In an effort to extract even more money from radio broadcasters, Arbitron has followed through with its threat to banish non-subscribers from publicly available rankers.
Now pay Arbitron or you don’t exist.
But Arbitron’s scorched earth strategy has another more ominous component: terrorizing small broadcasters.
An Arbitron lawsuit filed last year against a Dothan, Alabama station illustrates the company’s increasingly aggressive effort.
Dothan is a small southern Alabama town near the Florida panhandle border. Arbitron ranks the metro number 190 out of the 300 markets the company measures.
The town’s most prominent landmark is a giant golden peanut in front of the chamber of commerce.
Serving a population of little more than 200,000 people, you’d think WKMX, the town’s CHR, wouldn’t find itself in the cross-hairs of Arbitron’s lawyers.
Think again.
In a lawsuit winding its way through Gotham City’s courts, Arbitron is suing the station for $350,000 alleging copyright violations and breach of contract.
What transgressions did WKMX commit to warrant Arbitron’s wrath and a potential six figure penalty?
Apparently a radio trade story on Program Director Billy Sexauer’s morning show success caught the attention of Arbitron’s legal vultures eagles.
It is alleged that said PD mentioned taking the morning show from 7th to 1st in women 18-49.
Not only that, the station had the chutzpah to brag on the air that it was the most listened to station in Wiregrass! (Wiregrass is a reference to the area.)
Apparently, a station can’t shout “We’re Number One!” without paying Arbitron.
Apparently a Program Director can’t brag about his/her station’s success without first checking to see if the Arbitron bill has been paid.
You see, you don’t own your numbers. You rent them. It’s like that beer joke.
Arbitron rents them to you, controls how you use them, and controls when you use them.
And if you stop paying Arb, you lose the right to even mention the ratings that you’ve already paid for.
Actions like delisting non-subscribers and suing small market ex-clients are all about intimidation, making stations think twice about cancelling Arbitron.
Radio's growth is slowing. Budgets continue to tighten.
Growing numbers of broadcasters are questioning the value of Arbitron ratings, particularly when Arbitron's revenues are growing faster than radio's.
Broadcasters are turning their backs on Arbitron's carrots, and the company has responded with sticks.
Last year Bill Kerr, Arbitron’s CEO, declared that Arbitron wanted to be an advocate for radio, a friend of the medium.
Apparently his friendship was short-lived.
Great article. As the owner of a company that has the ability to offer barter to stations that are arb rated for development of mobile applications for their streaming radio, it is interesting to see how things will pan out. As long as Arbitron remains the standard by which advertisers choose to pay for spots, it will be tough to win the battle against them. Good article.
Posted by: Andy Lynn | April 25, 2012 at 01:58 PM
as an owner of two suburban market FM's in St Augustine/Jacksonville, FL (WYRE FM) and Annapolis/Baltimore, MD, (WRNR FM) I can relate. Arbitron has made several good faith attempts in upselling their services to our stations. But as suburban signals in these major markets, the costs of their services far out weigh the return on investment..and with fewer meters in the county specific areas we serve within these markets, justifying the expense is even more difficult..
Posted by: steve kingston | April 24, 2012 at 03:16 PM