European Commission moots product placement in TV programmes |
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Thu, 15 Dec 2005 08:05
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BRUSSELS: The European Commission Tuesday proposed new rules allowing TV programme producers across Europe to sell airtime slots to advertisers and giving TV companies better say in allocating on-air time for commercials.
The system is now prevalent in the U.S., but is illegal in many European countries. If the proposals are approved by the European Parliament and member governments, TV shows can offer commercial space to advertisers to display their products. However, EU experts feel the process of getting a mandate for the system from all the governments will take considerable time.
Described as product placement, the system allows sale of airtime to advertisers to place their advertisement provided three conditions are met: an announcement at the start of the programme telling viewers that the programme features paid-for products; no such advertisements in children's programmes, news bulletins and documentaries; and no advertisements on tobacco and prescription drugs. Even TV stations can place commercials whenever they want during their shows, as long as they do not exceed 12 minutes an hour.
Prevailing rules do not allow European broadcasters to carry advertising described as "surreptitious", but different countries in the region interpret the law differently. Among EU countries, Austria permits product placement.
Information and media commissioner for EU Vivian Reding said it is necessary to update the Television Without Frontiers directive in force since 1997. She said the aim in introducing the new rules is to allow the audiovisual content industry in Europe to flourish under one of the most modern and flexible sets of rules in the world.
It is expected that the changes will allow broadcasters to tap a potential market, which was around 2 billion pounds in the U.S. alone in 2004.
In Britain, regulator Ofcom will have to approve the product placement system. It is planning to bring out a consultation document this week.
One of the distinct examples of product placement in TV programmes in the U.S. is the series Desperate Housewives. The producers were paid to use a Buick car in one storyline. Product placements are common in Hollywood like in James Bond movies where BMW bikes and Omega watches are distinctly shown.
The commission clarified that the proposal is a directive, intended to keep pace with the change in broadcast technology, and it will not apply to non-linear services such as on-demand films or news, which a viewer "pulls" from a network.
There is technology available for viewers to skip commercials while enjoying a TV programme as well as the good old remote control of course.
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