Rep Towns:Auditor Finds Problems With Arbitron's People Meter
23 September 2009 - 5:10PM
Dow Jones News
An independent media ratings auditor has found "persistent
problems" with Arbitron Inc.'s (ARB) Portable People Meter that
tracks radio audiences, House Oversight Committee Chairman Edolphus
Towns, D-N.Y., announced Tuesday.
Arbitron's People Meter is a pager-size device that selected
radio listeners carry with them to track the stations they hear. It
has been mired in controversy, with some claiming it undercounts
minorities, which Arbitron denies.
The device has been investigated by several state attorneys
general and is now under Federal Communications Commission
review.
Towns launched his own investigation into Arbitron earlier this
year after receiving complaints from minority broadcasters about
the accuracy of the data. Eventually he was forced to subpoena
documents about the People Meter from the Media Rating Council, a
congressionally created, independent accreditation group.
The Media Rating Council conducts extensive audits of ratings
services like those provided by Arbitron, Nielsen Media Research
and Mediafax Inc. Ratings systems that meet the council's standards
are allowed to display its seal of approval.
The Media Rating Council's members include broadcasters, media
firms and Internet companies, such as Time Warner Cable Inc. (TWC),
CBS Corp. (CBS) and Microsoft Corp. (MSFT).
The council doesn't generally release details about its
findings.
According to the House Oversight Committee, the rating council
said Arbitron consistently undercounts minority populations across
the country. In New York City, for example, Arbitron undercounted
Hispanic and African American populations by several percentage
points, it said.
The rating council also said Arbitron's sample sizes were
"unacceptably low" to accurately measure minority audiences'
listening habits, according to the committee.
The Media Rating Council has signed off on Arbitron's People
Meter in two markets, Houston and Riverside-San Bernadino, Calif.
The council has also given the thumbs up to other Arbitron rating
services like listening diaries and custom survey reports.
-By Fawn Johnson, Dow Jones Newswires; 202-862-9263;
fawn.johnson@dowjones.com