SBS Stops Using PPM, Univision Signs On

How do you say "You win some, you lose some" in Spanish?

Spanish Broadcasting System has stopped encoding its audio signals for measurement by Arbitron's Portable People Meter, again -- but another major Spanish-language radio group, Univision, said it will begin encoding for the first time.

The SBS announcement represents a legal victory for the broadcaster, which earlier stopped encoding for PPM as part of a contractual dispute with Arbitron, but was then forced by a temporary court restraining order to begin encoding again.

This week, New York Supreme Court Judge Shirley Kornreich reversed her earlier decision, lifting the temporary restraining order, which means SBS can stop encoding its signal again.

In a statement, SBS said: "The court's reversal of its earlier TRO is a significant victory for SBS, which ceased encoding its broadcasts based on a loss of confidence in Arbitron's PPM methodology and its belief that the methodology under-counts minority audiences to the detriment of the minority radio broadcasters."

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Kornreich's decision was based on her finding that Arbitron failed to show it will suffer "permanent and irreparable harm" from SBS' decision not to encode.

In February, Arbitron secured a court order requiring the Spanish Broadcasting System to encode for PPM ratings as per the terms of its contract with Arbitron -- effectively terminating an SBS boycott protesting alleged shortcomings in Arbitron's PPM sampling methodology.

SBS signed a contract with Arbitron for radio audience measurement by PPM -- a passive electronic measurement device -- in June 2007, including a requirement that SBS encode its audio signals so they can be measured by PPM. Since then, PPM has become embroiled in controversy focusing on Arbitron's failure to meet target sample sizes for minority listeners, which minority broadcasters claim results in apparent declines in audience size, damaging their ad business.

Amid this ongoing dispute, SBS says it requested a credit -- or refund -- from Arbitron last year in accordance with their contract. Arbitron has previously offered refunds if it failed to deliver certain minimum target sample sizes for various audiences. After Arbitron refused to grant SBS a credit in 2009, SBS stopped paying for PPM ratings, which Arbitron stopped delivering shortly before the New Year. (The media research firm claims SBS now owes it a total $2.5 million in unpaid fees).

On Feb. 4, SBS stopped encoding its audio signals in New York, Miami, Chicago, L.A. and San Francisco. On Feb. 11, Arbitron responded by obtaining a restraining order from the New York State Supreme Court requiring SBS to begin encoding for PPM again. At a second hearing on Feb. 16, the court confirmed that SBS must continue encoding for PPM measurement, at least for the time being. However, as noted, the latest decision reverses these early rulings.

It's not all bad news for Arbitron, which needs as many Spanish-language broadcasters as possible to participate in PPM measurement, so it can provide a more accurate picture of the minority media landscape.

On Thursday, Univision announced that its radio stations in Miami, San Diego, Phoenix, San Antonio and Las Vegas will all begin encoding their signals for PPM measurement -- signaling some kind of deal between Univision and Arbitron after months of acrimonious public disputes.

Citing the same concerns about minority audience sampling, Univision initially refused to begin encoding for PPM last summer. It's not clear whether Univision is also subscribing for the ratings. Still, its decision to at least encode for measurement represents a significant win for Arbitron.

As the saying goes, a veces se gana, otras se pierde.

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