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FCC Starts Arbitron PPM Probe
In the US, the Federal Communications Commission (FCC) has opened an inquiry into claims that Arbitron's Portable People Meter (PPM) undercounts the audiences of minority radio stations.
FCC member Jonathan Adelstein called for the government review last month, and in March, Arbitron met with FCC Acting Chairman Michael Copps in an attempt to head off the investigation.
A coalition of broadcasters and industry organizations, including the Entravision Communications Corp, Spanish Broadcasting System and Univision Communications, has told the FCC that Arbitron has insufficient young black and Hispanic listeners in its sample groups because the firm does not distribute enough PPM devices in the African American and Hispanic communities.
Nearly two in 10 African American and Hispanic homes are cellphone-only, and PPM critics also claim that Arbitron uses a sample which does not include enough of these homes. As a result, opponents say that minority audiences are undercounted and the stations they listen to have a harder time competing for advertisers.
Minority broadcasters describe the meter as having had a 'devastating effect' on their ability to compete. James Winston of the National Association of Black Owned Broadcasters told the FCC that virtually all the stations serving black and Hispanic listeners in New York, Chicago and Los Angeles experienced ratings and market-rank declines after the meters were introduced.
The FCC's Notice of Inquiry is an open proceeding in which any and all parties may express their views on a wide variety of issues.
'Thus far, we have heard from some broadcasters who are concerned about certain research methodologies employed in connection with the device and their potential effect on ratings,' FCC Commissioner Robert McDowell said in a prepared statement. 'We have also heard from Arbitron and other broadcasters that the new automated approach to ratings measurement offers significant improvements over the older, manual diary-reporting system.'
Arbitron spokesman Thom Mocarsky said that his firm welcomes the inquiry as an opportunity to better educate all parties about its PPM service and its advantages over the soon to be phased out diary-based system.
Web site: www.arbitron.com .
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