TV Ratings Challenged By FAST Channels

01.01.23 09:15 AM Comment(s) By Michael Kokernak

Dropping significance of measuring viewership through panels

FAST Channel attractive distribution for programmers
FAST channel distribution being used by almost all programmers

Nielsen Media Research is a company that provides television ratings data to the media industry. This data is used by television networks and advertisers to determine which shows are popular and to make decisions about programming and advertising. However, Nielsen's method of measuring television viewing has several limitations, particularly when it comes to people who watch TV using FAST channels.


One limitation of Nielsen's method is that it relies on a panel of households to provide viewing data. These households are chosen to be representative of the general population, but there is always the possibility of sampling error. Additionally, some households may be more likely to participate in the panel than others, leading to bias in the data.


Another limitation of Nielsen's method is that it does not account for viewers who watch TV on FAST channels. FAST channels are streaming services, such as Netflix and Amazon Prime, that offer a large selection of TV shows and movies on demand. These channels have become increasingly popular in recent years, but Nielsen's method of measuring television viewing does not take them into account. This means that the ratings data provided by Nielsen may not accurately reflect the true popularity of a show if a significant portion of its viewers are watching it on a FAST channel.


Furthermore, Nielsen's methods also do not account for the viewing habits of younger demographics, who are increasingly turning to streaming platforms as their primary source of television content. With the increasing trend of cord-cutting and the shift towards streaming services, traditional TV ratings will become less relevant and should be re-evaluated to reflect the new ways of watching television.


Another limitation is the fact that Nielsen relies on a sample of viewers, which may not be representative of the entire population. For example, Nielsen's sample may not include viewers who watch TV on mobile devices or tablets, or viewers who watch TV on FAST channels. This means that the ratings data provided by Nielsen may not accurately reflect the true popularity of a show.


Additionally, Nielsen's methods do not account for “time-shifting” which is when viewers watch a show at a different time than it was originally aired, such as recording a show on a DVR or watching it on demand. This means that the ratings data provided by Nielsen may not accurately reflect the true popularity of a show if a significant portion of its viewers are time-shifting.


In conclusion, Nielsen Media Research's method of measuring television viewing has several limitations, particularly when it comes to people who watch TV using FAST channels. The increasing popularity of streaming services, the shift of younger demographics towards streaming platforms, and the growing phenomenon of time-shifting means that traditional TV ratings will become less relevant and should be re-evaluated to reflect the new ways of watching television. It's important for the media industry to recognize these limitations and to consider alternative methods of measuring television viewing.

Michael Kokernak

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