New York Attorney General Andrew Cuomo said he intends to sue Arbitron Inc. over the planned rollout of a new electronic radio-ratings system in New York, saying it may drastically reduce advertising revenue at minority radio stations.In a letter dated Thursday, Mr. Cuomo's office indicated that it intends to begin litigation against the New York media and marketing company over its Portable People Meter system, or PPM. Arbitron has until Tuesday to show why a suit shouldn't be initiated.
"The PPM methodology Arbitron intends to use beginning on Oct. 8 in New York has not been accredited by the Media Rating Council Inc., the primary accrediting agency for ratings services in the United States, and appears to contain design flaws that will disproportionately impact minority communities, broadcasters, and businesses," Alphonso David, deputy bureau chief of Cuomo's Civil Rights Bureau, said in the letter.
The PPM system uses an electronic measurement system, as opposed to paper and pencil diaries kept by listeners, to calculate which radio stations people listen to and for how long. The system is in use in Philadelphia and Houston and is being rolled out to eight other radio markets, including New York City, Long Island and parts of New Jersey this month.
The New York attorney general's office said the new methodology doesn't appear to adequately represent young African-American and Hispanic listeners, nor does it appropriately account for cellphone-only households, which affects the representation of young and minority listeners.
In a statement, Arbitron said it was "disappointed" by Mr. Cuomo's intention to pursue litigation over PPM, saying it is supported by "a majority of the radio industry."
"We intend to vigorously defend the company and its interests," Arbitron said. "We also fear that the radio industry will suffer continued harm and be placed at a competitive disadvantage if PPM is delayed further."
By: Chad Bray
Wall Street Journal; October 6, 2008
