I've been there. It's chess. With many ways to play it. Nielsen charges over a hundred companies for the same dataset. If they lower their contractual prices for one -- they pretty much must lower their prices for all. This is very difficult with private equity owners, who don't understand the business, wanting better returns. Paramount, (in the middle of a merger and slashing expenses) is already paying a fortune (at least in their minds) for these ratings and would love to lower their spend to support the fledgling Video Amp, iSpot, HyphaMetrics and other measurement companies who are attempting to enter this lucrative business. Meanwhile, the advertisers and agencies would love to gain some leverage, so they'll say they won't buy ads from a company that does not have MRC-accredited ratings. Yet rarely, if ever, does a media company go without Nielsen ratings for very long. As we say in the video business, stay tuned.
Negotiations are tough, especially when you have no leverage and the Paramount negotiators don’t understand the measurement products of Nielsen or the others with sufficient detail to identify leverage points. Takes knowledge to have leverage. Nielsen has faced scores of “tough talking” sabre rattlers.
Anyone else remember when CBS did this 6 years ago in the hope that folks would switch over to Comscore (which reports much stronger viewing competitively because of the way they collect and report data)? Didn't work then and I doubt it'll work now, either.
I agree. This chess game has been a “security blanket” for a long time.
Nielsen is the mafia of media. The DOJ ought to bring monopoly suit against them
Wise words from one who’s been there and seen this movie before, Marshall Cohen.
Well said Marshall
Great commentary
Erwin Ephron Demystification Award winner * Ad Age Media Maven * Champion/architect of alternative cross-platform media currencies * Proven measurement/research/analytics/data/storytelling executive, leader, and creator
2moThis is a critical moment... if Paramount is able to do business using VideoAmp, without downside (or if the downside in $ is less than the $ they save switching to VideoAmp), then the other programmers will naturally start considering making the same move.