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Nielsen Vows To Defend Its National Ratings Pricing Strategy.

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A federal judge may have dealt Nielsen a setback over the holidays when she sided with Cumulus Media and granted an injunction blocking the ratings company from tying the sale of national ratings to the purchase of local market data. But Nielsen says it remains committed to defending its pricing strategy as the case moves forward.


"Nielsen maintains that its policies and practices are legally compliant, and looks forward to fully vindicating its position as the case proceeds,” a company spokesperson said.


The outcome of the case could impact how much Cumulus Media, and any other radio group that looks to buy national ratings, pays for such data. In the near term, Cumulus Media has reason to celebrate. District Judge Jeannette Vargas sided with the broadcaster when she ruled last week that it demonstrated irreparable harm from the Nielsen policy and Cumulus showed a “strong likelihood” of success on the merits of the claims brought in its lawsuit.


“The public interest weighs in favor of a preliminary injunction,” Vargas wrote in a two-page order. The detailed order siding with Cumulus Media remains sealed, but both companies are being asked to flag any potential redactions, and once that process is completed it is expected to be made public.


"We’re extremely pleased with the Court’s decision to grant our request for a preliminary injunction,” a Cumulus spokesperson said. “The ruling affirms the strength of our position and validates the arguments we’ve made from the outset."


In an antitrust suit filed in October, Cumulus Media asked the court to block Nielsen from implementing a tying policy that conditions access to national radio ratings data on the purchase of separate local radio ratings data. Cumulus Media calls it a “textbook abuse of monopoly power” that harms competition by preventing radio stations from freely choosing the local radio ratings data providers they want. The lawsuit cites a 36% increase in Westwood One’s national ratings data in 2022, along with consistent subsequent price hikes tied to Nielsen’s “tying policy” that links national and local rating products.


Nielsen has defended its policies however, accusing Cumulus Media of waging a “lawfare” campaign and telling the court last week that the radio group has been demanded an “untenable price” that Nielsen says it “never offered.” Nielsen told the court that the broadcaster sought a 50% reduction in its fees. It called the request “unprecedented” and warns if the court goes along with the request, it would “open the door” to other “improper and frivolous requests” from ratings subscribers.


Court filings show that Cumulus Media’s ratings contact expired at the end of December. Under the preliminary injunction issued by the court, if Cumulus Media moves to strike a new agreement to continue having access to the data, there will be a limit to how much it can be charged. Judge Vargas not only blocked Nielsen from enforcing the disputed Network Policy, but she also separately barred Nielsen from charging what the court called a “commercially unreasonable” standalone rate for its Nationwide Report. Her order requires Nielsen to charge Cumulus Media a 2026 nationwide ratings rate that is equal to—or lower than—the highest annual 2026 rate Nielsen charges any other broadcaster while the antitrust suit moves forward. But to maintain the injunction, Cumulus Media must post a $100,000 bond, which will remain in place until the preliminary injunction is lifted.

 
 
 
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