On the day after the Federal Trade Commission issued a report accusing Hollywood of targeting underaged children in ads for R-rated movies and the day before the Senate Commerce Committee was due to take up the matter in a legislative hearing, Walt Disney on Tuesday said that it plans to change the way it markets R-rated product.

Among other things, the company said that it will not show trailers for R-rated fare in theaters exhibiting Walt Disney Pictures films, which generally bear a G rating. It also said that it will not advertise any R-rated movies on TV before 9:00 at night. It also said that it will ask exhibitors to enforce ratings for all its films.

Analysts viewed the move favorably. Salomon Smith Barney entertainment analyst Jill Krutick, in an interview with Dow Jones News, described the move as "sort of a natural evolution" for Disney. Moreover, she forecast, "Increasingly, you'll see the entertainment companies policing themselves and trying to maintain standards they feel comfortable with."

Source: Studio Briefing