To keep pubTV in Nielsen count, CPB will help purchase encoders

Expanded from article in Current, Nov. 20, 2006
By Karen Everhart

A grant program to be announced by CPB next month will subsidize station purchases of encoding devices that enable Nielsen Media Research to track time-shifted television viewings on TiVo and other digital video recorders. [Grant guidelines posted by CPB, 2007.]

Public TV lags far behind other TV networks in installing Nielsen Audio Video Encoders. NAVE devices insert a unique, inaudible audio signal into each television channel that can be detected by Nielsen’s new active/passive meters. Nielsen began introducing the A/P meters last year, and they now track the viewing habits of 25 percent of its national and local viewing panels, according to Steve McGowan, senior v.p.

As few as 35 of the 343 PBS transmitters, covering 41 percent of the Nielsen sample, have the encoders, said PBS research chief John Fuller.

In the large metro areas where Nielsen has meters operating, stations lacking the identifying code are not counted in the ratings of individual programs or dayparts, and local viewing vanishes from national ratings, too, according to PBS. [See FAQ below.]

	The Norpak (top) and Wegener (lower) encoders cost $6,000 to $7,000 each.

“This is a critical technology for identifying usage of video-on-demand,” McGowan said, and one of several Nielsen plans to introduce over the next several years in its Anytime Anywhere Media Measurement (A2/M2) initiative.

CPB is working with PBS to develop specifications for the grants and a “hassle-free” application process for stations, according to Michael Levy, CPB spokesman.

Encoders range in cost from $5,950 to $6,850, depending on how many different program streams they’re built to handle, according to PBS.

Public TV stations that aren’t encoding their signals have a “death wish,” said David Liroff, chief technology officer of Boston’s WGBH, during a Nov. 8 [2006] meeting of the Public Television Programmers Association in Amelia Island, Fla.

He recalled a recent conversation with a Nielsen representative who said public TV’s ratings woes are “because we’re the last ones to encode our signals.” Liroff has been proselytizing for the encoders for two years.

“For what’s at stake for even the smallest station in the system, it’s being penny-wise and pound-foolish” not to encode its signal, Liroff told Current. Declining ratings undercut the case for pubTV funders’ continued support, he said.

Public TV can look for more changes in ratings technologies over the next several years. At the end of American Public Television's Fall Marketplace, McGowan briefed programmers on Nielsen’s multipronged A2/M2 initiative. Next October, Nielsen will begin introducing local people meters — which now track channel tuning and demographic data in the 10 largest TV markets — into the next 15 markets, McGowan told Current. Houston, Seattle and Tampa are the next markets to get local people meters. The ratings company is also designing new meters for markets 26-60 and for smaller markets where Nielsen’s households now use paper diaries.

Frequently asked questions

PBS updated and released this FAQ prepared by WGBH's David Liroff and PBS Research execs John Fuller and Beth Walsh.

1. Why is the current system changing?

Nielsen’s current Mark II analog meter cannot measure digital (over the air) broadcasting, true digital TV sets, dual decks (VCR/DVR combo), DVRs, PVRs, and VOD. A new type of meter, the "A/P" (Active/Passive) Meter, is required to measure these new technologies. Nielsen launched a program last year to begin replacing all of its analog meters with the new digital A/P meters.

2. What is required of PBS and stations?

For the A/P Meter to pick up daypart and program viewing data and attribute the viewing to PBS and stations, special encoders must be used to embed identification codes onto our content before broadcast.

All PBS stations must encode their programs and broadcast signals. PBS must encode all programs fed from PBS transponders. Therefore stations need to purchase and install encoders. In the 56 overnight markets, encoders will be needed for tracking local, station-level viewing as well as viewing for the national metered sample. In the remaining 154 markets, encoders will be required to track viewing by those households that participate in the national metered sample.

3. What are encoders?

The Nielsen Audio Video Encoder (NAVE II) is a unit that adds digital codes to the program stream, uniquely identifying the network, program, and station.

