Policy on Product Integration in Policy on Product Integration in Audiovisual ContentAudiovisual Content

Yoram MokadyYoram MokadyChairmanChairman

Israel Council for Cable and Satellite Israel Council for Cable and Satellite BroadcastingBroadcasting

http://www.moc.gov.il/new/hebrew/index.htmlhttp://www.moc.gov.il/new/hebrew/index.html

Epra- BudapestEpra- Budapest

October 2005October 2005

Was product integration born in Was product integration born in 19821982??

REESES PIECES IN E.T.REESES PIECES IN E.T.

It can actually be tracked in much It can actually be tracked in much earlier productionsearlier productions::

• 1932 - 1932 - White Owl cigars in "Scarface";White Owl cigars in "Scarface";• 1935 - 1935 - Buick cars in “Gold Diggers”;Buick cars in “Gold Diggers”;• 1941 - 1941 - Chesterfield cigarettes, in Chesterfield cigarettes, in

"You'll Never Get Rich“;"You'll Never Get Rich“;• 1950 - 1950 - Coca-Cola in “Father of the Coca-Cola in “Father of the

Bride”;Bride”;

Iowa State, journalism professor Jay Newell’s product placement research, Iowa State, journalism professor Jay Newell’s product placement research, source of Turner Classic Movies March line-up source of Turner Classic Movies March line-up

19551955 – –

““The The Seven Seven Year Year ItchItch””

19801980 - -

““UrbanUrbanCowboy”Cowboy”

Product integration is Product integration is common in a variety of common in a variety of

media productsmedia products::

MoviesMovies

Television ProgramsTelevision Programs

Cartoons Cartoons Shorties Watchin' ShortiesShorties Watchin' Shorties- Comedy Central- Comedy Central

Video GamesVideo Games

And many others:And many others:• Video ClipsVideo Clips • NewspapersNewspapers• WebsitesWebsites • BooksBooks

The use in product The use in product integration has increased:integration has increased:

• New trends, concept and New trends, concept and perceptions in the advertising and perceptions in the advertising and PR markets;PR markets;

• Digital technologies threaten Digital technologies threaten traditional commercial breaks:traditional commercial breaks:

    Wide array of channels;Wide array of channels;      VOD-no commercials;VOD-no commercials;

DVR- commercial skipping.DVR- commercial skipping.

Product Integration include Product Integration include different practices :different practices :

Product placementProduct placement

Plot placementPlot placement

Title PlacementTitle Placement

Should regulators allow product Should regulators allow product integration in content?integration in content?

• An additional financial source for An additional financial source for audiovisual productions;audiovisual productions;

• Ensure the continuation of free Ensure the continuation of free broadcasts in the digital age;broadcasts in the digital age;

• Better to regulate than allow a “black Better to regulate than allow a “black market”;market”;

• Exists in American and other acquired Exists in American and other acquired programs.programs.

Concerns raised by Concerns raised by product Integrationproduct Integration

• Protecting program integrityProtecting program integrity - Authenticity of audiovisual work;- Authenticity of audiovisual work; - Journalistic + editorial independence; - Journalistic + editorial independence; - Objectivity of information.- Objectivity of information. • Protecting media consumersProtecting media consumers

Principals for Principals for regulating product regulating product

integration in television integration in television productionproduction

Ensuring program integrityEnsuring program integrity

1.1.Banning product integration in programs Banning product integration in programs in which the authenticity and objectivity of in which the authenticity and objectivity of facts is crucialfacts is crucial

• News;News;• Current Affairs;Current Affairs;• Documentaries;Documentaries;• Programs in which commercials are banned;Programs in which commercials are banned;• Drama?Drama?• Video clips?Video clips?

Ensuring program integrityEnsuring program integrity

2.2. Mechanisms for preventing Mechanisms for preventing commercial influence on contentcommercial influence on content

• Producers will maintain editorial Producers will maintain editorial decisions; decisions;

• Exposure of commercial elements when Exposure of commercial elements when editorially justified;editorially justified;

• Separation between the employees that are Separation between the employees that are responsible for the production and the responsible for the production and the sponsoring body;sponsoring body;

• Limitations of undue prominence;Limitations of undue prominence;

• Encouraging viewers to buy the products- not Encouraging viewers to buy the products- not allowed;allowed;

• Program promotions shall not contain product Program promotions shall not contain product integrations.integrations.

Protection of Media Protection of Media ConsumersConsumers

1. 1. Protecting media consumers Protecting media consumers from from surreptitious advertising surreptitious advertising

• Viewer notification at the beginning + the Viewer notification at the beginning + the end + every 30 minutes of program timeend + every 30 minutes of program time;;

• Public announcements creating public Public announcements creating public awareness. awareness.

2.Applying advertisement 2.Applying advertisement limitations on product limitations on product

integrationintegration

3. Child Protection3. Child Protection

Programs directed towards 14 Programs directed towards 14 years old and under may not years old and under may not contain product integration.contain product integration.

Thank Thank youyou