Nielsen and CBS Break Deadlock for New Deal

TV network CBS has reached an agreement with Nielsen to continue providing its national, digital and local audience measurement services, following several weeks of 'contractual impasse'.

At the end of last year, CBS allowed its contract with Nielsen to expire, after accusing the ratings giant of using its 'market power' to bundle services and raise prices. Two weeks ago, CBS claimed in a statement that while Nielsen had made some strides in achieving complete and accurate measurement across platforms, progress had not been what it and many clients would have liked, with local TV measurement viewed as particularly challenged. According to Bloomberg, Nielsen CEO David Kenny responded to the allegations in a memo to staff, in which he said that the impasse had been caused by CBS seeking unreasonable and steep price cuts. Meanwhile CBS said that if it was unable to reach a deal with Nielsen, it would consider moving some of its business to Comscore.

The firms had been negotiating a potential new contract for six months, but had failed to reach an agreement before the previous one expired on December 31st, leaving CBS without access to current or historical data from Nielsen - the metrics used to sell its ad inventory.

Insiders claim the previous deal was valued at more than $100m, but terms of the new contract have not been disclosed. The newly negotiated deal encompasses the CBS Television Network, CBS Television Distribution, Showtime Networks, Smithsonian, Pop, CBS Sports Network and CBS' 27 owned-and-operated local television stations. Kenny says Nielsen is 'thrilled' to continue its partnership with CBS.

Joe Ianniello, President and Acting CEO, CBS Corporation, adds: 'We are very pleased with this new agreement we were able to achieve with Nielsen. It meets our strategic goals, and will allow us to benefit from important advances in measurement as they are rolled out. CBS programming is perennially the most-watched content rated by Nielsen, and there is significant upside ahead as next-generation advertising continues to flourish'.

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

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