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Battle Lines Harden in Arbitron Dispute
New York Attorney General Andrew Cuomo has called Arbitron's early PPM launch on Monday 'an affront to racial and ethnic minorities in New York and around the country'. However, a number of radio broadcasters have come out in support of the ratings firm, saying the FCC has no jurisdiction in the area.
Cuomo last month filed a lawsuit to prevent Arbitron from releasing the data - a move which would have taken effect today. Arbitron in effect ducked under the wire by bringing forward the commercialization of PPM services in eight new markets on Monday. The same day, it asked the US District Court for the Southern District of New York for a declaratory judgment and an injunction to protect its rights under the First Amendment in the face of Cuomo's 'unfair conduct'.
The Attorney General, who in early September wrote to Arbitron asking for key documents and saying that a 'full investigation' of the PPM methodology was warranted, now appears to have abandoned the appearance of relative neutrality: despite the fact that the enquiry is ongoing, he 'believes its ratings are flawed'.
The statement from Cuomo's office read: 'Arbitron's decision to release its unreliable and unaccredited radio ratings system is an affront to racial and ethnic minorities in New York and around the country. The Attorney General's Office cautions all advertisers and broadcasters against using these prematurely released ratings as we believe they are flawed and will be the subject of ongoing litigation.'
Meanwhile, broadcasters including CBS Radio, Bonneville, Entercom, Emmis Communications and Megamedia have come out in support of Arbitron and against the views of the PPM Coalition. The pro-Arbitron firms say the ratings giant has demonstrated that the FCC does not have the jurisdiction to review the Coalition's claims.
The group believes that any alleged deficiencies in the methodology should either be addressed under relevant state law, or by the Media Rating Council (MRC) which exists to review and where appropriate accredit media ratings methodologies. To date, Arbitron has only received MRC accreditation for PPM ratings in Houston, and the MRC has declined accreditation of the service in New York and Philadelphia - although it has stressed the firm's ongoing co-operation in the process.
Arbitron Chairman, President & CEO Steve Morris said Monday's launch decision was taken 'in order to meet our obligations to our customers and to the radio industry'. Arbitron has filed its own reply to the FCC in an 88-page document which reinforces the view that the FCC does not have jurisdiction over the firm and its ratings systems.
Morris concluded: 'Radio broadcasters, agencies, and advertisers independently determine whether or not to subscribe to Arbitron's services and can freely decide how they wish to use our services in their business transactions. Our goal with the commercialization of the PPM is to help radio remain competitive in an increasingly challenging media marketplace.'
Web site: www.arbitron.com .
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