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What the sale of
Arbitron to Nielsen means to Urban radio stations
(December 18, 2012) In yesterday's announcement of plans to acquire
Arbitron, Nielsen executives touted advantages the added capabilities
could have on its global business. The could also have a significant
impact on Urban formatted radio stations and Black-owned broadcast
outlets.
Arbitron has found itself in a number of long standing legal disputes
over its sampling of Black and Hispanic audiences. These grievances came
to a head when the ratings measurement company introduced its Personal
People Meter and once high-rated Urban stations fell from dominance in
major markets.
In response to a challenge by the PPM Coalition (consisting of Black and
Hispanic broadcasters), Arbitron was asked in 2007 by Congress to
justify its measurement techniques and the undercounting of minority
listeners. The Media Ratings Council weighed in on the issue when it
refused to certify Arbitron's methods in all of its markets.
A lawsuit was issued by the Attorneys General of New York and New Jersey
against Arbitron's measurement of Black and Hispanic listeners in 2008.
The following year a settlement was reached in which Arbitron paid
$260,000 for fraud and illegality, $100,000 to minority trade
associations to support minority radio and $25,000 for an ad campaign
promoting minority radio.
Additional suits were brought by the Attorneys General of Florida and
California in which settlements and payments were reached on Arbitron's
admission of undercounting minority listeners.
News of the acquisition by Nielsen was viewed with optimism by those who
have challenged Arbitron's methods and practices in past years.
"Nielsen's acquisition of Arbitron is welcome news for multicultural
entrepreneurs, programmers and audiences," said David Honig, President
of the Minority Media and Telecommunications Council. "Nielsen has
unparalleled expertise in accurately measuring multicultural viewership,
demographics, and consumer trends such as audience engagement. As
audio, video and print content transitions to IP, it's reassuring that
the leading audience measurement company has such an outstanding record
of accurately and thoroughly measuring multicultural populations across
several technologies."
Jim Winston, Executive Director of the National Association of Black
Owned Broadcasters, stated, "NABOB is pleased to hear about the planned
merger of Nielsen and Arbitron. NABOB has a good relationship with both
companies, and the combination of the companies could provide better and
more extensive audience measurement benefits to both the television and
radio industries."
"We are concerned that such mergers often result in rate increases to
customers, and we would not want to see that happen," Winston added. "We
are cautiously optimistic that this will be very good news for the
television and radio industries."
Nielsen has worked extensively over the past five years to strengthen
its relationship with, and expertise among multicultural markets. It has
created external advisory councils representing communities of color,
instituted a minority supplier development initiative, and reached out
to Black, Hispanic and Asian consumers through numerous public relations
efforts. In the past two years, it has introduced widely touted reports
on the economic impact of these consumers to corporation's bottom line.
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