Big broadcasters walk out of TAM, call rating system ‘absurd’

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In a major shake-up in the broadcasting industry, some of India’s biggest television networks have decided to stop using Television Audience Measurement (TAM) Media Research data, the only mechanism to assess TV viewership in the country. While channels have complained against what they see as TAM’s ‘unfair trade practices’ and ‘flawed methodology’ for years, this is the first time broadcasters have decided to boycott the system altogether.

Multi-Screen Media (MSM) — owner of the Sony Network of Channels — the Times Television Network and the New Delhi Television (NDTV) have written to TAM to withdraw from the system. Network 18, which owns CNN-IBN and CNBC among other channels, has a subscription with TAM till December, but has decided ‘in principle’ to withdraw and ask TAM to refund their fees. If that does not happen, sources said they would forsake the amount and walk out. Other networks are expected to follow suit soon.

The Hindu reported on Friday that Sony was considering not renewing its subscription to TAM, and channels had expressed strong reservations against TAM at a recent meeting of the Indian Broadcasting Foundation (IBF).

GROWING ANGER

Industry sources said the ‘anger’ against TAM was building up. The Hindu spoke to five senior channel representatives, who echoed each other, “It is better to have no currency than a wrong, corrupt, discredited and flawed currency.”

Man Jit Singh, MSM CEO and IBF president, said, “Even as the universe of television households is increasing, TAM data shows decreasing viewership. Why should we pay for the destruction of our own value?”

A top industry veteran, who did not wish to be identified, said, “Their panel size of 9000 metres is absolutely ridiculous for a country of India’s size and heterogeneity. Audiences are growing but TAM shows declining viewers to prevent ad rates from going up. This is because WPP, which owns 50 per cent of TAM, owns 60 per cent of advertising agencies in town.”

Another channel representative gave an example of how last week’s data had shown CNBC to have a zero rating in Delhi. “Can you believe it? It is a farce.”

IBF general secretary Shailesh Shah said individual organisations — and not the industry body — were taking decisions independently. “TAM is not effective anymore and every week when we see the data, we are driven up to the wall. It would have been funny, but for the fact that it affects the bottom-line.”

Mr. Shah, however, appeared to keep a window open for negotiations. “We need a currency. This is not a simple problem with a simple solution. The only way out is for TAM to get its act together.”

TAM CEO L. Krishnan could not be contacted on Saturday. But earlier in the week, he said that any move by a broadcaster to withdraw would be ‘unfortunate.’

Uday Kumar Verma, secretary of the Ministry of Information and Broadcasting (I&B), said that while he had not seen the letters sent by channels, such a step ‘would put pressure on TAM to improve its system.’

“The ministry has been pursuing and pressuring the industry to come up with an independent and transparent model of viewership measurement. We will welcome any move that reflects viewership truly.”

The IBF has been working on creating its own industry measurement body, Broadcasting Audience Research Council (BARC), which will have separate entities installing metres, collecting data and analysing data.

Forty eight vendors have expressed interest, and the IBF hopes to have the system up and running by March, 2014. Till then, the industry sources said, broadcasters, who had chosen to unsubscribe from TAM, and advertisers could work out separate indicators to assess a channel’s reach and popularity.

Keywords: Television Audience Measurement, TAM rating, Multi-Screen Media, Sony Network, Times Television Network, New Delhi Television, NDTV


Big broadcasters walk out of TAM, call rating system ‘absurd’ | The Hindu

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Sony mulls over withdrawing from TAM ratings system

In a move that could handicap the measurement of television viewership in the country, Multi Screen Media — owner of the Sony network of channels, and is among the country’s biggest broadcasters — is ‘taking a hard look’ at whether to renew its subscription with Television Audience Measurement (TAM) Media Research. While broadcasters across the board have expressed concerns about TAM, channels have continued to use its data till now.

Man Jit Singh, Chief Executive Officer (CEO), MSM, told The Hindu: “We are aware that TAM is the currency of the industry. But we are taking a hard look at whether having no currency or a bad currency is better.” A wrong currency, he said, led to wrong decisions on programming and advertising fronts. “Should we pay for the destruction of our own value? An active evaluation is on, and since we are up for renewal, there is a possibility of not participating at all.”

