Stuff You Should Know - How TV Ratings Work
Episode Date: September 4, 2014Ever wonder why some great shows go off the air after a season or less? Blame it on the Nielsen company, which has for more than 60 years been the almost exclusive decider of what goes and what stays ...on TV. Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.
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On the podcast, Hey Dude, the 90s called,
David Lasher and Christine Taylor,
stars of the cult classic show, Hey Dude,
bring you back to the days of slip dresses
and choker necklaces.
We're gonna use Hey Dude as our jumping off point,
but we are going to unpack and dive back
into the decade of the 90s.
We lived it, and now we're calling on all of our friends
to come back and relive it.
Listen to Hey Dude, the 90s called
on the iHeart radio app, Apple Podcasts,
or wherever you get your podcasts.
Attention, Bachelor Nation, he's back.
The host of some of America's most dramatic TV moments
returns with the most dramatic podcast ever
with Chris Harrison.
During two decades in reality TV, Chris saw it all,
and now he's telling all.
It's gonna be difficult at times.
It'll be funny.
We'll push the envelope.
We have a lot to talk about.
Listen to the most dramatic podcast ever
with Chris Harrison on the iHeart radio app,
Apple Podcasts, or wherever you get your podcasts.
Welcome to Stuff You Should Know
from HowStuffWorks.com.
["HowStuffWorks.com"]
Hey, and welcome to the podcast.
I'm Josh Clark.
There's Charles W. Chuckers Bryant,
and there's Jerry W. Jare Rowland.
Actually, Jerry's been canceled.
Oh, okay.
Due to low ratings.
You know, what's funny is,
Jerry has been portrayed on television.
In a TV show that was canceled due to poor ratings.
Poor ratings.
That was our show.
That was our show.
We had a television show once.
It was called Stuff You Should Know.
It was a slightly fictionalized version of our life,
our work life.
We made a sitcom.
Yeah, we did.
It's pretty cool.
And a lot of people loved it,
and a lot of people were like,
what in the world did you do it that way for?
So that, a lot, it's like basically 10 and 10.
Oh, yeah.
You're referring to the 20 people who've seen that show.
Yeah, actually, we'll get to that all,
but we know a little bit about how TV ratings work
because of that.
And in some ways, I believe we're a victim
of the antiquated system that is the Nielsen TV ratings.
Yeah, okay.
Now, dude, it's antiquated.
Oh, man.
It's amazing.
I do not disagree with the antiquated part.
What I do disagree with is that had it been up to date,
I think it would have had zero impact on our success.
I don't know, man.
I will say this to the people out there.
What the network did was they looked only at one number,
which is the amount of people that sat down
in front of their television set on a Saturday night
live at 10 p.m. to watch our show.
Right.
They did not count things that we'll talk about,
like online streaming or DVR or anything like that,
which is what makes it antiquated
because it's changing, man.
People aren't watching TV like they used to,
but they're basing a lot of these decisions
on a system that was designed in the 1950s.
So let's go back, man.
It goes back even further than that.
Back in 1923, the A.C. Nielsen Company started at the time
at the time, people who were broadcasting radio
wanted to know what people were listening to.
So there were a lot of companies
that would telephone up family at random and say,
say, fella, what are you listening to right now
on the old Victorola?
Ah, the amazing Adventure Hour.
And he'd say, hey, thanks a lot, Bob.
Yeah.
Talk to you later.
And they'd hang up.
It's a nickel for your troubles.
They wish.
Because we're talking depression at this time.
Well, not 1923.
Later on, they wished they had a nickel.
Here's a chicken for your pot.
Nice.
That's a Hoover reference, man.
You don't get those too often.
I try to bust them out.
So the Nielsen Company said, that's all fine and good.
That's great that you guys are figuring out
what people are listening to,
but we have something even better
because we are a technological powerhouse.
And what they did was they randomly picked
some families around America and said,
say, can we put this cool recording device in your home
near your radio, and it will record what you're listening
to at any given time, and then we'll send technicians out
to pick it up from time to time,
to get the information off of it,
and then bring it back so we can keep recording it.
And families said, sure.
And the Nielsen Company's domination
of broadcast ratings was sealed.
After that point, everybody from every competitor they had
was just peanuts compared to the Nielsen Company.
So much so that when you hear TV ratings,
it's synonymous with Nielsen ratings.
Very much like Kleenex and facial tissue
are one and the same.
Same thing, thanks to Nielsen's technological powerhouse.
The irony of it, though, is that once they started
installing those boxes in the 20s or 30s,
and then they moved on to television sets,
the innovation, I mean, they innovated somewhat,
but fundamentally, principally,
it remained the same until a year or two ago.
