Misconceptions regarding broadcast billing

When TONO settles broadcast channels (radio and TV), statistical sampling is used on individual channels. In the wake of the latest TONO settlements, a misunderstanding has arisen that this means that TONO members receive far too little money for performance on these channels. Here is a clarification.

 / 04/11/2011 /

Statistical selection, or sampling, means that for administrative reasons, a few reported weeks are selected to represent the entire year. The starting point is a limited period (a certain number of weeks) and settlement is made based on reports sent from the channels. The weeks selected are spread out, so they are evenly distributed throughout the year. This provides a representative sample, and is a more efficient and cost-effective way to settle than if one were to do it for an entire year.

Higher minute value on sampled channels

The fact that you are billing based on a certain number of weeks does NOT mean that you get paid for only 6 weeks of radio play instead of 52 weeks. The minute value used on channels with statistical selection is 52/6 (i.e. 8,66) times higher than it would be if we had billed 52 weeks. The total billing amount is independent of the number of weeks used as the basis for billing.

Advantages and disadvantages of using statistical sampling

Using a statistical sample will always be less precise than calculating every single transmission. This can lead to more or less in calculation depending on the representativeness of the statistical basis. Statistical sampling is used because it is a cost-effective way of calculating individual channels. In some cases, it would cost more to calculate a channel than the channel generates in revenue for TONO.  

 To settle based on a statistical sample is a choice made by TONO's board based on cost considerations. TONO will always seek to settle as accurately as possible, but there will also be other factors that play into the final decision on how we settle the individual channels.

Local radio stations

Reporting from local radio stations was discontinued in the early 2000s for economic reasons, as all reporting consisted of analogue paper reports and was extremely resource-intensive. Electronic reporting has made us want to reintroduce reporting from local radio stations. We are currently in talks with the largest local radio stations and are working to establish reporting as quickly as possible.

TONO – non-profit

TONO is a non-profit organization that is managed and owned by its members. All income that is not used for operations goes back to the members.