The mooted rule changes on Product Placement present broadcasters with opportunities and challenges.
SEPTEMBER 2009
The recent indication by Ben Bradshaw, the Culture Secretary, that the restrictions on product placement are to be lifted 'in principle' is a welcome move in the ever loosening grip of unnecessary regulation on commercial television.
The principal argument against allowing product placement was that it would blur the boundaries between advertising and editorial. In an environment with one or two commercial channels and a relatively untutored audience, this concern may have carried some weight. However the multi-channel home has a sophisticated audience which picks its wares from the internet as much as from broadcasting and is most unlikely to be misled by product placement, which it will recognise for what it is. The challenge for producers and broadcasters is not to be seduced by the relaxation in the rules and not to devalue the opportunity now open to them by an overloaded or heavy-handed approach.
Although there will be jockeying for position during the consultation phase between the regulators, broadcasters and advertisers, once the rules are relaxed, complex commercial dynamics will hold sway. What products are placed in what programmes will depend partly on regulation, e.g. suitability, but also upon the attractions of the particular programme versus the power and nature of the product. Will there be programmes who want to be associated with a particularly attractive or trendy product and therefore 'place' it for free? Indeed, it may be that some product placement could do more for the programme than the programme does for the product. It is difficult to see any one group having the whip hand, as each case will depend on its particular circumstances. Coca-Cola may well require exclusivity in a programme and a programme maker may well accept that. On the other hand Swaffer’s Wholesome Lincolnshire Sausages may not be so lucky even on early evening local programmes. Establishing a rate card for product placement will be a challenging task!
The rule change will not be the saviour of commercial television since revenues from product placement are likely to account for no more than 3-5% of TV advertising revenues. Whilst it will of course be a welcome fillip to revenues, more critical is the scale and attractiveness of audiences to advertisers which can best be developed by quality programming targeted at particular demographics. This presents a more significant challenge.
One thing is for sure: the often portrayed illustration of "American Idol" and its Coca-Cola brandishing judges would not be permitted as the rules on undue prominence would not be affected by any relaxation of product placement.
If you would like any further information about the issues raised in this article or any other aspect of Media Law please contact Patrick Swaffer or another member of Goodman Derrick LLPs Media Department on 0207 404 0606.
This guide is for general use and information only and should not be relied upon as providing specific legal advice. |
