One of the FCC’s advisory committees has taken aim at Arbitron. The issue is Arbitron’s stranglehold on the radio ratings business, its introduction of PPM and because “…results have been objected to as inaccurate and unreliable by some broadcast companies, and in particular, companies whose programming targets African American and Hispanic audiences.” It notes that it behooves the entire radio industry to get accurate rati ngs and that many companies may suffer “irreparable financial harm” and perhaps go out of business, thus disenfranchising their audiences. It cites Congressional instructions to the FCC to promote nondiscrimination, and requests a full investigation of Arbitron and PPM with a report due 8/15/08, saying time is of the essence due to the projected rollout of the PPM program in Los Angeles, San Francisco, Chicago and New York as early as September.
Jim Winston of the National Association of Black Owned Broadcasters hailed the move, but noted that the vote was not unanimous.
Arbitron said, “We are happy to continue our dialogue with the FCC about the advantages the Portable People Meter brings to radio. We look forward to the opportunity to demonstrate how the PPM electronically produces objective, unbiased audience estimates. Experience has shown that PPM ratings are more reliable than systems that rely on memory and are prone to human error and bias. Our PPM samples fully represent the diversity of the markets we measure in terms of age, sex, race, ethnicity and language preference. Hispanics and African Americans have the highest listening levels in the PPM system and ethnic broadcasters who have embraced PPM are succeeding with the timely and detailed data that only PPM can deliver. Radio’s future depends on electronic measurement to keep pace with similar systems used by other media.”
CBS was a dissenter, and felt the Committee’s action was at best premature. It commented, "CBS has a proud record of diversity and supporting ownership of media by minorities and women. We regret that we must vote "no" on the resolution before us which recommends that the FCC investigate Arbitron. We do so for two reasons, both based on procedure. First, unlike other recommendations from this committee, this resolution has not undergone the vetting of a subcommittee. This is a stark deviation from the committee’s processes. Second, and most importantly, the resolution urges the FCC to launch an investigation of an entity that holds no FCC license and is clearly not regulated by the agency. We view such expanded Commission jurisdiction inappropriate and, if exercised in this case, a precedent for FCC involvement in the practices of any entity whose business is at all related to media, telephone, broadband or any regulated service."
RBR/TVBR observation: August 15? Nothing happens that fast in Washington. Even if George Washington, Thomas Jefferson, Abraham Lincoln and Teddy Roosevelt took leave of Mount Rushmore and appeared on the FCC’s 8th Floor to demand this investigation, and threatened to crush anyone who impedes the investigation in any way with boulders from their South Dakota home, they’d be lucky to see something by 2010. But you never know – stay tuned.
