Convergence and the Potential Ban on Interactive Product Placement in Germany
AbstractThis paper addresses the economic impact of German advertising regulations. The digital convergence of media provides a starting point for the analysis. This convergence makes technically feasible “interactive product placement” (IPP), the integration of interactively purchasable products in television programs and movies for the purpose of advertising. Such advertising could conceivably outstrip traditional product placement as a source of revenues for the film industry. Moreover, IPP could provide valuable incentives to create new audiovisual hardware and software. As product placement is generally banned in Germany, we critically review relevant regulations. Additionally, a simple model is developed that allows for a welfare economic approach to the analysis of an IPP ban.
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Bibliographic InfoPaper provided by EconWPA in its series Law and Economics with number 0302002.
Length: 36 pages
Date of creation: 19 Feb 2003
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Advertising regulations; German film industry; interactive product placement; law and economics;
Find related papers by JEL classification:
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-24 (All new papers)
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