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Date:
December 21, 2021

Change is Coming in 2022

The past 12 months have seen significant change and disruption in the Media and Entertainment (M&E) industry. Due to the impacts of the persistent COVID-19 pandemic, consumers are now more accustomed to being entertained at home and on multiple devices. The growth of online subscriptions reached levels analysts had not predicted for another two or three years. For example, Disney+ achieved subscriber numbers that Netflix took seven years to reach. The amount of money spent to buy new content also increased, hitting $220B in 2021—the most ever by the industry.

Amongst this growth and disruption, Spherex is considering 2021 in the context of the media and entertainment industry's challenges in 2022. What are the "hot button" issues that should concern us? What events or trends will impact business? Are there technologies that help streamline processes or reduce costs?

Spherex asserts that three milestone events from 2021 will impact the Media and Entertainment industry in 2022.

1. Culture consciousness becomes unavoidable

There was a lot of culture-centric news across the industry in 2021. Several films were heavily censored or banned for violating religious or cultural norms. The British film " The Lady of Heaven " was banned for "hateful, divisive, and inciting racial prejudices" against Muslims and labeled " sacrilegious " in Pakistan. The Amazon Prime television series " Tandav " was banned in India over "undignified" representations of Hindu gods. The Vietnamese government forced Netflix to remove the Australian spy series " Pine Gap " over their use of a map of the South China Sea that "…angered and hurt the feelings of the entire people of Vietnam."

Not even classic film franchises or directors were immune from cultural penalties. The classic James Bond film franchise was censored at home and forced by the BBFC to make cuts due to scenes they found sexist or sadistic. Famed director Steven Speilberg's remake of " West Side Story " was denied age-rating classifications and banned in Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Oman, and Kuwait for failing to comply with those country's "cultural views" regarding profanity, sexuality or inclusion of LGBTQ+ characters or actors.

The South Korean Netflix hit "Squid Game" created much discussion because critics believed the series subtitles misrepresented South Korean culture. Others claimed inaccurate script translation and closed captions resulted in viewers watching a different series than the director intended.

These and other examples should remove all doubt that regardless of the story, government regulators are paying attention to cultural aspects of titles before release. The loss of markets or higher-than-expected age ratings will lower box office revenues or viewership hours. Especially when there is every indication that the amount of scrutiny content may encounter is expected to increase in the coming years.

2. Competition is global and increasingly fierce

Here's the competitive landscape. In 2021, the top M&E companies spent $250B on original film and TV production and licensing. For that $250B, IMDb Pro reports 44,028 films and 13,610 TV programs were at some stage of production (e.g., not released) through the end of the year. Recent data from Ampere Analysis indicates over 43,100 films, TV episodes, and series titles are available to subscribers across 11 US streaming platforms. Worldwide that figure exceeds 300,000 titles. That's a great deal of money, a lot of content, competition for consumers' attention, and many titles that aren't getting distributed.

The M&E industry has never invested more money in content acquisition. Given the amount of content that's available, why buy more? How will people find what to watch?

There are many reasons for this, e.g., content is king, and all the good titles have been taken, among others. We want to highlight market research that shows original content attracts subscribers faster and keeps them longer than old TV content. Not unlike the Disney+ series "Mandalorian" or Netflix's "Squid Game," a good series will find a loyal audience who return to it time and again. There's also the fact that those series are less likely to travel. Netflix series will always stay on Netflix. Same for Disney, Amazon, or AppleTV+ titles. That long-term loyalty is what the platforms are hoping to buy with these content investments.

The result is a highly competitive content land-grab to attract new subscribers, increase viewership hours, and reduce churn. With such substantial investments on the line, producers must figure out how to reach as broad an audience as possible across as many markets as possible, as quickly as possible. This is not an easy task, and given the amount of content in the pipeline, the effort and time required to prepare content for release will not get any easier or faster anytime soon. It's not just the quantity of titles entering the market slowing things down; the demand to localize them for international markets is a factor and the time required.

3. Artificial intelligence (AI) and machine learning (ML) begin to add value

In 2021, AI/ML took significant steps towards improving content development and post-production workflows. On the production side, tools came to market that assists content creators with script analysis to determine a film's possible critical and financial success, pre-production talent, distribution and release analytics , and recommending the right talent to maximize revenue for a particular script. On the post-production side, AI/ML can create visual effects to imperceptibly lip-sync facial movement with foreign-language dialogue and predict trailer effectiveness in finding an audience. Spherex greenlight™ is part of this AI/ML solutions class. It is used to identify cultural and contextual cues that impact age ratings before localization, thus saving production time, reducing localization cost, and eliminating regulatory risk for any internationally-released title.