4. Has PBS purchased and started using encoders?

Yes. PBS has purchased six NAVE II encoders and plans to purchase at least two more. We have already tested them and their implementation is directly tied to the Broadview launch.

5. How many encoders will each station have to purchase?

Stations will need to purchase one NAVE II encoder for each program stream; however, the NAVE IIc encoder is also available and can accommodate up to four program streams.

6. Will state networks be required to purchase separate encoders for each transmitter?

No. As long as the state network does not need to see its ratings broken out by individual transmitter, and all transmitters are a true simulcast, a state network does not need to purchase separate encoders for each transmitter.

7. How much do the encoders cost?

The NAVE II encoder (single program stream) sells for $5,950, flat fee, no discounts are available. A captioning module is available for $2,000, discounted to $500 if 20 or more are ordered.

The NAVE IIc encoder (up to four program streams) sells for $6,850, with a discount available ($6,495) if five or more are purchased as a group.

8. What happens if PTV stations don't purchase and install encoders?

For metered market stations, no individual program ratings or daypart ratings will be reported, and viewing in the local DMA will not be counted in national PTV daypart rating. For un-encoded diary market stations, viewing in the local DMA will not be counted in the national PTV daypart ratings.

If all stations—in all markets—are not encoding, national ratings will shrink even if audience size is really holding steady, presenting a major, unnecessary challenge to securing funding and underwriting for NPS programs, and ensuring government support for our mission of serving the public, particularly the underserved. Already there is evidence our national audience has slipped as a result of too few stations encoding.

We can assume a direct relationship between A/P meter penetration and our ratings decline. It will be as if we’ve lost coverage of the U.S. Think of PBS like a cable network that can only reach a portion of U.S. TV households. For example, if our viewing can’t be measured in 30% of our coverage area, we lose 30% of our potential audience. We’re like a cable network that can only be received in 70% of the country, producing a direct and noticeable impact on our ratings.

9. What is Nielsen's A/P Meter rollout schedule?

Nielsen’s NSI metered market, local People Meter and national People Meter samples are all on a similar roll-out schedule. Nielsen is starting A/P meter installation with “technically difficult” (TD) homes, meaning the home has a digital set, dual deck, or DVR/PVR. If a new home comes into the sample that is not TD, it will be given a Mark II meter, therefore they are not automatically replacing all new sample homes with the new A/P meter.

Nielsen began installation of A/P meters in March 2005 in the set-metered markets, in June 2005 in the local People Meter markets, and during July 2005 in the national People Meter homes. As of now (fall 2006), the number of sample homes as a proportion of the total is approaching one-third and household conversions will continue steadily until the likely date of TV industry switchover from analog to digital. Discussions with Nielsen indicate that roll-out is tied to the deadline for conversion to digital broadcasting (currently 1/1/2009).

10. How are ratings being produced during the transition?

Nielsen is producing ratings in their standard manner from Mark II analog meters plus viewing from the new A/P meters (although unencoded PBS stations will not be counted in A/P households), combining both kinds of viewing into one rating.

11. Will there be any financial support from PBS?

CPB will soon announce (fall 2006) a grant that will support station purchases of encoders.

12. Where can the NAVE units be ordered?

The NAVE II is manufactured for Nielsen by Norpak, a Canadian company. Contact Jim Carruthers
at (613) 592-4164 or jim@norpak.ca.
10 Hearst Way
Kanata, Ontario
Canada K2L 2P4
www.norpak.ca

The NAVE IIc is being manufactured for Nielsen by Wegener Corporation. Contact Mike Heimberger at (770) 814-4036. For information about the group discount, contact Dick Schmidt, sales manager, at (770) 814-4024 or dschmidt@wegener.com.
11350 Technology Circle
Duluth, GA 30097
www.wegener.com

13. Will any additional equipment be required?

Analog-to-digital interface devices may be required for stations operating an analog plant.

Stations may purchase the Nielsen Universal Reader (NUR) to check for proper encoding. This is optional. It is available from Norpak for $795. Each NUR can monitor up to 4 program channels simultaneously.