Nov '24 • General discussion
Helios News - Paramount prods Nielsen
Can’t start a fire … Paramount Global (PARA), the media and entertainment conglomerate that owns Viacom, CBS, and the movie studio of the same name, is testing one of the most entrenched players in the advertising ecosystem: Nielsen.
You may know Nielsen as the “TV ratings people,” but it’s so much deeper than that. Effectively, Nielsen ratings are the gold standard of television audience viewership, and advertisers rely on Nielsen ratings to understand who’s watching what. And when we say “rely on Nielsen ratings,” we mean these companies pay Nielsen just to be in the consideration set. If you’re selling TV ads, having a Nielsen agreement is just a cost of doing business.
Of course, the rise of streaming networks and cross-platform viewing has chipped away at Nielsen’s dominance, and the formerly public company (it previously traded as NLSN) was taken private by a PE firm in 2022. The cracks have been forming for years, and now it looks like Paramount is ready to test the grip of the decades-old measurement model.
Paramount is reportedly ready to let their Nielsen contract expire, should the measurement company not agree to come down on pricing. This is a big deal. Until now, TV networks had almost zero negotiating leverage since advertisers rely so much on Nielsen ratings. This could have massive implications for the media and entertainment ecosystem because if Paramount holds out, other networks could follow suit. Legacy media properties have been going through it due to the rise of streaming, and these companies would gladly cut their hefty Nielsen bills if they could.
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Helios News - Paramount prods Nielsen
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