Entravision Communications radio division President Jeffery Lieberman said the Arbitron Inc. (NYSE:ARB) method of estimating numbers of radio listeners is "flawed" and could result in wasted advertising funds, The Washington Post reported Saturday.
"It's not accurate and it's not reliable," said Lieberman, whose company owns 48 Spanish-language radio stations in the United States. "It's a flawed system."
The system uses small electronic devices assigned to individuals nationwide that monitor which radio stations they listen to in order to determine ratings and demographic data.
Such industry criticism has prompted New York and New Jersey attorneys general to file lawsuits in an attempt to prevent Arbitron from marketing its services in the New York area.
A group of minority broadcasters has also asked the Federal Communications Commission to stop all Arbitron services until the accuracy of such services can be assessed.
The Post said Arbitron officials have denied the inaccuracy claims and have filed countersuits in the New York and New Jersey cases.