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Cynthetiq · 06-03-2004, 09:52 AM

CBS Changes Ratings Methods
By STUART ELLIOTT
Published: June 3, 2004
link

THE nasty war of words between Nielsen Media Research and its opponents is heating up as Nielsen defies the critics and proceeds today with plans to change the way it measures television ratings in New York.

On the eve of the change, the CBS unit of Viacom became the first big broadcast network to urge Nielsen to delay its plans, declaring in a statement yesterday that Nielsen's "overly aggressive, self-imposed timetable for this conversion" would "only be detrimental to its eventual effectiveness."

Underscoring the divisions on the issue, the decision by CBS came two weeks after BET - a cable network also owned by Viacom, which offers programs aimed at black viewers - endorsed the change. Univision Communications, operator of the largest network watched by Hispanics, last week came out against the change.

An organization representing many of the opponents of the changes, known as the Don't Count Us Out Coalition, attacked Nielsen anew yesterday, calling the company's most recent responses to its complaints "inadequate and unacceptable" and threatening lawsuits on the state and federal levels.

Nielsen, in turn, insisted that the coalition cease an extensive advertising and public relations campaign that Nielsen said was filled with "inaccuracies and distortions." The campaign now includes television commercials, which began running yesterday in four major markets to accompany advertisements that have been appearing in national and local newspapers and magazines.

The dispute between Nielsen, owned by VNU, and its opponents is centered on plans by Nielsen to adopt electronic measurement devices known as local people meters to gather data on television viewership in the New York market, the nation's largest. Nielsen intends to make the same change in Chicago and Los Angeles in the next two months as part of plans to convert the 10 biggest markets to local people meters by the end of next year.

The critics contend that the change, from the current system of using paper diaries along with people meters, would result in a significant undercounting of black and Hispanic viewers. Nielsen counters that the change would yield more accurate, not less accurate, data about what minorities watch because of the superiority of electronic measurement over paper diaries, which are filled out by hand.

"I equate this process as bringing the same result as undercounting on the census," Bernard Parks, a member of the Los Angeles City Council, said yesterday in a conference call with reporters in which members of the coalition outlined their coming advertising and legal steps.

Nielsen, in a statement yesterday, said, "People meters in no way prejudice any viewer group."

The unusual battle, pitting Nielsen against legislators, community organizations and powerful media companies, has riveted the advertising and marketing industries for months. One reason for their fascination is the importance of the Nielsen ratings in helping set advertising rates as well as determining programming schedules.

"Because of the economic damage" that would be caused by undercounting minority viewers, "we really don't have a choice" but "to pursue legal remedy" to delay Nielsen from making the change, Alex Nogales, president of the National Hispanic Media Coalition, said during the conference call. Mr. Nogales, whose organization is a leading member of the Don't Count Us Out Coalition, said the coalition members were speaking with lawyers about filing suits against Nielsen in California and federal courts.

Another reason for the intense interest is that the issue of counting viewers of television programs has concerned Madison Avenue for decades. The opponents made much of a decision Friday by the Media Rating Council, an industry association that audits ratings services, to deny accreditation to the local people meters in New York until Nielsen addresses what the council termed unspecified "noncompliance and performance issues" that were found in an audit.

Nielsen had hoped the council would wait for the new system to go into effect before auditing it, but a decision by Nielsen to postpone the change to today from April 8 prevented that from happening.

Nielsen said that while it would work with the council to find solutions to problems the council has with its methodology, it would not delay the change a second time. But in a concession to the critics, Nielsen said Tuesday that it would continue to report ratings data for the next three months in New York using the current system of paper diaries and people meters as well as the new system of local people meters only.

The newest recruit to the ranks of the critics, CBS, said in its statement that it "has been, and continues to be, a supporter of Nielsen's conversion to the people-meter-based measurement methodology" in Chicago and Los Angeles as well as New York. But the network asked that Nielsen "not convert to the new service in any market until the service successfully passed an audit" by the Media Rating Council.

"When the local people meter service in each market successfully passes" an audit by the council, the CBS statement said, "we are prepared to support the establishment of that service as the official measurement service for that market."

Dana McClintock, a spokesman for CBS, said the network was aware that its opposition to the change was contrary to the stand taken by its sibling, BET.

Jack Loftus, a spokesman for Nielsen in New York, said the decision to continue reporting the ratings data from the current system as the company changes to the new system was made "to address some of the concerns" of CBS and the other critics.

Nielsen called yesterday for the Don't Count Us Out Coalition to explain where it is getting the money for its advertising and public relations campaign, which is being created by advocacy agencies and consultants like the Glover Park Group and Fabiani/Lehane. The Media Research Council urged last week that the campaign "be immediately ceased" if it is being supported by media organizations.

Univision said that while it opposed the change, it was not a member or a supporter of the coalition. But another media company, the News Corporation, has identified itself as a supporter of the coalition's campaign.

"It's been financial; it's moral; it's organizational," Gary Ginsberg, a spokesman for the News Corporation in New York, said yesterday of the support, adding that the campaign "has helped give voice to legitimate concerns we have, very serious concerns" about the change to local people meters.

Two broadcast stations in New York owned by the News Corporation's Fox Television Stations Group, WNYW (Channel 5) and WWOR (Channel 9), had declines in ratings in tests of the local people meters by Nielsen during the winter. But in those tests, viewership for many cable networks - including BET and channels aimed at Hispanics including Telefutura and Telemundo - increased.

