Television Rating Points

May 16th, 2009 No Commented

Categorized Under: Business

I have been thinking about this conundrum called Television Rating Points (TRP). This is the currency being used all over the world to monetize the television viewing. This is used widely by all the channels to sell their programs and all the advertisers to buy the right programs. But, it has always confounded me. Let me give you why I get confounded by this.

Suppose there are 6 people in a household. Suppose it is a diary system where the household records which program they have seen. Do they record it every time they view something? They would not do that. They would do it may be once a day. Or, more practically, once in a few days. What would they remember at that point in time? They may think that they might have seen what they normally see.

So, the system basically is biased in favour of the programs which have been running for some time.

That is what is confounding!

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