Martin takes the fight to NDTV

Sir Martin Sorrell, founder and chief executive of WPP Group Plc, strongly refuted allegations about irregularities in the viewership ratings issued by TAM Media Pvt. Ltd. In a phone interview from London, Sorrell broke his silence over a lawsuit that broadcaster New Delhi Television Ltd (NDTV) said it has filed in the US over the issue.
WPP is one of the world’s largest communications services companies, with £10 billion (Rs87,800 crore today) in revenue in 2011. TAM is a joint venture between Nielsen and WPP-owned Kantar Market Research Services Pvt. Ltd. Edited excerpts:

Two days ago, you stated on your website that the “hypothetical” lawsuit has not been received. Does that still hold true?

Nothing has been served properly. Nothing at all, that is why we call it a hypothetical lawsuit. The two-lawyer firm (engaged by NDTV) is based in Florida and it specializes in restaurant law. This is an Indian issue, not American. It is a bit of mischief on their part.

Why do you say that?

Their lawyers called us and asked if we would discuss a settlement. I said there is no question of settlement. This whole thing is mischievous, designed to elicit some financial response from us.
You look at NDTV’s performance in the last five years. I am not talking about their editorial, but the business. Its market cap has fallen from $800 million to $60 million. It is an attempt by NDTV to blame the ratings for their performance. It is not fair. Their financial performance has been poor.

Why were you quiet all this while?

We waited three-four weeks to see what was going to happen. But nothing happened. They are issuing illegitimate proceedings in the US with lawyers working on a contingency basis, where they do not get a fee, but a percentage of the settlement. That is why they rang up.

But the sample size and corruption issues have been raised again and again. Why didn’t you act?

Twenty-six names of members on the panel were raised locally and they were replaced over a period of time even though we have not found any evidence of corruption against them. We have been very scrupulous about it. The issues were raised and we investigated.

WPP in India owns media-buying firms. Isn’t there a conflict of interest in that your research agency Kantar runs TAM, on the basis of which media worth crores of rupees is bought?

We have been doing this for 26 years. This has never been suggested. We do this scrupulously and fairly. We also track advertising.

TAM recently offered a six-point agenda to improve its system in a meeting with advertisers. Isn’t that an admission that there is a problem?

It is not an admission. It is an attempt to improve the system. Panels change over time as population changes. New viewers come and India will change as digitization happens, the growth of OOH (out-of-home) and mobile will change things. The system has to be continuously updated. We have been in India for 14 years. We are not amateurs in this business. WPP through Kantar does TV ratings in 40 countries. And Nielsen independently does it on other markets, including in the US.
We will do everything to improve the system, but not with the gun being held to our head in an inexpert way. We have not got the proceedings in the right way. This is to extort money from us.
NDTV said we are doing a PR (public relations) exercise. But it is they who started the PR campaign without even serving the lawsuit.

The reputation of WPP and TAM has taken a hit.

That is why we are considering a defamation suit.

courtesy: http://www.livemint.com/2012/08/24222006/Martin-Sorrell-takes-the-fight.html?h=A1