BBC to make a digital radio? by Huw

The BBC is reporting that it is considering producing an attachment for MP3 players which enables them to recieve DAB digital radio. From the article:

Speaking about the plan for the gadget, the BBC spokesman said the broadcaster was carrying out feasibility studies to see how easy it would be to make and market the clip-on gadget. The study was also looking at the design of the product and what it would do.

This is a very new area for the BBC. It is hardly in its charter to produce gadgets for the people, and so I expect that this would be carried out through BBC Worldwide, the BBC’s commercial arm whose profits then go back into programming.

They see it as a way to increase listeners to DAB, which has got a mixed reception. The extra stations and the lack of interference are popular, but it has not been without its critics. A popular accessory, if successfully designed and marketed, could provide a real boost to audience numbers for the BBC’s digital only radio stations, as well as potentially proving very lucrative.

A major question surrounding such an accessory would be who the BBC would partner with. They certainly do not have the expertise to produce such a device in house. The rumours that they will partner with Apple have been dismissed as ‘pure speculation’ by the BBC, yet Apple’s virtual monopoly over the audio player market mean that any successful accessory will have to be compatible with the iPod. There is no universal accessory specification, so the unit will only be able to work with one brand. They are very unlikely not to choose to work with the iPod.

If I were in the BBC’s position, I would look to create a co-branded accessory with Apple, providing some funds towards research and development in exchange for a share of the profits. This would probably be acceptable to Apple, as they get to use the BBC’s strong brand and are able to produce an accessory which would certainly be very popular in the UK which would otherwise not be economically viable given the lack of DAB in the US. They have shown that they are prepared to do such partnerships through the recent Nike pedometer-like systems for the iPod.

Posted in Uncategorized. August 14, 2006

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