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    Can Peloton Sue Over Its ‘And Just Like That’ Appearance?

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    A Peloton stationary bike played a pivotal role on the new HBO Max “Sex and the City” revival, whose premiere preceded a drop in the company’s stock price on Friday.This article contains spoilers for the premiere of “And Just Like That” on HBO Max.Peloton, a maker of high-end exercise equipment, was just as surprised as you were by its appearance on “And Just Like That,” the new HBO Max limited series that picks up the story of “Sex and the City.”At the end of the first episode, Mr. Big (Chris Noth), the on-again-off-again love interest of Carrie Bradshaw (Sarah Jessica Parker), clips into his Peloton stationary bike for his 1,000th ride. Shortly after he hops off the bike, he has a heart attack and dies.After the shocking ending, we couldn’t help but wonder: Are companies usually in the dark about how their products will be used in a movie or TV show, as Peloton reportedly was? What does the typical product-placement agreement look like? And if a company is particularly upset with how its product is portrayed, does it have any legal recourse?So, can Peloton sue?According to Nancy C. Prager, an intellectual property and entertainment lawyer, there are two types of product-placement agreements: one in which a company pays to be featured in show or movie, and another in which a production company procures a trademarked product to be used onscreen.Peloton declined to state on the record whether it was involved in any formal product-placement agreement, but if a production company wants to use a trademarked product, Ms. Prager said, it must get a special license to show the product and brand logos. (In the episode, the Peloton logo is clearly visible on Mr. Big’s bike, and the instructor video closely resembled a real Peloton course.)Ms. Prager explained that under trademark law, a principle known as nominative fair use allows production companies to use a trademark as long as the product is shown being used in a way consistent with the original trademark.“Nominative fair use does not to apply, though, when you use the protected mark in a way that disparages the mark or the brand,” Ms. Prager said. HBO “tarnished Peloton’s good will to consumers,” she added, noting that Peloton products purport to make their customers stronger and healthier.The ‘Sex and the City’ UniverseThe sprawling franchise revolutionized how women were portrayed on the screen. And the show isn’t over yet. A New Series: Carrie, Miranda and Charlotte return for another strut down the premium cable runway in “And Just Like That,” streaming on HBO. Off Broadway: Candace Bushnell, whose writing gave birth to the “Sex and the City” universe, stars in her one-woman show based on her life. In Carrie’s Footsteps: “Sex and the City” painted a seductive vision of Manhattan, inspiring many young women to move to the city. The Origins: For the show’s 20th anniversary in 2018, Bushnell shared how a collection of essays turned into a pathbreaking series.“The tarnish can be evidenced by the stock price plummeting,” she added, referring to the 11 percent drop in Peloton stock overnight after the episode aired. The stock’s value continued to fall on Friday.In Ms. Prager’s view, that means Peloton could reasonably consider litigation, especially if HBO did not disclose the story line involving the product.“It was a misstep that Peloton wasn’t fully aware of the script,” said Stacy Jones, the chief executive and founder of Hollywood Branded, a marketing and branding agency in Los Angeles.Peloton did not know how the bike or its instructor Jess King would be featured in the show, according to a report in BuzzFeed News. Ms. Prager and Ms. Jones agree that withholding those details leaves HBO in murky legal territory.“The production forgot that product placement is supposed to be mutually beneficial, and they did not put their thinking cap on about the damage that this would cause the brand,” Ms. Jones said.This seems like a lot of trouble. Why bother with product placement?“Think of product placement as an alternative form of advertising,” David Schweidel, a professor of marketing at Emory University Goizueta Business School, said on Friday.In recent years, companies have been seeking out product-placement agreements more than ever, he said. The increased use of streaming platforms means viewers are seeing fewer commercials, driving companies to make greater use of product-placement deals to promote themselves.