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Nielsen's Clientele Strengthens With CBS Contract Renewal

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Nielsen Holdings Plc continues to gain traction in the audience measurement space with the aid of its expanding clientele.

Recently, the company’s client CBS Corporation renewed the agreement for its Total Audience measurement services.

With the latest deal, the contract dispute between the companies comes to an amicable end. This bodes well for Nielsen which was accused of not accurately measuring audiences in the multiplatform universe.

Moreover, the agreement renewal is testament to reliability and capability of Nielsen’s services.

Notably, CBS will continue to leverage Nielsen’s national, digital and local audience measurement across CBS Television Network, CBS Television Distribution, Showtime Networks, Smithsonian, Pop, CBS Sports Network and its 27 local television stations.

Growing Clientele to Aid Momentum

Apart from the new deal, the company witnessed contract renewal by Raycom Media per which the latter will utilize Nielsen’s television ratings for the purpose of audience measurement across many stations like WBTV-Charlotte, WBRC-Birmingham, WXIX-Cincinnati, WMC-Memphis, WVUE-New Orleans, WFLX-West Palm Beach, to name a few.

Further, the company recently renewed its agreement with Hearst Television. Notably, Hearst will leverage Nielsen’s ratings for local and national television, radio stations across its 26 local markets, syndicated programming and two Baltimore radio stations.

Meanwhile, MBuy renewed agreement for Nielsen’s local and national TV measurement in the end of 2017. Further, Sky Link Media selected Nielsen as its Local TV measurement provider.

These agreements along with the new one are likely to aid Nielsen’s momentum in today’s world where audience measurement and TV ratings have become significantly important for media as well as broadcasting companies.

Watch Segment to Benefit

Watch segment remains the key growth driver for Nielsen. In third-quarter 2018, this segment accounted for 53% of the total revenues.

Growing proliferation of the company’s measurement services across such a huge list of TV and radio stations are likely to accelerate adoption rate. This in turn will aid the company’s well-performing Watch segment, consequently driving the top line.

Further, we believe Nielsen’s growing initiatives toward enhancing its service offerings will continue to expand client base. The company’s Qualified Ad Audience solution is expanding the reach of its Total Audience Measurement service in local markets.

Zacks Rank & Stocks to Consider

Currently, Nielsen carries a Zacks Rank #3 (Hold).

A few better-ranked stocks that can be considered in the broader technology sector include Verint Systems (VRNT - Free Report) and Avid Technology . While Verint Systems sports a Zacks Rank #1 (Strong Buy), Avid Technology carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Verint Systems and Avid Technology is currently pegged at 10% and 10%, respectively.

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