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FCC Adds to Arbitron's Troubles
In the US, FCC (Federal Communications Commission) Commissioner Jonathan Adelstein is calling for a formal investigation into the effect of Arbitron's PPM technology on minority radio stations. Separately, the ratings giant has closed its southwest call center in Houston following hurricane damage.
Adelstein joins New Jersey Attorney General Anne Milgram and New York Attorney General Andrew Cuomo, who are both undertaking similar investigations into the accuracy of the Portable People Meter (PPM) methodology.
In a letter sent to FCC Chairman Kevin Martin, Adelstein said that the continued deployment of PPM in new markets without accreditation from Media Ratings Council 'constitutes a clear and present danger to media diversity'.
He argued that the alleged damage PPM is doing to minority stations undermines the 'will of Congress' to increase diversity of media ownership. The FCC's Diversity Committee has also recommended the FCC opens an inquiry.
James Winston, Executive Director and General Counsel of the National Association of Black Owned Broadcasters, supported Adelstein's actions by suggesting that the problem has been caused by Arbitron reducing the number of listeners it tracks as it has begun using PPM, which has resulted in 'unrepresentative samples' that do not reflect audience sizes for many minority-owned stations.
In a statement yesterday, Arbitron said the FCC lacks authority to regulate its audience ratings.
Arbitron also has problems of a completely different kind - the firm has announced the closure of its call center in Houston after it suffered severe damage from Hurricane Ike. Around 298 mostly part-time jobs will be affected by the closure, but the firm's field operations in the area will remain in place.
In yesterday's news, Arbitron lost contracts with broadcasters Cumulus Media and Clear Channel Radio. The pair have now signed deals with Nielsen to provide audience measurement and radio ratings for several markets across the country.
Arbitron shares fell 10.3% to close at $21.69.
Web site: www.arbitron.com .
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