Tag: Nielsen

  • NY court orders NDTV to file revised lawsuit; WPP, Nielsen dismissal motions to be heard on 14 Dec

    MUMBAI: After a ding-dong battle between news broadcaster NDTV and global advertising major WPP, there is finally something one gets to hear from the New York Supreme Court which will decide the outcome of the legal dispute.

    The New York Supreme Court has ordered New Delhi Television Ltd (NDTV) to file and serve its amended complaint (lawsuit) against television ratings provider TAM Media Research, its owners Nielsen and Kantar and their associate companies by 5 October 2012.

    The court order follows a court-conducted conference call on 31 August between counsels for NDTV, WPP and Kantar (the defendants who have filed for dismissal of the lawsuit filed on July 26), and Nielsen.

    The conference call was held pursuant to a letter application by NDTV requesting a conference with the court to set forth an appropriate schedule for the motions to dismiss by WPP, the intended motions to dismiss to be filed by the Nielsen defendants and the intended amended complaint to be filed by NDTV.

    During the conference call, counsel for NDTV indicated that the broadcaster will investigate whether or not Kantar, IMRB and JWT (WPP group companies) have been improperly named in its lawsuit, as per the claim made by WPP in its petition to dismiss the lawsuit.

    NDTV has filed the lawsuit alleging that TAM and its owners knowingly allowed manipulation of ratings data to favour channels that offered bribes. In response to this, WPP which owns half of TAM through its companies Kantar and Cavendish B V, filed a motion to dismiss the lawsuit on grounds of invalid jurisdiction on 28 August.

    The dismissal motions of both Nielsen and WPP groups will be heard on 14 December 2012.

    Having considered all of the papers and arguments regarding the scheduling disputes, the New York court ordered that:

    1. NDTV file and serve its Amended Complaint on or before October 5, 2012, via electronic filing.

    2. The Moving Defendants file and serve their supplemental motion papers responding to the Amended Complaint, if any, on or before October 19, 2012, via electronic filing.

    3. The Nielsen Defendants file and serve the Nielsen Motions to Dismiss on or before October 19, 2012, via electronic filing.

    4. NDTV file and serve its opposition papers to the Motions to Dismiss and the Nielsen Motions to Dismiss on or before November 16, 2012, via electronic filing.

    5. The Moving Defendants file and serve their reply papers regarding the Motions to Dismiss on or before December 7, 2012, via electronic filing.

    6. The Nielsen Defendants file and serve their reply papers regarding the Nielsen Motions to Dismiss on or before December 7, 2012, via electronic filing.

    7. The return date for the Motions to Dismiss is adjourned until December 14, 2012.

    8. The return date for the Nielsen Motions to Dismiss shall be December 14, 2012.

  • Nielsen replaces Hansa Research to handle IRS

    Nielsen replaces Hansa Research to handle IRS

    MUMBAI: The Media Research Users‘ Council (MRUC) has decided to award the Indian Readership Survey (IRS) contract to the Nielsen Company.

    The decision was made on the recommendation of Readership Studies Council of India (RSCI). Earlier, the IRS contract rested with Hansa Research.

    The formal award of contract will follow a process of legal due diligence. A comprehensive nine month process that began in November 2011, with the formation of the RSCI by its sponsors, the MRUC (Media Research Users‘ Council), and ABC (Audit Bureau of Circulation) preceded the decision.

    The process involved the active participation of 20 senior representatives of advertisers, agencies and publishers who served on the RSCI managing committee, as well some of the sub committees formed to vet every aspect of the submissions – from technical superiority to fieldwork integrity, research cost, organisation strength and stability. Another 24 senior industry professionals contributed to the technical deliberations, under the chairmanship of the technical committee Paritosh Joshi.

    Joshi said, “Proposals were received from the most hallowed names in the media measurement universe and the quality of submissions was uniformly high. The knowledge and skill on display drew upon the very finest professional capability available globally. Developing an RFP award recommendation was an unusually challenging task. The Nielsen Company proposal, that has won the approval of the Council, was exceptional in its methodological rigour, comprehensiveness and future readiness. The design recommendation and resources committed to the project should enable the Indian Readership Survey to reassert its position of preeminence in Indian media measurement.”

