Microsoft reportedly made a deal with Machinima video producers offering them bonuses if they promoted the Xbox One. The details of this alleged agreement required that content producers keep the agreement confidential, according to Ars Technica.
A deleted tweet from Machinima’s UK community manager stated that Microsoft would pay content producers a $3 CPM bonus if their videos contained at least 3o seconds of Xbox One gameplay footage in the first two minutes and verbally mentioned they were playing the console. In order for the content producers to get paid under the arrangement, their videos had to include the tag ”XB1M13″ and be posted between 3AM ET, January 13 and 2:59 AMET, February 10.
According to the alleged agreement, Microsoft stipulated that ”you may not say anything negative or disparaging about Machinima, Xbox One or any of its games in your campaign video.” The controversial marketing campaign was set to end after videos tagged XB1M13 reached 1.25 million, which capped its content producer payout at $3,750.
Ars Technica cites that Microsoft may have violated the Federal Trade Commission’s guidelines for endorsements and advertising.
When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be fully disclosed.
We’ve reached out to Microsoft for comment on this matter and will update this article if any new information becomes available.
Update: A Microsoft spokesperson provided the following statement regarding this matter:
This partnership between Machinima and Microsoft was a typical marketing partnership to promote Xbox One in December. The Xbox team does not review any specific content or provide feedback on content. Any confidentiality provisions, terms or other guidelines are standard documents provided by Machinima. For clarity, confidentiality relates to the agreements themselves, not the existence of the promotion.
[via Ars Technica]
