The chief research executive for one of the fastest growing digital tier networks - Current TV - Wednesday made an impassioned plea to a group of top industry executives to help solve a vexing bias in
the way TV households are sampled that handicaps smaller and emerging channels. The plea, made by Current TV Vice President Research Theresa Falcon in a joint presentation with EVADConsulting
President Frank Foster during a meeting of MPG's Collaborative Alliance in New York, sparked a debate among several leading TV ratings developers in the room, but TV ratings giant Nielsen was
conspicuously absent.
The plea followed the presentation of an analysis by Foster showing that smaller cable networks must reach disproportionately more of Nielsen's panel households to
generate comparable ratings. Foster implied this was due to a methodological glitch, and the fact that Nielsen's total national sample of about 14,000 households is not nearly large enough to
accurately represent smaller TV outlets as the medium continues to fragment.
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"The drops in viewing can be precipitous," Foster said of the impact on smaller channels, and noted that it would
become even more exacerbated in February 2009, when the federally mandated transition to digital broadcast spectrum occurs and many local broadcasters begin multicasting as many as six niche channels
in their markets, fragmenting the ratings pie exponentially and putting an acute strain on Nielsen's sample households.
Current's Falcon offered a glimpse of that future yet to come, revealing
her own frustration after subscribing to Nielsen's preliminary ratings for Current TV over the past couple of years, which she implied still is far from ready for prime-time.
"We noticed a lot of
challenges with the numbers," she said. "There were crazy swings in household and demographic numbers in regards to concentration - really high highs and really low lows month-to-month."
She
implied the dramatic fluctuations were due not to actual shifts in audience viewing patterns, but to instability in Nielsen's ratings methodology and the tiny base it uses to project national TV
audiences.
"How does a network account for some of the things we came across," Falcon implored, adding that the "accuracy and usability" of Nielsen's ratings are, "questionable for us at this
time."
She said Current TV is turning to some new players for a solution, especially TNS, the research company that was recently acquired by Madison Avenue giant WPP Group. TNS has been
developing a new TV ratings system derived from actual digital set-top data from cable and satellite TV operators. It's big payoff, she said, would be the launch of TNS' Direct View service in
January, a ratings system that will launch with an initial base of 100,000 DirecTV households in its sample, and which plans to expand to 200,000 soon.
She said Current TV also is exploring other
options, but that each of them as certain drawbacks, including TiVo's audience measurement service, which is based exclusively on DVR households, and Rentrak's audience service, which grew out of a
tracking system for the TV industry's pay-per-view and video-on-demand sales.
In a lively, spontaneous debate among representatives of TNS, TiVo and Rentrak, all three said they were moving
rapidly to fill the void and to address their own respective methodological concerns.
Asked by MPG Collaborative Alliance host Mitch Oscar if anyone from Nielsen had anything to add, the room was
silent.