“If I can’t reach my customer base with a traditional television commercial anymore, I take the product in the program itself,” Professor Schweidel said. “Then, they can’t avoid it.”He estimated that product-placement advertising was worth well over $20 billion in 2021.For production companies, the arrangements can be mutually beneficial, since featuring recognizable brands can make a show more realistic, Ms. Jones said.In this particular case, the inclusion of Peloton was integral to advancing a story line. “Peloton provided a solution to their problem,” she said.Can HBO protect itself?Usually when a company is so unhappy with how its product has been portrayed that the idea of litigation is floated, “TV shows claim that it’s a parody, that viewers obviously knew that this was fictional,” Beth L. Fossen, an assistant professor of marketing at the Kelley School of Business at Indiana University, said on Friday.That approach usually works for shows like “Saturday Night Live,” she said.But given that Peloton was the subject of unfavorable headlines this year about a child dying in an accident involving one of its treadmills, the story line may have “hit a little too close to home” for that argument to work, Professor Schweidel said.At least for the time being, it seems that Peloton is uninterested in pursuing litigation. In a statement on Saturday, Dr. Suzanne Steinbaum, a cardiologist on Peloton’s health and wellness advisory council, noted that “Mr. Big lived what many would call an extravagant lifestyle — including cocktails, cigars and big steaks — and was at serious risk as he had a previous cardiac event in Season 6.”Dr. Steinbaum said that Mr. Big’s lifestyle choices, perhaps in conjunction with a family history of heart disease, were most likely the cause of his death.In fact, she speculated, “riding his Peloton bike may have even helped delay his cardiac event.” More

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      in Television

      Subway Product Placement Makes It a Star of Korean TV

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      AdvertisementContinue reading the main storySupported byContinue reading the main storyKorean TV’s Unlikely Star: Subway SandwichesThe sandwich chain’s aggressive use of product placement has made it a ubiquitous presence on the country’s television shows.Subway has appeared in at least 17 Korean shows, according to an informal tally by The New York Times.March 14, 2021, 5:00 a.m. ETIn an episode of the Korean television show “The K2,” which takes place in a world of fugitives and bodyguards, a man is being treated with a defibrillator when he enters into a dream state. On the fringe of death, he recalls taking a past love to a Subway restaurant and to a park for a picnic, where he gently feeds her a sandwich and soft drink with the Subway logo facing the camera.The detail is not a narrative quirk. It is a result of South Korea’s broadcasting regulations and the aggressive use of product placement in the country’s shows by Subway, the American sandwich chain famous for its $5 foot-longs.“People joke, ‘If I had a drink every time Subway popped up, I’d be drunk before the first half is over,’” said Jae-Ha Kim, a journalist in Chicago who reviews Korean dramas. “Everyone here’s like, ‘I never got a Subway sandwich that looked that good, with that much meat.’”Product placement in TV shows is a reality the world over. But South Korea’s terrestrial stations are prevented from inserting commercial breaks during programming, meaning many Korean companies must be creative about getting their wares in front of viewers. As Korean dramas have become more popular with international audiences, global brands have pushed to be part of the action.And no company has pushed harder than Subway, which has grown into the world’s largest fast-food chain by store count since its founding in 1965 in Bridgeport, Conn.Colin Clark, the country director for Subway in South Korea, said product placements in popular dramas like “Descendants of the Sun” had a positive impact on global sales, specifically citing markets in China, Taiwan and Singapore.“I swear to you, it was a difference between night and day — before the product placement and after the product placement — the effect it had on the customers,” said Mr. Clark, who declined to provide specific sales figures.Subway’s country director in South Korea credits product placement in Korean dramas with a positive impact on global sales.Credit…Jean Chung for The New York TimesSubway did not provide a total of how many Korean dramas its products had appeared in, but an informal tally by The New York Times counted appearances on 17 shows. That can add up to a lot of people seeing the company’s cold cuts. Netflix, with over 203 million worldwide members, has become a leading portal for Korean dramas. When the highly anticipated Korean drama “Sweet Home” was released on Netflix in December, 22 million viewers watched the show in its first month.By sleekly presenting its products on Korean dramas as a harbinger of cool, Subway is also presenting a fresh image to American viewers who are increasingly watching the shows.Recently, the company has faced scrutiny of its bread, which an Irish court ruled is not bread, and its tuna, which a lawsuit claimed is “anything but tuna.”But on TV, pristinely clean Subway shops pop with bright colors serve as the setting for business meetings, social gossip and dates for beautiful couples. Instead of cookies and tea, elderly Korean TV characters keep freshly wrapped Subway sandwiches at the ready — you never can know when an unexpected guest will drop by and crave an Italian sub.On the popular Korean drama “Crash Landing on You,” North Korean soldiers and a South Korean businesswoman find common ground through