Space Edge
10-04-2008, 08:06 PM
Andrew Cuomo may sue over new ratings system
By DAVID HINCKLEY
DAILY NEWS STAFF WRITER
Saturday, October 4th 2008, 4:00 AM
If Arbitron rolls out its new PPM radio ratings on schedule Wednesday, it may receive an unwanted welcome: a lawsuit from state Attorney General Andrew Cuomo asking for a temporary restraining order.
Cuomo's office has warned Arbitron that the new Portable People Meter (PPM) technology may constitute fraud and violate civil rights statutes because it undercounts black and Hispanic radio listeners.
EARLIER: CUOMO LAUNCHES ARBITRON INVESTIGATION
The consequence of this alleged undercounting, owners of several black and Hispanic stations have warned in recent months, is that stations like WBLS (107.5 FM) and WSKQ (97.9 FM) could suffer such a drastic decline in advertising revenue that their existence could be jeopardized.
Arbitron issued a statement yesterday saying it was "disappointed" in Cuomo's action and vowed to "vigorously defend the company and its interests."
Arbitron stopped short, however, of reiterating its previous assertion that PPM would be "commercialized" on schedule Wednesday in several major cities, including New York.
Under the PPM system, electronic measuring devices replace written "diaries" as the means by which Arbitron calculates radio ratings. Those ratings are the primary determinant of advertising revenue, radio's lifeblood.
WBLS and WSKQ, both among the city's highest-rated stations under the "diary" method, have fallen under preliminary PPM numbers, leading to concern that radio listeners could lose those stations and formats.
The letter from Cuomo's office, which has been investigating Arbitron for weeks, warns that if the company proceeds with a methodology that "disparately impacts racial and ethnic minorities," it could be charged with violating civil rights laws.
Arbitron has noted in the past that some urban stations, including WRKS (98.7 FM) in New York, have maintained their diary numbers in preliminary PPM data.
Still, Arbitron has come under intense pressure in recent weeks to delay the rollout - some from industry groups and some from officials like the New York City Council, New Jersey Attorney General Anne Milgram and Democratic presidential candidate Barack Obama.
A source close to Cuomo's office yesterday said Cuomo is also concerned about suggestions that "some executive compensation at Arbitron may be tied to an Oct. 8 PPM rollout," giving officials an incentive to push ahead no matter what.
"We'd rather work this out than litigate," says this source. "If Arbitron says it will delay the rollout while taking remedial steps, we'll work with them. But if they go forward, they may leave us no choice."
http://www.nydailynews.com/entertainment/tv/2008/10/04/2008-10-04_andrew_cuomo_may_sue_over_new_ratings_sy.html
By DAVID HINCKLEY
DAILY NEWS STAFF WRITER
Saturday, October 4th 2008, 4:00 AM
If Arbitron rolls out its new PPM radio ratings on schedule Wednesday, it may receive an unwanted welcome: a lawsuit from state Attorney General Andrew Cuomo asking for a temporary restraining order.
Cuomo's office has warned Arbitron that the new Portable People Meter (PPM) technology may constitute fraud and violate civil rights statutes because it undercounts black and Hispanic radio listeners.
EARLIER: CUOMO LAUNCHES ARBITRON INVESTIGATION
The consequence of this alleged undercounting, owners of several black and Hispanic stations have warned in recent months, is that stations like WBLS (107.5 FM) and WSKQ (97.9 FM) could suffer such a drastic decline in advertising revenue that their existence could be jeopardized.
Arbitron issued a statement yesterday saying it was "disappointed" in Cuomo's action and vowed to "vigorously defend the company and its interests."
Arbitron stopped short, however, of reiterating its previous assertion that PPM would be "commercialized" on schedule Wednesday in several major cities, including New York.
Under the PPM system, electronic measuring devices replace written "diaries" as the means by which Arbitron calculates radio ratings. Those ratings are the primary determinant of advertising revenue, radio's lifeblood.
WBLS and WSKQ, both among the city's highest-rated stations under the "diary" method, have fallen under preliminary PPM numbers, leading to concern that radio listeners could lose those stations and formats.
The letter from Cuomo's office, which has been investigating Arbitron for weeks, warns that if the company proceeds with a methodology that "disparately impacts racial and ethnic minorities," it could be charged with violating civil rights laws.
Arbitron has noted in the past that some urban stations, including WRKS (98.7 FM) in New York, have maintained their diary numbers in preliminary PPM data.
Still, Arbitron has come under intense pressure in recent weeks to delay the rollout - some from industry groups and some from officials like the New York City Council, New Jersey Attorney General Anne Milgram and Democratic presidential candidate Barack Obama.
A source close to Cuomo's office yesterday said Cuomo is also concerned about suggestions that "some executive compensation at Arbitron may be tied to an Oct. 8 PPM rollout," giving officials an incentive to push ahead no matter what.
"We'd rather work this out than litigate," says this source. "If Arbitron says it will delay the rollout while taking remedial steps, we'll work with them. But if they go forward, they may leave us no choice."
http://www.nydailynews.com/entertainment/tv/2008/10/04/2008-10-04_andrew_cuomo_may_sue_over_new_ratings_sy.html