Report: The radio industry is going strong but recognizes the future challenges

Ministry of Transport and Communications
Publication date 4.7.2014 10.10
Press release

The greatest future challenges for radio will be music devises for cars, development of new types of online services, as well as the trend that has seen advertisers shift their funds to internet advertising. On the other hand, developing consumer habits and new technologies can also bring about new business opportunities for the radio industry.

A working group made up of representatives from the radio industry focused its work on specific questions related to radio and the methods that could see Finnish radio develop in the future. The group submitted its report to Minister of Education and Communications Krista Kiuru on Friday 4 July 2014.

The report describes the current state of the Finnish radio industry and radio listenership, as well as the most significant development trends.

The working group proposed 13 procedures that will help bring about conditions necessary for present and future radio broadcasters and programme content in our changing world. The proposals are divided into short-term and long-term procedures.

Short-term procedures specifically focus on the radio industry's own actions with regard to production of radio content. Radio broadcasters should actively develop new business models for offering high-quality content to consumer groups, who are more demanding than ever before and accustomed to abundance and variety.

The key long-term procedures proposed include technical surveys in order to assess the necessity for reorganisation of radio broadcasting frequencies.

Radio is an important media for Finns. Finns listen to an average of 3 hours of radio programming daily, often for example in their cars. According to Minister Kiuru, it is important for the radio industry that radio remains in its current form technology-wise: simple and free.

- "It is important that we also take into account radio stations' distribution via the internet and mobile devices. With regard to listening to radio, it is important to be aware of the automobile industry's development," Minister Krista Kiuru notes.

Increasingly effective frequency coordination and reallocation of frequencies that were previously for short-term use to new permanent use has allowed numerous new frequencies to be allocated for radio.

- This has made it possible not only to expand the geographic coverage of present radio stations, but to also increase the number of actors in the field," Minister Kiuru enthuses.

The Information Society Code, which will enter into force at the beginning of next year, will simplify provisions that apply to advertising on the radio and facilitate more flexible placement of radio ads. Additionally, it will ensure that all future radio projects will involve broad-scoped cooperation.

Further information
Ms Sini Wirén, Ministerial Adviser, tel. +358 295 34 2532