Why is Nielsen a monopoly?  Well, Arbitron collected television ratings up
until some time in the early 1990s, but quit when it lost too many accounts
to Nielsen.  It is exorbitantly expensive to collect television ratings,
especially if proper survey research procedure is followed:  the Nielsen
"families" must be randomly chosen, then screened to ensure there's no
conflict of interest (a journalist for the local paper living in the
household, etc.).  Then, every single television set in the home must be
wired with the Nielsen device, which is then connected to a phone line for
retrieval of the data.

This is why the Nielsen national sample was only a couple thousand
households for a long time.  Now, it's much bigger.  Last time I checked,
the Nielsen national sample was about 25,000.  

Sweeps ratings are collected in the local markets by a diary system, where
diaries are sent to households and the persons who live there are expected
to write down all the shows they watch, and who was watching them, for a
whole week.  Then mail them back, supposedly on time.  Then their
handwriting needs to be decoded and the data entered into a database.
Multiply that by the 200+ markets they collect sweeps diaries for, and you
get a sense of the scope of the enterprise.  Last time I checked, Nielsen
tabulated something like 1.6 million diaries each sweep.

I think a fair question to ask would be:  can someone come up with a better
technology by which to collect ratings? Nielsen is reportedly working on a
few ideas, such as a device embedded in a watch or cell phone that notices
what you're exposed to wherever you go (the local bar, the office TV, the
waiting room TV at the pediatrician's, etc.).  And is Nielsen doing enough
to measure non-standard television watching (such as watching stuff on Hulu,
station/network websites, downloads to iPods, dorm rooms on campus, etc.)?

More than you wanted to know, I'm sure.....

KR


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