Paramount Prepares To Part Ways With Nielsen For Audience Measurement Over Pricing Conflict

Paramount Global PARA is on the verge of ending its reliance on Nielsen for audience measurement.

The two companies have been negotiating for months but remain far apart on pricing as their contract nears its September 30 expiration.

The ongoing conflict highlights broader dissatisfaction among TV networks with Nielsen’s audience measurement capabilities.

As more viewers migrate to digital platforms like Netflix and Hulu, traditional methods of measuring linear TV audiences have been criticized.

Nielsen has long been the industry standard, but its rising costs and perceived shortcomings in tracking digital consumption have prompted networks like Paramount to explore alternatives like VideoAmp, ComScore, and iSpot despite advertisers’ continued reliance on Nielsen data.

Variety noted in its report on Thursday that Paramount, which owns CBS, Comedy Central, and Nickelodeon, would begin relying on alternative data from VideoAmp if an agreement is not reached.

John Halley, president of Paramount ad sales, acknowledged the potential disruption but expressed hope for a resolution.

In a letter to media agencies, Halley called for support, stating that leaving Nielsen is not Paramount’s preferred choice. However, he emphasized that the rising costs of Nielsen’s services are unsustainable for the company.

Halley noted that Nielsen has increased its fees significantly, even as Paramount faces growing financial challenges.

Earlier this week, in a memo to employees, Paramount’s co-CEOs indicated that the company would begin the second phase of workforce reductions that day, expecting to complete 90% of the cuts by day’s end.

Nielsen, meanwhile, asserts that its services are still valuable, particularly in capturing diverse and out-of-home audiences.

A person close to Nielsen’s operations claimed the industry would still have access to Paramount’s ratings data, even without a formal agreement.

However, the reliance on Nielsen remains essential for Paramount’s major programming events, such as CBS Sunday football and a vice-presidential debate scheduled for October 1—the first day Paramount would operate without Nielsen metrics.

Price Action: PARA stock is up 1.50% at $10.82 at last check Friday.

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