Mon, 31 Jan 2022 / Published in Audio Streaming, LATEST NEWS

The new year is in full swing, and the audio revolution is showing no signs of slowing down. Audio creation and consumption have both gone through major shifts over the last two years, as the world continues to grapple with the effects of the Covid-19 pandemic. The face of audio is set to continue changing in 2022. Perhaps even faster than we might think. 

From the rise of unconventional new competitors, all the way to opportunities to listen to, repurpose and distribute an abundance of premium content from all over the world, there’s quite a bit going on. Mindful of this, it’s worth taking a look at the potential impact of these changes within the evolving audio landscape over the next twelve months.

Radio’s essential role during the pandemic

Although it might feel like the first lockdown in 2020 was a long time ago, in the grander scheme of things the pandemic has only been a part of daily life for a relatively short period. Radio has been one of the mediums that really stepped it up since then, diving in head first and keeping people entertained and informed in a period of high uncertainty, and with the threat of fake news around every corner.

This has contributed to the now booming face of audio — which has long been on the radar of tech companies and Silicon Valley startups — but is only just beginning to gain a lot of mainstream momentum. The widespread adoption of voice notes have played an important part in this too. Radio is the master of reinvention, but as powerful as it is, it is going to come under more pressure from a variety of new sources this year. This is especially true considering the revenue growth numbers many commercial radio stations are posting in what is a very delicate global economic climate.

The revised face of audio?

The changing face of audio might be better described as a revised face of audio. Media consumption habits are going through major shifts all over the world. In the US, the average adult consumes about 11 hours of media every day; 20.2% more than a decade ago. Mobile consumption is up to an average of a rather staggering 252 minutes a day.

Audio content creators and distributors are having to think out of the box to meet the changing needs of their audiences, in order to get a slice of the (attention) pie. These all have to be mindful that consumption habits are generation-specific too. Baby boomers still prefer traditional media, whereas GenZ’s are quite predictably glued to their mobile devices. Knowing who you’re speaking to matters, but it’s about more than just high quality content these days. How it gets delivered and how that slots into the life of the consumer can mean the difference between good engagement, or simply being passed over for something else.

New competition from non-traditional establishments

Not being passed over means keeping an eye on all the new competition popping up. These are increasingly coming from non-traditional establishments that spot the opportunity of poaching a traditional radio audience. A prime example of this is the Los Angeles Times; formerly a written publication that has had to pivot over the last decade to counter dwindling revenues in print media.

By creating The Times — a popular daily podcast that has great monetisation potential — they have successfully navigated some very murky waters. They haven’t changed what they have always done best: high-quality journalism. The difference now is that these in-studio interviews, detailed reports and more are all going to live online forever, with the potential to repurpose the content elsewhere at a later stage too. Other podcasts are knocking on the doors of the attention spans of traditional radio audiences too.

Wonder(y) and podcasting power

That’s not to say that radio isn’t ready to put up a good fight. In a bid to get ahead of the curve, African Media Entertainment recently signed a deal to partner with Wondery, the biggest independent podcast distributor in the world. The collaboration means that AME has the rights to promote some of the countless Wondery podcasts through subsidiaries, like Algoa FM and OFM.

The latest PWC Media Outlook estimates 19 million monthly podcast users in South Africa by 2024.  By working together, both radio and podcasts have the ability to transform the audio landscape even further. I have a particular love for podcasting, and thoroughly enjoy being a guest on insightful shows like The DOC and the GURU. From a content creators perspective, podcasting is fun, engaging and relatively uncomplicated to get going with. Done well, it can be alluring to listeners in the same way radio has always been. It will also be big business in the future.

A view towards the year ahead

It’s safe to say that 2022 will see more players entering an already competitive audio landscape. On top of new apps entering the market, streaming platforms like Spotify are gunning for radio listeners in a big way. The Swedish powerhouse has already launched its own morning show that is free to listen anytime from 7am on weekdays. It differentiates itself from traditional radio by (1) letting the listener consume the content on their own time, (2) by allowing them to skip stories they aren’t interested in, and (3) by playing music specifically curated to the individual.

Online audio is only going to continue to explode during the course of this year. More people are going to open their own stations, dabble with podcasting and explore new ways of finding niche audiences. Radio has got to do what it can to get ahead of it, or to collaborate with the platforms in a mutually beneficial way.

By having the training, skill and expertise to create better products than the average teenager in their bedroom, the industry does have a leg up in many ways. How it uses that to satisfy the ever changing habits and needs of audiences begs to be seen this year.

Who else is ready to give it their best shot?

Dave Tiltmann is group chief executive officer of African Media Entertainment.

Wed, 21 Jul 2021 / Published in AME, LATEST NEWS

In July of last year, Communications Minister Stella Ndabeni-Abrahams published a policy direction asking ICASA to fast track the licensing of digital radio broadcasting services in South Africa. Radio insiders were encouraged to see DAB+ mentioned specifically as an integral component of her digital radio standards plan.

A year on, the question of whether DAB+ is a viable opportunity in a country like ours — where radio is a huge medium for people to consume information, news, and entertainment every day — still lingers. One thing remains clear; although internet connectivity is improving around the country, there simply isn’t enough access or bandwidth for everyone to move from FM onto streaming. We need something else and DAB+ is a viable candidate that shows great promise. But what kind of impact could DAB+ have on the South African radio broadcasting landscape as a whole?

