TV networks are mad at Nielsen. Can that company still count in the streaming age?
NEW YORK — Since 1950, media research company Nielsen has been the scorekeeper for the TV business. Networks depend on its audience measurement data as they compete for $65 billion spent annually on advertising.
The relationship has at times been rocky. Whenever TV networks saw significant changes in the ratings — often caused by emerging technologies such as the growth of cable and DVR usage — their reactions toward Nielsen could rival tennis legend John McEnroe's court rants at a major tournament.
Tensions rose to a new level after networks saw television viewing drop during the COVID-19 pandemic, when most Americans spent much of 2020 indoors.
Network executives believe the New York City-based company undercounted its audiences.
Nielsen relies on 40,000 homes nationwide that agree to have measurement equipment installed in their households to track their viewing habits. Nielsen uses the information from the so-called panel of homes to tabulate local and national TV ratings. However, the COVID-19 pandemic limited Nielsen's ability
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