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Networks Bankroll Nielsen Competitor
The four majors have long been upset with the Nielsens (to whom each pays $10 million annually for detailed ratings demographics) over what they say are inconsistent numbers and undercounted viewers, especially for "event" shows like the Super Bowl or the Seinfeld finale when viewers gather en masse at bars and parties.
The new system, from Statistical Research Inc., bears the cutesy acronym SMART (Systems for Measuring and Reporting Television) and promises to give a more accurate viewer count as well as be more prepared for a digital future when it officially begins metering viewers in two years. Specifics of how it plans to achieve these goals were not laid out.
Oddly, MTV and USA Networks were both absent from the latest announcement. Both had championed the new system in recent months, but an MTV exec told Daily Variety Monday that they now have higher priorities.
SRI's looking to get $100 million in its war chest before taking on the Nielsens. Presumably, the remaining $40 million not covered by the nets would come from cable networks and syndicated stations.
Critics of the new system say it's a case of Fox (and the other networks) guarding the hen house and that ad agencies wouldn't be able to rely on the objectivity of the new ratings. But SRI's defenders claim that six agencies have already signed on to the new system and that others will soon join.
If nothing else, the fear of the new competition has already spurred Nielsen to launch tens of millions of dollars of improvements in its system. The messenger seems to be putting on body armor for the battle.
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