    RSCI chairman Lynn de Souza said, “Our objective through the process was twofold – one, to achieve the construct of a study that would be the gold standard all over the world in readership measurement. And two, to involve all industry stakeholders in the decision making process with a spirit of collaboration and teamwork. The months and years ahead will present several challenges as we introduce a first ever data capture system – the Dual Screen CAPI (Computer Aided Personal Interview) – a system that will reduce interview time, respondent fatigue and confusion, and interviewer bias of any kind.”

    She added, “I am overwhelmed by the seriousness and commitment of the many industry seniors who gave freely of their time on weekends, and holidays as well, to help the RSCI arrive at a decision. Thank you would not be enough. Ravi Kiran, our marketing chairman, was also very helpful in enabling us to identify new revenue sources given that the new IRS will be captured, stored, disseminated and analysed digitally.”

    Nielsen India MD – media Prashant Singh said, “The MRUC‘s belief in the innovative techniques and technology proposed for the forthcoming Indian Readership Survey will certainly transform market research in India, improving quality and the effectiveness of gathering and applying consumer insights for businesses and marketers. Nielsen is honoured to have been chosen as its partner in this landmark study that will no doubt shape all future research across India.”

  • TAM owner WPP speaks up, threatens defamation suit against NDTV

    TAM owner WPP speaks up, threatens defamation suit against NDTV

    MUMBAI: WPP, the world’s largest communications services group, has threatened to file defamation proceedings against New Delhi Television Ltd (NDTV) for offensive allegations made by the Indian news broadcaster in its lawsuit in the New York Supreme Court.

    NDTV has filed the lawsuit alleging gross inaction against manipulation of television ratings in India by TAM Media Research, its parents AC Nielsen Research Services Private Limited and Kantar Market Research Services Private Ltd, and Kantar’s owner WPP, which is listed on the London Stock Exchange and on Nasdaq.

    NDTV has sought $810 million as compensation for the loss in revenues it has suffered over the years because of manipulated viewership ratings and $580 million in penalty for negligence by Nielsen and Kantar officials.

    “In the light of these circumstances, WPP is also giving active consideration to issuing proceedings against NDTV for defamation and has instructed its lawyers accordingly,” WPP said in a statement on Wednesday.

    WPP and its operating companies – Kantar and TAM — are in the process of filing an “immediate application” in the New York court to strike out the law suit, which it has dismissed as “hypothetical”. It said it will also be seeking costs for having to do so.

    TAM had so far declined to comment as the matter was in the court.

    WPP said, in the light of the media comments following the filing of the NDTV suit, “it feels it is appropriate to comment on the lawsuit.”

    WPP pointed out that the lawsuit has not been served on WPP, nor on any of WPP’s operating companies, referred to in the NDTV lawsuit. “In any event, there is no merit, whatsoever, in any of the claims made in the hypothetical Law Suit relating to the WPP Parties, nor do the courts of New York have any jurisdiction to hear any such claims,” the WPP statement said.

    Referring to the six-point action plan proposed by TAM last week, WPP said, “As recent developments indicate, TAM is committed to working with the industry to continuously improve the use of technology, coverage and transparency. TAM has taken and continues to take stringent measures to protect the panel against repeated attempts at tampering by currently unknown parties and has recently agreed a series of additional steps with the industry to remove any question marks about the quality and reliability of the TAM data.”

    The six steps outlined by TAM include appointment of a security officer and a security agency, expansion in the number of peoplemeters in six top metros, an industry review of the research processes, independent audit of outlier homes, faster rotation of the peoplemeter homes and setting up of an internal audit team.

  • TV channels paid, TAM officials accepted bribes: NDTV’s whistleblower

    Mumbai: Some television channels pay bribes to have their viewership ratings falsely boosted. Those who help the television channels in subverting the ratings system are the ones who are supposed to be the flag bearers of the television ratings agency’s noble duties.

    These are the allegations made by broadcaster New Delhi Television Ltd (NDTV) in its lawsuit in New York against Nielsen, Kantar, their Indian joint venture TAM and their senior officials.

    The basis of the allegations is revelations by a consultant, who provided on ground services to TAM. NDTV claims the revelations were made at a meeting of NDTV, Nielsen and Kantar officials on 20 January 2012. Robert Messemer, chief security officer at The Nielsen Company, was also present at the meeting.

