RAJAR Exonerated As Wireless Court Case Struck Out
The legal battle between Kelvin MacKenzie’s Wireless Group and RAJAR ended in victory for the radio ratings body this morning, with Mr Justice Lloyd striking out TWG’s claims of an abuse of market power under competition laws.
The move brings to an end months of bitter claims and counter-claims between the two organisations, with the court ruling in favour of RAJAR’s argument that the case against it was “fanciful and based on false facts.”
TWG had claimed that its audience was under-reported by the current RAJAR diary method, pointing to evidence from research firm GfK’s electronic audio meters which claimed its TalkSPORT station had around four million extra listeners.
However, last month saw RAJAR petition the High Court to throw out TWG’s lawsuit, a move which has been proven successful this morning (see RAJAR Moves To Have MacKenzie Law Suit Thrown Out).
Handing down the ruling, Mr Justice Lloyd described RAJAR’s decision not to immediately introduce electronic audio meters as a “rational commercial approach, especially when the implications of a change to either [electronic device] would require a good deal of further discussion both with the supplier and with the industry, as well as the specification and placing of a new contract for the provision of the audience research.”
Responding to the ruling Kelvin MacKenzie, Chairman and Chief Executive of TWG, said: “RAJAR may have won a legal skirmish, but the war goes on until technology-based audience measurement is adopted.”
He added: “I note in their latest press release that RAJAR are committed to bringing in meters in January 2007 – and we will make sure that they stick to this timetable. If they fail to do so, I will have no hesitation in starting fresh legal action. RAJAR’s declared commitment to meters means that the argument to retain diaries is over.”
RAJAR’s ownership is split between the BBC and the Commercial Radio Companies Association. The CRCA today issued a statement abhorring TWG’s actions, claiming that the attempts to undermine the current measurement system have been misguided and to no-one’s benefit.
Paul Brown, chief executive of the CRCA and RAJAR board member said: “It is our view that RAJAR has received a disproportionate level of criticism. The radio industry, like television, is experiencing a huge proliferation of stations. However, RAJAR is moving forward to deal with these changes. It is carrying out consultations with hundreds of senior advertisers and agency personnel, and investing over £1,000,000 in testing candidate meters. There is overwhelming agreement from those consulted that, above all else, the future measurement of radio needs to be accurate and robust.”
RAJAR is currently testing several electronic audio meters, with results expected early next year. The ratings body claims that the infrastructure for a new measurement methodology should be in place by 2007 (see RAJAR To Carry Out ‘Pioneering’ Audiometer Tests).
RAJAR: 020 7903 535 www.rajar.co.uk Wireless Group: 020 7269 7180
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