Nielsen Makes Paramount Data Less Easy to Analyze As Measurement Fight Continues

Advertisers who want to know how many people Nielsen counted watching “60 Minutes” or “Yellowstone” on TV networks owned by Paramount Global may have to work a little harder to understand what all the information means.

In a memo sent Friday to executives at major ad-buying agencies, John Halley, president of Paramount’s ad sales efforts, said Paramount ratings data may be more difficult to understand after a new product update by the measurement giant. The two sides have been at odds since October 1, when Paramount revealed it would not renew its deal with Nielsen, citing pricing increases and the easier availability of other measurement technology.

“Paramount will continue to provide Nielsen with the first party schedule and program information they require to accurately measure our viewership, including live events, as we always have.  To be clear, Nielsen will be in possession of the relevant data but will be suppressing your access to that data,” Halley said in his memo. “This decision was made by Nielsen and will affect the value and utility of your Nielsen data and tool licenses.”

Nielsen said it continues to make Paramount data available to clients, albeit not in the same way as in the recent past.

“All of our clients continue to have a full view of the marketplace, as Nielsen continues to measure Paramount networks and streaming services. However, we have removed Paramount data from transactional files. We have made this data available in good faith over the past three months, even without Paramount as a client,” Nielsen said in a statement. “Removing this transactional data is a necessary step to safeguard the investments of our paying partners. We remain open to future collaboration with Paramount under fair terms.  We are engaged with select clients who are impacted and we’re guiding them through this update.”

Paramount has been relying on data from VideoAmp, one of a growing number of rivals to Nielsen, to help advertisers track the number of people who watch programming across Paramount’s portfolio of media assets. And yet, there has been some cause for debate. VideoAmp measures of audience for shows such as “Yellowstone” have in certain cases been higher than what Nielsen has counted. Nielsen’s tabulation remains the industry standard, and has the backing of industry monitor the Media Rating Council, though VideoAmp has been adopted by many major media organizations and media buying agencies.

At issue is a long-running complaint from TV networks that Nielsen isn’t measuring the many different audiences for their programming as well as it should, even as Nielsen continues to put forward new technology and concepts.

As smartphones, mobile tablets and broadband-connected TVs gain more consumer acceptance, audiences are increasingly able to stream their TV favorites in on-demand fashion, making the task of counting them exponentially more difficult. TV networks have long based their advertising rates on Nielsen’s measure of linear TV audiences, which have slipped as consumers embraced Netflix, Hulu, Amazon Prime Video and other streaming and on-demand options. An industry consortium that counts Paramount, NBCUniversal and Warner Bros. Discovery and others as members has given its backing to both VideoAmp and Comscore, another measurement competitor.

At the same time, Paramount is under extreme pressure to cut costs. The company is about to be acquired by Skydance Media, and its current management team has already begun working to trim $500 million from its operating structure. Skydance Media has articulated a plan under which it would reduce costs by another $1.5 billion.

In the memo, Paramount’s Halley vowed to continue to keep buyers and advertisers informed. “We will continue to send you stewardship, plans, etc., in terms of alternative currency, and will work with your teams to provide holistic supply looks at the market, in terms of that data, for use in your upfront planning,” he said. “We understand this is disruptive.  We will bear as much of the operational burden as possible, and will continue to strive to be the best partners in the market.”