Adam Snukal will be participating on a panel at New York Law School on April 16th, 2010. The topic of the panel is "Financing, Advertising, and Product Placement". Mr. Snukal is a frequent speaker on a broad range of advertising-related topics, including Product Placement in television and movies.
FCC Comments Raise Issues Regarding Content-Rated Ads and Product-Placement Blocking that Underscores the Need for Further Parental Controls Discussions
Television parental content controls are still under review by the Federal Communications Commission (“FCC”), and children’s activist groups are urging the FCC to mandate technology that would allow viewers to block “objectionable” advertising material.
As a follow-up to the last month’s article regarding the FCC’s Notice of Inquiry to Implement the Child Safe Viewing Act of 2007 (“CVSA”), thousands of comments have been submitted to the docket already. In addition, some children’s advocacy groups have suggested that the FCC (1) require broadcast networks, cable networks and individual broadcast stations to rate advertising content, and (2) facilitate an industry solution to allow parents to preemptively identify and block programs containing embedded advertising messages. It would be advisable for industry to directly address the nuanced issues that should be considered if ad ratings and embedded advertising blocking proposals are further explored, such as:
Advertisement Content Ratings:
Product-Placement Blocking:
Bear in mind, the CVSA directs the FCC to examine advanced parental control technologies that would be compatible with various communications devices and platforms, consistent with the medium-specific First Amendment analysis. Currently, parents are faced with several different ratings standards for content, depending upon the media: (1) the TV Parental Guidelines for television programs, (2) the MPAA Film Ratings for feature films, (3) the Entertainment Software Ratings Board ratings for video games, and (4) various Internet web-filtering technologies. So, to the extent that commenters can discuss the proposed advertising ratings and blocking technologies in the context of synergizing the different forms of ratings standards, the comments are likely to be more effective.
Why this Matters:
A report on television parental controls is due to Congress Aug. 29, and this is likely to be the first media proceeding tackled by presumptive FCC Chairman Julius Genachowski. The presumptive chairman is also a founding board member of a parental content control group, Common Sense Media, so he is likely to be well-versed on this issue and less willing to accept that the status quo is ideal. Further, assuming Al Franken wins the Senate seat in Minnesota; with Arlen Specter’s recent announcement, the Democrats in Congress now have a majority in the House and a filibuster-proof majority in the Senate. These recent Senate gains would make it easier for Congress to address comprehensive parental controls reform, if it chooses to do so.
There is still time to add meaningful nuance to the docket that is being reviewed by FCC staff and will ultimately be summarized for Congress. Any interested commenter may submit reply comments until May 18.
This post was written by Avv. Felix Hofer.
1. When I came around 'game advertising' for the first time my attitude as a lawyer, not necessarily familiar with what I – snobbishly – considered as basically being “kid's or nerds' stuff”, was obviously extremely skeptic. Running more and more frequently into articles published on the topic, I very soon had to realize that this was already a definitely “hot” topic to a number of industry sectors, involving an incredible amount of investment as well as offering truly exciting business perspectives.
According to an interesting US study, published in June 2007 on in-game ad spending targeted to digital homes in the period 2006–2012, companies had already invested 370 mln. of USD and were expected to increase such figure up to 2.051 mln. USD in year 2012.
Fairly impressed by the forecast exposed in the US study I got curious about how feelings would be in Europe about potential business development with respect to the specific area. Again surprise, surprise: according to a study performed on behalf of the EU Commission total revenues from on-line content sales will reach 8,3 bln. on Euro by 2010 (at an increase rate of a growth of over 400% in five years!) and on-line games will contribute with a significant share to that quite remarkable pie. In Fall 2007 another study showed that the Internet had already become the most popular communication tool among youngsters aged between 16 and 24; in the specific target group 82% affirmed to go on-line at least 5 days per week for entertainment and information purposes, while 46% declared that they preferred the Internet over (and used it more than) TV.
With the final blow I was provided when I had to realize that 9,8 bln. Euro had been spent for game consoles only during the 2007 Christmas period, that even traditional community venues (as sports arenas, shopping centers) were arranging specific gaming areas and organizing new entertainment events (e. g. “disc burn” sessions) attractive for gamers, that digital platforms did score important come-backs for popular past-time games and that in France the gaming sector had surpassed the entertainment industry for the first time in annual revenues.
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