5 Of The Biggest Companies In Television Are Ready To Move Past The Nielsen Ratings System
Image Source: The Wall Street Journal
In another development to the shifting media landscape, five of the largest media companies have joined forces to upend one of the longest-standing constants in the industry: the Nielsen ratings. Developed over 70 years ago, the Nielsen rating system was used as the gold standard for evaluating the size of viewership for a given show. However, with the mass adoption of streaming and digital media, there has been a gap in the system, and no one has been able to provide clear, standardized metrics, with official numbers presented differently by streaming services that have a vested interest in pulling the numbers that favor their shows, such as Netflix’s “two-minute rule.”
To combat this, Fox, NBCUniversal, Paramount, TelevisaUnivision, and Warner Bros. Discovery have created a joint committee to certify the many new technologies that have recently hit the market to measure viewership. The committee is working with the consortium Open AP which has standardized the audience segments used for advertisers in the past to address the concerns of advertisers who don’t want to work with multiple definitions of ratings.
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In the joint statement found below, The CEOs of each company highlighted the need for trusted viewership metrics in light of the shift toward streaming. With the lines between the previously ad-free streaming companies and the heavy hitters of the industry becoming increasingly blurred, the need for clear, standardized numbers has become apparent as discounted and free ad-supported subscriptions become more frequent. There is a growing desire from advertisers to have reliable numbers that they feel confident putting their money behind. Nielsen isn’t totally out of the game with a Nielsen One in the works. However, there is a good deal of skepticism since its release is not currently slated until the spring of 2024. The fact that these rivals are now working together highlights the urgency and the need for these metrics for the industry’s future.
"The sustainability of the premium video advertising model depends on an ecosystem for measurement that is transparent, independent, inclusive, and accurately reflects the way all people consume premium video content today –across multiple screens, connections, and devices. By establishing this JIC, we can collaborate and accelerate the efforts to implement a new multi-currency future that fosters more competition, inclusivity, and innovation and will ultimately better serve advertisers, agencies, and consumers."
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Source(s): Variety
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