Inside Music MediaJerry Del Colliano

The Cumulus lawsuit against Nielsen is all about their network Westwood One and Nielsen’s insistence on buying ratings in all markets where a network like Westwood One owns stations – monopoly Cumulus accusing monopoly Nielsen of wrongdoing is rich.

Why it’s important

• A radio network that needs Nielsen is now feeling the wrath of a ratings monopoly whose actions could further depress their earnings – the kind of situation competitors have had to suck up.
• The audacity of Cumulus CEO Mary Berner to accuse another monopoly of being the same thing shows she seems scared of effects on revenue.
• Cumulus is saying that Nielsen won’t sell them the national radio ratings needed by their network Westwood One unless they also buy Nielsen’s local ratings — even in markets where Cumulus doesn’t want or need them.

In reality 

• Cumulus only wants to buy the national ratings for its network business – but,  according to the lawsuit, Nielsen’s rule is basically:  “If you want the national ratings, you also have to buy our local ratings too.”
• That’s the alleged “tie-in” — you can’t buy one product (national) without also paying for another (local).
• Cumulus says that’s unfair because it forces them to pay for a service they don’t need, and it keeps any smaller competitor from offering just national ratings on their own.
• Nielsen says the products are part of one integrated service, not a forced tie-in, and that Cumulus is mischaracterizing how the business works.
• So, the fight is about this: Is Nielsen using its power over the must-have national ratings to force customers to buy more from it than they want?  That’s what “tying in” means in antitrust law.

Go Deeper:  Is iHeart Next? / The likely winner / If not Nielsen, who is Cumulus’ number two?

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