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Anne Landman's Collection

Movie placement of cigarettes

Date: 16 Jan 1984
Length: 2 pages
2021280495-2021280496
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snapshot_pm 2021280495-2021280496

Abstract

In this letter found in Philip Morris' (PM) files, Hubert Nelson of 20th Century-Fox's "Product Placmement" department offers Frank Saunders (Vice President of Corporate Relations and Communications at Philip Morris) an opportunity to for "guaranteed placment" of Philip Morris brand cigarettes in four feature films a year for the sum of $100,000.

The letter shows that the movie company actively sought such placement.

Mr. Nelson writes,

"Twentieth Century-Fox would like to enter into an 18-month agreement that would offer Philip Morris a unique, publicity opportunity in our feature films. We would guarantee you product placement in the final version of four feature films during the 18-month period. We would offer your products exclusivity for the period of the contract...The cost for the guaranteed placement of Philip Morris cigarettes in four major motion pictures produced by Twentieth Century-Fox would be $100,000."

Thus movie makers recognized the monetary value of placing tobacco products in their movies and actively pursued such placement. In a January 9, 1984 internal PM memo, Mr. Saunders writes to James Bowling (Senior VP of PM) that "20th Century has created a new merchandising division which is selling product placement in Fox films." [Bates No. 2021280499]

In a memo produced right after a meeting with 20th Century Fox, Saunders writes to Bowling saying "Met with Hugh Nelson of 20th Century Fox on Wednesday morning...He discussed what 20th Century Fox can do for Philip Morris regarding product placement of cigarettes in motion pictures they produce. I asked him to write the specifics of the offer to me..." [Bates No. 20212804494]

Thus these 1984 documents reveal that complicity in promoting smoking in the movies existed between the movie industry and the tobacco industry, despite the fact that by that time (1984) the U.S. Surgeon General's office had issued fully seventeen (17) separate reports describing the health harms caused by tobacco use.

Fields

Quotes

Mr. Frank A. Saunders Staff Vice President Corporate Relations and Commutations Philip Morris Incorporated 120 Park Avenue New York, N.Y. 10017

...It was a pleasure to have met you last Wednesday. As we have discussed, Twentieth Century-Fox would like to enter into an agreement with Philip Morris for product placement of cigarettes in major motion pictures produced by us.

Twentieth Century-Fox would like to enter into an l8-month agreement that would offer Philip Morris a unique, publicity opportunity in our feature films. We would guarantee you product placement in the final version of four feature films during the 18-month period. We would offer your products exclusivity for the period of the contract. You would have script approval for the placement of your product...

...The cost for the guaranteed placement of Philip Morris cigarettes in four major motion pictures produced by Twentieth Century-Fox would be $100,000.

According to the Motion Picture Association of America, Inc. (MPAA), movie admissions for the first seven months of 1983 were 745.7 million, up 20.5 million over the same period last year. Based on a moving annual trend, it is projected that admissions for 1983 will be 1.2 billion... These figures are for U.S. releases and do not reflect theatre admissions in the rest of the world....

...I look forward to further discussing this unique opportunity with you, for our Product Placement Program can assist Philip Morris in achieving its marketing objectives.

Sincerely,

Hugh A. Nelson Product Services

Company
Philip Morris
Author
Nelson, Hubert A. (20th Century Fox Product Placement Services c. 1984)
Solicited product placement contracts for cigarettes and other products for department at 20th Century Fox created just to market such placement.
Recipient
Saunders, Frank A. (Director of Corp. Relations PMUSA, 1977)
Staff Vice President of Corporate Relations & Communications, Philip Morris U.S.A., 1984 (information gleaned from various letterhead)
Region
United States
Type
LETT, LETTER
Litigation
Stmn/Produced
Named Person
Saunders, F.A.
Operation/Project
Smoking in the movies
Product placement
Social Acceptability
Industry efforts to counteract the decline in social acceptability of smoking worldwide.
Named Organization
20th Century Fox Licensing
Motion Picture Assn of America
Subject
promotional campaign
promotions
Movies (Tobacco in the movies)

