Commercial broadcasters will not invest in a switch to digital radio in the short term according to a new research report funded by the Broadcasting Commission of Ireland.
RTE currently offers a digital radio service in most of Leinster, Cork and Limerick, based on the digital audio broadcasting (DAB) standard.
Commercial stations including Today FM, Newstalk and Radio Kerry took part in an RTE organised trial which ran from 2007-08, but ceased broadcasting in DAB when it ended.
Interviews with radio executives also found that the commercial sector favours investment in DAB+, a more advanced technology than DAB. They are also calling for better incentives for them to invest in the infrastructure than the 6 year licence extension including in the current Broadcasting Act.
Focus groups with consumers found that one third of them were aware of or owned a DAB radio receiver. While listeners appreciate the quality of digital services they are disappointed with the range available.
While 86 per cent of the 3.04 million people in Ireland aged 15 or over listen to radio, current listenership on devices other than traditional fixed or car radios is extremely low. The researchers estimated about 15,000 listen on their mobile phone, 8,000 on a digital music player, 7,000 on the internet and just 4,000 on "any other digital format" which includes RTE's DAB format.
The development of sector is suffering due to the lack of an industry-wide plan and problems with investment in the current climate, the report said.
It also found that commercial radio operators felt DAB+, an upgraded version of the Digital Audio Broadcasting (DAB) format, would be a better choice for digital radio services in Ireland.
The report authors – former RTE Radio managing director Helen Shaw and Brian O'Neill, head of DIT's school of media – are recommending the establishment of a digital radio forum to coordinate activities in the area. They also call for the development of a policy white paper in 2010, commissioning of research into the technological, economic and social impact of moving to digital radio and close policy cooperation between BCI and ComReg, which regulates the use of radio spectrum.
However, the report also revealed that FM radio will not be disappearing in near future. More than 70 per cent of those who took part in the research said they believed FM would still be popular in 2020, although there would be some digital radio services around.
The survey found 68 per cent of respondents believed analogue services would decline, particularly among younger listeners, but only 36 per cent thought DAB would be the dominant platform in 2020.
"While Ireland is a relatively late adopter in terms of digital radio, there is a benefit in learning from experiences elsewhere," said BCI chairman Conor Maguire.
The report, which was funded under the BCI's Media Research Bursary Scheme, found that innovation in radio content will be a key issue in ensuring the long-term success of digital radio.
It surveyed industry stakeholders, conduted strategic interviews with a representative group of senior executives in the radio industry, and consulted focus groups of radio users.