Terrestrial Broadcasters Ground Arbitron's Satellite, Web Radio Plan -- For Now

Yielding to pressure from a powerful terrestrial broadcasting group, Arbitron Thursday said it would delay a plan to begin asking people about their satellite and Internet radio listening. The decision, which was made in response to concerns expressed by a National Association of Broadcaster's audience measurement committee, will delay the proactive measurement of two increasingly popular forms of digital radio.

Currently, Arbitron measures radio audiences via a paper diary, but only asks respondents to record whether they are listing to terrestrial broadcast stations. Arbitron had hoped to add instructions asking people to record when they are listening to radio via satellite or the Internet beginning with its winter 2006 survey, but yielded to concerns expressed by the NAB to delay the process to at least the summer 2006 survey.

"While we believe that modifying the diary instructions is the right thing to do from a research quality standpoint, Arbitron has decided to address more fully our customers' concerns with a limited test of the revised instructions in 25 markets in February 2006," said Owen Charlebois, president, U.S. media services at Arbitron.

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The decision is an ironic one, because Arbitron has been under immense pressure from radio industry clients to improve its audience measurement methods, including the development of a state-of-the-art electronic measurement service. But traditional radio broadcasters are also concerned about the impact new electronic media and new electronic measurement of audiences might have on their audience and advertising market shares.

Last year, Arbitron conducted an extensive economic assessment study in conjunction with the Radio Advertising Bureau in an effort to assuage concerns about the impact Arbitron's new portable people meters would have on the radio industry. While some in the radio industry are concerned about the near-term loss of audience and advertising shares, others are even more concerned about the longer-term impact if the industry fails to accurately measure its audiences at a time when marketers are demanding greater accountability from all media.

Arbitron said the revised diary instructions that will be tested in February 2006 are meant to clarify to respondents that listening can be to over-the-air radio, Internet and/or satellite radio.

The proposed instructions would also refer to Internet and satellite radio in one of the items in the diary completion checklist. Arbitron will also include an Internet and satellite reference in the illustrated diary example.

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