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RBR Observation - - Infinity vs. Arbitron: The aftermath

Like the Wall Street analysts and most people in radio, we at RBR were not surprised that Infinity came back to subscribing to Arbitron's ratings after just a few weeks of operating ratings free. It had been tried before and the result was always the same. Clear Channel tried to solicit bids a few years back for creation of a new radio ratings company and got not a single response. Cumulus tested Eastlan earlier this year as an alternative for some of its smaller markets, but in the end renewed with Arbitron. So it was not surprising that Joel Hollander didn't hold out for too long in his battle with the radio ratings gorilla. We'd thought Infinity might go a whole book without ratings, but the holdout didn't even last that long.

Granted, there are many in the radio industry who are frustrated with Arbitron and believe it operates with a monopolistic approach which puts the people who provide most of its revenues, broadcasters, at a disadvantage. What's not clear is that there is any viable solution. As RBR Publisher Jim Carnegie noted in his Publisher's Perspective back in April (4/9/04 RBR Daily Epaper #70), the numbers just don't work for having two competing radio ratings companies.

The standoff between Infinity and Arbitron must have been getting pretty heated. We heard complaints that Arbitron was repeatedly harassing PDs and GSMs at certain Infinity stations not to use the ratings information. Of course, an internal memo from Hollander specifically told the station staffers not to use the information, and supposedly they didn't - - but the temptation was always there and the data was readily available to anyone with connections at other stations. We hear it got so bad that at one point, Infinity's attorneys contacted Arbitron and threatened to file suit if the ratings company didn't lay off. Of course, the threat was also there that Arbitron would be the one doing the suing if it got solid evidence of any Infinity staffer using purloined ratings data.

The end result is that we're right back where we started. Arbitron is still the undisputed king of US radio ratings. While Eastlan, The Media Audit (or somebody else) may skim off some of its business in a few markets, there's not much chance of anyone really challenging Arbitron in the biggest markets, which is where the real money is. What's more important now is for Arbitron and the radio groups to focus on giving the advertisers and agencies what the really want - - which is better data, faster data and more accountability. Whether that's PPM or not, the Arbitron diary is a ratings relic and we need to move on to the next generation of ratings technology.