Arbitron releases PPM estimates early, seeks injunction against attorney general

From Radio Ink
(October 6, 2008) Arbitron has released Portable People Meter ratings estimates for September 2008 (August 21-September 17) to subscribers in Los Angeles, Chicago, San Francisco, Nassau-Suffolk, Middlesex, Riverside, San Jose -- and New York City. Arbitron is seeking an injunction to block New York State Attorney General Andrew Cuomo from interfering with the release of its PPM numbers.

As of today -- two days ahead of the October 8 date previously announced by Arbitron -- the PPM estimates in the eight markets are currency, to be used as the basis for buying and selling of radio commercials among subscribing stations, agencies, and advertiser. The July and August pre-currency PPM numbers, meanwhile, are now designated as currency, and the spring 2008 diary report is no longer currency for buying and selling.

Attorney General Andrew Cuomo's office released this statement following the early release of the September estimates: "Arbitron's decision to release its unreliable and unaccredited radio ratings system is an affront to racial and ethnic minorities in New York and around the country. The Attorney General's Office cautions all advertisers and broadcasters against using these prematurely released ratings as we believe they are flawed and will be the subject of ongoing litigation.

"Arbitron's unwillingness to defend the validity of their system on its merits proves it places its own economic incentives over the interests of minority broadcasting. As a monopolist, Arbitron owes consumers an explanation for its decision to force feed the PPM system to broadcasters. Their irresponsible decision threatens the existence of diversity in radio and muzzles the voices and viewpoints of millions of Americans. Obviously, the Attorney General's Office will continue to seek justice in this case."

The National Association of Black Owned Broadcasters -- a member of the PPM Coalition that is battling the Portable People Meter rollout over concerns about its effect on minority-targeted stations -- has condemned Arbitron for its decision to release PPM data for New York and seven other new markets.

NABOB Exec. Director Jim Winston said, "Arbitron has decided to turn the PPM issue into trench warfare. The onslaught of press releases issued by Arbitron today makes clear that they have no intention of fixing the problems with PPM. Instead, Arbitron is attempting to block the New York Attorney General from engaging in the kind of independent review the PPM needs." Cuomo's office said last week that it will begin litigation against Arbitron "to enjoin unlawful and deceptive practices."

Winston said NABOB was "deeply gratified" by a warning to advertisers by Cuomo's office against using the PPM data.

Arbitron has responded to New York Attorney General Andrew Cuomo's declaration that he will sue Arbitron over the Portable People Meter with a request to the U.S. District Court for the Southern District of New York for a declaratory judgment and injunctive relief to block Cuomo's office from any attempt to restrain the publication of the Portable People Meter results.

Arbitron said Monday that any restraint on making its PPM results public "would have an adverse impact on the radio broadcast industry and advertising industries as a whole, would cause Arbitron's business to suffer severe irreparable harm, would cause economic injury to Arbitron's shareholders, and violates the company's First Amendment rights to publish its radio audience listening estimates."

Arbitron is asking the court for a judgment that the publication of PPM estimates is protected by the U.S. and New York constitutions, and for a preliminary and permanent injunction and a temporary restraining order preventing Cuomo's office from attempting to restrain or prevent Arbitron from publishing the PPM numbers.

Arbitron Chairman/President/CEO Steve Morris said, "Arbitron publicly announced in November 2007 that we intended to commercialize our Portable People Meter radio ratings service in New York with the release of the September 2008 PPM survey report on October 8, 2008. The New York Attorney General has waited until October 2, less than a week before our scheduled commercialization, to notify Arbitron that his office intends to bring a lawsuit seeking to enjoin alleged violations of New York law. Such conduct is unfair to Arbitron and is unfair to the radio and advertising industries. We are asking the United States District Court to uphold our First Amendment rights and to prevent the New York Attorney General from attempting to restrain publication of our Portable People Meter listening estimates."


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