Product placement

26.8.2015
Facts about FICORA
Study visit 24.8.2015
24.8.2015
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FICORA in a nutshell
Established in 1988
Annual budget in the range of 30 million euro
» One-fourth of the financing directly from state budget
» Remaining financing from supervisory fees
Total number of staff ca. 250
An expert authority, subordinate to the Ministry
of Transport and Communication
Decisions of FICORA can be appealed to
administrative courts and finally to the Supreme
Administrative Court
Petri Makkonen
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Choice, equality, trust:
FICORA ensures an effective information society
Petri Makkonen
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FICORA's organisation
Petri Makkonen
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Supervision of the AV sector
Sponsorship, product placement and
surreptitious advertising
Public service broadcaster
» Sponsorship and advertising
» Economic regulation
Broadcasting licences for TV and radio
Supervision of license conditions
SMP-regulation of the terrestrial network
operator
Must-carry, European works, audio subtitling...
Petri Makkonen
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Media Landscape in
Finland
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A few digital facts about Finland
Around 95 percent of Finnish households have a television set
(2015)
Average households own 6 radio sets each (surveys in 2011
and 2012)
89 percent of the population has access to a personal
computer (2011)
92 percent of the 16-74 year olds have access to internet, 70
percent every day. The percentage is 100 in the age group 1644 year olds. (2014)
Mobile phone penetration is about 99 percent (last five years).
A landline phone is only used by 9 per cent of Finns (2015).
Already 70 percent of Finns have mobile broadband in use
(2015).
51 percent of Finns 16-89 year old are in social media (2014).
Eliisa Reenpää
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TV & Radio in Finland
Television:
» 16 Free-to-air channels + numerous pay-tv channels
» 4 of the FTA channels are public service channels
» The biggest commercial companies are Sanoma and MTV (owned by
Bonnier) - SBS and FOX follow
» The share of pay-tv-channels of the overall television viewing is
about 7 percent (10+ year old population)
» Regional/local television is at a modest level in Finland
» An average Finn watches 3 hours and 3 minutes of television per day
Radio
» YLE has 8 radio channels
» 12 commercial nation-wide licenses + around 90 regional radio
licenses
» Sanoma, SBS (sold recently to Bauer Media) and MTV (Bonnier) are
big players in the radiomarket as well
» The share of Yle / the commercial channels about 50/50
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Antenna television
There are two network providers in DTT
» Digita
Operates the UHF band
4 DVB-T multiplexes and 2 DVB-T2 multiplexes
Nationwide coverage
» DNA
Operates the VHF band
3 multiplexes in DVB-T2
Coverage about 84 percent of the population
Some channels are being simulcast both in DVBT and DVB-T2 (as high definition, HD)
Eliisa Reenpää
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Television reception
Over 40 percent of Finnish households receive
television signals through an antenna.
Cable-tv is about as common with a penetration
of 40 percent of households.
IPTV is fast becoming more common: from 12 to
16 percent of households view television
programmes through an IPTV subscription.
Satellite is used in only ca. 4 percent of the
households.
Households may use a number of television
signal methods at the same time.
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Devices used to watch television
programmes
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Viewing of internet television
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Digitalization of TV in
Finland: the next step
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Background
First DVB-T test transmissions: 1997
First regular DTTV transmissions:
August 27., 2001
Analogue switch-off: September 1., 2007
» 5 MUXes
» Coverages 60 – 99.9 % of population
DVB-T/MPEG-2
97 % of households connected to terrestrial
networks had a digital receiver
» Cable 72 % => analogue switch-off in CTV networks
postponed until February 29., 2008
Kari Kangas
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The Next Step: DVB-T => DVB-T2
DVB-T2/MPEG-4 today:
» UHF: 2 MUXes (total 6)
» VHF: 3 MUXes (total 3)
From 2017: 1 – 2 MUXes left in DVB-T
At the latest in 2026 all MUXes will be using
DVB-T2
» Intermediate analysis in 2020: if most consumers have
DVB-T2 receivers, the DVB-T switch-off will be realized
earlier
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Consumer View:
a technology change again...!