In a recent paper, the Telecom Regulatory Authority of India (TRAI) said problems with the TAM system included a non-transparent methodology; limited sample size; cross-holdings between rating agencies and broadcasters and advertising agencies; and the lack of a credible complaint mechanism. New Delhi Television (NDTV) has filed a case in a United States court, while Prasar Bharati (PB) earlier complained to the Competition Commission of India (CCI) about TAM Media Research’s “unfair trade practices”.

TAM Media Research has said it functioned “transparently” and any move by a broadcaster to withdraw would be “unfortunate”. L. Krishnan, CEO, TAM Media Research, told The Hindu, “We have a very good relationship with Sony and are open to ideas. We have not received any communication from them so far.”

He said TAM Media Research had, in recent months, expanded its coverage to 225 towns and over 36,000 respondents.

At a recent meeting of the Indian Broadcasting Foundation (IBF), the issue is learnt to have been taken up seriously again, with several channels expressing reservations.

IBF secretary-general Shailesh Shah said, “No decision of this nature will be taken at the level of the board. Individual organisations will decide. There has been dissatisfaction with the TAM system for the last ten years, but the dissatisfaction fluctuates like the weather. Nothing is happening today that did not happen in the past.”

While the complaints against TAM appear universal, channels are divided on future strategy.

Sources in NDTV hinted that some drastic action may be in the offing, but senior officials refused to comment on the record. Sunil Lulla, Managing Director and CEO, Times Television Network, and IBF board member, said: “There is not a single broadcaster who is completely satisfied with the system. But this has nothing to do with the general consumer. Why should I discuss my service provider issues with anybody?”

Jawhar Sircar, CEO, Prasar Bharati, told The Hindu: “We have strong reservations [about] TAM but until an alternative system is in place, it may not be prudent to [not] have any system at all.” A broadcaster representative, who has attended key industry meetings on the issue, said: “Look, some channels are making noise. Sony, for instance, is not happy with its IPL ratings. But no one will walk out because it will adversely affect advertisement.”

After repeated prodding by the government and having gotten wise to TAM’s limitations, the IBF is working to create the Broadcasting Audience Research Council (BARC).

Mr. Man Jit Singh, who also happens to be the IBF president, said: “The establishment study is under way. We have issued different Request for Proposals (RFPs) for installation of metres, collection of data and analysis of data and have received interest from 48 different vendors.” He said the industry would have its own measurement system by the “first quarter of 2014”.

Sony mulls over withdrawing from TAM ratings system | The Hindu

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TAM is bias in ratings. I was surprised to see Star Plus on the top during IPL qualifiers. It was very hard to believe those ratings. Total Crap.

Sent from my Celkon A119Q
 
TV ratings: Star, Zee, Viacom18, Network18 set to cut the cord on TAM Media this week

MUMBAI:The floodgates have opened, it appears, on TAM Media Research, the agency that provides TV ratings in India. First the Sony Entertainment Television Network, and the Times TV Network informed it late last week that they were discontinuing their subscriptions. NDTV’s missive followed next, saying it too was opting out.

More major broadcasters are slated to write into TAM over the next two or three days saying they are cutting the cord with it. Letters have been prepared, saying they will stop using the data and not renewing their subscriptions. The week ahead obviously is not going to be easy for TAM Media CEO LV Krishnan.

Sources reveal that those who will be joining the ranks include: Star India, (which runs Star Plus, and another 30-odd channels), Viacom18 (Colors, MTV, VH1), Network18 (CNBC, IBN7, CNNIBN, IBN Lokmat) and Zee Entertainment Enterprises LTd which runs (Zee TV and more than 30 other channels). Others too are likely to rush for the exit that leads away from TAM’s data.

The broadcast networks which have decided to not to continue with TAM's TV ratings service account for almost 70-75 per cent of the Rs 14,000 crore-odd annual Indian TV advertising spend. That's a substantial chunk (read substantial clout). Close to about 600 channels - the long tail - fight for the remaining TV ad expenditure. And a large part of these sell their advertising inventory at bulk deals, being happy with whatever comes their way from advertisers. How their programmes are rating plays a very small part in their deal making with media agencies and advertisers.

By all indications, therefore, it seems that the grim reaper seems to be advancing towards TAM Media and the TV ratings service that has been like the gold standard, the barometer, the gauge, for the TV industry for more than a decade. An estimate is that its weekly services have been responsibile for a cumulative Rs 75,000 crore of ad spends since it was set up around 12 years ago.

