Unit 2 Proposal

I have decided to write about the Nielsens and their third party relationship with the TV networks and advertising agencies.  The "event"that I am using is the case of the extremely popular television series "Lost."  In "Lost's" first season it received a 7.8 rating with a 19 share in the 18-49 demographic, (the most popular demographic for advertisers, because generally they watch the least amount of TV and are harder to reach with ads) the show averaged 20.71 million viewers.  The second season inexplicably lost viewers dropping to a 7.6 rating with an 18 share, averaging 17.84 viewers.  The show steadily lost ratings for its remaining seasons.  What the Nielsens failed to take into account was that "Lost" was the top program for video streaming and in May, 2009 "Lost" accounted for 36.4 million video streams, and that viewership for "Lost" goes up 25-30% for same day plus seven ratings.

I plan to use "Lost's" drop in ratings to examine the arguments between the Nielsen company, the TV networks, and the advertising agencies about updating the Nielsen process.  I plan to look at statements from each group particularly the executives, and look at the Nielsen website.

I chose this topic because television is the industry that I intend to join when I become gainfully employed. I'm currently taking a Business of Media class, and I find the Nielsen monopoly on ratings fascinating.  They have resisted innovation so long, because they haven't needed to change.  The company has no opposition.  I want to know why the networks and ad agencies, powerful corporations in their own right, don't take the Nielsens out.  Nielsen data is years out of date, and it doesn't take into consideration innovation in technology.