MxMIndia

Tag: Kantar

  • The WPP and Nielsen co-owned TAM and joint industry body-run BARC have been in discussion for a stake sale of the television audience measurement business of TAM

    Exclusive! BARC in talks to buy TAM?

     

    By A Correspondent

     

    Entertainment television is all about twists and turn in the fictional serials. Cricket, as you would’ve heard several times over, is a game of glorious uncertainties. So why then should there be surprise over the possibility of BARC buying up TAM.

    Okay, let’s cut the tease. Broadcast Audience Research Council (BARC) has indeed been in discussions to buy the television audience measurement business of TAM, the firm jointly owned by WPP’s Kantar Media Research and Nielsen. And, yes, it’s March 12 today, not April 1.

    According to reasonably reliable sources, there have been a detailed dialogue between the joint industry body-managed BARC and TAM owners Kantar and Nielsen. The talks haven’t concluded yet and the mid-point formula that was suggested by a WPP representative has been reportedly rejected by BARC bosses.

    Both BARC and TAM were unavailable for comment, but from what one learns, BARC was seriously considering the buy.

    So why gobble up TAM when the audience research measurement activity of the measurement body was under question? Well, even as doubts were being raised, there is no denying that broadcasters, advertisers and media agency use TAM as the currency for their buying decisions. Also, as industry analyst told us, TAM comes with a ready 12,000-odd panel, established processes and teams and archival data.

    And from TAM’s point of view, why sell out to BARC? Given that all stakeholders have contributed to the BARC kitty, it’s evident that sooner or later all TAM subscribers will exit the system or want to renegotiate. Given this, it’s best to sell the existing well-oiled measurement machinery to BARC which would find it of use, said the analyst we spoke to earlier.

    TAM has already made it known to subscribers (and the media) that it will continue operations even as there is a significant number (in billings at least) of subscribers who have said they would like to unsubscribe. If TAM continues to exist, there will be several comparisons made with the new measurement system, and those subscribers who may be rated poorly by the BARC system vis-a-vis TAM may quote the latter. This could even lead to advertisers questioning the BARC data and hence cause a confusion in the marketplace.

    As reported on MxMIndia earlier, the ghost of the Indian Readership Survey has raised anxiety levels in the industry. For, MRUC and RSCI, the bodies running IRS are jointly run and owned by various stakeholders in the industry. And despite it being an industry association, print players are up in arms against the new IRS.

    BARC, meanwhile, is said to be only in the discussion with the television audience measurement business of TAM. Other divisions such as the Strategy or S Group which offers advisory service on measurement, AdEx India, RAM for radio audience measurement, Eikona for measurement of earned media and PR activity and TAM Sports, which offers special analysis of sports ROI will not be part of the deal if it goes through.

    So where do things stand now? At the time of writing, the talks have been suspended. But as the date approaches for the launch of the system, and the stakes for both BARC and TAM grow higher, the deal could well be inked. Like on television, be ready for the climax.

     

  • While content and marketing teams may still survive it, the real problem will be for media planners and buyers, writes Shailesh Kapoor

    Ready for a ratings-dark year?

    By Shailesh Kapoor

     

    The threat, and I use the word carefully, that we may end up being in the middle of a fairly long ratings-dark period in 2014, is now a real one. Kantar has taken the Indian government to court over the cabinet guidelines for TV ratings agencies. The guidelines have a shareholding pattern clause that would make TAM (in which Kantar, a WPP company, has a 50% stake) an ‘illegal’ ratings provider less than a month from now.

     

    I wrote two weeks ago on why I’m no fan of TRAI or I&B ministry interfering in the broadcasting ecosystem on the topic of ratings. But now that they have, if Kantar’s case is dismissed, we may have a situation unlike anything seen before – a running, sprawling industry will have no viewership measurement. In effect, it will have no currency to sell in.

     

    This is chaos of a magnitude far higher than what happened in 2012, where ratings were held back for nine weeks, but were still being recorded, and hence, eventually released. Here, we are staring at a no-measurement situation, not just a no-reporting one!

     

    We are in that part of the year when a lot of annual deals are signed. Typically, data from April 2013 till date can be used to arrive at cost benchmarks for these deals. The real challenge will be post-evaluation of actual deliveries. There could be nothing to evaluate at all.

     

    But the big element of chaos will come via specials and new launches. Sporting events like the IPL, the T20 World Cup and the FIFA World Cup are scheduled between March and July this year. We are also likely to have a General Election without measurement. How’s that as an idea to call a ceasefire in the news channels war? I’m not even getting into the innumerable fiction and non-fiction show launches that happen every month across 100+ channels.

