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Policy on Product Integration in Audiovisual Content Yoram Mokady Chairman Israel Council for Cable Policy on Product Integration in Audiovisual Content Yoram Mokady Chairman Israel Council for Cable and Satellite Broadcasting http: //www. moc. gov. il/new/hebrew/index. html Epra- Budapest October 2005

Was product integration born in 1982? REESES PIECES IN E. T. Was product integration born in 1982? REESES PIECES IN E. T.

It can actually be tracked in much earlier productions: • • • 1932 - It can actually be tracked in much earlier productions: • • • 1932 - White Owl cigars in "Scarface"; 1935 - Buick cars in “Gold Diggers”; 1941 - Chesterfield cigarettes, in "You'll Never Get Rich“; • 1950 - Coca-Cola in “Father of the Bride”; Iowa State, journalism professor Jay Newell’s product placement research, source of Turner Classic Movies March line-up

1955 – “The Seven Year Itch” 1955 – “The Seven Year Itch”

1980 - “Urban Cowboy” 1980 - “Urban Cowboy”

Product integration is common in a variety of media products: Product integration is common in a variety of media products:

Movies Movies

Television Programs Television Programs

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

Video Games Video Games

And many others: • • Video Clips Newspapers Websites Books And many others: • • Video Clips Newspapers Websites Books

The use in product integration has increased: • New trends, concept and perceptions in The use in product integration has increased: • New trends, concept and perceptions in the advertising and PR markets; • Digital technologies threaten traditional commercial breaks: Wide array of channels; VOD-no commercials; DVR- commercial skipping.

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

Product placement Product placement

Plot placement Plot placement

Title Placement Title Placement

Should regulators allow product integration in content? • • An additional financial source for Should regulators allow product integration in content? • • An additional financial source for audiovisual productions; Ensure the continuation of free broadcasts in the digital age; Better to regulate than allow a “black market”; Exists in American and other acquired programs.

Concerns raised by product Integration • Protecting program integrity - Authenticity of audiovisual work; Concerns raised by product Integration • Protecting program integrity - Authenticity of audiovisual work; - Journalistic + editorial independence; - Objectivity of information. • Protecting media consumers

Principals for regulating product integration in television production Principals for regulating product integration in television production

Ensuring program integrity • • • 1. Banning product integration in programs in which Ensuring program integrity • • • 1. Banning product integration in programs in which the authenticity and objectivity of facts is crucial News; Current Affairs; Documentaries; Programs in which commercials are banned; Drama? Video clips?

Ensuring program integrity 2. Mechanisms for preventing commercial influence on content • Producers will Ensuring program integrity 2. Mechanisms for preventing commercial influence on content • Producers will maintain editorial decisions; • Exposure of commercial elements when editorially justified;

 • Separation between the employees that are responsible for the production and the • Separation between the employees that are responsible for the production and the sponsoring body; • Limitations of undue prominence; • Encouraging viewers to buy the products- not allowed; • Program promotions shall not contain product integrations.

Protection of Media Consumers 1. Protecting media consumers from surreptitious advertising • Viewer notification Protection of Media Consumers 1. Protecting media consumers from surreptitious advertising • Viewer notification at the beginning + the end + every 30 minutes of program time; • Public announcements creating public awareness.

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

3. Child Protection Programs directed towards 14 years old and under may not contain 3. Child Protection Programs directed towards 14 years old and under may not contain product integration.

Thank you Thank you