Nielsen Media Challenged Lawsuit

TV ratings company to pay undisclosed settlement in antitrust lawsuit.

Nielsen Media Challenged

Tampa, FL: (Apr-01-08) erinMedia LLC, a Clerwater based company, brought a lawsuit against Nielson Media Research, a television rating venture, alleging that it operated a monopoly in measuring television audiences. The antitrust lawsuit was filed in 2005, when erinMedia president Frank Maggio, who at the time was trying to launch the television interactive gaming channel ReacTV, envisioned erinMedia, to be able to track audiences using data from set-top cable boxes that already are in a large number of television homes.

The suit stated that Maggio wanted erinMedia to expand that service to the major networks but felt that Nielsen's practice of audience sampling, which the television ratings giant had conducted for decades, stood in the way of making such a move viable. The suit alleged that Nielsen entered into staggered contracts with major television networks that depend on the common currency of one ratings system to help set advertising rates. Since none of the networks could leave Nielsen at the same time, the suit claimed each one was forced to continue with Nielsen, shutting out other potential ratings aggregators like erinMedia as a result.

As part of a settlement reached in the case, the parties agreed to an undisclosed payout. Sources at Nielson stated that the deal will not impact any business practices at Nielsen. [TAMPA BAY BUSINESS JOURNAL: NIELSEN, ERINMEDIA SETTLE ANTITRUST SUIT]

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