Nielsen ratings have always been an imperfect system of projecting who is watching what when. The advent of DVR technology and internet-streamed programming have made the television ratings game even more challenging.

So the major TV companies -- General Electric's (NYSE: GE) NBC Universal, Time Warner (NYSE: TWX), News Corp. (NYSE: NWS), Viacom (NYSE: VIA), CBS Corp. (NYSE: CBS), and Walt Disney (NYSE: DIS) -- have teamed together to fight against Nielsen, which not only delivers arguably flawed data, but charges a hefty fee to do so.

The underdog tale of Slumdog Millionaire and the bittersweet nomination of the deceased Heath Ledger may have had a few more people tuning in to last night's Oscar broadcast, which aired on Walt Disney's (NYSE: DIS) ABC Network. Preliminary Nielsen ratings indicate a 6% increase from last year.

The bad news? Last year marked a record low for the awards broadcast as 32 million viewers tuned in. And this year, if early numbers hold true, will be among the three least-watched Academy Awards broadcasts ever.

That "bloop-bloop-bloop" you hear is the collective fast-forwarding over the commercials as households with TiVos (NASDAQ: TIVO) or other digital video recording (DVR) devices zoom through the ad breaks.

A recent article in the Los Angeles Times reports that with DVR use on the rise, the Nielsen ratings group has started to monitor how American television watchers view commercials.

Advertisers have been claiming of late that the increased use of DVRs cuts down on the actual viewing of commercials. With fewer eyes ostensibly on the advertising messages, many feel that the cost for air time should be reduced. This month, with May sweeps on the books, networks and advertisers begin work on contracts for the fall season, so these fresh Nielsen numbers may be used as a bargaining chip to calculate ad rates for prime-time space on the major networks. Last year, advertisers pledged $8.75 billion in commercial-spot dollars during the "upfront" sales season. Current expectations are for this figure to decline this year.

According to the latest Nielsen figures, more than 2.5 million fewer people have tuned in to the major four networks this spring than were watching in 2006. In fact, we're in the middle of TV's worst spring in recent history. Why? An early daylight savings time, frustrating "hiatuses" in the middle of seasons, and a temperate spring that has driven many toward outdoor activities. Pick an excuse, any excuse.

I'm of the opinion that prime-time television has rarely been better, so this trend shouldn't be a lack of quality programming. The Office, 30 Rock, and Entourage are especially smart and original comedies, Lost and Veronica Mars keep me hungry for more, and even American Idol has a magnetic power I simply cannot avoid.

Another (and I think a more compelling) theory is that the TV-viewing public has begun to dramatically change the way it watches TV. These forward-thinking viewers, however, are falling through the ratings cracks. Digital video recorders are becoming increasingly popular, but Nielsen only measures viewership if a recorded program is watched within 24 hours of its original air time. The ratings service also leaves out entirely those viewers who download shows on iTunes or stream an episode from a network web site.

Translation? The technology measuring what we're watching hasn't advanced to compensate for the new technology that makes it easier to catch more programs. Phew.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Evidently, "perky" and "likable" aren't what the nation's network news watchers want with their nightly dose of headlines. This is a tough (and expensive) lesson being learned by the folks at CBS Corp. (NYSE: CBS).

Last week, the CBS Evening News, which has been anchored by Katie Couric since early September, attracted its lowest ratings since 1987. During the first week of May, which happens to mark the beginning of the television industry's spring "sweeps" period, an average of 6.05 million viewers tuned in to watch the former Today host deliver the news. Couric is currently the highest-paid news anchor, at $15 million per year.

ABC's World News offering, meanwhile, averaged 8.1 million viewers, while NBC's Nightly News saw 7.5 million viewers tune in. Charles Gibson mans the desk at ABC -- a division of Walt Disney (NYSE: DIS) -- while Brian Williams is the weeknight anchor for General Electric's (NYSE: GE) NBC.

Thank goodness for the CSI franchise and other programs that keep CBS moving at an enviable clip. The network still won the week, earning an average 11.2 million viewers in prime time to top its four competitors.

How do you solve a problem like Katie? According to recent theories from "CBS sources," she may gracefully bow out of her current role following the 2008 Presidential election and take on another position at the eye network. But even that is well over a year away, and there is the potential for plenty of sub-par ratings between now and next November.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

A sea change is about to swamp your television shows, and the source of that tsunami might be a new Nielsen advertising metric to be unveiled this May.

For years, television advertisers have complained about the lack of specific data on who views their ads. They have been forced to make decisions based on show viewership numbers, knowing full well that full bladders, the mute button and Tivo erode those figures substantially.

Now Nielsen is tackling this question with new of data that measure advertisement viewership the same way they have measured the television audience. Commercial ratings will supposedly allow ad buyers to differentiate the number of eyeballs taking in their pitches from those watching the show in which they appear.

TV networks such as CBS Corp. (NYSE:CBS) and the Walt Disney Corp. (NYSE:DIS)'s ABC along with advertising agencies are not so clearly enthused about this metric, though. If a few well-thought-of campaigns prove ineffective in holding the viewing audience, it could cast doubt on the entire industry.

Nielsen, probably cognizant of how deeply their business is intertwined with the ad agency world, is taking a very cautious step into these waters. While advertisers want a second-by-second breakdown on viewership, something modern technology should allow Nielsen to capture, the new metric will only provide an average commercial viewership for each show.

Once this door is breached, however, it's hard to imagine Nielsen long refusing the demands of advertisers for more discrete data. And if they don't like what they see, expect television to change quickly and dramatically. More about this later.

I'm eager to see just how the new generation of entertaining advertisements stack up against one another. How does the snack fairy's numbers compare to the Energizer Bunny? if I had the ability, I would offer a huge prize to the first commercial that outdraws the show in which it appears.

I knew Nielsen didn't formally track the viewership of TV commercials as part of its television ratings, but somehow, I didn't know it. It seems like an obvious win -- after all, ever since the days when VCRs reared their 12:00-blinking heads in the world's living rooms (and don't even get them started on TiVo), broadcasters have been wondering whether people were watching commercials.

Well here you are, Nielsen: I watch TV ads, and so do my children, so they can nag me. But you'll know that soon, as you're about to start formally breaking out commercial breaks in the TV numbers you report. Everyone's expecting, of course, to see that viewership declines sharply during advertisements. And the natural evolution of the negotiation strategy: advertisers will start asking to pay less for their 30 seconds' worth of that reduced number of eyeballs. Money will flow away from the TV breaks and toward that other, far more measurable medium: the internet.

Or will it? So many advertisers have already made their mark by liberally sprinkling their products throughout the plots of your favorite shows. Take Kyle XY, the ABC Family show I've become addicted to. Kyle and his "brother" use Sour Patch Kids as currency. Watched the Hallmark Channel original movies recently? Boy have I never seen such loving treatment of an automobile. The camera loves the minivan ...

And isn't the "get up at the commercial and get a snack" contingent already calculated into the equation when advertisers decide how much they'll pay?