Looking to save its primary source of revenue, the Academy of Motion Picture Arts and Sciences has lifted its longtime ban on running commercials for movies during the Oscars.
Board members voted late Tuesday to ditch a tradition that stretches back more than 50 years and -- in the eyes of some -- was a relic from a simpler and less competitive era. The move comes amid concerns over the softening TV advertising market and lower ratings for Hollywood's biggest event of the year.
"The revenue from the show fuels our programs all over the world," Academy President Sid Ganis said. The academy generates more than $65 million a year in TV license fee revenue from Walt Disney Co.'s ABC television network and foreign channels.
"That's a lot of dough, and it's very important to us," Ganis said. "Since the show is a celebration of movies, why not let upcoming movies represent themselves in a way that is intelligent and smart and not offensive to anyone?"
The ban was put in place in the early 1950s, when the Academy Awards were first broadcast. At the time, the academy fretted that commercials for films during the show would be unseemly and viewers could conclude that the awards were influenced by the studios that bought the ads. In recent years, some -- including ABC -- have lobbied to reverse the prohibition.
"It's a perfect advertising venue for films," said George Belch, a marketing professor at San Diego State University. "The telecast delivers an audience that is very interested in movies, and that's the target audience that the studios want to reach."
Under the new rules, a studio will be allowed to buy only one 30- or 60-second spot in the show. However, a media company with multiple distribution arms could buy a commercial for each label. Ads for movies that are in contention for an award would not be permitted in the show. ABC will determine where the spots are to run.
Only newly created ads for movies will be accepted, and then only for films released the final Friday of April, or later. The Oscars will air Feb. 22.
Not lost on the academy was the success that pro football's Super Bowl has had driving up ad rates, in part by creating "event television" with splashy ads. More than a decade ago, Fox used the Super Bowl to launch a marketing campaign for its big-budget movie "Independence Day" with a catchy TV ad announcing, "This may be your last Super Bowl." In some years, there has been more buzz surrounding the innovative ads than the action on the field.
