Nielsen ratings: Why has no one disrupted nielsen ratings?
Why do TV companies still use nielsen ratings?
Why do TV companies still use nielsen ratings?
Nielsen's actual business is getting data (staggeringly enormous amounts of data - not just TV watching but consumer purchase data, retail POS data, etc), and then leveraging it. If you want to disrupt something, it's the collection and use/sale of this information.
However, there is a strong network effect here. The value of the data you collect is proportional to how established you are and how much participation/penetration you have in an industry. Big companies (like TV/media companies, retail chains, and manufacturers) want big data from big providers. They want large amounts of reliable data that speaks for an entire industry, nationwide and worldwide, to inform their very-high-dollar decisions. If you can collect that, and convince e.g. Walmart that your data is worth buying, go for it!
As far as technology, you hit the nail on the head. A simple Android / iPhone app could literally replace all 5 boxes. I gasped when I heard they are still using modems, jeeze.
An idea I have for the late Idea Sunday: a mobile app where the user let it on next to him while watching TV and it recognize what is he seeing by the sound. No need for input or action by the user.
For someone to disrupt Nielsen, they would need to collect demographic information about the people watching, not just the number of devices that are watching.