FCC Diversity Committee asks for investigation of Arbitron's PPM system

From Radio Ink
(July 3, 2008) A resolution by the FCC Advisory Committee on Diversity for Communications in the Digital Age asks the commission to "investigate Arbitron's new PPM audience measurement system to determine whether the system is having or will have a detrimental and discriminatory effect upon stations targeting minority audiences."

Ratings systems are not part of the FCC's ordinary purview, so the advisory committee also wants the FCC to determine whether the commission has the authority to address any such discrimination, and to determine whether it should submit the results of its investigation to Congress "for consideration of possible legislative action or action by sister agencies." The committee would also like to have the proposed investigation finished and published by August 15, in light of the Portable People Meter's planned rollout to new markets in September.

The resolution notes that, "PPM results have been objected to as inaccurate and unreliable by some broadcast companies, and in particular, companies whose programming targets African-American and Hispanic audiences," and continues, "The imposition upon the broadcast industry by Arbitron of an audience measurement service that may not accurately measure minority audiences could lead to irreparable financial harm to stations targeting such audiences, and thus lead to the loss of service that such stations provide to the public."

The committe also says the impact of the PPM on revenues and asset values of minority stations "may be substantial enough to wipe out all of the gains anticipated to flow from the 12 new ownership-diversity policies adopted by the commission in December 2007" and could even "constitute the greatest economic loss to minority broadcasters in history."


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