     

    How will the broadcasters respond if this reality of no-ratings dawns upon them? I’d like to assume that most would want to keep a close eye on their performance through alternative methods, with the understanding that no magic is going to happen overnight when the BARC ratings start later this year.

     

    Putting monitoring mechanisms is not very difficult. Tracking day-after recall is a good indicator of directional movement of consumption of any channel or show. Many broadcasters used it effectively even during the nine-week ratings hiatus in 2012. For example, Madhubala’s recall doubled from 5% to 10% over that period. The rating averaged 2.5 TVR before the blackout, and 4.3 TVR in the week after the blackout. Hence, an accurate sense of significant positive movement was captured during the blackout.

     

    So, I believe the content and marketing teams can still survive this period, albeit with a dash of trepidation. The real issue is on the buying side. Media planning solutions are more complex than just programme and channel sampling measurement. And a currency research can be replaced only by a currency research. This is where I fear all hell may break loose. Though, it may also mean that we have the classical buyer-seller market, where negotiation skills and enterprise become the deciding factors.

     

    I’m still hoping a solution is worked out, either in the court or outside court. I&B has been making some fairly strong comments on why they needed to do what they did, without having to wait any longer. The question they should also ask is: At what cost?

     

    Whatever happens, be assured that there will never be a dull moment over the next 12 months. Fasten your seatbelts!

     

     

    TV Trails is a weekly column written by Shailesh Kapoor, founder and CEO of media insights firm Ormax Media. He spent nine years in the television industry before turning entrepreneur. The views expressed here are his own. He can be reached at his Twitter handle @shaileshkapoor

     

  • Do the government’s Jan 16 guidelines also impact Kantar’s tie-up with Tata Sky on the return path data audience research service?

    Sorry, but Kantar’s spokesperson knows nothing about the petition against the Govt of India

    By A Correspondent [updated]

    It’s possibly our ignorance that we didn’t figure that the ‘Like to know more?’ contact in the Kantar ad on Monday was none other than that of IMRB International’s Group Communications Manager – Shweta Ratnaparkhi.

    We had published the news on Monday that TAM was likely to go to Court against the Government of India on the issue of the guidelines towards television audience measurement.

    We’ve often backed TAM in the war that many have been waging against the measurement body. We believe that the government’s policy on crossholding is flawed. And that if there’s a problem with crossholding on measurement than so must it be for a newspaper or newsmagazine owners also running news channels or radio stations.

    We believe the various stakeholders paying for TAM’s services and representatives of the three key stakeholders ought to have been sitting together periodically from the last 15 years so that there was no gap in the expectations.

    We also have a strong view about the government’s FDI policy in the news media. So even as the I&B ministry believes that a majority or 100 percent stake in news and current affairs media  — print and television – cannot be permitted, it has allowed fully foreign-owned media buying and planning agencies knowing fully well that media agencies can significantly impact the financials of newspapers or news channels and hence potentially influence them.

    The esteemed spokesperson did not respond to a direct question on whether her company has taken her country’s government to court.  Hey, there’s nothing illegal in giving out a piece of information. Last evening, IndianTelevision.com had scooped the story on the government being taken to court. The story’s first version named TAM, but that was later corrected to Kantar.

    The Economic Times today reports that the “writ petition filed by Kantar on January 20 said the new guidelines have put the existence of TAM at risk even though the ratings agency has operated in the country for over 15 years”. ”The petition argues,” the reports adds, “that with the new guidelines restricting cross-holding in TV rating agencies, TAM would have to shut shop in the country”.

    While the hearing has been adjourned to next week (Jan 29), Kantar has been asked to submit documents relating to its shareholding by then.

    We too received the information from a reasonably reliable source – that Kantar had taken our government to Court. We tweeted about it.

    But in order to give more info, we needed a copy of the petition or an official confirmation. When we spoke to Ms Ratnaparkhi, she refused to disclose any information on the legal procedure her company has initiated.

    The lady must realise that by doing so she’s only forcing journalists to wonder whether she’s trying to hide something.  And even look beyond TAM.

    Like do the government guidelines also impact Kantar’s tie-up with Tata Sky on the return path data audience research service ? In April last year, Kantar Media Partners had announcement the commencement of this service that measures the behaviour and viewing habits of Tata Sky’s rapidly increasing number of pay TV subscribers. Since the guidelines pertain to all television audience measurement, the Tata Sky tie-up can also be affected.

    But, of course, Madame Spokesperson won’t answer this question. Or possibly any other. Sigh.

  • The industry grapevine suggests that TAM will take the Ministry of Information and Broadcasting to court on the deadline of the measurement guidelines

    As time ticks on measurement guidelines, will TAM take MIB to court?

