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By BBC News Online's Darren Waters
A new national body charged with developing digital radio in the UK will be born on Wednesday, hoping to persuade the public that the technology has a future.
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The Digital Radio Development Bureau replaces the UK Digital Radio Forum, well aware that the technology has failed to capture the public's imagination.
The demand is not there and the awareness is not there |
There remains little demand for digital radios and low awareness of the technology, leading manufacturers and industry figures have told BBC News Online.
Latest figures show there are between 25,000 and 30,000 digital radios in the UK, although more than 34 million people are able to receive digital stations if they have the right equipment.
Manufacturer Grundig said digital radios were selling in 'their tens and not thousands' and one of the leading software developers for digital radio, RadioScape, said consumers could not see 'the compelling argument for it'.
Despite the bleak assessment the outlook for the technology looks stronger than ever as digital radio aims to take advantage of the slow progress in the development of third generation mobile phone systems.
John Scott, Grundig's director of sales, digital products, said: 'We are not enjoying the digital market. We are not selling very many products at the moment.'
Digital radio, like digital TV, is a new system of delivering programming, in better quality, with more choice and more interactivity.
The original selling-point of better quality and less interference has failed to sway consumers, however.
Good reception
'I don't think that good reception in the home will cause anyone to go out and buy a digital radio,' said Mr Scott.
No-one wants to get into digital radio |
Grundig is concentrating on the digital radio market for cars and will enter the market for home radios later in the year.
Robin Shepherd, head of worldwide sales and marketing at RadioScape, which provides much of the software which drives digital radio - both in the radios themselves and in systems which broadcast digital radio - agreed with Mr Scott's assessment.
'No-one wants to get into digital radio at the moment and who really cares if the quality is a little bit better than before?
'It is interesting but is someone going to pay for it? No.'
Part of the problem is the price of digital receivers, which start at around £300, has put many consumers off.
Mr Shepherd hopes RadioScape's software will help drive down the cost of digital radios.
Take off
'Receivers need to be inexpensive and come down to the same price as analogue radios. Once this happens the market will take off.'
There is every reason to believe that digital radio has a strong future |
But the backers of digital radio are confident about the future because the technology can do so much more than provide better quality versions of BBC Radio 1 or commercial stations like Capital FM.
Digital radio can transmit text and graphics at a fast rate, which makes it very appealing to information services.
The BBC's early involvement in the technology means Britain is uniquely placed to take advantage of the technology, said Mr Shepherd.
'The drivers of this are always commercial and organisations are realising that there is money to be made in digital radio,' he said.
Billions of pounds
Telecoms companies have paid billions of pounds to buy the licenses for the so-called third generation of mobile communications.
These new mobile phones will provide text, graphics and video via a handset but the arrival of services is many years away yet and many feel digital radio could race in to fill the void.
Digital radios could be used to receive news, listings, games, graphics and entertainment, as well as CD quality sound which can be converted to MP3 files and then listened to at a much later stage.
RadioScape will be launching a system later this year which will convert digital radio into MP3 files.
'There is every reason to believe that digital radio has a strong future,' said Mr Shepherd.
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