Nielsen Faces Legal Challenge, LPM Opponents Take Battle To Court

They've taken their battle to the court of public opinion, even to the makers of law, but now opponents of Nielsen's local people meter service are taking their fight to court. In a last minute legal appeal to prevent the service's launch in New York on Thursday. Don't Count Us Out (DCUO), an advocacy group claiming to represent the interests of minority groups it says are under-counted by the new ratings system, today will announce "legal steps" to stop the rollout of the service. While details could not be discerned at press-time, it was expected that the group would file suit in New York to obtain a temporary restraining order that would once again delay the launch of the hotly contested ratings service. Others, possibly Univision, another staunch opponent of the LPM, but for somewhat different reasons, may also join the fray.

The litigation is the latest development in a pitched battle between anti-LPM forces and Nielsen, which has maintained it's the New York meters and its sample were up to snuff and has vowed to deploy the service as planned, even though it has been losing support from key constituencies, including an crucial vote of confidence from the Media Rating Council, which last week voted to delay accreditation of the service until Nielsen could meet the council's minimum standards for TV audience measurement.

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The legal challenge is likely to circumvent a surprising and unprecedented plan announced by Nielsen on Tuesday to offer not one, but two concurrent TV ratings services in New York - the new LPM system, and the older meter/diary system - for three months beginning Thursday. That development likely would have made for some confusing and hotly contested media buying negotiations throughout the summer months.

Unlike previous issuances of concurrent test data provided during rollout periods for comparative purposes, Nielsen ruled that "either set of data may be used commercially," marking the first time since Arbitron abandoned the local TV measurement business in the early 1980s that the New York market will have two different sets of ratings to buy and sell off of.

The move is unusual, but may have been a necessary step, given the fact that the New York people meter service failed to receive accreditation from the Media Rating Council, which would have meant that TV ad deals in the market would have been negotiated off of unaccredited ratings.

Nielsen said it would continue to work with the MRC during this period to resolve the issues that would ultimately grant accreditation for the New York people meter service.

Critics of the local people meter system reacted strongly to the decision. "We are astounded that Nielsen has decided to proceed with implementation of its LPM service in New York, despite overwhelming evidence that the sample is fundamentally flawed and in the face of the Media Ratings Council's recent decision to withhold accreditation," said Spanish-language broadcaster Univision.

Meanwhile, the battle lines were already being drawn for a new onslaught against Nielsen's efforts to launch a people meter service in Los Angeles next month, and in Chicago in August. Both services presumably would be launched without accreditation, as the MRC has not yet begun auditing those services, and is preoccupied with other matters.

DCUO has already purchased local TV ad time on Los Angeles TV stations, including KCBS-TV and KCAL-TV, to oppose Nielsen's people meter rollout in the market, and is expected to launch a new round of newspaper advertising, as well.

Station executives could not be reached at press time, but given the tight sellout levels in the Los Angeles market, the group likely paid a premium to buy the spots.

Some critics of DCUO's advertising efforts, including the MRC, have expressed concerns that such high-profile advertising might dissuade some Latinos and African Americans from participating in Nielsen's people meter samples--which, ironically, could make the samples less representative of the groups.

According to executives familiar with the TV campaign, the copy will read:


"Nielsen is launching an un-accredited service in your town."
"Nielsen has refused to listen to the requests of community leaders."
"TV doesn't belong to Nielsen. It belongs to you."
"Call this phone number to make sure Nielsen hears your voice."

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