New York, NY–(HISPANIC PR WIRE – BUSINESS WIRE)–February 27, 2006–Arbitron Inc. (NYSE:
ARB) announced today that Spanish Broadcasting System, Inc. (Nasdaq: SBSA), one of the largest Hispanic radio broadcasting companies in the United States, has entered into a multi-year, multi-market agreement for Portable People Meter (PPM(SM)) audience measurement services when deployed in New York, Los Angeles, Chicago, San Francisco and Miami.
These five mainland U.S. markets are served by nine Spanish Broadcasting System stations.
Raul Alarcon Jr., president, chairman and chief executive officer of Spanish Broadcasting System Inc., commented, “We are willing to make this commitment to PPM as the new currency for radio in order to provide our advertisers with the most accountable measures possible of our growing audiences. We are counting on the PPM to enhance the credibility of our programming and the value of these audiences in the eyes of our advertisers.”
“Should PPM come to Miami as part of Arbitron’s ‘radio-first initiative, we also intend to encode our TV station to uncover important opportunities for cross-promotion with our radio stations in that market,” said Mr. Alarcon.
“I commend the forward thinking of Spanish Broadcasting System for signing for PPM and embracing change for the future,” said Kathy Crawford, president local broadcast, Mindshare, a WPP Group company, one of the world’s largest media investment management companies with annual billings in excess of $17 billion.
“Spanish Broadcasting System, a pioneer in the fast growing, Spanish-language radio industry, is one of the very first radio broadcasters to support Arbitron’s Portable People Meter. Mediacom recognizes the leadership and vision of Raul Alarcon Jr. and salutes his desire to improve radio’s accountability for America’s advertisers,” said Alan Rovitzky, senior vice president, Channel Insights, Mediacom, one of the world’s largest strategic media planning and buying companies, with over $13 billion in global billings.
“Mr. Alarcon has long been an innovator in Spanish language broadcasting in the United States and recognizes the need to invest in the best,” said Carol Hanley, senior vice president, sales, Arbitron Inc. “Mr. Alarcon is making an important investment in the credibility of his audience ratings.”
“One key criteria for attaining credibility among advertisers is an ability to properly represent Hispanics as well as other key segments of the marketplace,” said Ms. Hanley. “Arbitron has demonstrated that it can field a PPM sample that reflects the diversity of the markets that we survey. Hispanics, both in terms of language preference and ethnicity, are well represented in the Houston PPM sample.”
The agreement with Spanish Broadcasting System does not commit Arbitron to a specific timetable for deployment of the Portable People Meter system. Arbitron has not yet determined when and in which markets it will deploy the Portable People Meter system to measure local market radio audiences.
Arbitron is evaluating two approaches for the commercialization of the Portable People Meter system. Arbitron granted Nielsen Media Research an option to join in the potential commercial deployment of the Portable People Meter for audience measurement in the United States. In the event that Nielsen Media Research exercises the option, then Arbitron and Nielsen would form a joint venture to commercially deploy and operate the Portable People Meter system for the collection and measurement of listening and viewing audience data in local markets for broadcast and cable television as well as for radio.
In the event that Nielsen Media Research chooses not to exercise its option to form a joint venture with Arbitron to use the PPM technology for radio and television audience measurement, Arbitron intends to offer a PPM service for audience measurement to the radio industry.
About the Portable People Meter
The Arbitron Portable People Meter (PPM) system uses a passive audience measurement device – about the size of a small cell phone – to track consumer exposure to media and entertainment, including broadcast, cable and satellite television; terrestrial, satellite and online radio as well as cinema advertising and many types of place-based electronic media. Carried throughout the day by randomly selected survey participants, the PPM device can track when and where they watch television, listen to radio as well as how they interact with other forms of media and entertainment.
The PPM detects inaudible codes embedded in the audio portion of media and entertainment content delivered by broadcasters, content providers and distributors. At the end of the day, the meter is placed in a docking station that extracts the codes and sends them to a central computer. The PPM is equipped with a motion sensor, a patented quality control feature unique to the system, which allows Arbitron to confirm the compliance of the PPM survey participants every day.
About Spanish Broadcasting System, Inc.
Spanish Broadcasting System, Inc. is the largest publicly traded Hispanic-controlled media and entertainment company in the United States. SBS owns and operates 20 radio stations located in the top Hispanic markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, including the #1 Spanish-language radio station in America, WSKQ-FM in New York City, as well as 3 of the Top
4 rated radio stations airing the Tropical, Regional Mexican, Spanish Adult Contemporary and Hurban format genres and the highest billing Latino-formatted stations in each of the three largest U.S. Hispanic markets. The Company also produces live concerts and events throughout the U.S. and Puerto Rico. On July 13, 2005 the Company announced the acquisition of WDLP-TV, a full-power television station serving South Florida. The Company also operates LaMusica.com, a bilingual Spanish-English online site providing content related to Latin music, entertainment, news and culture. The Company’s corporate website can be accessed at http://www.spanishbroadcasting.com
Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies in the United States, Mexico and Europe. Arbitron’s core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. The Company has also developed the Portable People Meter (PPM), a new technology for media and marketing research.
Arbitron’s marketing and business units are supported by its research and technology organization, located in Columbia, Maryland.
Arbitron has approximately 1,700 employees; its executive offices are located in New York City. Through its Scarborough Research joint venture with VNU, Inc., Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper and online industries.
PPM(SM) is a service mark of Arbitron Inc.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Arbitron in this document that are not historical in nature, particularly those that utilize terminology such as “may,” “will,” “should,” “likely,” “expects,” “anticipates,” “estimates,” “believes” or “plans,” or comparable terminology, are forward-looking statements based on current expectations about future events, which Arbitron has derived from information currently available to it. These forward-looking statements involve known and unknown risks and uncertainties that may cause our results to be materially different from results implied in such forward-looking statements. These risks and uncertainties include whether we will be able to:
— renew all or part of contracts with large customers as they expire;
— successfully execute our business strategies, including implementation of our Portable People Meter services and to execute potential joint venture or third party agreements;
— effectively manage the impact of any further consolidation in
the radio and advertising agency industries;
— keep up with rapidly changing technological needs of our customer base, including creating new proprietary software systems and new customer products and services that meet these needs in a timely manner;
— successfully manage the impact on our business of any economic downturn generally and in the advertising market in particular; and
— successfully manage the impact on costs of data collection due to privacy concerns, technology changes and/or government regulations.
Additional important factors known to Arbitron that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in Arbitron’s filings with the Securities and Exchange Commission, including in particular the risk factors discussed under the caption “ITEM 1. BUSINESS – Business Risks” in our Annual Report on Form 10-K.
The forward-looking statements contained in this document speak only as of the date hereof, and Arbitron undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.