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Nielsen Ratings in the Age of the Internet

alphadogg writes "If everyone started watching '24' or 'CSI' on video iPods or streamed over the Internet — instead of on TV in their living rooms — these top-rated shows would probably go the way of 'Cop Rock.' This is because Nielsen Media Research cannot collect data about what people watch on handheld video-viewing gadgets or from PCs streaming network TV shows. While Nielsen estimates around 90% of TV viewing still happens in homes, it's this burgeoning 10% that TV networks and advertisers are desperate to delve into." Note that this story is obnoxiously spanning 6 pages. For a publication named "Network World" you'd think they'd know better.

6 of 176 comments (clear)

  1. Re:No Nielsen data, but download numbers by Apocalypse111 · · Score: 5, Insightful

    They may have more reliable data on how many are watching these shows, but they may not necessarily have good data (if any) on who is watching these shows. Companies like to tailor advertisements to a particular demographic, and without that demographic information connected to a show, regardless of how well its doing, I imagine that advertisers would be somewhat reluctant to throw money at it.

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  2. We might switch by Dan+East · · Score: 4, Insightful

    Interesting the timing of this story, because I received my DirecTV bill yesterday, and see they tacked another $10 on out of the blue. The only time we watch TV is for specific shows (at the moment Battlestar Galactica, Lost and Survivor). We watched the previous 2 seasons of Lost (48 episodes) entirely from downloads off the internet, and we are now watching it "live" since we are caught up with the storyline. So on one hand, had we not been able to download and watch the older shows, we definitely would not be watching the new episodes live. So in that specific case "offline" viewing resulted in an increase in live viewing.

    However, considering the cost increase at DirecTV, I'm now seriously considering completely pulling the plug on Satellite / Cable, and just downloading the shows we watch. They are usually available online within an hour or two of airtime. If the shows were available online for purchase, and if they were offered in a format that was conducive to what we want (ie no DRM), we would consider purchasing them. The total cost should still be less than our DirecTV.

    Our kids watch more TV than we do, but I still download and burn shows for them to watch. For example, all the Invader Zim episodes, and just in the last few days they've really enjoyed the classic Bugs Bunny cartoons they've only just been introduced to.

    So yeah, a change is coming, that's for sure. Right now this type of activity is limited to the more technical minded folks (for example, I download toons in DivX, and re-encode to MPEG1 VCD for the kids to view in the car - a pretty involved multi-step process to get the audio encoded in-synch). However, it won't be much longer until our parents will be doing this too. Recently I was surprised to visit my Aunt and Uncle (typical computer / www type users), to find them involved in an orgy of DVD burning. If they only knew of the availability of content on the net, and were instructed on how to get it to disc, they would certainly join in as well.

    The moral is that the networks need to be as unlike the RIAA (and to some extent, the MPAA) as possible and get good (DRM-less), formal online access channels in place to their content ASAP before the general public switches to methods completely outside their control (aka no advertising or Nielsen tracking, etc).

    Dan East

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  3. They know perfectly well by MerlynEmrys67 · · Score: 4, Insightful
    Note that this story is obnoxiously spanning 6 pages. For a publication named "Network World" you'd think they'd know better.
    Do you think they make their money by letting you read the content of the article, or by putting ads on the screen with them. I really wonder if people are so simpleminded as to think companies do things for charity - use bandwidth, create content, provide services, etc.

    Of course it spans 6 pages. That way if you like the article - they get 6 ad views. Perfect for them

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  4. Re:What a load of... by vitroth · · Score: 5, Insightful

    Why do you still need the advertisers?

    Think about it. Traditional TV is a indirect-funding system. Networks pay for TV shows to be made and sell advertising time during the airing of the shows. The typical viewer gets the show for "free" (modulo any cable/satellite costs). The expectation is that the advertising will translate into additional sales for the companies purchasing ads, thus justifying continued purchase of those ads.

    Systems like the iTunes store provide a direct funding model between the consumer and the producer. Sure the sales aren't enough at this time to fund the show directly, but if they become great enough to pay the entire cost of the show, why should there be ads?

    I think the true story is is Nielsen whining about *their* funding model going away. They make money by helping the networks set rates for their indirect-funding system. If that becomes irrelevant, Nielsen becomes irrelevant.

  5. Doesn't ANYONE here know how the Neilsons work? by CyberLord+Seven · · Score: 5, Informative
    Neilson media does NOT pull viewing statistics directly from people's television sets. The vast majority of their data comes from...

    ...drum roll please...

    viewing diaries!

    Boxes set up in people's homes cost money to make and money to install. It is far cheaper and easier to ask people to keep a simple diary of what they watch and then collect the diaries. I would'nt be surprised if the diaries are kept online now instead of in dead-tree editions in the home.

    Hey, there's a great programming project!

    Somebody hack Neilson to grab and distort the online diaries. >8^D Maybe we can get Star Trek: Enterprise back on the air. >8^P

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  6. "cannot collect data" by Phat_Tony · · Score: 4, Insightful

    Saying that Nielsen ""cannot collect data" on this is clearly false. Yes, it's true their automated data collection boxes can't get it.

    But my household was chosen to be a one-month Nielsen family a couple of months ago, and they sent us a journal in which were asked (and payed) to log each TV show we watched on TV.

    We thought this was particularly silly to only ask us to log what TV shows we saw on TV, rather than log every source of video we watched, from going out to the movies, to silly 1-minute clips on YouTube, to Amazon Fishbowl, to bittorrented TV shows, to movies or TV shows on DVD we checked out of the library.

    As it happens, we hardly watch any TV, and we had company that week, it was a hot summer week and we don't have air conditioning, and it was summer reruns. We never once turned on the television that week. Although I actually didn't need those qualifiers, it's not uncommon for us not to turn on the TV all week. Most of the TV shows we watch, we watch on our computer on DVD's we get from the library. Which they didn't ask us to write down.

    But it would have been just as easy for them if they had. Perhaps they won't get as accurate information if they ask people to keep their own journals instead of logging things automatically. But if they pay people well, and maybe even send out some largely automated electronic devices that allow people easily search for and click on what they watched (when possible), they can certainly still get this data. There was a "commentary" section, in which we got an opportunity to give them a piece of our minds about canceling Firefly.

    There was a "commentary" section, in which we told them that most of the video we watch, including TV shows, is not broadcast TV. We also took the opportunity to give them a piece of our minds about canceling Firefly.

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