The Deal
Wednesday, November 25, 
11:28 pm

FCC investigates Arbitron

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arbitron125x100.jpgThe government wants more data on Arbitron Inc.'s (NYSE:ARB) new-age audience tracker, the portable people meter.

The Federal Communications Commission posted a notice of inquiry into Arbitron's use of the device to measure radio audiences on Monday.

Arbitron describes the gadget as a "portable, cell-phone-sized device that electronically tracks exposure to radio, broadcast television and cable media as consumers wear it throughout the day."

Broadcasters and attorneys general have said that the device undercounts minority listeners, diminishing the advertising clout of media targeting these groups. Arbitron has settled with New York, New Jersey, and Maryland AGs, pledging to take steps that would make its audience measurements across racial lines more equitable.

As media and tools that track readership, viewership and other stats grow more complex, conflict may be inevitable.

The New York Times has taken issue with Nielsen Co.'s new figures on Web traffic, for instance.

However inventive Arbitron and Nielsen may be, the companies have not yet devised a stat to gauge the pain that newspapers, broadcasters and many consumers are feeling as media evolves. - Chris Nolter

See the FCC's notice of inquiry into the portable people meter.

 

See related story about Nielsen's online metrics from Dealscape

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