Content area
Full Text
A.C. Nielsen has long been the dominant player in the collection of data for the television industry. See Appendix 2 for a timeline of Nielsen's history. However, digitization and advances in big data technology (e.g. the collection, storage, management, linkage, and analysis of very large and complex data sets) have given the cable and satellite companies the ability to collect household-viewing data generated from set-top boxes (STBs), along with faster internet connection allowing people to watch television and stream videos on their computers and cell phones, has brought about major challenges for Nielsen.
For the first time in many years, Nielsen is no longer the sole collector of data concerning media consumption, and competitors are starting to erode Nielsen's market share. Nielsen must adapt not only to competitors who are eroding its competitive advantage using digital data from sources such as STBs to provide television viewing information to Nielsen's customers, but Nielsen must also react to changes brought about by advances in technology, and the different methods through which consumers are accessing media that threaten to make it obsolete, and further erode its competitive advantage (Nielsen, 2010).
Industry background
Television advertising is a 72 billion dollar-a-year industry in the USA (2009 figures), and a 169 billion dollar industry worldwide (Wikipedia, 2011). The business intelligence that is derived from household television-viewing data are a very important and necessary component for both television networks and for advertisers. This data drives network television. It is the basis for making critical business decisions - from what price to charge for a 30-second advertising slot, to what television show gets to return for another season or is canceled.
Television network programming is any television show, such as the nightly news, situation comedies, documentaries, movies, etc., that are broadcast by a television network (Discovery Channel, France24, BBC, etc.) into peoples' homes for viewing. In order for television networks to generate revenue, they must sell advertising time slots surrounding the television network's programming. In order to provide value to its customers, networks need a deep understanding of the consumer and their buying behavior. A network's programming and ratings are two of the main factors that attract advertisers to purchase advertising time slots. Ratings are the percentage of TV homes in the USA...