06-03-2004, 09:52 AM	#320 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	CBS Changes Ratings Methods CBS Changes Ratings Methods By STUART ELLIOTT Published: June 3, 2004 link THE nasty war of words between Nielsen Media Research and its opponents is heating up as Nielsen defies the critics and proceeds today with plans to change the way it measures television ratings in New York. On the eve of the change, the CBS unit of Viacom became the first big broadcast network to urge Nielsen to delay its plans, declaring in a statement yesterday that Nielsen's "overly aggressive, self-imposed timetable for this conversion" would "only be detrimental to its eventual effectiveness." Underscoring the divisions on the issue, the decision by CBS came two weeks after BET - a cable network also owned by Viacom, which offers programs aimed at black viewers - endorsed the change. Univision Communications, operator of the largest network watched by Hispanics, last week came out against the change. An organization representing many of the opponents of the changes, known as the Don't Count Us Out Coalition, attacked Nielsen anew yesterday, calling the company's most recent responses to its complaints "inadequate and unacceptable" and threatening lawsuits on the state and federal levels. Nielsen, in turn, insisted that the coalition cease an extensive advertising and public relations campaign that Nielsen said was filled with "inaccuracies and distortions." The campaign now includes television commercials, which began running yesterday in four major markets to accompany advertisements that have been appearing in national and local newspapers and magazines. The dispute between Nielsen, owned by VNU, and its opponents is centered on plans by Nielsen to adopt electronic measurement devices known as local people meters to gather data on television viewership in the New York market, the nation's largest. Nielsen intends to make the same change in Chicago and Los Angeles in the next two months as part of plans to convert the 10 biggest markets to local people meters by the end of next year. The critics contend that the change, from the current system of using paper diaries along with people meters, would result in a significant undercounting of black and Hispanic viewers. Nielsen counters that the change would yield more accurate, not less accurate, data about what minorities watch because of the superiority of electronic measurement over paper diaries, which are filled out by hand. "I equate this process as bringing the same result as undercounting on the census," Bernard Parks, a member of the Los Angeles City Council, said yesterday in a conference call with reporters in which members of the coalition outlined their coming advertising and legal steps. Nielsen, in a statement yesterday, said, "People meters in no way prejudice any viewer group." The unusual battle, pitting Nielsen against legislators, community organizations and powerful media companies, has riveted the advertising and marketing industries for months. One reason for their fascination is the importance of the Nielsen ratings in helping set advertising rates as well as determining programming schedules. "Because of the economic damage" that would be caused by undercounting minority viewers, "we really don't have a choice" but "to pursue legal remedy" to delay Nielsen from making the change, Alex Nogales, president of the National Hispanic Media Coalition, said during the conference call. Mr. Nogales, whose organization is a leading member of the Don't Count Us Out Coalition, said the coalition members were speaking with lawyers about filing suits against Nielsen in California and federal courts. Another reason for the intense interest is that the issue of counting viewers of television programs has concerned Madison Avenue for decades. The opponents made much of a decision Friday by the Media Rating Council, an industry association that audits ratings services, to deny accreditation to the local people meters in New York until Nielsen addresses what the council termed unspecified "noncompliance and performance issues" that were found in an audit. Nielsen had hoped the council would wait for the new system to go into effect before auditing it, but a decision by Nielsen to postpone the change to today from April 8 prevented that from happening. Nielsen said that while it would work with the council to find solutions to problems the council has with its methodology, it would not delay the change a second time. But in a concession to the critics, Nielsen said Tuesday that it would continue to report ratings data for the next three months in New York using the current system of paper diaries and people meters as well as the new system of local people meters only. The newest recruit to the ranks of the critics, CBS, said in its statement that it "has been, and continues to be, a supporter of Nielsen's conversion to the people-meter-based measurement methodology" in Chicago and Los Angeles as well as New York. But the network asked that Nielsen "not convert to the new service in any market until the service successfully passed an audit" by the Media Rating Council. "When the local people meter service in each market successfully passes" an audit by the council, the CBS statement said, "we are prepared to support the establishment of that service as the official measurement service for that market." Dana McClintock, a spokesman for CBS, said the network was aware that its opposition to the change was contrary to the stand taken by its sibling, BET. Jack Loftus, a spokesman for Nielsen in New York, said the decision to continue reporting the ratings data from the current system as the company changes to the new system was made "to address some of the concerns" of CBS and the other critics. Nielsen called yesterday for the Don't Count Us Out Coalition to explain where it is getting the money for its advertising and public relations campaign, which is being created by advocacy agencies and consultants like the Glover Park Group and Fabiani/Lehane. The Media Research Council urged last week that the campaign "be immediately ceased" if it is being supported by media organizations. Univision said that while it opposed the change, it was not a member or a supporter of the coalition. But another media company, the News Corporation, has identified itself as a supporter of the coalition's campaign. "It's been financial; it's moral; it's organizational," Gary Ginsberg, a spokesman for the News Corporation in New York, said yesterday of the support, adding that the campaign "has helped give voice to legitimate concerns we have, very serious concerns" about the change to local people meters. Two broadcast stations in New York owned by the News Corporation's Fox Television Stations Group, WNYW (Channel 5) and WWOR (Channel 9), had declines in ratings in tests of the local people meters by Nielsen during the winter. But in those tests, viewership for many cable networks - including BET and channels aimed at Hispanics including Telefutura and Telemundo - increased.