Nielsen Media Research has announced that on December 11, 2006 it will launch a new service to measure mainstream Video On Demand VOD content using the same National People Meter sample it uses to provide television ratings to national programmers.

Clients will receive household and demographic ratings for VOD content along with other detailed audience information. By measuring VOD content in its national ratings panel, Nielsen will enable clients, for the first time, to compare the performance of programs airing on traditional channels with the performance of those same programs on demand.

Nielsen will be able to provide VOD reporting to clients who implement ‚Äúwatermarking,‚Äù or audio code, technology that identifies specific on-demand titles. Working in conjunction with clients, Nielsen has developed the encoding tools to uniquely “watermark” VOD content so that Nielsens newly deployed Active/Passive meter can accurately identify on-demand viewing sessions.

Because Nielsen’s system relies on “watermarking”, it will not accurately capture information on other on demand video content.

Nielsens launch of VOD measurement ushers in a new level of reporting for all types of video on demand programming, including titles from the libraries of content providers and recently telecast programs shown again via VOD.

New broadcast and cable network programming that is played back via VOD is already included in Nielsens time-shifted viewing ratings, but only if the programming content and advertising is the same as is in the original live telecast.

“Because Video On Demand is a growing business and a potentially valuable new revenue stream for programmers, it is increasingly important for them to understand who is watching their shows and to be able to compare the viewing that is being done via traditional television and VOD,” said Scott L Brown, Senior Vice President of Nielsen.

Once a client installs the watermarking software, Nielsen can identify the programs it wishes to track through the VOD process, and the VOD programs viewed in sample households can be credited accordingly.