This report details the methodology which underpins the DCMS’s assessment of the costs and benefits of a radio switchover programme.
It sets out the approach which the DCMS have taken to modelling these impacts; including changes in the digital radio market under each of the radio switchover scenarios considered and the counterfactual of no switchover. The report explains the approach to estimating the expected impacts on consumers, producers and the wider society.
Two additional reports are included. The first sets out the findings of the independent review of the first iteration of the cost-benefit analysis model, undertaken by Europe Economics in 2011. This includes a number of recommendations that have since been incorporated into the cost-benefit analysis; as set out in the methodology report.
The second is a report produced by London Economics in association with YouGov. This sets out the results of supplementary research conducted in 2012 into consumers’ willingness to pay for digital radio, building on previous consumer research by London Economics in association with YouGov in 2011.
To further ensure that the assumptions and data input into the cost-benefit analysis are robust, we are seeking views on the inputs and approach outlined in this report, with evidence to support any proposed changes. Responses should be submitted to the DCMS by Friday 31 August 2012, either: