If you're not watching the commercials, and at this point who really is, then the logic is why should you be counted? That's a big part of why the current measurement system is flawed - because it doesn't capture the entire audience watching the commercials.
The current industry standard for TV ratings is a "C3" guarantee, which means the media delivery that the network has to deliver to the advertiser is a Commercial rating (not a program rating) with 3 days of viewership/DVR playback included.
We also know that other screens deliver the same program content, and the commercials served on an online Full Episode Player or mobile viewership via a Network App can be measured. The issue is aggregating all of these so that the true audience across all platforms (screen agnostic) is captured for the network and advertiser.
Pricing for programs is rarely done on a program-by-program basis, unless you are purchasing an event such as the Super Bowl. Generally program unit costs are derived from an overall package an advertiser places, based on the budget, guarantee and program mix. Generally, the higher the rating - the higher the 'unit cost', but the pricing is directional and different for every advertiser. (A rate card is established by the network, which is then modified based on purchase negotiations).
Bottom line, it's true that a poorly-performing program, based on current Nielsen measurement, is likely to get cancelled. Networks can't afford to keep these low-rated shows on their schedule - especially when the show has a high production cost, as you mentioned. (Hence, the huge increase in 'reality programming' on network schedules in recent years which cost very little to develop, relative to scripted programs). Therefore, it's important that the industry evolve to understand who is truly watching the programs/commercials, and capture viewership across all available media platforms. The networks don't want to leave any measurement of audience on the table!
"Two drifters off to see the world. There's such a lot of world to see. . ."
Updated On: 4/21/13 at 09:15 PM