Arbitron Settles Lawsuit Alleging Bias in Radio Ratings System

By BRIAN STELTER

Arbitron, the radio ratings company, will overhaul a new measurement system for radio stations under a settlement announced Wednesday with the New York and New Jersey attorney general’s offices.

The agreement settles a three-month-old lawsuit by the states, after accusations that Arbitron’s new ratings system did not adequately account for young black and Hispanic residents, people who do not speak English, and cellphone-only households.

Owners of minority-oriented radio stations had asserted that Arbitron’s estimates of their audience size dropped significantly when the new system, called portable people meters, were introduced in New York, Philadelphia and surrounding regions. A coalition of minority radio broadcasters said that the lower ratings would “disenfranchise minority communities and have a devastating impact on small businesses.”

To measure ratings for radio stations, Arbitron recruits a panel of individuals to record their radio listening habits. Arbitron has sought to replace the old diary system with a small device that electronically records the frequencies of stations. Arbitron has said the ratings are more reliable because they do not rely on the memories of participants. People tend to listen to more radio stations than they remember, causing the total audience to be more fragmented. But minority stations have claimed that they are undercounted in the new system, in part because Arbitron has struggled to include representative numbers of young and minority listeners in its sample.

Under the agreement with the states, Arbitron is required to “substantially improve” the methodology for the people meters, the office of the New York attorney general Andrew M. Cuomo said in a statement.

In addition, Arbitron will pay $260,000 to New York and $130,000 to New Jersey to resolve the suit, pay $100,000 to a trade group associated with minority radio stations, and pay for an advertising campaign supporting minority radio.

“With this lawsuit, we sought to address the misrepresentation of a flawed product in the marketplace and its impact on the communities that need the most protection,” Mr. Cuomo said in a press release. “This agreement ensures that Arbitron will fairly measure radio listenership in New York and fairly represent New York’s diverse radio market.”

In a statement, the N.A.A.C.P. president, Benjamin T. Jealous, commended Mr. Cuomo for “fighting against unfairness and discrimination in the radio marketplace.” Several companies that own urban radio stations also said they welcomed Mr. Cuomo’s actions.

Arbitron said the changes would be made “within the framework of our continuous improvement program” for the people meters.

COURTESY OF THE NY TIMES