Yeah, and they're not, we'll get into all the hardware
of the hardware side of how it works,
but what they did in 1954 was send actual little diaries
that you would fill out and pencil and send back,
and they still do that today.
In 2014, even though in 2006 they said they were gonna stop,
they still send those little diaries,
and you get a little diary in the mail
with five $1 bills in the envelope for your troubles.
That's funny, so it's like the modern nickel.
Yeah, exactly, and they rely on lazy, dishonest people
to fill out this card and mail it back
and then go spend that $5 on a grande latte.
Yeah.
Would've gotten you a lot more in 1954.
Oh man, you could've bought a car.
But that is the diary version and the networks
and advertisers have never liked the diary version.
They still don't.
No, but it's what's called Sweep's Week,
which is hard to say.
That's right, and we'll get to Sweep's in a second,
but what they mainly like to rely on
are two different electronic hardware methods.
The set meters, as in TV set, and people meters.
And right now they have, by 2015,
and they plan to have more than 6,200 TV set meters,
and this is just for the US and Canada, by the way,
because everyone else's TV is weird.
Yeah, Simon.
You ever watch TV in different countries
when you're traveling and stuff?
Yes, and it is so much fun.
It is fun, but after a while you're like,
I really miss American TV.
Yeah, but I mean, if you're traveling abroad,
you shouldn't be watching a whole lot of TV.
Exactly.
It's like late night in the hotel.
But it's one of the great pluses is you're just like,
I don't feel like watching this.
I'll go out and see the sights instead.
Yeah, I think I was in Belgium watching TV
with my buddy Brett years and years ago,
and it was translated in English and subtitles,
and one of the characters said something,
and I guess, I don't know if it was Flemish,
and the other guy just looked and said, ick, ook,
and it said me too.
So we still say that today when we're responding me too
to each other, we'll go ick, ick, ook.
Nice.
All those years later.
So anyway, the set, yeah, it said there were 6,200
by 2015 in 31 markets, TV markets.
And then there are about 35,000, I believe now,
people meters in those homes.
Oh, I'm sorry, in about 20,000 homes.
And those people meters are more specific
because you can have three people meters in one house.
We wanna see what little Susie's watching.
We wanna see what her brother Randy's watching.
And they won't see what her dad watches
after everyone's gone to bed.
Yeah.
So each one of them will have their own little people meter
that they'll turn on.
And I always thought that these things were connected
to your television, like your cable box,
and it just kinda read the information,
but they're actually listening devices.
Isn't that weird?
Totally blew my mind.
So basically, the way that Nielsen figures out
what TV show you're talking to is because they have a device
that's connected to the internet
that is eavesdropping on your TV.
And they just in 2006 finally got to the point
where they perfected this technology,
and they have codes that broadcasters,
the networks and the local affiliates
have to put in to their audio stream,
the audio video stream.
Yeah.
That is-
Not just the audio stream.
Is it just audio?
Yeah, but they're trying to come up with a video version.
So basically there's a sound,
there's a frequency that you can't hear.
I don't even think your dog can hear it,
but it comes through your TV,
and your Nielsen box can hear it,
and it's basically an audio fingerprint for a show.
And when the Nielsen box hears that audio,
it can be like, oh, well, they're watching
Good Times right now.
That's funny, I was just thinking that.
No way!
Good Times, yeah.
And then I was like, no,
I should say Three's Company instead.
It depends.
And then you said Good Times.
Although if you watch Good Times long enough,
there's an episode of Three's Company
coming on eventually on that channel.
I think Good Times may be my favorite all-time theme song.
That's a good one.
Oh man, it's so good.
It's ridiculous.
Did I tell you Henry Mancini did the,
what's happening theme song?
Yes.
What episode was that in?
Just a few ago.
Oh, it was Number Stations.
Oh yeah, yeah, yeah.
Because the sound that the shortwave thing made.
So that's how Nielsen's been figuring out
what people are watching,
which is mind-blowing.
It's also, if it seems a little backwards,
yeah, it may be emblematic of a larger systematic
resistance toward technological improvement.
Yeah, or if it seems a little small,
as far as the sample pool goes.
Which it is.
It is, but what they do is they extrapolate
that number just like pollsters do.
And they say, well, these are average markets.
These are average families.
So if these eventually 6,200 TV sets are watching this,
we can pull that out and do some sort of,
they probably do it on a chalkboard in a room.
There's this one guy who has the piece of chalk.
He extrapolates that out and says,
well, this is what America is watching.
Which always is bugged me.
Yeah.
Especially when you have a TV show that gets canceled.
It is because it all comes down to
just how representative is your sample.
So there's 6,500 TV sets?
They're 6,200 by 2015 for the set meters.
Right now in 2014, May of 2014,
there are 116.3 million TV sets in the US.
Exactly.
So this is a very small sample size.
But if the guy with the chalk, Burt,
can come up with a very good representative portion
of the US.
Like there's this many divorced Hispanic families.
There's this many gay Asian households.
There's this many Mitt Romney voters.
And they take all these guys and put them together.
And it's a clear cross-section of America.
That's America, baby.
You should be able to extrapolate pretty well from that.
That's true.
It just all depends on how good their statisticians are.
That's right.
And they do audits over the years and quality checks,
of course, and compare ratings from different samples.
So it's not like they just said,
yeah, that's how we're doing it.
Although they sort of do that.
But they do quality checks, of course.
Yeah.
One of the problems is there's been so few challenges
from outside competition that Nielsen can do
whatever it wants.
And it's so powerful that it literally has
the entire television industry at its feet.
It decides what rating a TV show gets.
And ultimately, the whole point to all of this stuff,
to TV ratings in general, is so that networks
and their local affiliates can set advertising rates
for advertisers.
There's $78 billion at stake.
That's the advertising spent in a year on television.
And it all comes down to what rating Nielsen,
with their representative sample
and their audio eavesdropping boxes
and their $5 bills in a paper diary,
decide that your TV show got.
That's right.
That's the dirty little secret,
is that they don't care how many people
are watching that TV show.
They care about how many people are watching the commercials.
Yeah.
That's really what they're looking at.
And more specifically, what demographic,
which is why, I don't think we mentioned why,
the people meters are so valuable.
Right.
Because they wanna get that specific demo
so they can show advertisers.
18 to 49 year olds, they spend a ton of money
and they're watching community.
But no one else is, so we'll cancel community.
Which is kinda crazy, as we'll see in a little while.
Yeah, but just quickly, let me go over.
I think most people know this,
but if you've got a half hour TV show,
and you're gonna have 22 minutes of TV show,
then you're gonna have eight minutes of commercials,
six of those are national ads sold by the network.
And then your local affiliate,
that's where you're gonna get your awesome commercials.
Hey, that's for the Wolfman.
Yeah, two minutes worth.
Or Crazy Eddie, I remember, was big up in the Northeast.
And then, so this is 2006, I couldn't find one recently,
but back in 2006, if you're buying a commercial slot
from a local affiliate, you're gonna pay
about $100 to $2,000, depending on,
and this is during the daytime, this isn't like 3 a.m.
Depending on what show, so like back when Oprah was on,
you could get a 30 second spot for 90 bucks.
You could pay- Oh, it's a local affiliate?
Yeah, you could also pay up to $2,000 for it.
And then apparently you're going to double that
for a national ad for a 30 second spot during the day.
Wow.
Which isn't just not outlandish.
Well, that's how Crazy Eddie, I mean.
Yeah, right.
Or the Wolfman, they don't have a ton of money.
No.
Although I don't know, Wolfman wore a lot of jewelry.
Yeah, that's true.
For those of you who don't know who the Wolfman is,
we understand because you probably didn't live
in Atlanta in 1990.
Yeah, I bet it was Southeast,
I bet it was on like WTBS and stuff.
All you have to do is go type in Wolfman,
Donna, Gallery Furniture into the YouTubes,
and it will show you some classic Gallery Furniture ads.
Or just type in, hey, ask for the Wolfman.
No, ask for Donna.
I don't remember that part.
What?
You don't remember Donna, his daughter with the hair?
The whole premise of the ad was Wolfman
wanted you to come see him.
And she'd say, hey, ask for the Wolfman.
And she'd go, no, ask for Donna.
She'd always get his goat.
All right, so let's take a break here,
and then we'll talk about, you mentioned Sweep's Week.
Yeah, I did.
And we'll talk about that right after this.
Yeah, we will.
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On the podcast, Hey Dude, the 90s called
David Lasher and Christine Taylor,
stars of the cult classic show, Hey Dude,
bring you back to the days of slip dresses
and choker necklaces.
We're gonna use Hey Dude as our jumping off point,
but we are going to unpack and dive back
into the decade of the 90s.
We lived it, and now we're calling on all of our friends
to come back and relive it.
It's a podcast packed with interviews,
co-stars, friends, and non-stop references
to the best decade ever.
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Do you remember Nintendo 64?
Do you remember getting Frosted Tips?
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and the dial-up sound like poltergeist?
So leave a code on your best friend's beeper,
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Each episode will rival the feeling
of taking out the cartridge from your Game Boy,
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as we take you back to the 90s.
Listen to Hey Dude, the 90s called
on the iHeart Radio app, Apple Podcasts,
or wherever you get your podcasts.
All right, sweeps, everyone's heard it.
It is a bit...
Everyone's heard it?
Yeah, everyone hears about, you know,
this is Sweeps Weeks.
That's when...
Well, we'll tell you what it is.
This is the fact of the podcast to me.
What, Sweeps Week?
Yeah, where it came from and why it exists.
Well, in 1954 is when they started
sending out those TV diaries,
and they made a geographic sweep
starting in the northeast across the country
from east to west,
and they collected the little booklets,
and those were our first reportings of TV ratings.
So before, they had the eavesdropping boxes
that they were using,
but it was basically like,
I think maybe up to 20,000 households at one point
in the major markets.
The great thing about the paper diaries
is they could go into local markets,
smaller markets,
and find out not just what, you know,
the people in New York or LA or Chicago were watching,
but what the people in Santa Fe were watching too
were Fort Lauderdale.
Yeah, there was a saying,
how does it play in Santa Fe?
Was it Sheboygan or something?
Probably Sheboygan or Walla Walla.
I can't remember.
It may have been a movie thing too,
but there's an industry saying,
how does it play in the city?
It's got a rhyme.
Because that's what matters.
You know, of course, New York and LA
and the major markets are gonna consume.
They wanna know what your average household wants to see.
Right, and this is, in 1954,
this was the first time that anyone had ever taken
a really comprehensive snapshot
of what America was watching in the given week.
And so they said, hey, this works really well.
We're gonna start doing this every year.
We're gonna have what's now called a sweeps week,
and it's going to be on this week.
And so the TV executives said, well, wait a minute,
wait a minute, sweeps week,
this is what we're gonna start setting
our advertising rates against.
And it's gonna be this week,
and I'm going to do the craziest stuff.
I can think of to get ratings as big and wide
as I possibly can grab on that week.
And that is where sweeps week came from.
And we've seen some pretty interesting things
as a result of sweeps week.
Yeah, there's a great tradition of stunt casting
during sweeps week.
Justin Bieber will show up on CSI.
I didn't see that one, did you?
No, I don't watch that show.
And if I did, I would have punched my TV
if he showed up on it.
If you're gonna shoot JR,
you're gonna do it during sweeps week.
Oh yeah.
The late night talk shows are gonna load up
their biggest A-list guest during sweeps week.
ER did a live show.
Yes, I actually watched that one,
and I wasn't an ER fan.
I just wanted to see if they could pull it off.
Yeah, right.
It was pretty cool.
Ellen used to have a sitcom based on her life,
and she came out on that show during sweeps week.
Oh yeah, that's right.
And very famously, there was a not one, not two,
but thrice part happy days where Fonzie jumps a shark
on water skis.
Is that sweeps?
That happened during sweeps week.
Wow, that's a sweeps failure.
Well, I don't know if people watched it.
Yeah.
I don't guess you can call it a failure,
because that's probably a...
It's iconic.
Yeah, it's part of the lexicon now.
Do you remember in the rest of development
where Henry Winkler jumps over a shark?
Yeah.
Classic.
These days, sweeps week is actually 16 weeks,
because they have, I don't know about narrowed it down,
they broadened it out to four week periods
in November, February, May, and July.
And they still trot out special things for sweeps,
but it definitely doesn't have the teeth that it used to,
because of the way that people consume media these days,
which we're gonna start getting into.
So it doesn't have the teeth that it used to,
and as a result, a lot of networks have kind of stopped,
like you said, doing the stunt casting
and that kind of stuff,
but it's still basically holding broadcast TV hostage,
because that is still what advertisers want to see.
Well, what are your ratings during sweeps week?
And that's what they set their ad rates against.
So the fact that there are these four month long sweeps weeks
means that the broadcasters have to follow
the normal fall to summer broadcast model
with reruns in between.
Yeah, and this is for NBC, ABC, CBS, Fox,
like the major broadcast networks, non-cable networks,
which is a completely dying beast.
Yeah, because they rely 100% exclusively on advertising.
And cable has been eating their lunch
because advertising has been going down.
It looks like it's already peaked.
It's still $78 million.
Billion.
Billion, yes, you're right.
But cable takes a huge substantial portion of that
in advertising.
But then even when advertising rates go down,
cable still survives because cable makes money
off of subscriber fees and transmission fees too.
Yeah, exactly, which is why cable has a big leg up.
And also, they don't have the traditional television season.
They can release stuff all year long.
Right.
And you can binge watch it.
Yeah, which is happening.
That's the new model.
So like we said, for many years,
Nielsen was just kind of, as this one Wired article,
the Nielsen family is dead, put it.
It was in a torpor.
And the first thing that really, I do too.
Torpor, that's so great.
The first thing that really roused Nielsen was DVRs.
Because when DVRs came along, the advertising industry was
like, oh, God, people can fast forward through ads now.
Yeah, like they've always dreamed of doing?
Exactly, now they can.
And it was basically the television apocalypse.
And that didn't pan out because advertisers figured out
that, yeah, people can fast forward through ads.
But there's ways to still get your message across at 16
times speed.
You can do things called pop busters, where you use the
actors or the look or the set of the TV show that you're
advertising within to make them think like the show just
came back on and you caught them.
Because it's really an ad.
There's all sorts of stuff you can do.
So it hasn't been an advertising apocalypse.
And as a result, because DVRs are clearly here to stay and
have been since the early 2000s, Nielsen has had to finally
be like, OK, we need to innovate a little bit and figure out
how to include DVR because not everybody's sitting down at
eight o'clock on a Monday night and watching
murder she wrote.
Nobody is.
Man, I watched a couple episodes the other night.
I love that show.
I've never seen one episode.
What?
I know.
Man, it is good.
Is it?
It's good.
Another thing, too, just to backtrack, I've noticed lately
is you're on demand watching, which a lot of cable
companies, I'm a Comcast person because I'm forced to be.
Yeah.
Yeah, really?
A lot of the on demand shows now within the first couple of
weeks that they're available, you can't fast forward
through.
Oh, yeah.
Like you hit the fast forward button and a little null sign
comes up and says, sorry, you're going to have to sit
through this.
So the DVR, I guess the fact that the DVR is connected to
the internet.
Yeah.
And because it's getting show information, the actual show
is being recorded on your physical hard drive.
I'm sure there's cloud DVR recorders or whatever.
But for the most part, there's a hard drive that's
recording shows onto your DVR.
And then the other capability is that it's connected to the
internet, which is where it gets show information and all
that stuff to present to you.
Exactly.
But the internet, as you may have figured out by now, is a
two way street.
Not only can information be downloaded to your home, it
can be uploaded, and that includes your preferences,
how, what shows you watch, how often you watch them, when
you watch them.
And so all of a sudden, the DVR companies are like, hey,
Nielsen's giving you guys like 8 PM on NBC ratings.
We've got all of these other ratings that they're not
taking into account that you can get from us.
Not only that, but they can actually tell when you're
pausing your TV because the infamous nip slip, I hate
even saying those words.
Yeah, really?
In the 2004 Super Bowl with Janet Jackson, they, Tivo,
the popular DVR company.
Although, do people still use Tivo?
They probably do.
I don't know.
It's like every local cable company has their own DVR now.
It seems like it.
But they were able to say that was the most replayed clip in
the history of Tivo up until that point, was people pausing
and rewinding that stupid, stupid stunt.
But like you were saying, they've now decided, at least
some networks have decided they're going to start counting
what's called the DVR.
I'm so bitter.
The DVR plus system, which is DVR live plus same day.
Yeah, that's the Nielsen method.
Live plus three days, or live plus three, and then live
plus seven, which is obviously live plus same days if you
just watch it later that night.
Plus three is three days.
Within three days, and then seven is within that week.
And I'm seeing conflicting information out there.
It seems like either they now have basically just live
plus three, which is their main measurement.
Well, what matters is what the advertisers say
is what we care about.
Like you can have live plus 20, but if the advertisers are
like, we don't care about live plus 20, that doesn't do
anything for us.
Exactly, it's true.
But it sounds like you're right.
Like at one point, they tried to say that live plus same day
is basically the same thing Nielsen did.
And they wanted to lump it together with live, and the
advertisers were like, no, it's really not the same.
No, because of the fast forwarding thing.
Yeah, so let's at least separate these numbers out so we
can look at it all individually.
Yeah.
The thing is, the people who are watching TV, IEU and I, we
don't care what the advertisers think.
And they basically just need to keep up with our viewing
habits, which are changing radically.
The broadcast networks have lost 17% of the most coveted
demographic, 18 to 49 year olds, between 2012 and 2013.
17% just gone.
Part of that is because the networks put out terrible,
terrible stuff.
Although, so do the cable networks these days too.
Yeah, sure.
But another part of it is because broadcast is stuck in
this sweep week, certain time on a certain day format that
has been in forever since the 50s.
And they're being basically held hostage by Nielsen's
ratings.
So there's been a real push to advance technologically and to
start taking into account these other myriad ways that
people consume television and getting a clear picture of what
an audience is doing.
And the fact that it's now computer-based and we have
ways of tracking computers, really broadcasters are as
excited as ever.
Sure.
And we just have to figure out how to do it.
And we'll talk about how they're trying to figure out how
to do it right after this.
Stuff you should know.
Chuck.
Yeah.
We love Squarespace.com, don't we?
Yeah, because if you are in need of a website and you're just
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That's right, because Squarespace uses drag-and-drop
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No.
And if you get confused, even though it's intuitive, they
have great 24-7 customer support, email support, live
chat.
I think I said 24-7.
You know what that means.
Yeah, it means all the time.
All the time.
Plus, Squarespace is very design-centric.
They produce beautiful, clean designs, and your content
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Yeah, and if you want to sell stuff, all the plans have
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You can host an entire store or accept donations for your
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Plus, your website looks good on every device, from your
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That's squarespace.com slash stuff.
Offer code stuff.
Stuff you shouldn't buy.
Well, one thing before we get to the internet that we
haven't mentioned yet is you might hear in TV parlance the
word share as opposed to rating.
And what that is is a share is how many people are watching a
certain TV show that are actually watching TV.
A rating is just how many people are watching it.
But the share is how many people, what share of people
are watching a show that are watching something.
Other people, like if your TV's off, it doesn't count.
So your share number's always going to be higher.
Yeah, it is.
But the rating is the number of people watching it compared to
the entire population of America, right?
Exactly.
Or Canada.
Yeah, I keep forgetting about Canada.
They steal our shows.
So now we're on to the newest development.
DVR's kind of through a wrench in the plans.
But they're trying to take those into account.
And they've been pretty successful, it seems like,
with that.
Yeah, once they settle on what they all agree is a valid
thing.
Measurement.
Yeah, valid measurement.
But now, of course, people are consuming TV online more
than ever on their laptops, on their tablets, on their
mobile devices.
Can I throw out some figures for you real quick, Chuck?
Please.
Consider this.
116 million television sets in the United States.
Yeah.
There's 113 million tablets.
Yeah, 166 million smartphones.
And 243 million internet-connected computers.
Double the amount of televisions in the US.
And people are watching stuff whenever they want, however
they want, on this.
And as it stands right now, Nielsen is still trying to
figure out how the heck they can most effectively track
these people.
Yeah, well, this is the first year this fall TV season will
be the very first year that they're going to supposedly
have a across-the-board measurement system with
TV ratings.
It'll include viewership on everything, including your
mobile device.
And it's forced some innovation, too, because Nielsen
can't just say, oh, well, we'll add an eavesdropper onto
your tablet or your smartphone, because it'll drain
your battery.
Yeah, what it'll probably be is a third-party app or
piece of software.
And it makes sense, it seems like it would be easier than
ever to track watching habits in the near future.
OK, it is if you're Google, if you're Nielsen, and you've
been basically caught off guard by this since you maybe
started thinking about this in 2011, then you're in deep
trouble.
Oh, man, Nielsen.
There's a very, very effective way of tracking computer
use, Chuck.
And it's called cookies.
And cookies have been around forever.
And they've gotten to the point now where they can plant
cookies on your tablet, your smartphone, your computer.
However you, all these things you use, and after a while,
just from paying attention to the data, the algorithm will
basically say, I think these three cookies over here are
the same person.
And they'll put them together.
And all of a sudden, what was once three users is now one.
And the picture is that much clearer of who binged watch
season two of True Blood this week, you know?
Yeah.
So there's cookies out there.
And they've been around for a while.
And they're very easy to get and very easy to use.
And this is what Nielsen's up against.
Yeah, and you may be saying yourself, well, who cares how
people are watching it if it's online or on TV?
But what matters is advertisers, if you've noticed, if you
watch those online, like with Hulu or something, they're
different commercials.
You're not seeing the same stuff.
And they still can't even decide now what to count,
because they don't want to, you know, if Brad Pitt does a
Pepsi commercial, he probably has it in his contract.
Well, this can only run on network on air TV.
In Thailand, only.
Don't show me on Hulu.
I don't want my commercial running online.
If I show up in South Korea, you owe me $10 million.
That's right.
So they have a lot of control on how their images are seen.
Or maybe there's an awesome commercial that licensed the
who's won't get fooled again.
It's only licensed for television.
They can't show that same commercial online.
So you're going to have to show what some advertisers or
shows or networks might consider a substandard ad.
So they don't even want to count that as a view.
Yeah.
And the same applies to TV shows, too.
There might be actors, writers that are just for on air and
not for video distribution or just like with the ads.
So it seems to me like it's not just Nielsen is up against
this, the networks are still trying to figure out things
like TV everywhere.
Like they want you to be able to watch TV everywhere you are
at all times because then they can serve you ads everywhere
at all times and they can charge for those kind of things.
But they can't say how to track this yet, one.
And not everything's cleared for all forms of media, two.
The other problem with online viewing is they don't have
that all important demographic detail.
OK, again, though.
Or they could, though.
If they start using cookies, then they've got it right there.
This is what advertisers are salivating over, like
hyper-targeted ads.
So imagine if you and I are watching the same classic
episode of Saturday Night Live.
And I'm watching it on my computer.
You're watching it on your computer.
We're sitting right next to each other.
We press play at the same time.
The ad break gets to the same spot at the same time.
And then, boom, two different ads come up.
Yeah, I get mobile team because I'm in my 40s.
Right.
You get a Ferrari ad because you're five or six years
younger than me.
Exactly.
That's exactly what would happen, too.
So this is what advertisers want.
Like that level is targeted.
But the Nielsen company is still dominating.
If they can catch up, the Nielsen company will be around
for another 50, 100 years.
But again, they're up against cookie tracking right now.
And if somebody can come along and be like, hey, man, we've
got all of your second screen data you could ever want, then
again, Nielsen's in big trouble.
Well, our company's trying to do that.
There's one called ComScore that says they can offer a
single metric that shows who's watching television across
every single platform you can think of.
Time shifted, on demand, streaming, live, whatever.
ComScore says they can do it.
NBC has signed up with them.
And they haven't dropped Nielsen there to spend more
money to try and get better tracking.
There's another company.
They did that in the 2014 Sochi Olympics, right?
Was that the trial?
Yeah, I think that's when they rolled it out.
Supposedly, it was super successful.
Yeah, that's what they said.
And then there's another one called Ren Track that their
origins were just a video cassette distributor.
But they realized that that was going nowhere.
What?
In 2014.
Even worse, they were beta.
Yeah, so they diversified into TV ratings.
And they use cable set-top boxes.
And right now have deals with 70 networks and
300 TV stations.
And basically, the competition, David Poletrack, he's a
chief research officer for CBS Corporation, said that the
competition on the research front is the most intense
it's ever been.
Oh, it's a pretty exciting time.
Yeah, and Nielsen actually, there was an FTC anti-trust
settlement where I think the way I understand it is that
Nielsen was using, they acquired a company called
Arbitron, which is a specialist in radio and out of home
measurement.
And I think there was an anti-trust suit saying, like, you
can't be the only people using this.
So they've now licensed that out, were forced, I think, to
license it out to ComScore, who is now using that portable
people meter, not purple people eater.
No, man, but hats off to you for getting it right.
And I think I'm understanding that correctly.
But the long and the short of it is, unless they get this
right, they think they're missing out on as much as 15%
of TV viewing is going unaccounted for at this point.
So if you're a network or something like that, that's
ad revenue, right?
That's an ad rate hike that you aren't getting.
If you're an advertiser, that's like a whole ghost group
that you may or may not be getting your product in front
of, but like you can't say either way.
Having 10% or 15% of the advertising or viewing audience
unaccounted for is not acceptable.
To me, not in modern America, buddy.
This is what I think is going to happen.
I think they're going to get their jazz together and be
able to track who watches a show down to 100%.
And the people who make the shows will sell a package
to an advertiser.
And the advertiser spot runs in that show no matter where
it's consumed.
So it's like a 360 deal, basically.
Like this show is going to be broadcast live or broadcast
on the neps.
It's going to be up on our player.
You're going to be able to watch it on tablet.
But in all of these, it's going to be when you buy an ad spot,
it goes with the show no matter where the show goes.
All right, I could see that.
And then there's another happy aspect of tracking, viewing,
like down to this granular detail.
Your shows are more likely to be saved.
Our show, again, I say would not have been helped by any of this.
But the whole reason community was online or still on air
was because the NBC was smart enough to be like, oh, well,
wait a minute.
Yeah, its ratings are abysmal, traditionally speaking.
But on Twitter, it actually trends.
It's like a worldwide trend.
That's valuable.
And they figured out that this is something
you have to take into account.
Nielsen has as well.
They launched a partnership with Twitter,
who in turn bought basically a TV trend tracking service.
So now Nielsen's going to start taking Twitter trending
into account into its ratings.
Yeah, and I think Nielsen has to deal with Facebook, too, right?
I believe so.
Yeah, to try and see, again, what's trending, I guess.
Yeah, and so now it's not just going
to be how many people are watching it,
how many people are talking about it,
how many people dress up like that character on that night,
that kind of thing.
So really neat inventive shows that don't get
a huge national audience will maybe have a longer life.
We might still have freaks and geeks.
Yes, that would be nice.
Although that was a perfect run encapsulated in one season.
Yeah, it's pretty great.
And everyone on that show went on
to be huge movie stars, almost.
Yeah.
Well, not everyone, but a lot of them did.
Most of them.
Man, if we would have had time who we should have talked to
about this was Luke Ryan.
Oh, yeah.
Our buddy Luke is.
He's movies, though, right?
Well, now he does.
He knows all about this stuff.
He does TV as well.
But he's just talking to him as like he's always
one step ahead.
He's very, very forward thinking smart guy.
Yes.
And I bet he would verify your theory on where we're headed.
Maybe tweak it.
Well, Luke, if you're out there listening, let us know.
You'd better be listening.
And also, I'm eternally grateful to Luke Ryan
for my Billy Zabka signed tub time machine poster.
That's right.
That's how we first met him, right?
Yeah.
That's pretty cool.
If you want to know more about Luke Ryan or TV ratings,
you can type either of those two into the search bar
at howstuffworks.com.
And since I said Luke Ryan, not Luke Brian, that's different.
I don't even know who Luke Ryan is.
He's a huge big time country star.
That's why I don't know who he is.
Do you know he sold out like two shows at Madison Square
Gardens?
And apparently, he's the only one to ever do that.
He's huge.
No, people sell out multiple shows at Madison Square Garden
all the time.
Bruce sells out like six, eight in a row.
He's one of them.
OK.
Maybe he broke the time record or something.
He's a good guy, too, though.
If his name isn't Willie Nelson, then I don't know him.
Well, anyway, it's time for Listener Mail.
I'm going to call this a train conductor.
I love that job.
We had one that wrote in.
Awesome.
Hey, guys.
Been wanting to write in for a while now.
Been waiting until I could think of something interesting
to relate to you.
I found your podcast a while back in February
was looking for something to listen to while I commute to
work.
Working on a Penn Station for the Long Island Railroad
as a train conductor means my hours
tend to have me driving home anywhere from midnight to 3
AM.
Prior to finding your show, all I listen to were audiobooks
or the radio, but I got bored with all that after a while.
And I noticed my eyelids were getting heavier and heavier,
which is about 70 miles door to door on my trip.
Yeah.
It's no good.
No.
Enter stuff you should know.
From the first time I listened to you guys,
I've been wide awake, amused, and attended the whole drive.
That's why I want to thank you guys for keeping me alive.
Because if not for your show, I'm
sure I would have fallen asleep and driven off the road.
Ever since childhood, I've always
been fascinated about history and learning how things work
and was evident by me dismantling my toys
and attempting to put them back together.
Although it's funny, in the end, I always had extra parts.
So again, thank you for accompanying me on my drive home
every night.
It's been nice having three friends in the car,
although one of you is extremely silent.
That's Jerry.
And by the way, Jerry didn't get canceled.
We were just joking.
Yeah, all right.
She's on the air.
And that is from Angel Cartagena in Bethel, Connecticut.
Or Angel.
I wondered about that.
He says, PS, if it becomes listener mail,
I know you both try so hard to pronounce things.
My last name is Cartagena, like the city
in the Romancing the Stone.
But he didn't say if it was Angel or Angel.
If his last name's Cartagena, it's Angel.
I would think.
But we'll see.
We will see.
Let us know, Angel.
That's what I'm going with.
All right.
If you want to let us know how to pronounce your name,
we're always happy to hear from buddies out there who
listen in listening land.
You can tweet to us at SYSK Podcast.
You can post the pronunciation of your name
on facebook.com slash stuffyoushouldknow.
You can send us an email to stuffpodcastathowstuffworks.com.
And as always, hang out with us at our home on the web,
stuffyoushouldknow.com.
For more on this and thousands of other topics,
visit howstuffworks.com.
Hey, I'm Lance Bass, host of the new I Hard Podcast Frosted
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On the podcast, Hey Dude, the 90s called David Lasher
and Christine Taylor, stars of the cult classic show, Hey Dude,
bring you back to the days of slip dresses
and choker necklaces.
We're going to use Hey Dude as our jumping off point,
but we are going to unpack and dive back
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We lived it, and now we're calling on all of our friends
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Listen to Hey Dude, the 90s called on the I Heart Radio app,
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