SBS Ceases Encoding for PPM Again

In the US, Spanish Broadcasting System (SBS) has again pulled the encoders for Aribtron's PPM (Portable People Meter) system, after The New York Supreme Court lifted the temporary restraining order that had required it to continue.

The dispute between ratings giant Arbitron and SBS kicked off last year when SBS refused to pay a $2.5m licence fee to Arbitron, after claiming that the PPM service was undercounting its ethnic minority listeners.

In December, Arbitron stopped providing SBS with PPM ratings, and the broadcaster responded by ceasing to encode its broadcasts in early February.

However, last month, New York State Supreme Court Judge Shirley Kornreich ordered SBS to continue its PPM encoding, while also ordering Arbitron to post a bond covering potential damages to SBS. At the time, she told the two companies to investigate settling the issue through a mediator.

Since then, The Court has lifted the order, arguing that Arbitron failed to prove that the loss of SBS would cause 'irreparable damage'.

'Arbitron has not submitted any actual proof of its claim that SBS' breach of the Encoding Agreement will devalue the ratings Arbitron provides to other subscribers and harm its reputation and credibility,' the Court stated.

As soon as the order was lifted, SBS immediately ceased encoding its stations in New York, Los Angeles, Chicago, San Francisco and Miami.

SBS's Chief Revenue Officer Frank Flores has confirmed that the company is set to go to mediation with Arbitron in the next few weeks. John Feerick, a former dean of Fordham Law School, has been selected as mediator.

Web sites: www.arbitron.com and www.spanishbroadcasting.com .