• by Joe Mandese  @mp_joemandese, May 25, 2005

With time running out, Nielsen Media Research is making some very important decisions that could redefine the meaning of, well, time. TV time, that is. The TV ratings giant this week informed clients of two important developments that will determine the way it measures TV viewing in digital TV viewing environments, especially ones like digital video recorders and video-on-demand that allow viewers to time-shift when they watch TV programs and commercials.

As part of that process, Nielsen is asking for more time. Specifically, it told clients it will once again delay plans to roll out its so-called Active/Passive (AP) meters into its national and local ratings samples in order to resolve a crucial question: how much time does it take viewers to tell whether they are watching TV or not. Calling the concept of channel-changing "obsolete," Nielsen said it can no longer rely on channel-tuning behavior to know when a person is watching TV. In its place, Nielsen plans to begin using a "time-based" system that would prompt people to register their viewing behavior at a specific interval (MDN April 21).

Nielsen is still debating whether to use one of two time intervals as the basis of those prompts - 21-minutes; or 42-minutes - and said it needs more time to conduct research on which is the correct amount of time. Nielsen has never explained to clients how it arrived at the two time possibilities, but researchers believe the decision could have a significant impact on TV ratings for specific shows and channels. The more frequently Nielsen prompts viewers, the more likely they are to register their viewing, thus boosting ratings.

As a result, Nielsen has been getting pressure from TV outlets to use the 21-minute prompts, especially with Nielsen poised to begin measuring viewing done via DVRs and VOD, which could negatively impact commercial viewing and advertising revenues for many of those outlets.

In a separate announcement on Tuesday, Nielsen finally unveiled its plans for measuring ratings for VOD programming. The plan will introduce VOD ratings in phases beginning in 2006, and will define VOD programming in two broad categories: those for "recently aired television programs;" and those coming from VOD "library content."

Nielsen said it will introduce VOD ratings for recently viewed programs first, because they are seen as an extension of viewing of linear TV programming - the kind that has been traditional been scheduled by TV programmers and sponsored by advertisers - as opposed to special VOD-only library content. The first phase is expected to be rolled out in the second quarter of 2006, with the finally phases being implemented by the fourth quarter of 2006.

As part of its measurement of VOD programming, Nielsen said it would require programmers to actively code their shows, or they would not be measured.

Meanwhile, Nielsen said it would delay the roll out of its AP meters from "early May" to July to allow for more research on how the time-based prompts affect TV ratings, and possibly viewing behavior. Some researchers fear that interrupting TV viewers more frequently - and possibly several times during the middle of a TV show - could infuriate them and alter the way they watch TV.

Interestingly, Nielsen has never explained how it came up with the 21-minute or 42-minute prompting options, and it did not say what kind of research it would use to resolve the question. Though it did say the decision would be made in conjunction with its clients. Nielsen has formed a committee comprised of top clients to help it make those decisions.