The Arbitron Co., the nation's leading radio ratings consultant, is staking part of its growth and profitability on a new division that will survey which information and entertainment technologies people prefer.
The company is investing millions of dollars in Arbitron NewMedia, based in Columbia. It will collect in-depth information about consumers' use of satellite television, on-line computer services, interactive television services and other new technologies.
The move comes about a year after Arbitron shut down its TV ratings business and laid off more than 400 people in Maryland.
"There is an evolution under way -- some call it a revolution -- in the information and entertainment industries," said Marshall Snyder, Arbitron's executive vice president, who is heading the NewMedia division, which has a staff of seven. "We are positioning ourselves to grow as the evolution unfolds. It's a very exciting time."
Arbitron NewMedia will conduct nationwide surveys of consumer preferences for different types of information and entertainment technology and offer customized studies for its clients.
The new service should prove very profitable for 45-year-old Arbitron, predicted Patrick M. Burton, a stock analyst for Piper Jaffray in Minneapolis-St. Paul, Minn., who tracks Arbitron's parent company, Ceridian Corp., formerly Control Data Corp. Ceridian is an information and payroll services company based in New York.
"In the long term, say five years, there is no reason why Arbitron shouldn't see revenues of $50- to $100 million" a year from the NewMedia division and its other recent venture to provide local cable companies with program ratings, said Mr. Burton.
He noted that there are many new technologies to deliver information and entertainment to consumers at home, but that there is little data on who those consumers are and what they really want.
"There are lots of people out there who will want to know who is using what and why, and how best they can advertise their products to them," the stock analyst added.
A big player already in the field is Nielsen Media Research, based in New York. Nielsen, best known for its television ratings, launched its New Media Services division in 1990, said Jack Loftus, vice president of communications at Nielsen. Its new division works as a consultant for companies that provide information and entertainment services. Current projects include tracking a phone company's pay-per-view experiment in Denver.
But Nielsen Media Research has not done any nationwide surveys of the type being planned by Arbitron. "Our surveys are more targeted to specific needs" of Nielsen's clients, said Mr. Loftus.
Arbitron's Mr. Snyder said his company will offer nationwide surveys and give in-depth demographic and psychological information about the consumer.
"We aren't just asking people what new forms of technology they have in the home and use, but [asking them] to tell us about themselves and what they like to do with their time and money," he said.
Among its first efforts will be a nationwide study that may show such things as how often teen-agers use on-line services and why. The study also will include demographic statistics on the 4,100 people in the survey, said Mr. Snyder.
Selected findings of the survey -- called The New Media Pathfinder Study -- should be released in February. That release is intended to interest clients, such as cable system operators, advertisers, on-line service providers, and even newspaper chains, in purchasing the entire survey or customized follow-up studies, said Mr. Snyder.
Mr. Snyder declined to give specific revenue projections for the new division.
Arbitron is moving its Laurel and Beltsville offices to its new headquarters in Columbia. About 400 employees will be located at the office.