FCC Formally Launches PPM Inquiry

PPM Probe Begins
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-09-43A1.doc

The FCC has a format Notice Of Inquiry into ARBITRON's PPM. "In his Notice of Inquiry (NOI), we seek comment on issues relating to the commercial use of a radio audience measurement device, developed by ARBITRON, INC. known as the portable people meter, or PPM. Broadcasters, media organizations, and others have raised concerns about the use of the PPM and its potential impact on audience ratings of stations that air programming targeted to minority audiences, and consequently, on the financial viability of those stations.

"They claim that the current PPM methodology undercounts and misrepresents the number and loyalty of minority radio listeners.

"They assert that, because audience ratings affect advertising revenues, undercounting minority audiences could negatively affect the ability of these stations to compete for advertising revenues and to continue to offer local service to minority audiences.

"They express concern that such undercounting could particularly affect the ratings of local, urban-formatted radio stations that broadcast programming of interest to African-American and Hispanic audiences.

"This NOI investigates the impact of PPM methodology on the broadcast industry as well as whether the audience ratings data is sufficiently accurate and reliable to merit the Commission's own reliance on it in its rules, policies and procedures.