Spanish Radio Association responds to concerns about PPM ay NY City Council Meeting.

The Spanish Radio Association was invited yesterday to attend the New York City Council meeting to testify about the adverse effect of the Portable People Meter (“PPM”) methodology on the broadcasting community and the constituents that it serves. Speakers included Frank Flores, Vice President and Market Manager for Spanish Broadcasting Systems in New York; James L. Winston, Executive Director and General Counsel of the National Association of Black Owned Broadcasters, Inc; Charles Warfield is President and Chief Operating Officer of ICBC Broadcastings Holdings, Inc.; Ceril Shagrin, Executive Vice President of the Corporate Research Division for Univision Communications, Inc.; and Joseph S. Miller, Earle K. Moore Fellow, Minority Media and Telecommunications Council.

This meeting was held the day after the New York Attorney General, Andrew Cuomo launched a formal inquiry into Arbitron, Inc. and its use of the PPM methodology for determining radio audience share in New York State. The FCC is considering making an inquiry into the PPM methodology, which the SRA continues to strongly believe is flawed and thus adversely impacts true and accurate measurement of radio audiences by misrepresenting and under-sampling minority listeners. At the same time, the SRA finds it deeply disturbing that Arbitron is persisting with the commercialization of an unaccredited methodology (except for Houston) because it is a cost-issue, which they clearly admitted in yesterday’s New York City Council Meeting.

In yesterday’s testimony, Frank Flores stated, “The real truth is that the Spanish Radio Stations will be further challenged in this new world because our ratings will be 50-60% less, which translates into 50-60% less revenues. In a market that has more than 4 million Latinos who hail from 21 different countries (with 21 distinct cultures), who can now listen to at least 5 Spanish language radio stations, will now have a choice of two – or maybe three. Simple business mathematics will rule that only the strong will survive.”

Charles Warfield stated, “Despite failing to achieve accreditation from the Media Ratings Council, the independent body responsible for evaluating the accuracy and reliability of Audience measurement data, Arbitron announced that it intends to continue the commercialization of its new PPM service. Arbitron’s unaccredited methodology produces unreliable and inaccurate measurement data. The continued, unabated rollout of PPM data by Arbitron will result in huge financial losses for radio stations serving the Black and Hispanic audiences and might even force some stations out of business. For ICBC Broadcasting Holding, this is a Civil Rights Issue. This is about survival. The commercialization of flawed ratings data will directly affect the ability of current owners to service debt, repay debt, employee staff and serve the communities we live in and are committed to serve.”

Joseph Miller said, “The implementation of a flawed PPM methodology would be akin to dropping a financial nuclear bomb-what the MMTCF estimates to be around $500 million in annual lost revenues-on America’s minority radio stations. PPM’s flawed methodology threatens to drive advertising dollars away from minority-owned stations-a slap in the face of minority broadcasters. It is absolutely critical that we give Arbitron’s PPM methodology an appropriate level of scrutiny and skepticism. The stakes are too high. The PPM Coalition does not argue against the need for laser-sharp metrics. It simply requests the presentation of potentially devastating effects of Arbitron’s flawed methodology.”

Ceril Shagrin commented, “Arbitron’s proposed new system risks inaccurately counting Hispanic radio listeners. Sample size in PPM is smaller than the diary service which limits the ways the data can be used. PPM may require larger sample sizes in order to provide stability of the data and accurate representation of ethnic populations. Arbitron sets its goals too low. They set an overall standard of 75% of persons 6 plus providing usable data and 60% of persons 18-34. That is not acceptable for currency data. Managing an ongoing panel is not the same as a weekly diary service. The quarterly diary measurement was an average of 12 different weekly sample. In PPM if the sample is not representative, users must live with that sample for months. [Panelists may participate for up to two years]. These estimates become the currency with which radio is bought and sold. Spanish radio will not continue to exist if our currency is counterfeit.”

The SRA applauds New York City Council for its concern on an issue that could greatly impact minority communities. The SRA believes that Arbitron has a fundamental misunderstanding in regards to the community aspect of Hispanic and Urban stations. Indeed, one of the core values of diversity is service to the community. Thus, the fact that Arbitron has created a methodology that requires broadcasters to change their programs to accommodate the data and gain more ratings in order to survive and prosper, will hinder them from serving New York’s vibrant Hispanic and African American Communities. Flores concludes, “We are talking about potentially silencing our community that is something we cannot let anyone do. Not now, not ever.”