|
Nielsen rival gets backing
|
 |
August 3, 1998: 7:14 a.m. ET
ABC, CBS, NBC and Fox sign letters of intent for rival TV rating system
|
NEW YORK (CNNfn) - The Big Four television networks and a group of leading advertising agencies are backing a new TV-rating service, a move designed to challenge the ratings-system monopoly enjoyed by Nielsen Media Research Inc.
Statistical Research Inc. (SRI) said ABC, CBS, Fox, NBC have agreed to back its Smart ratings system. Also signing letters of intent to support the planned Nielsen rival are media-buying units of several big advertising companies, including Grey Advertising, Leo Burnett, and Omnicom Group's DDB Needham and sister agency BBDO Worldwide.
SRI made the announcement late Friday.
Although cable and syndication companies were noticeably absent from the list, SRI executives said they expect several cable companies and big advertisers to join in the next two weeks, according to the Wall Street Journal.
USA Networks and MTV Networks have been among the most vocal cheerleaders for SRI's cause.
SRI, however, did not state whether the letters of intent require the signers to provide SRI with a cash infusion.
"I'm gratified by the broad support our plan is receiving from advertisers, agencies and media companies," SRI President Gale Metzger said in a statement.
Though the ability to offer new ratings data is still two years away, the networks' move nevertheless marks a serious challenge to Nielsen's monopoly -- and to the 50-year-old ratings system that determines the fate of billions of dollars in TV ad spending every year.
Search for better numbers
The big four broadcast networks, which have suffered the most viewership erosion, have called the loudest for a competitor to Nielsen, which is the only national TV audience measurement company.
As broadcast network ratings have sunk, the networks have blamed part of their audience decline on Nielsen's methodology. They say Nielsen undercounts vast segments of the population, particularly young people and viewers watching TV outside the home, at bars or parties, for example.
The networks pay Nielsen more than $10 million a year for its data.
Cable network sources said they were surprised that USA and MTV Networks did not lend their names to SRI's announcement.
"We are considering the (SRI's) proposal that's been made to Viacom," said Betsy Frank, MTV Networks executive vice president in charge of research.
"But at the present time, we believe that our commitment in resources and in dollars should be made to understand our audiences and then to use those insights to better serve them with programming and online content. Creating a new report card for the industry is somewhat lower on our priorities.
"SRI has shown that better is possible," Neil Braun, outgoing president of NBC Television, said in a statement. "They've demonstrated a commitment to doing what's best for the industry. NBC knows that this is an important investment for the long term."
Nielsen executives have said that SRI needs to raise $100 million to have enough capital to build a national TV ratings system.
"It's still a four-networks show," said Nielsen representative Jack Loftus. "They've yet to come up with the money. Even if they sign contracts with these people and get money, they'll still have to go out and raise more money."
Westfield, N.J.-based SRI has run a test for its rating system in Philadelphia, and data from that test have been coming in since April.
Nielsen (NMR) shares fell 1/8 to close at 4-1/8 in Friday trading. 
-- from staff and wire reports
|
|
|
|
|
 |
|
