• by July 20, 2004

LAWMAKER SHIFTS PEOPLE METER DEBATE FROM 'LOCAL' TO 'PORTABLE' - It was glossed over during last week's Congressional hearings on Nielsen's local people meter (LPM) system, but now a top lawmaker is making portable people meters (PPMs) a central part of the debate. In a letter sent to Nielsen CEO Susan Whiting today, Senator Charles Schumer of New York said he was "concerned" that Nielsen is rolling out the LPMs, which are based on Nielsen's age-old people meter technology, when a potentially superior technology exists. Specifically, the senator cited Nielsen's plans to form a joint venture between its Canadian operations and Canada's BBM ratings service, which will roll out the PPM system in Quebec this fall.

"I am concerned that Nielsen is deploying a passive audience measurement system in Canada while it continues with its rollout of the LPM technology in the United States," wrote the Schumer, asking Whiting to answer the following questions:

1 - What differences, if any, exist between U.S. and Canadian markets that justify using passive people meters in one, but not the other?

2 - What factors did Nielsen and BBM Canada consider in determining that use of Arbitron's passive measurement system is appropriate in Canada?

3 - What technological barriers, if any, exist in deploying passive measurement tools for television ratings in the U.S. at this time?

4 - Please describe Nielsen's efforts in making [the] transition to the passive people meter system in U.S. markets. When will this technology be ready for use in the U.S.?

We're not sure where the Schumer is getting his U.S./Canada ratings intel from, but we think we can help clear up his first three questions. From what we understand, Nielsen hasn't exactly embraced the PPM system in Canada either, but is merging its operations with the BBM's as more of an act of desperation. Neither Nielsen's nor the industry-owned BBM were making much of a go on it on their own, so they've opted to consolidate their operations instead of competing with each other. And for at least the foreseeable future, the two companies will continue to maintain the ratings systems they had been supporting, which means Nielsen will be sticking with people meters in the markets it has managed, while BBM will be deploying PPMs in Quebec.

As for the senator's last question, that's one we don't have an answer to. It's also one that Nielsen's Whiting dodged when another senator, California's Barbara Boxer asked what Nielsen was doing to accelerate the development of PPMs in the U.S. And from what we can tell, it may not be enough.

REALITY CHECKERS - What do Amazon.com Founder Jeff Bezos, ad guru Donny Deutsch and hip hop mogul Russell Simmons have in common? - Aside from speaking at this year's American Magazine Conference, they apparently are each a master of "new realities," according to the agenda released today by the Magazine Publishers of America. And while that might seem like a sobering theme for this year's magazine industry conference, MPA chief Nina Link notes it is intended to "better prepare publishers" and to help them overcome "obstacles collectively and innovatively, and most importantly, but reconfirming and strengthening our connection to those who matter most - the magazine reader."

One new reality we're sure won't be discussed, is why the average reader is spending a smaller share of their time reading magazines and more time consuming other media.

In any case, publishers traveling to this year's conference (Oct. 24-27) in Boca Raton, Fla., should be in a far more upbeat mood than last year, when they were still grappling with magazine ad erosion. The indications so far this year are that magazine ad demand has stabilized and is back on the upswing.