Analysis of price, quality and robustness of DAB digital radio receivers in the UK market, written by Grant Goddard in December 2010 for Grant Goddard: Radio Blog.

1. WHICH? ADVISES: TWO OF ITS
"SEVEN CHRISTMAS GIFTS TO
AVOID" ARE DAB DIGITAL
RADIO RECEIVERS
by
GRANT GODDARD
www.grantgoddard.co.uk
December 2010

2. A reader comment appended to an online newspaper story this week about the decision of
some commercial radio station owners to launch an anti-DAB radio marketing campaign said
jokingly:
“Now all that's needed before Christmas is for 'Which' to warn consumers of moral
hazard in purchasing DAB radios.”
In fact, last month, ‘Which?’ [the UK consumer organisation] published its list of ‘Seven
Christmas gifts to avoid’, two of which were DAB radio receivers. According to Which?:
“Argos Value Range CDAB8R digital radio and Roberts CRD-37 digital radio. Sound
on both of these DAB radios is disappointingly poor.”
One of the enduring problems that has contributed to the slow take-up of DAB radio in the UK
has been the consistently high retail prices of DAB radio receivers compared to analogue
models. The radio industry has promised repeatedly over many years that the retail price of
DAB radios would fall. It has, but nowhere near as much as hoped.
In order for unit prices to fall further, DAB radio receivers would have to be manufactured in
production runs of millions in factories in China. Because the notion of DAB radio has failed to
excite consumers during the last decade, not only in the UK but across Europe, those high
production runs have not been achieved, so that the unit prices remain relatively high (average
price paid in Q1 2010 was £91).
The problem with trying to produce low-price DAB radio receivers is that something inside
them has to be sacrificed to keep costs down. Whereas the UK’s FM transmission system is
sufficiently robust to permit usable reception of radio stations on even the cheapest hardware,
the DAB transmission system is still not robust enough for usable reception in many
circumstances. Additionally, with analogue radio, poor reception equals background noise and
interference. Whereas, with DAB radio, poor reception equals no audio whatsoever.
This issue has long been known by the UK radio industry, but it proves a lot easier to ignore it
than to fix it. So, the £55m marketing campaigns to persuade consumers to purchase DAB
radios continue, despite the radio industry being aware that many consumers are likely to have
unsatisfactory experiences with their newly purchased DAB radios.
At the Digital Radio Stakeholders Group meeting on 1 November 2010, UK manufacturer
Roberts Radio admitted to pulling the plug on several receiver projects, including the industry’s
long promised ‘£25 DAB radio’, because they could not meet Roberts’ minimum quality
standards. Leslie Burrage, chief executive of Roberts Radio, told the meeting that there had
been a 35 to 40% consumer return rate for its in-car DAB radio adapters.
Which? Advises: Two Of Its "Seven Christmas Gifts To Avoid" Are DAB Digital Radio Receivers page 2
©2010 Grant Goddard

3. Which? Advises: Two Of Its "Seven Christmas Gifts To Avoid" Are DAB Digital Radio Receivers page 3
©2010 Grant Goddard
Roberts Radio, unlike competitor Pure Digital, has been outspoken about its concerns that
DAB radio is being marketed wrongly to UK consumers. Owen Watters, sales/marketing
director of Roberts Radio, told the Digital Radio Stakeholders Group that he felt such
campaigns should be advocating the merits of the DAB radio experience, rather than
threatening consumers with the prospect of digital radio ‘switchover’.
The government’s Consumer Expert Group [CEG] raised these issues in its critical report on
DAB for the government in September 2010. The government published its response to those
criticisms on 30 November 2010:
 Consumer Expert Group: “A clear and balanced public information campaign needs to be
implemented through a trusted body, independent of the industry.”
 Government: “If a decision is made to implement a digital radio switchover, we agree that
a clear and balanced consumer information campaign will be important. A strategic plan for
such a campaign is a central component of the Digital Radio Action Plan and we have
invited representatives of the CEG to play a key role in advising on its development, for
example through representation on the Market Preparation Group.”
 Consumer Expert Group: “Emphasis should not be placed on driving down costs unless
the sound quality and functionality of cheaper DAB sets are at least equal to analogue.”
 Government: “There is clearly a balance to be struck between reducing the cost burden
on the consumer of a digital radio switchover, and ensuring devices are of a good standard
and offer additional benefits to the listener. We want to see a competitive market for
receivers which offers consumers choice on innovation and price.”
These government responses seem to qualify as ‘non-answers’ of exactly the type we have
become all too used to when difficult, but important, issues have been raised about DAB radio
implementation in the UK. The prevailing philosophy justifying DAB seems to be: ‘ask me no
questions, I tell you no lies.’
[First published by Grant Goddard: Radio Blog as 'Which? Advises: Two Of "Seven Christmas Gifts To Avoid" Are
DAB Radios', 1 December 2010.]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk