MacKenzie poised to sue Rajar over audience figures

LONDON – TalkSPORT boss Kelvin MacKenzie is poised to take Rajar to court over its refusal to use a digital audience measurement system.

The Wireless Group chairman wants Rajar to replace its aging diary keeping system with a modern electronic system that gives the company's TalkSPORT 5m more listeners.

He made the threat yesterday at TWG's half-year results, where MacKenzie also said the radio industry had seen the worst of the advertising downturn.

"For the first time in a number of years, we've got both national and local advertising moving ahead. I don't want to give the impression that everybody is putting on their dancing shoes, but visibility is now 10 days instead of five days," MacKenzie said.

TWG saw its shares gain 16% yesterday on the back of its results, which saw profits rise to £600,000 in the first half, and as MacKenzie revealed plans to fight Rajar in the courts.

TalkSPORT has been working with research firm GfK to promote its electronic monitoring system, which gives The Wireless Group-owned TalkSPORT a weekly reach of 7.2m, or 16%, compared with the 2.2m listeners or 4% reach it has using Rajar's system.

Rajar has tested the GfK system, along with a US system called Arbitron, and reported its findings in July, saying it would not be adopting the new measurement systems because their results were anomalous.

According a TWG spokesman, MacKenzie wrote to Rajar asking to see the results of the testing and for an explanation as to why they were anomalous. He is still awaiting a response.

In a statement issued at the radio group's half-year results yesterday, MacKenzie said he was "extremely disappointed" that Rajar rejected the opportunity to introduce electronic audience measurement, preferring instead to "fall back on its haphazard diary system".

MacKenzie blasted the diary system, which he called "entirely out of touch with modern listening habits", and "grossly understates the true level of [TalkSPORT's] audience".

"It appears that some elements of the radio industry are preventing the adoption of electronic measurement. We have asked Rajar to substantiate its claim that its testing produced 'anomalous' results. At the time of writing, it has not yet done so," MacKenzie said.

He added that Rajar's stance was impeding the group's revenue potential and that, as a consequence, TWG had instructed lawyers to investigate legal action against Rajar.

MacKenzie is demanding that Rajar clarifies its position in front of a judge, and if a court rules in favour of electronic testing and the audience monitoring body still refuses to use it, he will sue for loss of earnings.

Some reports suggest that MacKenzie says Rajar's figures, and its failure to adopt the new system, costs the company £15m a year.

However, despite these claims, TWG still managed to report a strong set of results for the six months to June. Net losses narrowed to £6.5m, down from £8.9m last time, on revenue of £14.8m, up 3.8% on last year.

The figures were boosted by a strong performance by TalkSPORT, which reported operating profit of £900,000.

Rajar's spokesperson could not be reached for comment at the time of writing.

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