‘We are certainly not packing up our tent'

US-- Arbitron has set out its stall to defend its radio ratings business in the 50 small to medium-sized markets Nielsen will soon be operating in.

CEO Steve Morris said in a conference call with financial analysts late yesterday: “Let's be clear up front, radio is our core business and we will aggressively protect it.”

Nielsen took its first steps into the US radio ratings business yesterday when it picked up a contract to measure audience figures for stations owned by Cumulus Media and Clear Channel in certain areas outside the top 100 radio markets.

Morris said the loss of the Cumulus and Clear Channel business in the affected markets would see the firm take a $7m hit to revenue next year, and $10m annualised.

It could stand to lose up to $11.5m a year if other stations in the 50 markets leave to sign up with Nielsen.

But the agency will fight “to demonstrate the superiority of our method in these markets”, Morris said.

He added: “Arbitron does not intend to concede any turf. We are certainly not packing up our tent.”

In fact the competition between Nielsen and Arbitron could be set to spill over into the TV ratings space as Morris refused to rule out Arbitron's move into the sector with its portable people meters (PPMs). He said it was an option open to the firm and “nothing is off the table”.

Arbitron's shares closed down 10% yesterday on news of Nielsen's contract win.

• The Associated Press reports today that Federal Communications Commission (FCC) member Jonathan Adelstein has written to chairman Kevin Martin calling for the commission to investigate whether Arbitron's PPM system is undercounting the audiences of stations that target ethnic minorities. Arbitron claims the FCC does not have the jurisdiction to assess PPM, and should leave such matters to the Media Rating Council. Following calls from broadcasters for an inquiry, Martin said last month that he was unsure whether the body has the authority to investigate PPM.

Author: James Verrinder