While LV Krishnan told indiantelevision.com over the weekend that the ratings firm would continue measuring viewership, with funding from TAM’s owners – Kantar Media and A.C. Nielsen, the road ahead looks set to get even more tortuous for the agency. Reason: with the major broadcasters backing out, an estimated Rs 15-20 crore of TAM’s revenue is likely to evaporate. TAM turned over an estimated Rs 60 crore last year.

The loss of that large piece of revenue is going to be a major blow to its bottom line. “Agreed we will not be able to expand as we have been wanting to,” admits Krishnan “I have been keeping the joint venture partners informed about these developments. We have other subscribers too who subscribe to our services, from the client’s side and from overseas.”

Sources reveal that what drove the nail in the TAM coffin was a recent meeting during the course of which private satellite channel executives gave Krishnan solutions to correct the anomalies that had crept in the ratings. One of the suggestions was to stop reporting on LC1 markets (very small markets with populations below 100,000.)

TAM had undertaken its expansion to provide LC1 coverage over the past few years at a hefty expense to add further depth to its TV ratings reportage.

For many years, the public broadcaster Prasar Bharti, has complained that its TV channel Doordarshan’s audiences consumption was not being monitored adequately. (It has even approached the Competition Commission of India to look deep into the TV ratings situation in India.) By adding LC1, TAM hoped some of the limitations in the ratings would be reduced as far as DD was concerned.

Additionally, private channels hoped that going into LC1 would give more accurate results as the TV viewership base had grown and adding more viewers from LC1 would only help their case.

But that did not happen: instead private channels saw a hefty reduction in their viewership in their respective genres. (Concomitantly, their irritation with the ratings started increasing.)

Hence, one suggestion given by the broadcasters at the meeting was that TAM stop LC1 town reportage.

But Krishnan said that could not happen.

“LVK is not getting it at all,” says a TV channel CEO. “He is a nice guy. But this is about business. His clients have been telling him there is a problem with the ratings, get it sorted out, please get it sorted out. But no solutions are coming from him. He does not know that he could well be ticking down the demise of TAM by not giving us solutions.”

Says another TV channel CEO: “The Indian broadcasting world has changed since TAM started metering TV homes to monitor programming consumption and the trends thereof. Viewing has changed, distribution to the home has changed. India is very complex and what works in another 100 countries need not work here. TAM needs to think anew, afresh and do things which are needed in a fragmented, digitised, very very diverse TV universe in India.”

What has perhaps encouraged broadcasters and the IBF to pull the plug on TAM is the fact that, after many years of deep sleep, the slothful-but-long-promised-knight-in-shining armour, the Broadcast Audience Research Council (BARC), is finally rousing. A new CEO has been appointed in media veteran Partho Dasgupta to drive it. Then BARC has sent out the call requesting bidders all over the world to send in their proposals on what the new TV ratings system should be like, just last week.

“Broadcasters are really pressing on the accelerator very hard,” says a media observer. “TAM served its purpose in an earlier era. Now they want BARC to be their TV ratings provider for this era.”

Expectations are that BARC should start churning out ratings by the second quarter of 2014. Until then, the advertisers and agencies would do well to be patient and do deals sensibly for TV advertising on other mutually agreed parameters, says a media veteran.

Does that mean that it is curtains for TAM as the bellwether for the industry, going forward?

It well may be. Unless, Nielsen, Kantar and Krishnan and his team at TAM can work some magic.

Indiantelevision.com > News Headlines > TV ratings: Star, Zee, Viacom18, Network18 set to cut the cord on TAM Media this week
 
AAAI comes out in support of TAM
MUMBAI: The Advertising Agencies Association of India (AAAI) has come out strongly in support of TAM and stated that discontinuing its ratings service as the broadcasters have been wanting to do is not a good step.

"Ratings are absolutely central to conducting advertising business with TV channels. Their absence will lead to chaos in the short term and to a decline in TV advertising in the medium term," says AAAI president Arvind Sharma.
Sharma points out that through the last three decades and across media, clients have preferred to invest in media where there is reliable measurement. "It is therefore in the best interests of broadcaster, agencies and advertisers not to disrupt the current system until the alternative BARC system starts bringing out data. I would urge the constituents to continue to support the current system until then," he reiterates.

Media observers have lauded Sharma's and AAAI's support. But old-timers pointed out to indiantelevision.com, that a stronger response is needed to a very strong IBF
 
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