    By A Correspondent

     

    With the government guidelines notified on January 16, the time’s literally ticking for TAM and the entire prevailing broadcast ecosystem.

     

    Thanks to the persistent demands of broadcasters – especially those representing news channels – to police TAM, the Ministry of Information and Broadcasting has been on an overdrive on the issue of measurement guidelines. The perception created is that news channels are required to sensationalise to score high ratings and the government, in its effort to to keep newswallahs happy and in check in an election year, is on an overdrive. How the ratings scenario will change in the new BARC-administered regime beats us, but what we do learn is that existing player TAM is contemplating taking the Ministry of Information and Broadcasting to court.

     

    The plea will most likely be that it cannot comply with the requirements on ownership within 30 days so it needs to be given time. The advertisers, media agencies and select advertisers too believe that a measurement-free regime will be counter-productive. Some advertisers in fact believe a measurement blackout will force them to review their spends on television.

     

    According to the grapevine, TAM’s co-owners had some concerns on taking the Court route. Nielsen, we were told, was averse to litigation, while Kantar wanted it. Both Nielsen and WPP, the owners of Kantar, have steady businesses in India and there’s a concern on how taking on the government could impact its relations with the government. Industry veterans though site several instances when relations with government hasn’t been impacted by legal tangles.

     

    Meanwhile, even as you read this, BARC has convened a press conference in Mumbai to make some significant announcements – possibly the name of the vendor – Mediametrie or Nielsen.

     

  • NDTV is not satisfied with the New York lower court's decision to have the Nielsen-Kantar case heard in India

    NDTV plans to appeal on jurisdiction

    By A Correspondent

     

    The lower court in New York has been hearing procedural arguments on jurisdiction, particularly whether the US or India is the appropriate forum for the case that NDTV has filed against Nielsen and Kantar.

     

    The lower court in NY felt that India would be a more convenient forum than the US. NDTV disagrees and will appeal against this decision. NDTV believes that this lower court’s decision is based on several misconceptions, legal and factual errors, and this will be outlined in the appeal.

     

    A release from NDTV said that the New York lower court did not go into the merits of the case on corruption in the Nielsen Process as used by Nielsen and Kantar through TAM, (Nielsen and Kantar are the owners of TAM). The court merely looked at where the location of the case should be heard. NDTV believes it must be heard in New York, and will pursue this on appeal in New York.

     

  • The return date for the dismissal motions will now be December 14 and not September 13

    WPP, Nielsen dismissal motions to be heard on Dec 14

    By A Correspondent

     

    The return date for the dismissal motions will now be December 14 and not September 13. As per the proposed order posted by the New York Supreme Court, on August 30, the Court granted NDTV’s application for a conference to set forth a schedule by which the three key parties (NDTV revising its complaint), WPP’s existing motion to dismiss and Nielsen’s proposed motion to dismiss the motion. (See proposed order at: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=H5fLtBSiJltQWmamdxHfhQ==&system=prod)

     

    On August 31, 2012, the Court conducted a conference, via telephone, with counsel for NDTV, counsel for the Moving Defendants (WPP) and counsel for the Nielsen Defendants. On the Conference Call, counsel for NDTV indicated, inter alia, that NDTV will conduct an investigation as to whether or not Kantar, IMRB and JWT were properly named in the Complaint, and, if not, NDTV will make the necessary changes in the Amended Complaint.

     

    Having considered all of the papers and arguments regarding the scheduling
    disputes, the Court ordered: that:

     

    1. NDTV file and serve its Amended Complaint on or before October 5,
    2012, via electronic filing;

    2. The Moving Defendants (WPP) file and serve their supplemental motion papers
    responding to the Amended Complaint, if any, on or before October 19,
    2012, via electronic filing;

    3. The Nielsen Defendants file and serve the Nielsen Motions to Dismiss on
    or before October 19, 2012, via electronic filing;

    4. NDTV file and serve its opposition papers to the Motions to Dismiss and
    the Nielsen Motions to Dismiss on or before November 16, 2012, via
    electronic filing;

    5. The Moving Defendants file and serve their reply papers regarding the
    Motions to Dismiss on or before December 7, 2012, via electronic filing;

    6. The Nielsen Defendants file and serve their reply papers regarding the
    Nielsen Motions to Dismiss on or before December 7, 2012, via electronic
    filing;

    7. The return date for the Motions to Dismiss is adjourned until December
    14, 2012; and

    8. The return date for the Nielsen Motions to Dismiss shall be December 14,
    2012.

     

  • The controversy and litigation over television viewership measurement may lead to question marks being raised on the final selection of the vendor for the unified print readership study

    NDTV-TAM war impact may be seen in print if Nielsen is appointed IRS research vendor

    By A Correspondent

     

    Measurement has suddenly become a bad word in the Indian media. Over the last month, there has been much sound and fury over TAM Media’s television ratings with news network NDTV filing a 194-page lawsuit in New York. Since last week, the channel and WPP, principals of TAM’s part-owner Kantar, have been sparring via statements issued to the media.

