SBS Pulls The Plug On PPM -- Again
March 31, 2010 at 4:05 PM (PT)
In the on-again, off-again argument over PPM encoding between SBS and ARBITRON -- encoding is off-again on SBS stations.
YESTERDAY (3/30), NEW YORK Supreme Court Judge SHIRLEY KORNREICH lifted her order forcing SBS to keep encoding PPM while the legal battle remained ongoing. Almost immediately after the decision, SBS had pulled the plug on encoding on stations in NEW YORK, LOS ANGELES, CHICAGO, SAN FRANCISCO and MIAMI.
An ARBITRON spokesperson told ALL ACCESS, "ARBITRON was notified of the decision by the Supreme Court of the State of NEW YORK lifting the Temporary Restraining Order (TRO) that required SBS to continue encoding its signal in its PPM markets. We respect the Court’s decision but are disappointed and believe that the radio industry is best served when all broadcasters in a market are encoding their signal. SBS remains a valued client and we intend to continue to engage with them in an ongoing dialogue in order to achieve resolution."
The Court cited ARBITRON's numerous contracts that expire at different times across 300 different markets, which undercuts the ratings service's assertion that SBS’ pull-out, by itself, would have a material impact. "ARBITRON’s characterization of its business as one in which the loss of any one client will cause irreparable harm has not been established and is not plausible," the order stated.
"The Court considered all of the party’s submissions and came to the right decision on the facts and the law," SBS attorney JAMES SAMMATARO said
"I am glad that Justice KORNREICH considered our argument and ruled in our favor," SBS Chief Revenue Officer FRANK FLORES said, adding that SBS remains committed to reaching an amicable resolution with ARBITRON, which is why both parties have agreed to mediate their dispute before JOHN FEERICK, the former dean of FORDHAM LAW SCHOOL.
[What's your opinion of PPM? Do you agree with SBS that there are enough issues that not encoding is the correct answer? Share your thoughts with the ALL ACCESS community below.]