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Arbitron Resolves NY Lawsuit
In the US, media ratings company Arbitron has settled a lawsuit filed by New York Attorney General Andrew Cuomo, who had claimed that the firm's Portable People Meter (PPM) ratings misrepresent minority listenership.
 A number of the terms relate to actions Arbitron was already pursuing, and some will no doubt regard them as an indication that the research firm's case proved robust, given Cuomo's strong words in October.
The Attorney General announced in early September that he was investigating the accuracy of Arbitron's audience estimates, which the Association of Hispanic Advertising Agencies and a group of minority radio broadcasters also claimed did not adequately represent African-Americans and Hispanics in the US.
As part of the settlement, Arbitron will incorporate a number of actions including:- Taking measures to achieve average in-tab rates of at least 75% for all age/sex and race/ethnicity demographic groups by April 1, 2009
- Completing a non-response bias study in the New York market by July 15, 2009
- Making all reasonable efforts to obtain and retain accreditation for the New York PPM radio ratings service from the Media Rating Council (MRC)
- Funding an ad campaign in the New York market promoting minority radio
- Including a disclaimer on promotional material indicating that PPM ratings are based on audience estimates.
Cuomo reserves the right to reinstitute the civil action if the company has not obtained MRC accreditation by October 15, 2009 and also has not achieved all of the specific metrics in the agreement.
In addition, Arbitron has agreed to pay Cuomo $200,000 and $60,000 in costs. The company will also pay $100,000 to NABOB (the National Association of Black Owned Broadcasters) for a joint radio project between NABOB and the Spanish Radio Association to support minority radio.
Commenting on the agreement, Arbitron Chairman, President and CEO Steve Morris stated: 'Broadcasters, agencies and advertisers in New York can continue to use PPM measurement of radio without any hesitation or reservation. We are also pleased to be able to resolve this action within the framework of our continuous improvement program for the PPM ratings service in the New York radio market.'
Arbitron is also in talks with New Jersey Attorney General Anne Milgram to settle a lawsuit the firm brought against her when she sought information about the PPM, which she also claims undercounts the listening habits of minorities. The court has given Milgram until 26 January to respond to Arbitron's complaint that her intention to obstruct publication of its listening figures is in breach of US freedom of speech legislation.
In December, the PPM went live in four additional markets - Washington, DC; Dallas, Atlanta, and Detroit - and Arbitron said that, across all 14 PPM markets, it exceeded its black 6+ target by 6%, and its Hispanic 6+ target by 14%. In the eight markets that qualify for Spanish-language weighting, the Hispanic Spanish-dominant sample was over the target by 38%.
Web site: www.arbitron.com .
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