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Convergence and the Potential Ban on Interactive Product Placement in Germany

Christian Jansen

Law and Economics from University Library of Munich, Germany

Abstract: This 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.

Keywords: Advertising regulations; German film industry; interactive product placement; law and economics (search for similar items in EconPapers)
JEL-codes: L82 M37 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2003-02-19
Note: Type of Document - pdf; prepared on PC; pages: 36
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