     

    But now MxMIndia learns that there could be rumblings in the print space too, over the appointment of the research company to conduct the unified Indian Readership Survey.

     

    The Board of the Media Research Users Council (MRUC) which manages the Readership Studies Council of India (RSCI) is scheduled to meet today and announce the results of the contract following the RFP (Request for Proposals) issued last year.

     

    In a departure from the prevailing system of the research body being a partner and pocketing 85 percent of the revenues earned from sales, in the proposed system, the researcher was to be vendor being paid a flat fee. Hansa which has been conducting the study for MRUC since around eight years tied up with Ipsos and presented a joint proposal demanding a fee of Rs 10 crore. Nielsen’s original proposal was of Rs 12 crore, but the research major has been beaten down to a little below Rs 11 crore.

     

    However, ever since the news of the appointment of Nielsen was leaked last week, it appears that the controversy plaguing the television media research space could well lead to rumblings in print if it is indeed Nielsen which will be awarded the contract.

     

    MxMIndia too learns from its sources that Nielsen will indeed be appointed vendor for the IRS. The relationship is not of partnership as of now, but that of a client-vendor, where the research company has to undertake the exercise as per a set of instructions and for a fee. A global tender was issued and a technical committee carefully pored over each of the proposals. Various proposals came in but were rejected. The Hansa-IPSOS proposal reportedly did not find favour with the decision-makers because of the consortium modeit followed. It is believed that there was opposition to Hansa from some quarters.

     

    An MRUC member this correspondent spoke with raised some alarm. “While the work put in by the technical committee is commendable and selfless, they ought to have considered the mess that Nielsen has been in thanks to its co-ownership of TAM Media. The 194-page lawsuit sees the firm getting noteworthy mention. Moreover, there have been question marks over the retail audit too,” he said on condition of anonymity. “But it would be wrong to jump to conclusions on Nielsen’s appointment. If it is indeed true, we will raise the questions and convince ourselves. We clearly wish to be certain of the new vendors’ expertise in newspaper readership measurement – either globally or in India. We can’t afford to have any publisher, advertiser or agency questioning the measurement exercise and the bona fides of the vendor as has been the case with television.”

     

    That last bit we agree with. The WPP statement came in at 10.43 pm IST last night.

     

  • WPP responds to NDTV's statement which in turn had rubbised WPP's earlier statement

    Day 3: Now WPP responds to NDTV salvo

    So you read what NDTV said about WPP’s statement. Now here’s what we just received from WPP in Q&A form to make for better understanding of the situation.

     

     

    Q1. In its press statement, NDTV has said, while they claim that the suit has not been served, WPP surely knows, or should know, that service was indeed made on the 10th of August in New York, and processes under the Hague Convention are also underway. What is the exact situation?

     

    Answer:

    We are aware that the New York lawyers acting for NDTV have filed affidavits of service with the New York court claiming to have served the proceedings on various WPP companies. Despite this, valid service has not taken place and we will be drawing the Court’s attention to these inadequate and misleading statements in our motion to dismiss the claims in their entirety.

     

    There has been a faulty, and clumsy, attempt to serve on one company, but nothing on the others at all. No lawyer acting on behalf of any WPP company has made any such statement. In fact, Kantar Media (Research) UK is not even named as a party to any lawsuit.

     

    We are taking the unusual step of proceeding to dismiss the hypothetical lawsuit, despite the lack of any valid service, simply due to the attempted “trial by media”, which has been generated by the (unserved) lawsuit. In any event, there is no merit in the purported claims, nor do the US courts have any jurisdiction to hear any such claims.

     

    Any claim should be made properly, in India, in front of the Indian courts, which are more than capable of properly hearing any valid claim.

     

    NDTV appears to be blaming their poor financial performance on the ratings. NDTV’s financial state shows a dramatic decline, with its market capitalisation declining from around US $800 million in early 2008 to around US$60 million today. Over the same period NDTV’s share price has declined from a high of Rs 512.70 to around Rs 50 today. NDTV is operating in an extremely competitive market, and its competitors have also been in a difficult position. However, NDTV’s decline is not down to any perceived failures in TAM data.

     

    Q2.Where and when does WPP plan to file the defamation lawsuit?