DAB+: A digital radio technology standard

Back in the late 1980’s, a digital radio technology standard was defined as part of a European research project. It laid the foundations for the creation of what we now know as DAB+ (digital audio broadcasting plus), a global radio standard that sets out to be a viable digital alternative to traditional AM/FM broadcasting. DAB+ is topical in South Africa because it was recently advertised in the Government Gazette — an encouraging sign that suggests forward motion and a goal to make it widely available to everyone in the long run.

Global integration

In the same way that the country has been slow on the uptake of digital terrestrial TV, there is an argument that DAB+ is nearly two decades late in South Africa. This is more evident when you consider that over 470 million people around the world can already receive DAB broadcasts.

Even though DAB is widely available elsewhere, widespread integration has been a challenge. Norway is one of the rare countries where DAB+ has been totally integrated and is the only choice for people to listen to alongside online streaming. Ireland is on the opposite end of the spectrum. The country switched off all DAB services in March of this year, citing cost effectiveness and low market penetration as some of the reasons for abandonment.

Access to receivers and the cost barrier

The examples of challenges elsewhere might indicate possible integration challenges in South Africa too. A key problem faced in many markets is that existing FM units are not able to pick up DAB+. They can’t even receive transmissions from DAB, its predecessor. Even radios that can receive DAB won’t be able to receive DAB+. Only DAB+ sets are backwards compatible, so all citizens will need these to gain access transmissions to begin with.

Because access to physical receivers is so limited, there would need to be conversations with companies who are able to manufacture and distribute these at low cost. With a base cost of roughly R300 for a bottom end DAB+ receiver there is a lot of ground to be covered before it becomes as popular as FM.   More advanced receivers that show pictures and streaming text are vastly more expensive. Although some new vehicles and cellphones have DAB+ capability built in, there is a long way to go to get mass coverage.

How DAB+ could change the face of radio in South Africa

If there was widespread access to receivers, and the cost barrier was removed, DAB+ could be a real game changer in South Africa. On a traditional transmitter, where you have one FM frequency, you have access to a single radio station. On a DAB mux (or multiplex), one “frequency” has around twenty different options to listen to, depending on the quality the broadcaster decides to stream. This gives broadcasters the opportunity to access multiple channels, to reach more audiences, and there is a major knock-on effect from there.

DAB+ would potentially create an additional layer of audio opportunity for radio stations in new markets that they wouldn’t have been able to reach through traditional AM or FM stations. Take Gqeberha based Algoa FM, for example. They could apply for a DAB frequency because they want to provide a service to audiences in Cape Town and Durban alongside their existing FM listener base. It would turn them into a national radio station overnight, without the worry of having to migrate shows to a streaming environment that won’t be able to handle the bandwidth load presented by their audience.  A group of established streaming stations could also apply for a DAB+ mux together and offer their existing on-line music and content services to a bigger audience.

An opportunity to serve the underserved

DAB+ could also allow stations like these to reach places that were truly unreachable before for the first time. It creates an opportunity for underserved (rural) communities to have access to broadcasts where traditional FM frequencies struggle to, can’t or haven’t been legally licensed to reach previously underserved communities. This creates a variety of engagement opportunities based on geography, religion, sport and even education. Consider an educational radio station with several DAB+ frequencies, broadcasting simultaneously across the entire country. It could target high school students during exam time, quite literally becoming the “William Smith” of radio and reaching millions of scholars in the process.

Opening a door to new brand synergies

The amplified broadcasting opportunities would also naturally open new opportunities for innovative brand synergies as well. Radio groups like the National Community Radio Forum or some of the existing commercial radio players could create DAB muxes where they have blended programming from several of their stations in territories where there aren’t FM receivers.

This is an advertiser’s dream, granting brands access to new markets through a vehicle that they know well and trust already. Consider campaigns that target people who speak a certain language but have never been able to listen to a station on traditional radio due to geographical constraints and the language barrier. With multiple streaming avenues and targeted campaigns, stations and brands could finally begin to reach similar audiences in their native tongue for the very first time.

The DAB+ content opportunity

We can’t talk about the potential of DAB+ without mentioning the content creation opportunity. Whereas the content presented on traditional radio has an audience ceiling (and is limited to the amount of FM frequencies available), DAB+ is essentially an unlimited opportunity. As more channels become available, the content opportunity grows, and more people (jobs) will be needed to populate that content. As has been seen in the upswing of podcasting, this allows brands to invest in people who are creating interesting, topical, and engaging content. DAB+ essentially becomes the new home of exciting, high quality content that is widely available for listeners to consume, purely based on their own personal interests and preferences.

An optimistic outlook for DAB+

Despite that it has taken a long time — as well as technical challenges and a cost barrier that will need to be dealt with — DAB+ shows real promise and opportunity in South Africa.

It has the potential to create an additional layer for broadcasters to work with, it exposes audiences previously kept in the dark to existing and niche programming, and it gives brands the opportunity to amplify their efforts while speaking directly to their target market in the process. Content creators will also have additional platforms and scope to create and express themselves on.

A blended approach seems the most logical approach as we look for ways to utilise (and monetise) the DAB+ spectrum. At AME we have always loved audio and the connection it makes with people. Our two radio stations (OFM and Algoa FM) are well positioned to create new listening opportunities for audiences outside their traditional FM reach. Our Team at the Central Media Group hold an ENCS license as our first step to leveraging the DAB+. Additional platforms and technology are good for the entire broadcast business from platform owners, technical suppliers, content creators and ultimately the audience. It is however in our hands as the industry to drive the process.