    NDTV has referred to the unidentified consultant as the whistleblower. A whistleblower is a person who reports illegal activities going on in an organisation. But the consultant is, in fact, an approver having admitted to accepting bribes himself. The consultant said he accepted bribes from TV channels and in turn paid bribes to TAM officials and to some of the people who have allowed TAM to install peoplemeters at their homes.

    According to the lawsuit, the whistleblower consultant told the officials present that he was even successful in bribing TAM officials to have a peoplemeter installed at his home. The norms disqualify the consultant from having a peoplemeter deployed as the consultant belonged to the television industry.

    NDTV said the 20 January meeting was also attended by Piyush Mathur, president, India region, The Nielsen Company.

    NDTV subsequently said that at a meeting on 11 April 2012, the representatives of Nielsen and Kantar had “unequivocally admitted” that the information provided by whistleblower consultant was highly credible.

    NDTV has supported its claim of television channels paying a bribe through the admissions of an unnamed employee of a broadcaster that indulged in illegal gratification. It said on 24 February 2012, (the employee of) a broadcaster, whom it did not identify, met NDTV officials Rahul Sood and Kirandev Hiremath.

    The broadcaster employee told the NDTV officials that “his channel was involved in corrupt practices to fix ratings.” He even named a cable operator from Hassan in Karnataka, who acted as a consultant for fixing ratings for his channel.

    To support its allegation that TAM officials were prone to manipulation, it has referred to a meeting its representatives — Rahul Sood, Sidharth Barhate and Anand Mohan Jha – had with two field staff members of TAM on 3 April 2012 at Ramada Plaza Hotel at Juhu in Mumbai. NDTV has not named the two employees in its lawsuit.

    NDTV claimed the TAM employees told its officials that they were willing to manipulate TAM ratings in Mumbai. The two employees claimed to have manipulated ratings for other channels in the past and were willing provide the same “services” for “any” channel that was ready to pay the demanded consideration (bribe).

    They were confident that they could triple channel ratings of NDTV in Mumbai over a period of two to three weeks in the required target group. They said by paying a bribe of $250 to $500 per household per month, the TAM households could be made to watch only those channels which they insisted upon.

    NDTV said the Ramada Plaza meeting was viewed by an external surveillance agency, which took photographs of the employees. Those photographs were shown to Bob Messemer in New Delhi on 27 April 2012.

    On 11 and 12 April, NDTV said its representatives were provided information by Nielsen and Kantar officials that there were cases of several field employees who had refused promotions for last few years simply because at their current positions their alternate source of income was higher than what their salary would be on being promoted.

    Nielsen’s security chief had admitted that proper security practices were not being followed by TAM and that theft and leakage of data was rampant. He had also admitted that in India, the entire system was corrupt from top to bottom, NDTV claimed.

    Subsequent to the meetings held in New Delhi in April 2012, Puliyel, a director on the Board of TAM and a Kantar official, wrote an “evasive” email on 19 April to NDTV, with copy to Piyush Mathur of The Nielsen Company, merely mentioning that there had been a board meeting of TAM and they were doing some additional analysis on reporting samples by channels to examine the threshold for reporting and frequency of reporting, etc.

    NDTV said there was no mention in the email whether the TAM board had even considered stopping the release of “what had now been confirmed” as corrupt television viewership data, as was agreed at the meetings held on 11 and 12 April.

    These instances, if proved to be true, would mean TAM did little to weed out corruption despite years of efforts of NDTV. TAM would have also violated the Nielsen Code written in 1931. Impartiality, thoroughness, accuracy, integrity, economy, price, delivery and service are the hallmarks of the code.

  • London Olympics draws record viewership

    MUMBAI: London Olympics started with an exceptional performance especially in the United Kingdom with 23.5 million viewers tuning in for the opening ceremony on BBC1 for an 82.3 per cent market share, making it the top of the year so far, according to Eurodata TV Worldwide trends.

    Viewing figures were also high across the World for the spectacular opening ceremony. In France the event gathered great audiences on TF1 with 8.7 million viewers and a 56.9 per cent market share, that is to say a better score compared to Beijing 2008 (5 million viewers on France 2).

