President-elect Donald Trump’s plans to remain an executive producer of NBC’s The Celebrity Apprentice as president “could provide him with a cut of the money generated by NBC's product integration deals for the show,” and provides ways for advertisers, foreign companies, defense contractors and private equity firms to “curry favor” with Trump, according to CNN.
NBC’s decision to retain Trump as an executive producer on The Celebrity Apprentice raises a number of conflict of interest concerns that include advertisers' ability to pay Trump while they have business in front of government, as well as NBC’s financial investment in Trump’s reputation. For these reasons, Media Matters is calling on NBC to end this insurmountable problem and cut ties with President-elect Trump.
On December 9, CNN’s Dylan Byers quoted “a Hollywood source with direct knowledge” of Trump’s contractual arrangement with NBC to report that “if that arrangement is still in place, it is now a potential avenue of influence for companies.” Reality shows like The Celebrity Apprentice offer “product integration,” better known as product placement, to any number of advertisers, including ”brands owned by foreign companies; private equity firms, which have done deals with the show before; or defense contractors that also produce consumer goods.” In 2011, Byers reports, the integrations cost “between $5 million and $9 million” per episode. Assuming Trump’s deal with NBC has not changed, “the companies buying product integrations on ‘Celebrity Apprentice’ will be indirectly paying money to the President-elect.” Byers’ source remarked that “If an advertiser wants to curry favor with Trump, that's the way to do it.”:
For years, Trump has received a portion of the revenue from the show's product integration deals, the source said. If that arrangement is still in place, it is now a potential avenue of influence for companies that want to get the ear of Trump and his administration, and presents a thorny situation for Comcast/NBCUniversal, which controls the deals.
“If an advertiser wants to curry favor with Trump, that's the way to do it,” the source said.
That could include brands owned by foreign companies; private equity firms, which have done deals with the show before; or defense contractors that also produce consumer goods. Any company like these might have a vested interest in getting in good favor with the 45th President of the United States.
In reality television, product integration refers to deals in which advertisers pay to place their products in a show. When contestants on “Celebrity Apprentice” are tasked with directing a commercial for a new OnStar product, creating a retail strategy for LifeLock or repackaging Omaha Steaks, that is product integration. In 2011, Ad Age reported that advertisers were paying between $5 million and $9 million to get their product integrated into a single episode.
The source could not confirm that the terms of the arrangement had not changed. NBC, the network that airs “Celebrity Apprentice,” did not respond to requests for comment. MGM, the company that owns the show, declined comment.
There was one agreement covering both “The Apprentice” and “Celebrity Apprentice,” the source said. If that deal is still in place, the companies buying product integrations on “Celebrity Apprentice” will be indirectly paying money to the President-elect.