TV ratings tabulator Nielsen is exiting South Africa after decades, a change that could plunge the country's TV ratings system and everyone depending on its ratings data, into crisis.
The country's TV ratings custodian, however, says it will start work on finding a replacement for TAMS, although ad buyers and agencies are in shock and calling Nielsen's exit a massive blow to South Africa.
While Nielsen in South Africa remains quiet, news leaked that the ratings collector is shutting shop in South Africa.
Telmar, the service using Nielsen data to give ad planners, buyers, agencies and broadcasters insight into audiences and who all use the data to plan ad spend and track audience numbers, told clients in an email that Nielsen is exiting South Africa.
Nielsen's exit will also affect South Africa's Broadcasting Research Council (BRC) that will also have to find a new ratings provider.
The BRC functions similar to the UK's BARB and Australia's OzTAM.
In a Nielsen memo, the South African biz got a shock when they were told that "After careful consideration Nielsen has made the decision to exit the South African market".
"Earlier this month we notified the BRC of our interest in transitioning leadership of the Television Audience Measurement (TAMS) service to another provider within the next 12 months. They are currently evaluating an alternate partner and we anticipate they will share an announcement in the coming days."
"During this transition, we want to assure you that we will continue to fulfill all of our existing commitments."
Telmar which uses Nielsen ratings data, then told clients in a memo, "You may have seen the recent announcements from Nielsen and the BRC regarding TAMS. Some clients have asked whether this change will affect their TelmarHelixa services in South Africa. We want to assure you that it will not."
"Regardless of the BRC's appointed supplier of TAMS data, TelmarHelixa will continue to load and support the TV data as we always have. There is no disruption to your access, no impact on your systems and no change to transmit. Telmar has always been independent and data-neutral."
The BRC, about Nielsen's South Africa exit, said "A new service provider has been identified, and formal appointment processes are being finalised. Details will be announced within two weeks."
According to the BRC, "Nielsen has communicated its intention to exit the South African market within the next 12 months. The BRC is engaging with Nielsen to secure continuity of data during the handover period."
It said that "The BRC remains confident that the transition now underway will strengthen South Africa’s audience measurement system, safeguard industry needs, and deliver a world-class, future-proof solution."
Nielsen didn't respond to any media queries.
An insider told TVwithThinus that despite promises of no changes, that Nielsen's exit is a huge blow and that the impact of the decision to exit South Africa and switch-over will lead to upheaval, changes and uncertainty.
"It's shocking. The big worry is that when the data changes, the big question is how trendable the new data will be, and how trendable whatever the new data is, with past data".
"From a media perspective rates are set according to audiences. Let's say a show commanded a price of R100 000 for 100 000 eyeballs."
"What if the new data from a new ratings agency suddenly says the show that had 100 000 viewers now just have 50 000 viewers, or 150 000 viewers? Everybody's nervous because of the unknown unknowns. Nielsen planning to leave South Africa is huge."
Mmoni Ngubane, SABC spokesperson, didn't respond to a media query about the SABC's reaction to Nielsen's exit.
MultiChoice which operates DStv and Showmax, said it's monitoring developments.
eMedia that runs e.tv, Openview and eVOD, in response to a media query said "eMedia Investments acknowledges Nielsen's departure from South Africa and recognises this as a significant development in our industry's audience measurement landscape".
" As a major broadcaster and content provider, we understand the critical importance of robust, reliable audience measurement systems."
"While Nielsen's exit presents challenges, we are actively engaged with the BRC to ensure continuity and enhancement of audience measurement services. We note that the BRC has already identified a new service provider and is in the process of finalising formal appointment procedures."
