Hearing Of The House Committee On Oversight And Government Reform - "Will Arbitron's Personal People Meter Silence Minority Owned Radio Stations?"

Statement

Thank you Mr. Chairman for holding today's important hearing. As Chairwoman of the Entertainment Industries Caucus I am especially grateful for this timely examination of Arbitron's use of the Personal People Meter (PPM) to measure radio audience listenership, and the impact it has had on radio stations owned by or targeted to minorities.

The PPM was introduced by Arbitron in 2007 as an electronic, seemingly more reliable way to measure radio listenership. Unfortunately in markets where the PPM was introduced all radio stations experienced a 20 to 30 percent decline in ratings, while minority radio stations experienced an even more severe decline of 70 percent. This acute ratings reduction has had a serious effect on the ability of minority radio stations to generate advertising revenue, on top of the already formidable obstacles they face in an economic landscape with little to no available credit.

While the PPM may be an improvement over the old "diary method", the process by which they choose the panelists who have their habits recorded seems to be seriously flawed. As a result, the Media Ratings Council has repeatedly denied Arbitron credentials in major markets.
Without a statistically reliable sample size the information the PPM provides has been proven to undercount populations, and distort the radio market with a disproportionate impact on minority based stations. Unfortunately, not only is the PPM system flawed, but Arbitron has a virtual monopoly on radio ratings, forcing stations to accept their data despite its harm.

I look forward to hearing from today's witnesses to learn how the PPM can be improved to help protect the radio industry for both minority and non-minority stations alike.

Thank you Mr. Chairman, and I yield back.

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