Paramount Global, the media giant behind CBS, Comedy Central, and Nickelodeon, is poised to end its reliance on Nielsen for audience measurement. The two companies have been locked in negotiations for months, but their contract, set to expire on September 30th, remains unresolved due to a significant pricing gap. This standoff reflects a broader dissatisfaction among TV networks with Nielsen’s ability to accurately gauge viewership in an era where audiences are increasingly migrating to digital platforms like Netflix and Hulu.
While Nielsen has been the industry standard for decades, its rising costs and perceived shortcomings in tracking digital consumption have prompted networks like Paramount to explore alternatives. VideoAmp, ComScore, and iSpot are among the companies that Paramount is considering as replacements. Despite this shift, advertisers continue to rely heavily on Nielsen data.
If an agreement is not reached by the deadline, Variety reports that Paramount will begin using alternative data from VideoAmp. John Halley, president of Paramount ad sales, acknowledged the potential disruption but expressed hope for a resolution. He called on media agencies for support, emphasizing that leaving Nielsen is not Paramount’s preferred choice. However, he stressed the unsustainable nature of Nielsen’s escalating costs. Halley pointed out that Nielsen has significantly increased its fees even as Paramount faces growing financial challenges. This comes as Paramount’s co-CEOs announced the second phase of workforce reductions, expecting to complete 90% of the cuts by the end of the day.
Nielsen maintains that its services remain valuable, particularly in capturing diverse and out-of-home audiences. A source close to Nielsen’s operations asserted that the industry would still have access to Paramount’s ratings data, even without a formal agreement. However, the reliance on Nielsen remains crucial for Paramount’s major programming events, including CBS Sunday football and a vice-presidential debate scheduled for October 1st—the first day Paramount would operate without Nielsen metrics.
PARA stock closed Friday at $10.82, up 1.50%.
