the world have risen to the challenge of both delivering and marketing a new radio technology. Manufacturers, too, are recognising the promising rewards of overseas markets.
With more than 300 million people around the world estimated to be within range of a DAB digital radio transmitter, the potential for growth is enormous.