    Over in Germany on ZDF, 7.6 million sports fans watched the event for a 43.5 per cent market share. Although this matched results for Beijing, it nonetheless represents a drop compared to Athens 2004, partly due to the length of the ceremony added to the time difference.

    Among Spanish audiences on La 1, the event gathered 5.6 million viewers with 46.1 per cent market share, more than doubling the results of Athens 2004. This huge rise demonstrates that the Spanish are more and more enthusiastic for sports in general, thanks to the incredible success of local athletes and teams.

    Italians also appreciated the Opening Ceremony with more than 5.5 million people tuning in on Rai 1 with a market share of 42.6 per cent, in line with previous Games.

    In China, despite a big time difference, CCTV1, CCTV5 and CCTV News realised good figures (all three channels combined) with 22.2 million viewers and a 49 per cent market share. It is the proof that the previous Olympics created a keen interest.

    The data used is from multiple sources to capture the viewership of the various countries. These are: Eurodata TV Worldwide; Médiamétrie (France); Nielsen (USA); Auditel (Italy); BARB (UK); AGF,GfK Fernsehforschung (Germany); CSM Media Research (China); Kantar Media (Spain).

    The women’s football competition started with a big match between two favourites for the gold medal: France and the USA. This game, the remake of the 2011 FIFA World Cup semi-final, achieved great audience in France with 1 million viewers and a 8.8 per cent market share on France 4, compared to a 2.2 per cent channel average market share over the first semester of 2012.

    In the UK, BBC1 gathered 1.8 million viewers and a 18.3 per cent market share for the game between Great Britain and New Zealand. These results demonstrate the increasing support for women’s football, as it commands increasingly impressive TV audiences.

    Men’s basketball started with big expectations on Sunday. The new US Dream Team was up against France, one of the strongest challengers. On France 3, the game was followed by 3.9 million viewers and a market share of 33.3 per cent. The match was a huge success both for the spectacular game and the impressive TV audience figures taking into account the usual little regular exposure of basketball.

    Road cycling, one of the most popular competitions, took place on 28 Saturday. Reason: Bradley Wiggins won the Tour de France in July, his appearance at the Opening Ceremony once again, stoking British enthusiasm for the sport.

    In the UK, BBC3 averaged 788,100 viewers with a 7.7 per cent market share for the race and peaked at 2 million viewers (18.5 per cent market share) just before the last hope for a British medal disappeared in this race.

    Eurodata TV Worldwide vice-president Jacques Braun said, “The United Kingdom is known worldwide as a country of sports tradition, so this event could be seen as a symbolic return to their roots. Furthermore, the Euro 2012, the NBA Finals, the Tour de France and Wimbledon were great boosters for this amazing sports summer with the performances of Bradley Wiggins and Andy Murray. The performance of cycling in this Olympics demonstrates again the ingredients of TV ratings success: a whole country or city getting behind their hero with medals at stake.”

  • NDTV lawsuit: Govt may investigate TAM

    NEW DELHI: The NDTV lawsuit in New York against TAM Media has spurred the government, which has for some time been closely studying the methodology for TAM ratings, into action to consider launching a probe into the alleged fudging charges after several complaints from broadcasters.

    The government had earlier this year told Parliament that BARC (Broadcast Audience Research Council) would issue its first report by July 2013, but this does not seem possible at present, a senior Prasar Bharati official told Indiantelevision.com.

    Star India CEO and IBF (Indian Broadcasting Foundation) president Uday Shankar has blamed the AAAI (Advertising Agencies Association of India) and ISA (Indian Society of Advertisers) for slowing down the progress of BARC. In March 2012, BARC was officially formed with IBF having 60 per cent stake in the new entity and AAAI and ISA equally holding the balance.

    The official blamed the current television ratings system for not being able to capture Doordarshan‘s audiences in its correct light, despite the pubcaster enjoying the largest reach in the country.

    NDTV sought damages of $810 million as compensation for loss in revenues suffered over the years and $580 million for negligence by Nielsen and Kantar officials, the owners of Tam.

    The report by Amit Mitra Committee on setting up BARC came about 18 months ago. The committee had felt self-regulation was the best way forward for the broadcasting industry. It had cautioned that failure on the part of the industry to meet defined timelines, the government may be left with no option but to step in.

