Record firms that spend tens of millions of dollars a year to produce mini-movies featuring their artists once viewed MTV as a mere extension of their own departments. But as MTV gained viewers and cachet, it became an independent force with the power to set the rules and capitalize on the labels' expenditures.
Label executives say privately that it isn't fair for MTV to insist they excise products in music videos while other programs on the channel openly market themselves as outlets for ad placement.
Producers of MTV's "reality" shows "The Real World" and "Road Rules," for example, say they offer "a unique opportunity for product placement, corporate brand recognition and other sponsorship opportunities." On its Web site, Bunim/Murray Productions says it placed products in "The Real World: Las Vegas" from Luminaire furniture, Sony Electronics and Coffee Bean & Tea Leaf, among others.
MTV's Calderone said the reality shows and other MTV programs that feature products or logos are different because they disclose the sponsorships during the credits. Record companies say they would reject such tags on videos.
But advertisers say they continue to be interested in paying for cameo roles in videos of rising music stars, which can be a relatively cheap way to tap the youth market.
Verizon Communications Inc. did exactly that last year in a deal with the Elektra Entertainment Group label and singer Tweet. Verizon and Elektra shared production costs for a Verizon TV ad and a music video, each featuring Tweet's song "Call Me," sources said. Elektra executives declined to comment.
The video showed the singer and other actors using Verizon cellular phones, sources said. MTV, unaware of the tie-in, aired the clip.
"This is old hat in the movie business. You've had James Bond wearing a certain watch and driving a certain car for 25 years," said Eric Hirshberg, managing partner at ad agency Deutsch in Los Angeles, which handled a similar pact last year involving automaker Mitsubishi Motors Corp. and Capitol Records Inc. act Dirty Vegas.
Mitsubishi paid an estimated $50,000 to the video's producers to shoot footage of Dirty Vegas driving the automaker's Eclipse sports car. And Mitsubishi used the Dirty Vegas song "Days Go By" in its TV ad campaign.
Hirshberg believes that, given the dire financial condition of the recording industry, MTV might have no choice but to loosen its restrictions.
"If the music industry decides to forge these relationships," he said, "MTV's programming will follow along."
To see three music videos in which MTV was unaware of the product placement, go to www.latimes.com/mtv.
