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Nielsen News Corp Pact Marks End to Rift
Nielsen Media Research and News Corporation have announced an eight-year agreement for audience measurement services. Relations between the two firms had been troubled since News Corp company Fox TV questioned Nielsen's methods in 2004 and at one point called for government regulation of TV ratings.
The deal covers 49 News Corp. television entities and consolidates more than 150 existing agreements between the companies. Financial terms were not disclosed.
Gary Ginsberg, News Corporation's Executive VP of Corporate Affairs, says the deal took more than a year to construct, and 'affords us much greater efficiencies and simplicity in our relationship.' Referring to the problems, Ginsberg adds: 'We're very pleased to put our differences with Nielsen behind us and to usher in a new era of constructive and even deeper relations between our two companies. Nielsen's willingness to take concrete and ongoing steps to ensure that its measurement systems accurately count all viewers was critical to achieving this deal.'
As part of the agreement, Nielsen is investing approximately $50 million in programs designed to enhance the response rates of participants in its samples, with special emphasis on younger demographics and communities of color.
Dave Thomas, Senior Vice President for Strategy of Business at Nielsen Media Research, calls the deal a 'landmark agreement' and comments: 'In an era of digital television and multiple delivery platforms, we believe it makes sense for our clients to take an integrated approach for audience measurement.'
News Corporation entities and affiliates covered under the agreement include the FOX Broadcasting Company, FOX News Channel, FX, SPEED, National Geographic Channel, Fox Soccer Channel, Fox Sports Net, Fox Sports en Espanol, DIRECTV, Twentieth Television and Twentieth Century Fox Film Corporation.
Nielsen Media will also provide local television audience estimates for 35 Fox-owned local television stations, including Local People Meter (LPM) service where available.
News Corporation had total assets as of June 30, 2006 of approximately $57 billion and total annual revenues of approximately $25 billion, and is online at www.newscorp.com . Nielsen Media Research, is part of VNU Media Measurement & Information and is online at www.nielsenmedia.com .
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