PROS AND CONS OF PRODUCT PLACEMENT in the Czech Republic Milan Šmíd Institute of Communication Studies and Journalism Faculty of Social Sciences, Charles University, Prague

Legal framework October 1991 - Broadcasting Act No. 468/1991 Article 48 (1) Broadcasters may not include in the broadcasting (...) surreptitious and subliminal advertising, (4) The television broadcaster shall ensure that advertising and teleshopping are recognisable from any other parts of the programme structure and are clearly separated January 1995 - Advertising Act No. 40/1995 Article 2 (4) Also prohibited are: a) subliminal advertising and b) surreptitious advertising. (amended later by the definition: surreptitious advertising is for the purpose of this act the advertising, that is hardly recognizable as a such, especially when it is as advertising marked. Product placement is considered as surreptitious advertising.

in cinematographic works PRODUCT PLACEMENT in cinematographic works

Czech cinematography after 1989 source: Czech Films 2007

Czech cinematography - basic data source: Union of Film Distributors www.ufd.cz

Top 50 films in 2006 Movies and their sponsors: Účastníci zájezdu - Simply You - Arginmax, Firo Tour, Fuji film Rafťáci - Nokia, Ferrero, Kentoya, Botas, Olympus nebo McDonald’s Jak se krotí krokodýli - Coca-Cola, Mitsubishi Motors, Mentos, Centrum. cz Kráska v nesnázích - Annonce, Student Agency, Jameson, Frekvence 1 Ro(c)k podvraťáků - Ringier, Bernard, Toyota, Lexus, Sagem Experti - Poštovní spořitelna, Karlovarské minerální vody, Motorola, Microsoft product placement makes usually 10-30% of the production budget

Top 50 films in 2008 Box office revenue in the last column source: Union of Film Distributors www.ufd.cz

Czech movie „Crash road“ List of companies, whose products were placed in the movie 8

9

Tea 10

Mattoni Marijuana 11

12

Drinking scene: Spirit glasses? But Mattoni too!! 13

Mattoni as a joy and relief on the road 14

Busses that have never been boarded by any of the movie stars 15

Mattoni good for teeths brushing 16

17

Stretching like in Titanic movie 18

Product fell on the floor, just by chance? 19

Mattoni as a pillow for a drunken friend 20

Mattoni good for washing the face 21

Where are the next products to be placed? 22

in audiovisual works made for television PRODUCT PLACEMENT in audiovisual works made for television

Last season serial sponsors

Sponsors of the “Final Season” OMV Česká republika, Budějovický Budvar, Tipsport, Škoda auto, Modrá pyramida stavební spořitelna, Secar Bohemia, Nokia Czech Republic, Black Tiger, Coca Cola Česká republika, Karlovarské minerální vody, Allsports, Kentoya, Replay. All of them have right to be mentioned as sponsors - at the beginning and at the end of the program. However, their trade marks are omnipresent also in the program.

Sponsors of the serie OMV Česká republika, Budějovický Budvar, Tipsport, (arena, betting office) Škoda auto, Modrá pyramida stavební spořitelna, Secar Bohemia, Nokia Czech Republic, Black Tiger, Coca Cola Česká republika, Karlovarské minerální vody, Allsports, Kentoya, Replay. All of them have right to be mentioned as sponsors - at the beginning and at the end of the program. However, their trade marks are omni present also in the program.

in audiovisual works made for television PRODUCT PLACEMENT in audiovisual works made for television

analogue 2004 digital 2009 Czech TV terrestrial channels Czech TV 1 TV NOVA Prima TV Czech TV1 Czech TV2 Czech TV24 (news) Czech TV4 (sport) Z1 - news TV Barrandov Public TV TV Nova Nova Cinema Prima TV Prima Cool TV NOE Ocko (music TV)

My conclusion: The small Czech TV market could not afford a luxury of rejecting the product placement. The small Czech TV market may need product placement as an additional source of funding of audiovisual works made for television. Does product placement turns TV programs into commercials? Or does product placement keep the small and financially weak stations from degeneration into teleshopping channels? Who knows? We have to wait and see. Thank you for the attention!