Nielsen Claims Cumulus Media Using Antitrust Law for a 50% Rate Reduction

"In a heavily redacted filing in federal court in New York, Nielsen framed its defense bluntly, saying Cumulus wants to pay 50% less for the same services."

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Nielsen is resisting Cumulus Media’s bid for emergency relief, telling a federal judge the radio broadcaster is attempting to use antitrust law to force the ratings company into a renegotiated deal at half the current price — terms Nielsen says it never offered and cannot sustain.

In a heavily redacted filing in federal court in New York, Nielsen framed its defense bluntly. The company said Cumulus wants to pay 50% less for the same services. Nielsen called the request “unprecedented.” It warned that granting it would “open the door” to other “improper and frivolous requests” from ratings subscribers.

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“At bottom, Cumulus and Nielsen are in a run-of-the-mill pricing dispute,” the filing states. “The fact that Cumulus — a company with $700 million in revenue and $90 million cash on hand — would prefer this Court to impose on Nielsen a partial contract reflecting Cumulus’ preferred pricing is insufficient reason for the court to award the requested relief.”

Cumulus, in an antitrust lawsuit filed in October, asked the court to block Nielsen from tying access to national radio ratings data to the purchase of separate local ratings data. The broadcaster called the practice a “textbook abuse of monopoly power,” arguing it prevents stations from freely choosing local ratings providers. The suit cites a 36% increase in Westwood One’s national ratings data in 2022. It also points to ongoing price hikes tied to Nielsen’s policy linking national and local products.

According to Inside Radio, Nielsen insists the dispute is not about monopoly power but is instead a case of “lawfare,” with Cumulus attempting to leverage antitrust claims to obtain lower pricing.

The filing also addresses Cumulus’s evolving claims of harm. Nielsen argues the broadcaster raised the threat of an “existential” risk only after litigation had begun. The company notes it was never disclosed during contract negotiations or to investors. This is despite the broadcaster reporting earnings during the dispute.

Nielsen defended its tying policy as both logical and necessary, stating that national data cannot exist without local reports. The company added that the approach prevents “free riding.” It ensures revenue aligns with costs and this helps keep its audio measurement service sustainable.

Nielsen also rejected the notion that the policy blocks competitors such as Eastlan, citing evidence that the firm has entered 18 new markets over the past year, including five between September and December alone. Nielsen emphasized that antitrust laws protect competition, not individual competitors.

Unless the court acts sooner, Cumulus Media’s ratings contract with Nielsen is scheduled to expire Dec. 31. U.S. District Judge Jeannette Vargas could rule on the injunction request in the coming days.

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