     

    Answer: As referred to in its statement, WPP is considering an action for defamation and this consideration will include the appropriate jurisdiction.

     

    3. Why doesn’t the operating TAM file the case?

    Answer: TAM will be considering its own action.

     

    4. You say that WPP plans to file an application in New York to strike out the NDTV lawsuit. When will that happen?

    Answer: The application is imminent.

     

    5. What else do you plan to do?

    Answer: WPP is disappointed about the “trial by media” which has been initiated by NDTV. As we have said, TAM has been, and will continue to be, committed to working with the industry to improve the use of technology, coverage and transparency of the TAM data. A series of additional steps has very recently been agreed with the industry.

    WPP is committed to working with all industry stakeholders: we would be very happy to work with the mooted BARC structure: we work extremely well with similar bodies all over the world and would be happy to do so in India.

     

    6. You said in your statement “TAM has taken and continues to take stringent measures to protect the panel against repeated attempts at tampering by currently unknown parties and has recently agreed a series of additional steps with the industry to remove any question marks about the quality and reliability of the TAM data.” The timing of announcing these steps makes it look like TAM is responding to NDTV’s lawsuit. Why didn’t TAM take these steps earlier?

     

    Answer: In fact the steps referred to are just the latest action in an ongoing process of dialogue and improvement in the collection of data and not simply a reaction to the hypothetical lawsuit referred to in the press

     

     

    Now, don’t be surprised if you find an NDTV statement tomorrow… our inboxes are waiting! But, on a serious note, all of this is sad. And sad for the Indian broadcasting sector.

  • Statement says WPP or its operating companies haven't been served any law suit as of yesterday

    WPP takes on NDTV, mulls defamation suit. Says NY courts have no jurisdiction on claims against it

    By  A Correspondent

     

    TAM Media Research’s part-owner WPP (via Kantar Market Research) finally broke its silence on the law suit filed by NDTV Limited in New York, USA.

     

    The statement asserted that the suit has, as of yesterday, not been served on WPP or any of its operating companies. And added: “There is no merit, whatsoever, in any of the claims made in the hypothetical Law Suit relating to the WPP Parties, nor do the courts of New York have any jurisdiction to hear any such claims.”

     

    “Despite the lack of any valid service, the WPP Parties are in the process of issuing an immediate application to strike out the hypothetical Law Suit and will be seeking their costs in so doing,” it said.

     

    Meanwhile, WPP is also active considering initiating legal proceedings against NDTV for defamation and has instructed its lawyers accordingly, the statement said further.

     

    The statement records the TAM being “proud of the service it has been delivering to the market for 14 years, and the way in which investment in technology has been applied to the service”. In a response to some of the charges levied in the NDTV suit, the statement says: “As recent developments indicate, TAM is committed to working with the industry to continuously improve the use of technology, coverage and transparency. TAM has taken and continues to take stringent measures to protect the panel against repeated attempts at tampering by currently unknown parties and has recently agreed a series of additional steps with the industry to remove any question marks about the quality and reliability of the TAM data.” The last bit pointing to the six action points that came out of the meeting with the ISA and AAAI last week.

     

  • NDTV takes TAM, Nielsen, Kantar and others to court for $580 million

    NDTV takes TAM, principals to US court for $580 million [updated]

     

    By A Correspondent

    Leading news and lifestyle television broadcaster NDTV has taken TAM and its principals Nielsen and Kantar to court. “We confirm we have filed a lawsuit in the Supreme Court of New York State. Because the matter is sub judice, we have no further comments at this time,” said an NDTV spokesperson. And here’s the response from the TAM spokesperson: “TAM India, a 50:50 Joint venture between Kantar Media and Nielsen, doesn’t comment on any litigation.”

    According to a report in Courthouse News Service and Entertainment News Digest (link: http://www.courthousenews.com/2012/07/30/48808.htm and http://www.entlawdigest.com/2012/07/30/1672.htm) :

    It seeks $580 million on 42 counts, including negligence, gross negligence, false representations, prima facie tort and violations of the FCPA and Dutch Corporate Governance Code. It claims that the Dutch Corporate Governance Code requires that Nielsen, a Netherlands-based company, act in the interests of all corporate “stakeholders.”

    The Defendants include five Kantar entities, TAM and 14 Nielsen group entities, Nielsen CEO David Calhoun and its directors James Atwood, Jr., Richard Bressler, Simon Brown, Michael Chae, Patrick Healy, James Kilts, Iain Leigh, Eliot Merrill, Alexander Navab, Robert Reib and Scott Schoen.

     

    [we’re unlikely to see any more updates on this, but we will update the story in case there are any]