Arbitron Portable People Meter Development Program Pushed Back.

Arbitron Inc. announced an update to the status of the Portable People Meter development program.

Arbitron and Nielsen Media Research are negotiating an amendment to their existing agreement that would provide for further research and development of the Arbitron Portable People Meter audience measurement system.

The Arbitron Portable People Meter (PPM) is a new radio, television and cable audience ratings technology that Arbitron has been testing in Philadelphia since the fourth quarter of 2000.

Arbitron and Nielsen signed an agreement in May of 2000 that gives Nielsen Media Research the option, after evaluating test results and market support, to join Arbitron in a future deployment of the PPM system in the United States.

“Since Arbitron began the Portable People Meter market trial in 2000, Nielsen has increased its involvement and commitment with each new phase of the development program,” said Steve Morris, president and chief executive officer, Arbitron Inc. “Our two companies are looking at the possibility of defining one or more additional phases of research and development that would precede any decision to form a joint venture to deploy the Portable People Meter in the United States.”

“The details of this program are being discussed and will be announced at an appropriate time,” said Mr. Morris. “The outcome of this discussion, along with the results of this enhanced R & D program and acceptance of our efforts in the marketplace, would determine whether Nielsen will commit to the formation of the joint venture and the commercial deployment of the Portable People Meter.”

Before this announcement, both Arbitron and Nielsen had acknowledged that, at the earliest, the potential joint venture might have been formed by the end of the fourth quarter of 2002.