Wall Street Loves The Arbitron/PPM Coaltion Agreement
April 26, 2010 at 4:22 AM (PT)
WALL STREET analysts are reacting positively to last week's announcement (NET NEWS 4/22) that ARBITRON and the PPM COALTION had reached an agreement on some changes to PPM methodology that pleased the group representing minority broadcasters.
Said ARBITRON Pres./CEO WILLIAM T. KERR, "One of my top priorities has been to resolve responsibly the concerns of the PPM COALITION regarding PPM methodology. Today, THE COALITION and we announced an agreement for enhancements to our recruitment methodology that are designed to be a net benefit for all our PPM customers. My thanks go to Chairman EDOLPHUS TOWNS and to THE MEDIA RATING COUNCIL for their roles in advancing this agreement."
TODAY, CJS SECURITIES analyst ROBERT LABICK termed the agreement as "a huge positive step forward". With this agreement, LABICK expects ARBITRON to get a renewal with UNIVISION COMMUNICATIONS and to reduce its legal expenses.
"The near-term impact of the PPM COALITION settlement is the positive in removing the high-profile critics of ARBITRON's PPM roll-out," GILFORD SECURITIES analyst JIM BOYLE said in an e-mail.
ARBITRON plans to commercialize 15 new PPM markets in 2010 compared with 19 last year.