Understandably, not every company can afford to be an "early adopter." But the need to succeed in today's highly competitive marketplace will push many studios and companies to try these tools and see if they add value to their content production workflows. Effective and successful utilization of these tools will only encourage their further development and improvement, which is the only way they get built. The Rogers Adoption Curve suggests that, like other companies that have adopted new technologies early, they will reap the benefit of getting their content to global markets faster, more cost-effectively, generating higher box-office revenues, and doing so with lower regulatory risk.

These aren't the only trends that will impact M&E in 2022, but we believe each will begin to influence decisions about content production, distribution, marketing, and bottom lines. In a market with thousands of titles being released to theatrical, streaming, and linear platforms each year, it's essential to see where and how you can gain market share and advantage. The best way to win in this new, more extensive marketplace is to be more innovative and agile than your competitor.

We're looking forward to 2022, and we hope you are, too—best wishes to you, your families, and your business in the coming year.

It's going to be exciting.

Related Insights

The Global Rules of Content Are Changing

Across the past eight issues of Spherex’s weekly World M&E News newsletter, one theme has become undeniable: regulation, censorship, and compliance are rewriting the rules of global media. From AI policy to platform accountability, from creative freedom to cultural oversight, content creation is now inseparable from compliance.

1. Platforms Tighten Control Through Age and Safety Laws

U.S. states such as Wyoming and South Dakota have enacted age-verification laws that mirror strict internet safety rules already seen in the U.K., signaling a broader legislative trend toward restricting access to mature material.

At the same time, Saudi Arabia’s audiovisual regulator ordered Roblox to suspend chat functions and hire Arabic moderators to protect minors—an example of government-imposed moderation replacing voluntary compliance.

Elsewhere, Instagram’s PG-13 policy update illustrates how platforms are preemptively adapting before new government rules arrive.

2. Censorship Expands — Even as Its Methods Evolve

Censorship remains pervasive but increasingly localized. India’s Central Board of Film Certification demanded one minute, 55 seconds of cuts from They Call Him OG, removing what they considered violent imagery and nudity.

In China, the horror film Together was digitally altered so that a gay couple became straight using AI. Responding to Malaysia’s stricter limits on sexual or suggestive content, censors excised a “swimming pool” scene from Chainsaw Man – The Movie.

Israel’s culture minister threatened to pull funding from the Ophir national film awards after a Palestinian-themed film about a 12-year-old boy won best picture.

3. AI and Content Creation: Between Innovation and Oversight

AI remains both catalyst and controversy. Netflix announced new internal policies limiting how AI can be used in production to protect creative rights and data ownership.

OpenAI’s decision to allow adult content on ChatGPT under “freedom of expression” principles sparked industry debate about whether platforms or creators set the moral boundaries of AI. OpenAI’s CEO Sam Altman emphasized in a statement, the company is “not the moral police.”

Meanwhile, California passed the Digital Likeness Protection Act to combat unauthorized use of celebrity images in AI-generated ads.

4. Governments Target Global Platforms

The Indonesian government is advancing a sweeping plan to filter content on Netflix, YouTube, Disney+ Hotstar, and others using audience-specific content suitability metrics.

At the same time, the U.K. and EU are reexamining long-standing broadcast rules, with Sweden’s telecom authority proposing the deregulation of domestic broadcasting to encourage competition.

These diverging approaches—tightening in one market, loosening in another—underscore the growing fragmentation of global compliance standards.

5. Compliance as Competitive Advantage

The real shift is strategic: companies now see compliance as value creation, not red tape. As Spherex has argued in recent Substack articles, The Hidden Costs of Non-Compliance in Video Content Production and Why Content Differentiation Matters More Than Ever, studios and creators who anticipate regulatory complexity and make necessary edits on their terms while remaining true to their stories can reach more markets and larger audiences with fewer risks.

In other words, understanding compliance early has become the difference between limited release and global scale.

Conclusion

From new age-verification laws to AI disclosure acts and streaming filters, regulation now defines the boundaries of creativity. The next evolution of media will belong to those who can move fastest within those boundaries—leveraging compliance not as constraint but as clarity.

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Spherex Wins MarTech Breakthrough Award for Best AI-Powered Ad Targeting Solution

The annual MarTech Breakthrough Awards are conducted by MarTech Breakthrough, a leading market intelligence organization that recognizes the world’s most innovative marketing, sales, and advertising technology companies. 

This year’s program attracted over 4,000 nominations from across the globe, with winners representing the most innovative solutions in the industry. This year’s roster includes Adobe, HubSpot, Sprout Social, Cision, ZoomInfo, Optimizely, Sitecore, and other top technology leaders, alongside in-house martech innovations from companies such as Verizon and Capital One.

At the heart of this win is SpherexAI, our multimodal platform that powers contextual ad targeting at the scene level. By analyzing video content across visual, audio, dialogue, and emotional signals, SpherexAI enables advertisers to deliver messages at the most impactful moments. Combined with our Cultural Knowledge Graph, the platform ensures campaigns resonate authentically across more than 200 countries and territories while maintaining cultural sensitivity and brand safety.

“Spherex is leveraging its expertise in video compliance to help advertisers navigate the complexities of brand safety and monetization,” Teresa Phillips, CEO of Spherex, said in a statement. “SpherexAI is the only solution that blends scene-level intelligence with deep cultural and emotional insights, giving advertisers a powerful tool to ensure strategic ad placement and engagement.”

This recognition underscores Spherex’s commitment to building the next generation of AI solutions where cultural intelligence, relevance, and brand safety define success. The award also highlights the growing importance of cultural intelligence in global advertising. As audiences consume more content across borders and devices, brands need solutions that go beyond surface-level targeting to connect meaningfully with viewers. SpherexAI provides that bridge, empowering advertisers to scale campaigns that are not only effective but also contextually relevant and culturally respectful.

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YouTube Thumbnails Can Get You in Trouble

Here’s Why Creators Should Pay Attention

When we talk about content compliance on YouTube, most people think of the video content itself — what’s said, what’s shown, and how it’s edited. But there’s another part of the video that carries serious consequences if it violates YouTube policy: the thumbnail.

Thumbnails aren’t just visual hooks — they’re promos and they’re subject to the same content policies as videos. According to YouTube’s official guidelines, thumbnails that contain nudity, sexual content, violent imagery, misleading visuals, or vulgar language can be removed, age-restricted, or lead to a strike on your channel. Repeat offenses can even result in demonetization or channel termination. That’s a steep price to pay for what some may think of as a simple promotional image.

The Hidden Risk in a Single Frame

The challenge? The thumbnail is often selected from the video itself — either manually or auto-generated from a frame. Creators under tight deadlines or managing high-volume channels may not take the time to double-check every frame. They may let the platform choose it automatically. This is where things get risky.

A few seconds of unblurred nudity, a fleeting violent scene, or a misleading expression of shock might seem harmless in motion. But when captured as a still image, those same moments can trigger YouTube’s moderation systems — or worse, violate the platform’s Community Guidelines.

Let’s say your video includes a horror scene with simulated gore. It might pass YouTube’s rules with an age restriction. But if the thumbnail zooms in on a blood-splattered face, that thumbnail could be removed, and your channel could be penalized. Even thumbnails that are simply “too suggestive” or “misleading” can get flagged.

Misleading Thumbnails: Not Just Clickbait — a Violation

Another common mistake is using a thumbnail that implies something the video doesn’t deliver — for example, suggesting nudity, shocking violence, or sexually explicit content that never appears in the video. These aren’t just bad for audience trust; they’re a clear violation of YouTube’s thumbnail policy.

Even if your content is compliant, the wrong thumbnail can cause very real problems.

The Reality for Content Creators

It’s essential to recognize that YouTube’s thumbnail policy doesn’t exist in isolation. It intersects with other rules around child safety, nudity, vulgar language, violence, and more. A thumbnail with vulgar text, even if the video is educational or satirical, may still result in age restrictions or removal. A still frame with a suggestive pose, even if brief and unintended in the video itself, can be enough to get flagged.

And for creators monetizing their work, especially across multiple markets, the risk goes beyond visibility. A flagged thumbnail can reduce ad eligibility, limit reach, or cut off monetization entirely. Worse, a pattern of violations can threaten a channel’s long-term viability.

What’s a Creator to Do?

First, you need to know how to spot the problem and then know what to do about it. Second, you need to know if the changes you make might affect its acceptance in other markets or countries. Only then can you manually scrub through your video looking for risky frames. You can review policies and try to stay up to date on the nuances of what YouTube considers “gratifying” versus “educational” or “documentary.” But doing this at scale — especially for a growing content library — is overwhelming.  

That’s where a tool like SpherexAI can help.

A Smarter Way to Stay Compliant

SpherexAI uses frame-level and scene-level analysis to flag potential compliance issues — not just in your video, but in any frame that could be selected as a thumbnail. Using its patented knowledge graph, which includes every published regulatory and platform rule, it will prepare detailed and accurate edit decision lists that tell you not only what the problem is, but also for each of your target audiences. Whether you're publishing to a single audience or distributing globally, SpherexAI checks your content against YouTube’s policies and localized cultural standards.

For creators trying to grow their brand, monetize their work, and stay in good standing with platforms, that kind of precision can mean the difference between success and a takedown notice.

Want to know if your content is at risk? Learn how SpherexAI can help you protect your channel and optimize every frame — including the thumbnail. Contact us to learn more.

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