Nielsen Sues comScore over 'Extended TV' Plans

Nielsen has filed a lawsuit to prevent comScore from launching a new service called Extended TV. The service uses data from Nielsen's PPM technology, to which comScore and others gained access at the time of the Arbitron buy, but in a way Nielsen says is outside the scope of that agreement.

The $1.26bn Arbitron buy was cleared by the FTC in September 2013, with the proviso that in order to preserve fair competition the combined entity must license the PPM technology for a period of eight years to comScore and other parties including researchers and TV networks. The latter included sports entertainment company ESPN, with whom comScore and Arbitron had been working to develop what they called 'the first cross-platform media measurement solution to provide common metrics on changing media consumption across radio TV, PCs, smartphones, and tablets'.

Nielsen says it cannot object to Extended TV's use as a cross-platform media measurement service, since those are specifically permitted in the agreement, but understands that comScore intends to offer it also as a standalone TV measurement service, which would not be permitted. Nielsen at the time of the agreement - finally agreed in January 2014 - defined cross-media as requiring at a minimum both television and online audience measurements. Nielsen says conversations with comScore execs have suggested the latter firm may launch Extended TV by the end of 2017 and plans to use it for real-time and time-shifted TV viewing, an insufficiently broad use which would put it in direct competition with the ratings giant in the provision of linear television audience measurement.

Nielsen says it would suffer 'irreparable harm to its business through [the] loss of important customers and decreased market share' if Extended TV is launched. comScore, in a statement issued at the weekend, said simply that it 'intends to vigorously contest Nielsen's actions, as it believes it is acting properly under the FTC's Order'. The statement adds: 'comScore also believes that its contracts with Nielsen require the matter to be resolved exclusively through arbitration, and not in the Courts'.

The case is Nielsen Holdings Plc v comScore Inc, in the U.S. District Court, Southern District of New York.

Web sites: www.nielsen.com and www.comscore.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.