    Also read:

    NDTV lawsuit may trigger Govt action on BARC

    NDTV sues TAM, Nielsen for manipulation of data

  • NDTV sues TAM, Nielsen for manipulation of data

    NDTV sues TAM, Nielsen for manipulation of data

    MUMBAI: Television news broadcaster NDTV has filed a lawsuit in New York seeking injunction against publication of television ratings by TAM Media Research and also compensation and damages, a move that can have major implications if the allegations are proved right.

    The lawsuit has been filed against TAM, its parent companies Nielsen and Kantar Media Research and senior officials of the companies in the Supreme Court of the State of New York.

    NDTV has demanded $810 million as compensation for the loss in revenues it has suffered over the years and $580 million in penalty for negligence by Nielsen and Kantar officials.

    In the petition, NDTV has accused the companies of knowingly allowing manipulation of viewership data in favour of channels that are willing to provide bribes to its officials.

    According to NDTV‘s complaint (a copy of which is with Indiantelevision.com), “rampant manipulation” of viewership data has been going on for at least eight years. “The loss of revenue caused to NDTV on account of the false, fabricated and manipulated data released to the public by Nielsen, Kantar and TAM over the past eight years is not less than $810 million,” it states.

    “This is a case, brought under New York State laws, of negligence, gross negligence, false representations, prima facie tort and negligence per se… This is also a case of a once noble company, Nielsen…exhibiting unabashed short term greed and reckless disregard of its duties and of its noble origin. It is a case of the two largest audience measurement conglomerates in the world, Nielsen and Kantar, formerly competitors, operating worldwide through a deliberately complex web of subsidiaries and joint ventures, creating, at least in India, a monopoly and abusing the power of that monopoly,” the lawsuit reads.

    NDTV has also stated that it presented evidences to Nielsen and other parties and its senior officials promised to take remedial actions. However, all promises to make changes proved to be a “sham” and bad data continued to be released “recklessly and in pursuit of profits.”

    At a meeting NDTV had with Nielsen and TAM officials on January 20 2012, NDTV had arranged a detailed presentation by a whistleblower, who was a consultant providing on ground services to TAM. The consultant informed those present that he used to bribe TAM personnel as well as peoplemeter homes in order to manipulate ratings for TV channels and he was successful at doing so. The consultant further stated that he was also able to bribe TAM officials to select him as a sample PeopleMeter home and had a PeopleMeter installed in his own premises.

    NDTV has not disclosed the identity of the consultant in the lawsuit. The 20 January meeting was also attended by Robert Messemer, Chief Security Officer at The Nielsen Company.

    NDTV is being represented by attorneys Adam Finkel and Rohit Sabharwal.

    “The primary reason that data could be so easily manipulated in India was due to the persistent refusal of Nielsen and Kantar to provide adequate funds for TAM to increase its sample size and invest in the systems/quality/security procedures,” the lawsuit says.

    Apart from TAM, Nielsen Group, Kantar Media Research, WPP, JWT, IMRB International, and the Nielsen directors are also made party to the lawsuit.

    NDTV claims that TAM is employing an inadequate sampling size for the Indian market, and also of using inadequate security measures to protect its data. It has also alleged that the lack of security has led to an atmosphere of widespread corruption, with different networks bribing sample households to watch them, and TAM employees taking bribes in exchange for helping to game the numbers.

    The lawsuit lists 42 counts against Nielsen, Kantar, TAM and other defendants, ranging from breach of fiduciary duty and gross negligence to tortious and negligent interference with prospective economic advantage.

    “TAM India doesn‘t comment on any litigation,” said a spokesperson of TAM, a joint venture of Nielsen, Kantar and Cavendish Square Holdings B.V.

    Earlier in 2001 Outlook Magazine and later in 2002 Zee Group had carried exposes on manipulation of TAM ratings.

  • Nielsen Q2 net income jumps to $103 mn

    Nielsen Q2 net income jumps to $103 mn

    MUMBAI: Global research company Nielsen‘s net income for the second quarter increased to $103 million compared to $69 million in the second quarter of 2011, driven by an overall reduction in costs.

    Revenues for the second quarter decreased 1 per cent to $1.38 billion compared to the second quarter of 2011. Adjusted EBITDA for the second quarter increased 1 per cent to $389 million.