A special project established trying to find ways
to inform consumers on the coming technology
change
» FICORA is the project coordinator, but all network
operators and broadcasters take part in the project
The average lifetime of a TV receiver is only 7 yr,
so most of the consumers will anyway buy new
receivers before the total DVB-T switch-off
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Penetration of HD Receivers
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Public Service Television
in Finland
Yleisradio Oy
Finnish Broadcasting Company
Yleisradio Oy (Finnish Broadcasting
Company)
Yleisradio Oy (YLE) is a Finnish public service
broadcaster. As of 1 January 2013, the operations of
YLE are financed by a public service broadcasting tax
(also called YLE Tax) collected by the Finnish Tax
Administration.
» Prior to this, the operations of YLE were financed by a TV
fee, which FICORA collected.
YLE has 4 TV –channels (+ 4 parallel HD –
broadcasts), VOD –service (Yle-Areena) and 8 radiochannels.
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Supervision of YLE
According to Act on Yleisradio Oy, starting from 1st of
January 2013 FICORA supervises that:
» YLE does not broadcast advertising on television, radio or
in other telecommunications networks.
FICORA has made 1 obligatory decision and 1 decision
where no breach was found
» YLE does not produce sponsored programmes.
FICORA has made 2 obligatory decisions and 1 decision
where no breach was found
Unofficial english translation of the Act on Yleisradio
Oy: https://www.finlex.fi/en/laki/kaannokset/1993/en19931380.pdf
Kalle Varjola
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Ja nyt kannattaa katseet kääntää kohti Viking Lottoa, sillä keskiviikkona Viking
Lotossa on tarjolla noin 6,7 miljoonaa sisältäen onnennumero-osuuden. Ja
Suomesta löytyneiden 6 oikein tulosten kesken on jaossa vielä ylimääräinen
miljoona. Joten onnea peliin sinne ja kupongit sisään.
Lähde: Kuvakaappaus Yle TV1 Lottoarvonta 26.1.2013
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Supervision of YLE
According to Information Society Code FICORA
supervises that YLE complies with the rules of
» Quotas of European works and quotas of independent
producers programmes (supervision is done at the same
time with other tv-channels).
» Audio subtitling and subtitling services (also the so-called
public interest programmes, MTV3 and Nelonen, have the
obligation).
Unofficial english translation of the Information
Society Code:
» http://www.finlex.fi/en/laki/kaannokset/2014/en20140917.pdf
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European works on YLE´s TV –
channels (2013)
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Programmes of independent producers
on YLE´s TV- channels (2013)
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Audio subtitling services on YLE´s
TV-channels (2014)
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Subtitling services on YLE´s TVchannels (2014)
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Supervision of YLE
YLE´s administrative organs are an Administrative
Council, a Board of Directors, and a Director General
acting as Managing Director.
» Administrative Council has 21 members, who are elected by
Parliament in its first session of the Parliamentary term.
By the end of April every year the Administrative
Council shall submit to Parliament a report on the
implementation of public service and on the guidance
and supervision activities practised during the
previous calendar year. Prior to submitting the report,
the Administrative Council shall consult the Sámi
Parliament.
» Administrative Council supervises the content of public service
and the fulfilment of the public service obligation, not FICORA.
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Financial supervision of YLE
YLE also has to give report to FICORA by the end of April on
the service provided during the previous calendar year
» Including financial statements, profit and loss statements, balance
sheets of differentiated operations and the company´s auditor´s
statement on the differentiated calculations.
FICORA has to give statement of the report to the
Government by the end of September
» Differentiation of material provision (if YLE provides material, which
has been created in the production of television and radio
programming, elsewhere than in television and radio operations)
» Other duties
» Differentiation of network service
» Price undercutting and cross-subsidisation
» Statement also includes the statistics of complying with the rules of
other areas FICORA is supervising.
