Arbitron Plans for Reporting Additional Forms of Radio

The radio landscape is changing rapidly and we are working to provide a more comprehensive view of listening in local markets. This note provides an update on several “Better Measurement” steps Arbitron is taking to report additional forms of radio in its ratings services, including:

• New reporting policy for public and noncommercial stations
• Updated status of reporting satellite radio listening in local markets
• New instructions in the diary
• Development of HD Radio reporting standards

Public and Noncommercial Radio Stations
Arbitron had previously announced that public and noncommercial radio stations would have been eligible for reporting in the company’s local market ratings reports effective with the release of the Fall 2006 survey reports.

The Arbitron Radio Advisory Council requested that Arbitron wait to report public and noncommercial radio stations in the company’s local market ratings until Arbitron was ready to also report individual satellite radio channels and Internet radio channels.

The company is currently collecting and analyzing additional data in order to further refine rules for crediting satellite radio entries, including the rules for handling diary entries that could be assigned to either satellite or over-the-air stations.

Public and noncommercial radio stations are currently reported in Arbitron’s Maximi$er^® and Media Professional^SM respondent level data services and in the special public radio service marketed by the Radio Research Consortium (RRC). Noncommercial stations are also currently reported in Arbitron’s national radio ratings services such as Nationwide and the National/Regional Database (NRD).

Listening to noncommercial stations, Internet radio simulcasts of AM/FM stations, HD multicast stations and satellite radio will continue to be included in estimates of total radio listening (PUR).

Satellite Radio Channel Reporting Plans
At the Arbitron Radio Advisory Council meeting in July and in other forums, Arbitron had discussed plans to report individual satellite radio channels in the Fall 2006 survey reports.

Arbitron continues to collect and analyze data to further establish and test the rules for handling various types of entries that could be satellite listening, including entries that could be assigned to either satellite or over-the-air stations. As an example, rules necessary to assign entries such as NFL football or MLB baseball are being tested, since these programs are broadcast on both over-the-air radio and satellite.

Arbitron is expecting to begin reporting individual satellite radio channels at some point in 2007.

Improved Diary Instructions and Designs to Facilitate Further Study
Effective with the Fall 2006 survey, the instruction page on the inside of the diary cover is modified to incorporate Internet/satellite instructions. These changes include a modification to the language describing the term “listening,” as follows:

“Listening” is any time you can hear a radio station—whether you choose the station or not. You may be listening to a radio on AM, FM, Internet or satellite. Be sure to include all your listening.

In addition, the instruction “If you listen over the Internet or to a satellite radio service, please include the station name or channel number” is added following the instruction “Write the call letters, dial setting or station name. If you don’t know, write down the program name.” References to “Internet” and “satellite” are added to the checklist and sample appearing on the inside cover of the diary.

Arbitron tested revised Internet and satellite instructions during Winter 2006, Phase II. The results indicate that the revised instructions help improve the quality of entries and remind diarykeepers to record their listening to Internet and satellite radio. With these improved instructions, we expect the volume of satellite entries to rise and the quality of entries to improve. We will review the content of these entries over a period of surveys to better inform and enhance our edit rules.

In Winter 2007, Arbitron will conduct a test of new diary designs that will allow listeners to more easily report satellite and Internet listening and HD Radio, along with AM/FM entries. Arbitron is also making systems changes that will allow the reporting of satellite, HD2 channels and Internet-streamed terrestrial radio as separate stations with their full Station Name in Arbitron’s desktop software programs.

HD Radio Side Channel Reporting Standards Under Development
Starting with the Winter 2007 survey, Arbitron will begin collecting HD Radio facilities information as part of the station information collection process. The Winter 2007 Station Information Forms will mail in November 2006. Arbitron will continue to review diaries for early indications of how consumers identify and report HD Radio. In PPM markets in 2007, encoded HD Radio stations will be reported in the PPM Analysis Tool.