1. 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

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

3. It can actually be tracked in much earlier productions: 1932 - White Owl cigars in "Scarface";1932 - White Owl cigars in "Scarface"; 1935 - Buick cars in “ Gold Diggers ” ;1935 - Buick cars in “ Gold Diggers ” ; 1941 - Chesterfield cigarettes, in "You'll Never Get Rich “ ;1941 - Chesterfield cigarettes, in "You'll Never Get Rich “ ; 1950 - Coca-Cola in “ Father of the Bride ” ;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

4. 1955 – “ The Seven Year Itch ”

5. 1980 - “Urban Cowboy”

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

7. Movies

8. Television Programs

9. Cartoons Shorties Watchin' Shorties- Comedy Central Cartoons Shorties Watchin' Shorties- Comedy Central

10. Video Games

11. And many others: Video ClipsVideo Clips NewspapersNewspapers WebsitesWebsites BooksBooks

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

13. Product Integration include different practices :

14. Product placement Product placement

15. Plot placement

16. Title Placement

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

18. Concerns raised by product 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

19. Principals for regulating product integration in television production

20. Ensuring program integrity 1. Banning product integration in programs in which the authenticity and objectivity of facts is crucial 1. Banning product integration in programs in which the authenticity and objectivity of facts 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?

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

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

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

24. 2.Applying advertisement limitations on product integration

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

26. Thank you