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Thank you, Хвала, Kiitos!
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Commercial
communication
Advertising, sponsorship and product
placement
Marketing
FICORA monitors marketing on radio and television,
and in video-on-demand services.
Television and radio programme operators and VOD
service providers must comply with the provisions laid
down in the Information Society Code.
Marketing can take the form of:
»
»
»
»
advertising
teleshopping
sponsorship
product placement.
The purpose of the rules is to ensure the integrity of
programmes and to keep commercial contents
separate from other programme contents.
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Television advertising
Advertising must be made distinguishable from other programmes
with visual, auditory or spatial means, such as tunes and visual
signals, including the division of screen space.
Surreptitious advertising is prohibited.
The Information Society Code regulates the duration of advertising
and teleshopping spots and how and when they can be inserted in
television programmes.
» Maximum 12 minutes of advertising per hour
» Movies, news programmes and children's programmes can only be interrupted
once for every 30-minute period
FICORA conducts regular studies on the duration and insertion of
advertising spots and on how distinguishable marketing is from other
programmes. FICORA is also engaged in active dialogue on the rules
and principles of marketing with other players in the field.
Provisions on ethics in advertising and the protection of minors in
advertising are supervised by the Consumer Ombudsman.
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Sponsorship
Sponsorship refers to any contribution to the financing of programmes or any
other form of financial support with a view to promote the sales of the
sponsor's goods or its its name or trademark.
Sponsorship is permissible in other programmes than news and current affairs
programmes and children's programmes.
Sponsored programmes must be clearly identified by showing the sponsor's
name or logo at the beginning or end of the programmes.
» "in cooperation with" or "sponsored by" or "this program is brought to you by"
Sponsored programmes must not encourage the audience to buy the sponsor's
products or services.
» Special promotional references are not allowed.
The same rules apply to television programmes as well as on-demand services.
A recent issue is "floating sponsorship" where sponsorship identifiers are being
sold to sponsors who have nothing to do with the programme itself.
» The sponsors may not even be aware with which programme their identifiers are
being shown
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Product placement
Product placement means including a product, service
or trademark in an audiovisual programme in return
for some form of consideration.
In general, product placement is forbidden. However,
product placement is allowed in cinematographic
works, series, sports programmes and light
entertainment programmes.
Product placement is becoming more and more
common in domestic productions.
Viewers must be clearly informed that a programme
contains product placement.
» This can be done by showing a text stating that the
programme contains product placement or a product
placement logo used by all broadcasters.
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Product placement
Product placement shall not:
1.
influence the content of programmes or how they are placed in
the programme;
•
2.
encourage the purchase or rental of goods or services;
•
3.
Refering to prices or places to buy the products is forbidden.
constitute advertisements or otherwise refer to products;
•
4.
What is essential is how the products or services are used and
described in the programme – product placement shall be permitted
only if it fits naturally with the editorial content and the display of the
product is based on a genuine editorial need.
Refering to the product's quality or for example effectiveness only in a
very positive way.
give undue prominence to products.
•
For example by using camera techniques to focus on the products and
give prominence to them.
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How to inform the viewers?
DRAFT
= A suggestion supported by all the
television channels
FICORA welcomes the suggestion, but notes that there has to
be a familiarization period and during this time the channels
must show both the logo and the text.
The additional text may be abandoned after this time, if the
symbol is known among the public.
The symbol must be readily recognizable (sufficiently
distinctive from the background) and the text easily readable.
Must be placed on the left corner of the screen.
Eliisa Reenpää
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How do we monitor?
Research and studies
» The duration and insertion of advertising spots and on
how distinguishable marketing is from other programmes.
» Once or twice a year, 3 channels at a time
"Theme monitoring"
» Sponsorship and product placement
» Started this spring: 4 food/cooking programmes from 4
different channels
Consumer queries
FICORA guidelines
Binding decisions in case of a breach of the provisions
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Thank you!
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www.ficora.fi
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