Radio

If you thought that the departure of Elliott Spitzer from the public scene might have put out the FCC’s fire for enforcement of the payola rules, think again. That fire is still blazing. In recent days the Enforcement Bureau has sent out letters of inquiry to a number of Spanish-language radio stations demanding responses concerning allegations of payola.

Attorney General Anne Milgram announced today that the state is suing Arbitron, monopoly provider of audience ratings data to U.S. radio stations, charging that its use of a new, unaccredited system for measuring listenership harms minority consumers and violates New Jersey’s consumer fraud, advertising and anti-discrimination laws.

Attorney General Andrew M. Cuomo today announced that his office has filed a lawsuit in New York County Supreme Court against Arbitron, the largest media ratings company for the radio market in the United States. The lawsuit accuses Arbitron of deceptively claiming that its Portable People Meter (PPM) system is valid, fair, and representative of diverse radio markets. It also charges Arbitron with failing to disclose important flaws in the PPM methodology to broadcasters, advertisers, shareholders and the public, including serious shortcomings in the accuracy of the new system and its inadequate representation of African-Americans and Latinos.

Arbitron Inc. released the following statement in response to the resolution passed today by the New York City Council.

“The New York City Council’s decision to call on the Federal Communications Commission to investigate Arbitron’s Portable People Meter (PPM) system should serve as a wakeup call for local governments and minority communities around the nation. Arbitron’s flawed PPM ratings methodology will severely harm media diversity and ultimately limit the variety of voices and viewpoints on our country’s radio airwaves. It is a real threat, not only to minority communities but could also have a devastating impact on local economies and needs to be taken seriously. The PPM ratings methodology should not be rolled out until all concerns are effectively addressed.

Yesterday, Arbitron stood in front of the NY City Council and made both inaccurate and contradictory statements.

AHAA would like to reiterate that there is NO issue with the PPM INSTRUMENT. The problem is the METHODOLOGY: the accurate representation of the Hispanic radio listening audience.

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.