Volume IV No. 10

A publication of the National Association of Theatre Owners

Advertise in In Focus

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NATO Continues Strong Showing
FTC Releases Fifth
Media Violence Report

by Jonathan Yarowsky
NATO Washington Counsel

With very little media hype, the Federal Trade Commission (FTC) on July 8 released its fifth report on the marketing of violent entertainment to children. In its report, the FTC updated its June 2002 findings, which focused on ad placement and ratings information dissemination. The report also summarized the October 2003 FTC Workshop on Media Violence. As you may recall, the FTC’s most recent “mystery shopper” statistics were announced at the October workshop – the same gathering at which both NATO president John Fithian and Regal Entertainment Group’s Randy Smith participated in a roundtable focusing on media violence issues affecting entertainment retailers.

In conjunction with the new report, the FTC announced the creation of a new Website – http://www.ftc.gov/ratings – dedicated to educating parents and children about entertainment ratings enforcement. At the same Website, the FTC will be collecting complaints regarding advertising and sales of entertainment products to children.
A brief review of the FTC’s findings concerning theatre owners in the July 2004 report:

"Both in its public announcement of the report, and in the accompanying executive summary, the FTC has positive remarks about the efforts of theatre owners to improve ratings enforcement activities at the theatre venue. While NATO members were generally briefed on these results last fall, the new report reiterates, “the Commission’s undercover shopper survey of children’s access to tickets for R-rated films indicated significant improvement by movie theatres, as only 36 percent of the 13- to 16-year-old shoppers successfully purchased tickets. In contrast, DVD retailers – included for the first time in this survey – sold R-rated DVDs to 81 percent of teen shoppers seeking to buy them.”

The FTC’s press release further comments: “the Commission found noteworthy that although movie theatres are doing much to restrict children’s access to R-rated motion pictures, DVD retailers of the same movies appear to be doing little to prevent such sales.”

As to other subject matter addressed:
Trailers: In the wake of the FTC’s first media violence report issued in 2000, movie studios pledged to “request [that] theatre owners not show trailers advertising films rated R for violence in connection with the exhibition of G-rated films.” On its own initiative, NATO refined the policy even further, pledging not to show trailers advertising R-rated films in connection with G- or PG-rated feature films, as well as ensuring that R-rated trailers connected to PG-13 rated films would be consistent in tone and content with the feature film being shown.

In its July 8, 2004 report, the FTC concludes that “studios largely are complying with their commitments. With respect to the films studied, marketing and other documents show that the studios attached or requested that trailers for those films be shown only before features rated R or PG-13, with one exception.”

Ratings Information Dissemination: In response to the 2000 FTC report, NATO members pledged to seek innovative and useful ways to disseminate “ratings reasons” to the public. In the 2004 report, the FTC reviewed the Websites of 15 major movie theatre circuits and three online movie ticket sellers “and found mostly positive results.”

The report outlined: “All of the theatre sites displayed the movies’ ratings and the rating reasons. Particularly with respect to rating reasons, this finding marks a significant improvement over previous reports. Six sites (40 percent) provided information about the MPAA rating system, and five of those sites (33 percent of total sites) also linked to rating information sites – comparatively lower percentages than previous reports found. One of the theatre sites offered movie tickets for sale directly, and nine others offered visitors the opportunity to purchase tickets through a third-party site.”

“The Commission’s review of three movie ticket sites yielded comparable results. All three Websites displayed the films’ official ratings, and Movietickets.com and Fandango.com also displayed the rating reasons. All three provided information about the MPAA rating system, although none linked to any of the rating information sites.”

Ratings Enforcement: In its October 2003 report on media violence, the FTC released findings of its mystery shopper survey. The July 2004 report reviews, but does not update, the findings of that survey.

Conclusion: Looking at the motion picture industry as a whole, the FTC concludes: “Movie theatres have shown improvement in barring unaccompanied children under 17 from purchasing tickets to R-rated films.” More particularly for the exhibition sector, the report notes that the “movie theatre industry has made real progress in this area ... but there remains room for improvement” in ratings enforcement by retail establishments.
If you would like to review the FTC’s report in its entirety, you may access it at http://www.ftc.gov/opa/2004/07/mvreport.htm.


 

 

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