Subway sandwiches.Product placement in Korean shows began in earnest in 2010, when South Korea’s stringent broadcasting laws eased restrictions on the practice in an effort to increase network revenues and promote Korean goods. In 2018, South Korea’s networks sold $114 million worth of product placement, up 15 percent from the previous year, according to Soobum Lee, a mass communication professor at Incheon National University.Shows collect an average of about $900,000 from product placements, although 2016’s “Descendants of the Sun” sold triple that amount, Mr. Lee said. It was also criticized by some viewers for excessive product placement.Other American companies, like Papa John’s Pizza, have used product placements in Korean dramas, but none are as ubiquitous as Subway.Ms. Kim said these kinds of shoehorned ads had become popular topics of discussion online, with some fans claiming they disrupt plots and threatening to stop watching altogether.She pointed to criticism of the show “Guardian: The Lonely and Great God” (also known as “Goblin”) and a scene where it’s inferred that the protagonist prevents a man from committing suicide; in an effort to cheer him up, the suicidal man is handed a Subway sandwich. Subway is also celebrated in death; in another episode, the Grim Reaper is shown enjoying a meal from the chain.“I know in the U.S. people are sick of it,” Ms. Kim said of the product placement. “We’ve had Subway, we know it’s not good. Stop trying to make it seem good.”While American viewers may roll their eyes at Subway’s being portrayed as haute cuisine, Seung-Chul Yoo, a communications professor at Ewha Womans University in Seoul, said product placement had been proved to work.Subway “tastes way better in South Korea,” said Seung-Chul Yoo, a communications professor at Ewha Womans University in Seoul.Credit…Jean Chung for The New York TimesWhen the actress Jun Ji-hyun wore red lipstick on the 2013 series “My Love From the Star,” similar products sold out in stores throughout Asia. Books featured on Korean dramas have become best sellers.Marja Vitti, who covers Korean television for the website Dramabeans, said some fans had watched dramas to spot new products from companies before they were released to the public.“I seem to notice a new Samsung feature in every drama,” Ms. Vitti said. “It’s like, ‘Oh, I guess we’re getting folding phones soon.’”Keeping up with trends, Subway has begun teasing new sandwiches on shows. In October, the company released its own mini-drama on YouTube, “Someway,” about a young woman who develops a crush on a Subway employee and regularly eats at his location to win his affection.Each episode begins with a character expressing fondness for a new sandwich variety, like one made with Altermeat, a meat substitute. The first episode of “Someway” has more than 1.3 million views.“There’s humor in the advertising we’re doing,” Subway’s Mr. Clark said. “As a brand, if you take yourself too seriously, you’re going to end up always getting into trouble.”Subway opened its first South Korea location in 1992. Now there are more than 430 Subways in the country, its second-largest footprint in Asia behind China.To continually appeal to its target demographic of 15- to 25-year-olds, Subway is also becoming more inventive with how it is presented. On the drama “Memories of the Alhambra,” gamers competing in an augmented reality game collected valuable swords and coins by going to Subway.In real life, newer restaurants with digital menu boards display the chain’s appearances on shows.Product placement “was a relatively cheap way to get us brand awareness,” said Mr. Clark, who has also overseen collaborations with the K-pop star Kang Daniel and a limited-edition Subway streetwear release with Fila. “It was something the other brands were doing, but weren’t really kind of owning that space the way Subway started doing.”Mr. Yoo said that in South Korea, Subway was generally viewed as a healthier option than burger chains, which added to its appeal. During the decade he lived in the United States he rarely ate at Subway, he said, but now he regularly enjoys its sandwiches in Seoul.“To be honest, it tastes way better in South Korea,” Mr. Yoo said.Brands like Subway will soon be able to do more traditional advertising on South Korean television. In January, the Korea Communications Commission announced plans to allow commercial breaks on terrestrial stations.Product placement is not likely to disappear, though.Mr. Clark said that terrestrial advertising was too expensive and that those stations didn’t reach Subway’s desired young customer base, who frequently stream episodes on their phones.Besides, the practice of product placement has already become a plot point.On the show “Because This Is My First Life,” the lead character dreams of becoming a television writer. When she lands a job in the industry, her assignment is to jam product placements into the scripts of popular Korean dramas.In Subway’s YouTube mini-drama, a young woman develops a crush on a Subway employee and regularly eats at his location to win his affection.Credit…Jean Chung for The New York TimesAdvertisementContinue reading the main story More