Thursday, September 27, 2007

Is the VNR in Danger

There's a lot of buzz around the Web right now about the Federal Communication Commission fining a television station for running a company's Video News Release (VNR) without letting its viewers know that it was paid by the company featured. It's being called the "FCC's Fake News Fine" around the blogosphere and it's got a lot of people worried that the lucrative business of creating short segments for television news producers is about to disappear.

I'm watching this closely, not because I compete in that space, but because I believe a lot more companies will be competing there soon. I'm not the only one. Production costs are dropping, the opportunities for placement are increasing and competitive forces will become more powerful.

I don't think this is going to take away a useful tool, but it will raise the stakes for those companies that hope to leverage it. Some will just lawyer up (and effectively sprinkle poison over their creatives) but others will learn to tell good stories instead of making up fake news. Producers are always looking for stories that will keep their viewers tuned in until the final credits roll.

What the FCC has done, IMO, is raise the standards a bit. That's almost never a bad thing.

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