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Digital radio and market failure: a tale of two complementary platforms

Benoît Pierre Freyens (Senior Lecturer in the Faculty of Business and Government, University of Canberra, Canberra, Australia)

info

ISSN: 1463-6697

Article publication date: 6 August 2012

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Abstract

Purpose

In sharp contrast to television, various sources of market failure currently prevent market forces fulfilling the promise of digital switchover in radio markets. The purpose of this paper is to review the strengths and weaknesses, business models and market deployment of the two main platforms, with a view to establishing the economic case for higher regulatory involvement in digital radio markets.

Design/methodology/approach

The paper analyses the relevant broadcaster, engineering and regulatory literature, with particular emphasis on technical compatibilities among terrestrial radio broadcast technologies, and the technological and economic difficulties they face. The exercise is the first of its kind to scope and bring together these multidisciplinary contributions.

Findings

The highly uncoordinated development and deployment of terrestrial digital radio platforms is leading this new digital industry to an impasse. There is a legacy of uncertainty and scepticism amongst market players. Furthermore, prevailing technology and business models have marginalised community radio services and regional audiences.

Research limitations/implications

The analysis does not cover the demand side (contents, culture) nor developments in non‐terrestrial digital platforms, nor in the US‐based IBOC standard.

Practical implications

There is considerable scope, particularly in large, sparsely inhabited countries with sizeable rural audiences to remedy the failings of the current fragmented approach through regulatory intervention through platform integration.

Originality/value

There is a lack of coherent information published on the potential benefits that the new digital platforms are bringing to the audio broadcasting market, and on the current market difficulties they face. The article remedies this gap.

Keywords

Citation

Pierre Freyens, B. (2012), "Digital radio and market failure: a tale of two complementary platforms", info, Vol. 14 No. 5, pp. 3-20. https://doi.org/10.1108/14636691211256278

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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