. The introduction of the DAB system for many Norwegian stations was a testing time. The latest report on the current situation of radio and television stations in Norway is not optimistic. The results are merciless - both radio and television stations in Norway have recorded a significant decline in revenues from advertising. The scale of the decline is estimated at nearly 200 million Norwegian Krone. What is the reason for this state of affairs?
. What is it about?
The biggest culprit when it comes to radio shortages is DAB. Radio stations that operate on this system, according to a published report, lose more than they earn. This situation did not take place in 2010 - 2018. In these years, both radio and TV stations recorded a significant increase in revenues from advertising.
How did Norwegian radio and TV stations cope with the competition?
Until now, i.e. until 2018, radio and TV stations have compensated for the losses they incurred from advertising by increasing the amount of subscription fees. However, this state of affairs could not last long. Therefore, the end of 2018 turned out to be tragic with financial consequences for media such as radio and television. It turned out that they are no longer able to compete with advertisements published in broadly understood social media. However, apart from radio and television, the press felt the most financial loss.
Switch to DAB: higher operating costs
. Until radio stations broadcast in the FM system, advertising losses were not enormous, they were within the limits predicted by economists. However, when radio stations decided to switch to the DAB system, it turned out that the costs associated with running, implementing and operating the system exceeded the station's capabilities. Thus, financial problems for radio stations began. As many as four out of six radio stations that published their financial reports at the end of 2018 recorded a significant drop in revenues. Therefore, there is one conclusion: the FM network provides radio stations with income, while the DAB system significantly increases operating costs and is therefore very unfavorable for most radio stations.
Be sure to read: November 11 without fatalities - statistics!
