The future of commercial digital radio does not look very promising. It looks somehow bleak. There is nothing much to look forward since digital commercial radio does not seem to be able to match Frequency Modulation radios. The market in Hong Kong is somehow weak for digital radios seeing that Hong Kong Digital Broadcasting Corporation has applied to the government so as to return their DAB license. The radio company has cited developments that are not very satisfactory more so in the digital industry of radios. The move has not been orchestrated by a weak financial standing in the immediate status quo.
However, the move was due to lack of a foreseeable future in the digital broadcasting arena. The management has also cited unwarranted policies from the government that have made the company to consider closing down. The government policies were such tough that the radios did not have the necessary power to reach a wider audience making it difficult to have a breakthrough in advertising. This therefore means that a third force in digital broadcasting has given up on being perseverant on the government so as to see whether anything will change for the good. This has ended the long period of trying to open up new markets which was not wanted by a large number of people. This was according to a report that was published by South China Morning Post.
Similar measures have been taken by Phoenix U Radio which closed down the DAB venture that it had. According to Luke Tsang Chee-Wah who is a veteran radio broadcaster and a professional who worked for a record thirty six years, it is not clear as to when this idea will be changed. The small audience in China and the stringent measures that the government has put up do not mean anything good for the digital platform of broadcasting. The revenue received from advertising from digital advertising is very minute and the audience has grown even smaller. Luke says that he does not think digital broadcasting should have been started in China since there is a very small window of success. When he was attending a conference in Europe whose purpose was to get more gists on digital broadcasting, he managed to gather the most recent information as well as analyzing the trends that the seminaries presented.
Luke says that there was no need to utilize anymore resources while trying to conduct more research on this topic of digital broadcasting. He presented his recommendation to the management with enough reasons as to why he thought that the attempt was an exercise in futility.
He presented enough reasons which held enough water. There was not any consumer who as ready to use in excess of HK$1,000 so as to have a new radio station. This means that the mass market is nowhere to be seen. Moreover, with the introduction of internet radio, digital marketing is simply a wasted bullet which should not have left the barrel.