    “Nielsen delivered solid second quarter results that reflect the reliable growth and stability of our businesses. We continue to benefit from the value we create for our clients and their confidence in our unique ability to serve the media and consumer goods industries across the globe,” said Nielsen CEO David Calhoun.

    Revenues for the first half of 2012 increased 1 per cent to $2.72 billion compared to the first half of 2011 while adjusted EBITDA for the first half increased 2 per cent to $721 million.

    Net income for the first half of 2012 was $128 million compared to a net loss of $112 million for the first half of 2011. The 2011 first half results included charges of $206 million, net of tax, associated with the IPO.

    As of June 30, 2012, cash balances were $283 million and gross debt was $6.56 billion, excluding the $288 million mandatory convertible subordinated bonds due 2013.

    Net debt (gross debt less cash and cash equivalents) at the end of the quarter was $6.27 billion. Capital expenditures were $152 million for the first half of 2012 as compared to $142 million for the first half of 2011.

  • Advertising picks up in 2012: Nielsen

    MUMBAI: Advertising spending across television, newspapers, radio, outdoor, Internet and cinema see an increase in the beginning of 2012 compared to last year, according to Nielsen’s quarterly Global AdView Pulse report.

    Though TV continues to attract the majority of ad dollars, Internet advertising sees the biggest increase, with advertisers spending 12.1 per cent more in Q1 2012 than one year prior. During that time, ad spend overall increased 3.1 per cent globally.

    Across the regions, the findings are markedly different as each media has taken root and evolved uniquely.

    Television: Dollars devoted to TV advertising grew 4 per cent in North America, second only to outdoor, and 7.5 per cent in Latin America. In the Middle East and Africa, TV ad spend grew a whopping 33.8 per cent.

    Internet: Online ad spend was a bright spot for the industry, with growth around the globe. Growth was particularly notable in Europe (12.1 per cent), Latin America (31.8 per cent) and the Middle East and Africa (35.2 per cent).

    Print (Magazines and Newspapers): Magazines saw a minor decline compared to last year, but newspapers grew by 3.1 per cent. In Latin America and Asia Pacific, both media grew by 7.6 per cent and 10.3 per cent respectively in Latin America, and 3.6 per cent and 5.4 per cent in Asia Pacific. North America saw nominal declines in print ad spend.

    Radio: Radio saw increases in every region around the globe, including a 2.6 per cent increase in North America and 2.8 per cent in Europe. In emerging markets in Latin America and Middle East and Africa, those increases were much higher. Radio grew 18 per cent in Latin America and 21.1 per cent in the Middle East and Africa.

    Cinema: In the Asia Pacific, cinema grew by 27.1 per cent, offsetting the declines seen in Latin America and the Middle East and Africa.

    Outdoor: Still a nascent industry, outdoor is growing rapidly. In the past quarter, outdoor ad spend increased by 6.4 per cent globally. This included gains of 4.4 per cent in North America, 45.3 per cent in the Middle East and Africa and 21.1 per cent in Asia Pacific. Only Europe experienced a decline.

  • Shivanand Shenoy joins MRSS India

    MUMBAI: MRSS India, the Indian arm of market research agency Majestic MRSS, has brought on board Shivanand Shenoy as a senior director for client servicing.

    Shenoy will be supervising the IT, online and FMCG verticals for MRSS. He will also be heading the new vertical of ‘Digital Research’.

    The verticals that Shenoy will look into will mainly revolve around social networking sites and mobile penetration.

    Shenoy said, “Market Research is no more only about questionnaires and telephonic surveys. When the largest section of consumers are into social networking and mobile phones, so in order to make them understand we need to speak in their own language. Thus we need to use modern ways to gather more information and reach the target audience. MRSS India is pioneer is getting many technologies to India. This not only helps to reach the target audience in easy and most convenient way but also helps in filtering and sorting the information gathered.”

    MRSS India chief mentor and principal adviser Sarang Panchal added, “We believe that embracing digital is the new marketing imperative. It is a game changer, and how companies will win, moving forward.”

    Shenoy is a senior marketing professional with over 15 years of experiencing in analyzing the markets and the overall scenario for various industries. He specialises in providing market/consumer insights to companies in services, IT – hardware and FMCG industries.

    In the past he has been associated with companies like A.C. Nielsen, Intel Corp, DHL Express and Reliance Industries.