Microsoft Corp. is giving away $3 to YouTube account holders who will upload a video showcasing Xbox One for a minimum of 1,000 views.
The $3 per thousand views was promoted by Machinima's UK community manager in a deleted tweet.
"Check your emails now guys for 'Earn an additional $3 CPM bonus for promoting the Xbox One!'. It's the easiest/best promo we've ever done!" a tweet from @ClickInsect said.
The promo also appeared numerous times on Machinima's activity feed on the social video marketing site Poptent, Ars Technica reported.
For a user to qualify for the promotion, he has to upload a 30-second or more video clip showcasing the Xbox One game footage which will mention the Xbox One by name and incorporate the tag "XB1M13."
However, in a leaked copy of the full legal agreement, behind the agreement between Machinima and the participants, it was stated that the video creators "may not say anything negative or disparaging about Machinima, Xbox One, or any of its Games." They must also keep details of the agreement confidential to get paid. Meaning to say, to get the payment, video makers have to say only positive things or at least neutrally about the Xbox One. Furthermore, they can't say they are being paid to do so.
The agreement seems to go against Federal Trade Commission's (FTC) guides concerning the use of endorsements and testimonials in advertising. In FTC's guidelines, it demands a full disclosure "when a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement" exists.
In the case of Microsoft's promotion, since the video creators were asked to show Xbox One and say good things only about the product, it is disseminated via a form of consumer-generated media in which his relationship to the advertiser is not inherently obvious. Therefore, he must disclose everything he has received for that promotion.
The software giant reportedly agreed to shoulder the first 1.25 million views in the promotion and that is $3,750 only. However, it is unclear if the gaming and media streaming website Machinima has received an additional funds for organizing the promotion.