Seems to work fine for product placement in other media. Apparently "clear and conspicuous disclosure" can be a footnote hidden somewhere in the credits.
It could also be a pop-up or a clear icon in a corner without disrupting the movie. It does not have to be baked into the video stream as long as it's displayed. I'm not sure what country you're in but some programs on TV or YouTube use this system and it's fine. No need to pause with flashing lights.