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Arbitron Accused of Unfair Practices
Another day, another legal challenge. Now it's Arbitron's turn: Kansas-based Manhattan Broadcasting has filed a complaint with the FCC claiming anti-competitive practice by the radio audience researcher and its client, African-American focused media firm Morris Communications.
Manhattan's claim to the FCC (Federal Communications Commission) maintains that Arbitron and Morris are creating a new Arbitron Metro market by combining the two separate statistical areas of Salina and Manhattan, which the firm says are 67 miles apart and have 'no commonality'. A Metro Area includes a city (or cities) whose population is defined by Arbitron as that of the central city together with the county or counties in which it is located.
According to the complaint, this new Metro was created to artificially enhance Morris' market share to the detriment of all other radio stations within the proposed area. Morris is said to have agreed to pay Arbitron $250,000 over 5 years for its services.
Manhattan's CEO Richard Wartell argues that in forming the new Salina-Manhattan market, Morris and Arbitron deliberately ignored established listening patterns, and introduced the change without the consent of any of the other affected radio stations in the area, some of which already subscribe to Arbitron's county data.
Wartell asserts that the new Metro market is intended to 'cream-skim regional and national advertising dollars'. He says that the eight-county market was designed to exclude two counties where his firm's stations are strongest, to ensure that Morris' stations always dominate the ratings.
The complaint also says that Morris' VP Michael Osterhout, who heads the firm's radio division, took advantage of his position on the Arbitron Radio Advisory Council to drive through the new Metro market. Manhattan has asked the FCC to suspend the creation of the new Metro, as well as prevent the release of any results from a survey.
Morris' legal representative said the complaint was inaccurate, unsubstantiated and inappropriate and a response would be filed soon with the FCC.
Arbitron is online at www.arbitron.com.
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