Product placement may become legal sooner in evolving digital world

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Regulations regarding the broadcast of TV content on the internet and via mobile phones have not been modernised by some of the biggest countries in the EU, despite the European Commission issuing guidance in 2007.

The failure to modernise regulations means digital TV channels could be missing out on large sums of advertising revenue.  Under the Audiovisual Media Services Directive member states were given until last week to update their domestic laws.

Only Belgium, Romania and Slovakia have provided the Commission with details on how they will change laws to take into account the growth of internet, wireless and video-on-demand streaming.  Denmark, France, Germany, the Netherlands and the UK have all made some progress in this area, but the desired “single market” for audiovisual material is still yet to emerge.

Viviane Reding, the information, society and media commissioner, argued “two years ago, industry and consumers were already waiting impatiently for new, more flexible EU rules that … take account of new technological developments.”

“There can be no excuse for any more delay with their implementation.”

Among the new forms of TV advertising approved by the EU’s guidelines are split-screen spots, as well as product placement, which would be allowed in all programmes except documentaries, news bulletins and shows aimed specifically at children.  Moreover, the proposals remove limits such as requirements on broadcasters to leave a gap of 20 minutes between commercial breaks.

So in the new digital TV world, the age of linear TV channels with 4 minute advertising breaks every half hour is soon to be a thing of the past.  As broadband penetration has resulted in an explosion of on-demand viewing online and on-demand digital TV viewing continues to grow via Virgin Media, Sky and Project Canvas next year – advertising “consumption” is set to change radically.


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