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Page 1: pwg98e00 Log in for more options!
R E C f(v f 0 TMMM C:ENRJR^I-FOX LICENSING coRPORATMi HUBERT A. NELSON PRODUCT SEA V ICES' January 16, 1984 Mr. Frank A. SauuY3ers Staff Uice President Corporate PGelatiions arad' Cccnunicatiions Philip Morris Incorporated 120 Park Avenue: hTewYork,N.Y., 10017 Dear Frank: ;(A% 1'7 13-% It was a pleasure to have met you last Wednesday. As we have discussed, Twentieth Century-Pbx would like to enter into an a eemerit' with Phili Morris for prod aL,2l aQ=mn_~~ +*tes in major moon pi nres praduced by Us. Twentieth Century-Fox wpuld like to enter into an 18-mmnth agree- ~: that would offer Philip Morris a uniqne publicity opportunity vam tee ~a product lacement in in our feature films. We would the f'iral version of four feature film_s_ during the 18-mnth pe~' i'~-. e woul o er your products exc~ vity for the period ooontract. You wnuld have script approvalifor the pl.acenent of ' yowr products. After tthe rel,ease of the films, your approval sole71y determines that the exposuire is consistent with our agreatnent. If' ymiare not pleased with the length of visual exposure, a negatiated refwnd' or credit wrnsld be workedi out for that particular project. In the highly unli.kely situation of Fox being unable to satisfy youi, with four feature films, your payment will be refunded on a prorated basis. T`tve_Qg&t for tbe guaranteedplacement of Philip Morris cigarettes in four inaj+or, moti.on plctuires prodixed by Ttaientieth Century-Fox wrnald be $1010, 0I0'0 .. According to the Mot.ion Pictwre Association of Anierica, Inc. (WAP,),. mrvie admissions for the first sewemmcmths of 1983 were 745.7 million,, up 20.5 million over ttfe same periiod last year. Based on a maving annual trend, it is projected that admissions for 1983 will be 1.2 billion. Total box office gross for the first seven nronths of 19'8 were $2.3 billion; it is projected that box office gross for 1983 will be $3'.7 billion. The 1983 gross will tflp 1982', which was a reoord setting year, by approximately a quarter, bblliiion~dollars. These figures are for U.S. releases only and do~nat reflect theatre admissions in the rest of the world. BOX 900. BEIYERLV' HILLS. CALIFORNIA W213 PHONE: (213) 2p33D17'. CABLE ADDRESS: CENTFOX, LOS ANGELES-TELEX'674B74 A DIVISION OF TWENTIETH P-NITURWrFOX Fli • rnRPMTir
Page 2: pwg98e00 Log in for more options!
Mr. P'rank A. Saunders ' January 16, 1984 • Page Two In 1982 the MPAA ccaYputerized the tracki ng and recording of films released in the!U.S. for all identifiable distributors. As a result of this nrsw capability, the total count of films released in 1982 by 64 distributors was 474. Total U.S. box office gross for 1982'was $3.5billion. Based on these figures, the average film gross was $7.4 million. The average admission cost for 1982 was $2.90. Thus, the average admission per mavie for 1982'was 2.6 million. It should be noted that in 1982 there were 45 films that grossed $8 million or mc>re and there wexe 36 films that grossed $10 million or mre. This should be kept in mindiwhen doing an analysis of 1982 imvie admission on a cost per thousand basis. If you desire, there cambe collateral publicity opportunities involving Fox stars which we can develop once a contract is executed. In addition, we can arrange appropriate screenings for you and yourr wholesalers. I look forward~ to further discussing this unique opportunity with you, for our Product Pl;acement Program can.assist Philip Nbrris in achieving its.marketing objectives. Sincerely,. Hubert A. Nelsom Product Services HAN/han cc: Chuck Ashman Tony Hoffman

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