• by Wayne Friedman , November 11, 2005

Weeks after major agencies began taking the position that they would accept only so-called "live" ratings in their negotiations with the networks when Nielsen introduces time-shifted DVR ratings next month, new variations are emerging on the theme. Some agencies see the change as an opportunity to haggle over other, more important aspects of Nielsen's TV ratings. Mediaedge:cia now says it will accept DVR audiences if the networks would agree to accept commercial ratings.

Mediaedge:cia's decision follows a report from Interpublic's Magna Global USA unit, which implies that Magna would be willing to acccept "live plus same day of DVR playback" if Nielsen removes VCR recording from its ratings. (MDN Nov. 8)

Nielsen's plan is to begin providing three streams of ratings data on Dec. 26--one that would include "live" only data, another that would provide "live" plus one day of DVR playback, and a third that would provide "live" plus seven days of DVR playback.

In its report, Magna said the notion of "live" ratings is a misnomer, because Nielsen already includes VCR recording in those estimates, which account for a significant percentage of the ratings for most shows. So actual viewing data of TV shows should be somewhat lower than it is.

Average prime-time shows can have 6 percent of their TV ratings attributed to VCRs. Other shows, like UPN's "Veronica Mars," have 30 percent or more of their ratings attributed to VCR recording, according to Magna.

Now Lyle Schwartz, senior vice president-director of media research for Mediaedge: cia, says he's considering other alternatives. "If Nielsen would consider commercial ratings, then I would consider 'live plus same day ratings,'" Schwartz told MDN. Networks would need to agree to negotiate on commercial ratings.

Another senior executive at a major media agency said that before any agreement on DVR viewership, he wants "commercial ratings" to be implemented.

The executive said: "I'd go in a different way. Existing live ratings should first be discounted." Analysts say viewing of commercials--"commercial ratings"--would, if used, deliver some 5 percent to 15 percent fewer viewers than the current program ratings.

Right now, Nielsen is offering minute-by-minute ratings--sometimes called "commercial ratings." But this isn't usable research. It hasn't been converted into a format that media buyers can use to post, or reconcile, their TV buys.

Nielsen executives did not return phone calls by press time.

"Systems would need to be developed to put that data into Donovan systems," said Mediaedge's Schwartz. Donovan Data Systems is the TV buying and posting system that is used by more than three-quarters of media agencies to buy media time.

All this activity has analysts saying media agencies are using the DVR rating issue as a way to totally re-negotiate the ways they do business with the TV networks.

Conversely, TV networks are looking to be aggressive on the DVR viewership issue, and next week a number of networks--the WB, Fox, TBS, and NBC, according to executives close to the networks--will come out with formal positions on the issue.

Their argument is this: DVRs give commercials more exposure to be counted--and as such, should command higher prices.

Fox and NBC spokespeople wouldn't comment on reports of a position paper to be released next week. TBS and WB executives couldn't be reached by press time. Other networks, ABC and CBS, won't comment right now on how they'll be handling the DVR ratings issue.

Joe Mandese contributed to this story.