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My understanding is that an independent company is responsible for the measurements. They recruit X number of households who own TVs, install a black box in or near the TV, and each night, this box sends through data (to the measuring company) detailing what was watched and for how long.
Each member of the family is given a "remote". The remote is pressed by that family member when that family member starts watching something and finishes watching it.
The data collected from these recruits is seen as a subset representation of all TV watchers. The data is interpolated and ratings are calculated based on the data provided by the recruits.
Hope this helps.
What else can I help you with?
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