NABOB, New York City Council get Arbitron to delay PPM rollout plans

(November 26, 2007) Arbitron Inc. has announced that it will delay the commercialization of its Portable People Meter (PPM) radio ratings service in nine markets.  New York, Nassau–Suffolk and Middlesex–Somerset–Union will be delayed by nine months; Los Angeles, Riverside and Chicago by six months; and San Francisco, San Jose and Dallas by three months. In these nine markets, Arbitron will extend the use of the paper and pencil diary system.

The decision comes after months of protests from Urban radio stations, particularly those owned by African-Americans, about problems with PPM ratings in accurately calculating the habit of their audiences.

The National Association of Black Owned Broadcasters and the City Council of New York joined forces to seek a delay in the introduction of the new ratings technology so that inconsistencies could be addressed.

Over the last two months, this partnership has put pressure on Arbitron to reexamine its methodology because  minority-owned stations were irreparably damaged by inaccurate representations of listenership.  This practice would have had a negative affect on advertising revenues.  PPM, they say, essentially hamstrung the ability of smaller stations to stay afloat in a competitive media landscape.  In fact, in Houston and Philadelphia, the usage of PPMs has been disastrous for minority-owned radio stations.  In New York City, initial results for the new rating system showed a severe drop in ratings for some of most popular stations, with some dropping as much as 12 spots on the ranking list.

“I am very pleased that Arbitron has listened to our concerns and delayed the implementation of the Portable People Meters,” said Council Speaker Christine C. Quinn.  “Local and minority-owned radio has been a crucial tool in keeping communities informed and active.  We must take every precaution before implementing a rating system that could shut these stations down forever.  As this fight continues, we need a strong, independent panel to implement a system that accurately represents station listenership.” 

“NABOB is delighted to hear that Arbitron will not rollout PPM in anymore markets for at least nine months,” said Jim Winston, Executive Director and General Counsel of the National Association of Black Owned Broadcasters, Inc.  “NABOB, like the rest of the radio industry, wants an electronic rating service.  However, we need a service that measures our actual audience and provides reliable and credible information.  We look forward to continuing our work with Arbitron to make PPM such a service.”

“I am cautiously optimistic,” said Majority Whip Inez Dickens.  “Urban radio, specifically Black and Latino radio, is the heartbeat that allows us to communicate and stay connected not only in New York, but across the United States, the Caribbean and around the world.  Black radio galvanized support for Jena 6 and the monumental contribution of Black and minority radio to the civil rights movement is without question.  When Wendy Williams of WBLS goes from number one to number 10, there is a short circuit somewhere in the formula.  I want to thank Speaker Quinn, Council Member Seabrook and NABOB for their defense of this critical community resource.”

“This is a tremendous victory for Speaker Quinn and the entire City Council,” said Civil Rights Committee Chair Larry Seabrook.  “Although the war is not over, the New York City Council won the battle.  We were able to uphold the continued access to Black and Latino radio in delaying the implementation of the PPMs.  Now, the war must continue.”

Arbitron officials said that they will use the time extended for the PPM rollout to work on the methodology and increase its dialogue with Black and Latino broadcasters to address specific concerns.

“ We remain confident in the audience estimates that the Portable People Meter service is producing. However, over the past three weeks, feedback from our customers, the Media Rating Council and other constituencies has led us to conclude that the radio industry would be better served if we were to delay further commercialization of the PPM in order to address their issues, ” said Steve Morris, chairman, president and chief executive officer, Arbitron Inc.

This decision does not impact the Portable People Meter radio ratings services currently in operation in Houston and Philadelphia.  Monthly and weekly ratings reports based on the currently installed PPM panels in these two markets will continue to be issued to radio stations, agencies and advertisers as scheduled for their use in the buying and selling of radio station advertising.

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