PMM catches up with Poole based digital radio specialists – Celsus – to get the latest updates on the UK digital radio roll out and the ‘retrofit’ opportunity for independents.
December’s Go Digital Conference saw minister Ed Vaizey reaffirm ‘the future of radio is digital’, but when will the switchover begin? Under the ‘listener led’ framework, switchover is triggered once share of listening, which is currently 36.5%, passes 50% and when coverage targets are made.
Investment is pouring into DAB infrastructure. Population coverage is now 94% for BBC stations, rising to 97% in 2015. A second national multiplex will be added this year as the first frequency range has been filled faster than expected by DAB stations. Local coverage has reached 72% with the aim of being equivalent to FM in the ‘next 2 years’.
Share of listening is likely to break 50% in late 2015 or early 2016. The smart money seems to be on a switchover announcement in early 2016. The next government term will then have started and the BBC’s licence will have been renewed too, making roll out more practical. A two year switchover window post-announcement therefore seems likely.
It’s a frustrating case of ‘chicken and egg’ for all those waiting for the blue touch paper to be lit. Listener levels will trigger the switchover process but a definite announcement would open the floodgates of demand!
Automotive plays catch up
Amazingly, 90 – 95% of UK cars have no DAB radio. With automotive making up 20% of all radio listening it’s easy to see why raising in-car DAB share is seen by all the major stakeholders as critical to achieving the magic 50% threshold.
On new cars, things have been moving fast. SMMT’s December ’13 figures showed 43.7% of UK cars sold had digital radio as standard. Renault has announced it will start fitting as standard during 2014. Complete DAB standardisation is likely in 2015 or 2016.
In the aftermarket though there’s over 25 million vehicles out there right now without DAB, causing Helen Boaden, BBC Director of Radio to call for a ‘huge growth in conversions’ to crack the car challenge’. Strides forward in infrastructure and product quality now mean quality in-car DAB conversions work perfectly.
Digital Radio UK are partnering with the DVLA to raise consumer awareness by including DAB information with road tax reminders. Major players including Halfords, who’ve experienced positive feedback from customers who ‘love digital’, and Kwik-Fit, who are understood to be testing products ahead of a commercial launch, are starting to take up their positions.
Ticking the box
To help customers buy wisely a ‘tick mark’ has been announced to identify future-proof “Approved Products” and competent “Registered Installers”. Approved in car DAB installers can advertise the ‘tick’ after completing recognised training, such as IMI’s “ATA DAB Radio Installation Technician”. The ‘tick mark’ will be operated by Digital Radio UK, with approved products appearing around September time.
Want to offer DAB retrofits? Top Tips 4 Success!
1. Training gains
Celsus offers full telephone technical support for its DABmotion range, as well as a comprehensive vehicle database of those all-important antennae placements. Typically competent installers need little ongoing support after initial training. Celsus became an Institute of the Motor Industry (IMI) Awards Approved Centre in January and had its DAB installation training assessed and endorsed through the Quality Assured Awards (QAA) programme.
Training can be completed in as little as half a day. Alternatively, a full day on garage site includes customer service training, ideas on how to present and sell digital radio upgrades and fully documented processes on set up and installation of DABmotion.
2. Become a DAB hand
The DABmotion 1001 car radio conversion kit means drivers can enjoy digital choice and clarity through their existing car audio head unit. A wireless ‘black box’ (measuring just 112mm x 86mm x 23mm) is installed, usually behind the dash, with a simple control (measuring just 45mm x 65mm x 24mm) located in the cabin.
The kit includes a high performance internal glass mount antenna, simple instructions with plug-and-play configuration. Professional fitting makes it seamless and typically takes less than hour, requiring only connections to power, earth and antennae for DAB to be received onto the existing radio display.
3. Make it pay
Besides the product, training and technical back up there’s a range of innovative DABmotion marketing solutions available to merchandise the system and encourage point-of-sale enquiries from customer waiting areas. A typical fitted retail price of £199 – £249 inc VAT means undertaking just four conversions a week can add £41,400 – £51,800 to your turnover. The bottom line is good too as garages should expect to make £15,000 – £25,400 gross profit a year by selling out at these levels.
Unlike most business opportunities there’s no space needed, no extra staff required and no initial investment in kit or stock. Just think of a convenient time for half a day’s training, find a space on the wall for posters and think of how you can market DAB conversions locally to give it a try.
4. Get in touch
You can find out more about the product at www.dabmotion.co.uk or get in touch on Twitter to @DABmotion. For more information about Celsus please visit www.celsusice.co.uk or ask your local motor factor for DABmotion prices.
