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Home / Business / Companies / Media and marketing

<i>Media:</i> Radio ga ga over Govt's digital plan

John Drinnan
By John Drinnan
Columnist·NZ Herald·
24 Apr, 2008 05:00 PM7 mins to read

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John Drinnan

John Drinnan

KEY POINTS:

The commercial radio industry has given Government radio frequency experts a "don't you dare" warning after suggestions it is working on an early start-up for digital radio.

Digital radio provides crystal clear reception but has always been thought to be some way off - around the time of
the switch-off for analogue TV signals in 2013-2015.

The issue came to a head last week when the Ministry of Economic Development (MED) frequencies boss Brian Miller was reported as saying it would "decide soon whether to fast-track digital radio".

The ministry is considering options for an early start up using radio waves set aside for the military.

Radio Broadcasters Association (RBA) executive director David Innes thundered back on behalf of The Radio Network and MediaWorks.

"MED and Kordia are doing broadcasters and listeners alike a disservice by suggesting that digital radio, via DAB technology, is imminent, when clearly it is not," he said.

"The RBA takes exception to this wasteful use of taxpayers' money and urges their respective ministers to halt this provocative speculation."

Digital radio appears to be a touchy topic in the radio industry probably because it is still in its infancy and is still being tested.

Also the early release - if it used the European DAB format - could introduce a whole new realm of competition for industry giants.

The RBA's technical expert, Norm Collinson of The Radio Network, says its mind is not made up on which format is best.

But in the past they have preferred the HD Radio used in parts of the US which is built on existing frequencies, giving the incumbents greater control.

Innes said DAB digital radio in the UK had led to economic "meltdown" with stand-alone digital stations going out of business.

Brian Miller of the Ministry of Economic Development said it was aware of industry concerns and the need for consultation.

Asked if he could rule out the start of digital radio by 2010 Miller said he could not comment.

FOUNTAIN OF USE

The MED's liberal approach to releasing frequencies to the market has been consistent and that has been good for the New Zealand industry and consumers.

The ministry's willingness to help industry to create new frequencies has given it a boost and in the past the policy has been agnostic.

The ministry has not got involved in whether a frequency was needed and if broadcasters wanted to take the risk buying frequencies it was their choice.

From this market-led system radio has emerged as a strong medium that delivers lots of choice to consumers and solid return to investors and having got to that point radio folk could probably be excused for wishing the eternal fountain of new frequencies does not continue forever.

WHICH WAY KORDIA?

The digital radio brouhaha illustrates the increasing role of the state in the media industry through transmission company Kordia.

Kordia - chaired by Wayne Brown - makes money out of there being a large number of services so it will be no surprise that they want as many frequencies available as possible.

Kordia has been used to ginger up competition in the telecommunications sector and - with its role in Freeview - maintained oversight of the TV system.

Kordia is believed to be waiting for a big Government subsidy to take part in a TransPacific cable to compete with Telecom's Southern Cross cable.

But given National's affiliation with the private sector it is unclear what Kordia's role will be if we end up with a National-led government.

Will Kordia retain a role gingering up the private sector - or will it become an early candidate for privatisation?

MR HUGGY

The most likeable commercial on television nowadays must be the one with chubby chap dressed up as Pink Batts, hugging a homeowner. As a commercial its a real charmer. DDB Advertising executive creative director Toby Talbot says that casting of "The Hugger" was vitally important - for the obvious reason that being hugged by a large man wearing Pink Batts might be an unappealing sight - depending how it was done.

The casting is particularly important since Mr Huggy - played by Richard Morse - is actually portraying the Pink Batts brand.

As Mark Foster of production company Robbers Dog Films says: "If you picked the wrong person the ad could go horribly wrong, We took a lot of effort finding the right person who could deliver the charm that was needed," he said.

Funnily enough the actor who plays the homeowner - Wayne Gordon - also appears in another oddball ad on TV at the moment. He plays one of two human guinea pigs forced to run around a wheel, while being watched by mice scientists. That ad is also amusing. But the ad campaign is so overweight - it is shown dozens of times each night - it is irritating and despite that I can't remember the brand.

YE OLDE MADONNA

The front cover for the second edition of Mindfood magazine has a striking similarity to the cover of the American magazine Ladies Home Journal. Its not wholly unusual that the popular new glossy is using a photo from a magazine that is not published in New Zealand.

But it does seem a bit unusual that the photo - featuring fashion queen Madonna - was published by Ladies Home Journal three years ago.

Aren't top end magazines meant to be a little more current? Mindfood creator Mike McHugh sees no problem in the old cover pic. He says that Mindfood is selling quickly thanks in part to the retail placement obtained by distributor Netlink.

OGILVY PULLS CHAIN

Ogilvy Advertising has picked up the advertising account for DIY chain Placemakers after a competitive pitch against DraftFCB, (which fell out after the first round) Saatchi & Saatchi (in the second round) and then a run off against Whybin TBWA. Placemakers had dumped its long time agency Lowe Advertising after its parent company - US owned Interpublic Group - announced Lowe would be sharing offices with DraftFCB.

It seems that Draft was offering separate facilities but Placemakers did not want to be in the same agency that holds the Mitre 10 business.

NOT DUMPED

Sarah Sandley, chief executive of Listener publisher New Zealand Magazines, has taken issue with last week's coverage of the magazine's parting with Ecologic columnist Dave Hansford.

Sandley believes that the term "dumped" used in the article supported the view - wholly rejected by the Listener - that Hansford's departure was linked to a complaint from a sceptic of the human impact on climate change, Bryan Leyland. Sandley was also critical of another article that listed the departure of high-profile staff - led by the recent resignation of veteran Listener photographer Jane Ussher.

Sandley noted that the list harked back 2-years.

HELL HATH NO FURY

Two big ad agencies have moved into the fast-food wars.

Chicken franchise Nando's has hired Whybin TBWA - presumably with plans to increase its limited marketing budget.

Whybin TBWA chief executive says Nando's will be giving Hell Pizza - which recently signed with Colenso BBDO a run for its money.

Hell Pizza owner Tasman Pacific Foods says it will be retaining the spooky connotations of the brand now that it has completed its review of advertising.

Tasman Pacific and its former ad agency Cinderella you might remember wound up in purgatory when a christian group - including some of its shareholders - took offence at some of the marketing techniques.

Tasman Pacific boss Glenn Corbett said that Hell would be keeping to the theme.

It had been unfortunate that the issues with the ad agency had been aired in public but it was now full steam ahead for Hell Pizza at the start of the winter season - when pizza consumption goes up.

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