David vs. Goliath

In a move that could be ground-breaking for the TV measurement industry, WSVN (Fox affiliate in Miami) has filed a lawsuit against Nielsen, claiming that Nielsen is a monopoly and that they publish incorrect data.

For those of you unfamiliar, Nielsen uses 3 different methodologies to first measure TV viewership and then to provide agencies, stations, and any other interested party with ratings:
- Diary Only which asks viewers to write down what they watched;
- Household Meter/Demo Diary Combo which is a mix of meters attached to the TV measuring viewership on a household level, combined with demographic information from the diaries; and
- People Meters which is the same as the household meter, but requires all viewers to enter their demographics as well, so the household viewing is measured along with individual demographic viewing.

Ideally, the methodolgies shouldn't report vastly different ratings. In WSVN's case, though, when they shifted from diaries to people meters in October 2008 (the same month the Denver TV market also switched!), the station lost almost 50% of their young adult audience (they point to American Idol's ratings in their market as an example and proof). This of course lowers the value of the station and reduces ad revenue dramatically. (Imagine you were paying $1,000 for a spot in A.I. before... why would I want to continue to pay the same rate, if Nielsen is telling me I'm only getting half the viewers in my A 18-49 demographic I thought I was!? I would want that same spot for $500 or LESS!).

Nielsen is unbelievable protective of their methodology and ratings rationale and this lawsuit could force them into a VERY uncomfortable situation. Which measurement is correct? Or are they both wrong? Hopefully this lawsuit will help us learn. Stay tuned!!

Here is the article from the station's website describing the suit in more detail (yes, it may be a bit biased, but still provides some good information!):
http://www.wsvn.com/news/articles/local/MI119585/