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Date:
September 26, 2023

Global Streaming: The Power of Foreign-Language Titles

25-35% of consumers watch international content.

When the summer box office hinted the movie business was returning to pre-pandemic normal, the WGA and SAG/AFTRA strikes halted productions , and studios once again needed a source of new content. Although some titles were completed, the strikes meant that until the parties reached an agreement, no union members were available to promote films or series. As has been reported at this year's Toronto International Film Festival (TIFF), deals aren't happening because all sales must conform to the final negotiated settlements, and studios are reluctant to spend money on deals until the terms are known.

Déja vu All Over Again

The result is a situation that feels a lot like 2020. The COVID-19 pandemic halted film and TV productions worldwide, theaters closed, and revenues suffered significantly. Major movies scheduled for release were locked out of theaters. With massive financial losses staring them in the face, studios created the " cross-platform " distribution strategy to monetize content to recoup as much of the costs as possible. Sometimes the strategy worked , and sometimes it didn't.

A Very Real Problem

Like now, studios were challenged in monetizing theatrical releases when the pandemic lasted longer than hoped, and with no new content in the pipeline, platforms had to find something to feed the public's voracious viewing appetite. There were large libraries to pull from, but research shows that 67% of American consumers preferred watching first-run or recently released titles to something older. Of those, 50% said they will pay to watch new titles at home. Seventy-six percent of UK and US Gen Z/millennials watch foreign language films, even if they use subtitles . Given the economic situation, studios and platforms understood they had to find new content "somewhere," and they found it overseas.

Past Success Predicts Future Behavior

Many of the most watched series and films released during the pandemic and since are foreign language productions: " Squid Game " (Korea), 2.1 billion minutes, " Money Heist " (Spain), 69 billion minutes, and " All Quiet on the Western Front " (Germany) was watched an estimated nine billion minutes. Each had subtitles and audio dubs and still garnered massive audiences.

Across its catalog, Netflix estimates that 60% of its 230 million subscribers have watched Korean titles. A Parrot Analytics analysis of viewer behavior in late 2022 found that 8 out of 10 top Netflix shows were foreign language titles. It found foreign title viewing also surged on Disney+ and AppleTV+ platforms.

Lessons Learned

Those successes taught studios some critical lessons. First, today's audiences are more receptive to foreign titles and have overcome what " Parasite " director Bong Joon Ho called the subtitle "one-inch barrier." Second, because many foreign films or series hadn't aired outside their native countries, they were "new" content to international audiences. Third, foreign actors are less necessary for promoting it than for large-budget Hollywood titles. For example, not one actor in "Squid Game" promoted the series outside Korea during its release. Lastly, and more relevant to today's situation, many foreign writers, directors, and actors are neither WGA nor SAG/AFTRA members. Thus, development, production, release, and promotion can continue during the strike with some limitations.

Foreign Titles to the Rescue

Foreign titles are again filling the content gaps at a time when production and post-production have come to a halt. In August alone, Netflix added 76 new titles to its catalog, and more than half (52.6%) were foreign language productions. Although that's one example from one studio, that's not uncommon these days, but it's also not normal. That could very likely change.

As more international titles are released, ensuring they're ready for the market is essential. We've written about the best practices for preparing films and series for international distribution. With uncertainty about production, release, and distribution schedules occurring more frequently, it's wise to incorporate a process for ensuring your titles are correctly localized and compliant into your everyday workflow. No other global video compliance platform can reduce these costs more accurately than Spherex AI. Contact us today to learn how we can help get your content to market faster during regular and challenging times.

Related Insights

The Future of Advertising: Why Cultural Intelligence Matters More Than Ever

In today's borderless media landscape, where streaming platforms deliver films and TV shows to over 200 countries instantly, advertisers face a critical challenge: ensuring their ads resonate with diverse audiences while maintaining cultural sensitivity and brand safety. Traditional advertising approaches, relying on demographics, basic localization, and keyword filtering, often fall short. These methods fail to capture the emotional and cultural nuances of different markets, leading to misplaced ads that miss the mark.

To navigate these challenges, brands must go beyond surface-level strategies and adopt a deeper understanding of how content resonates emotionally and culturally across markets. This is where innovative approaches come into play, offering a way to not just reach global audiences, but truly connect with them on a profound, culturally aligned level.

Emotional Arbitrage: The Key to Better Ad Targeting

A groundbreaking approach called "emotional arbitrage" is revolutionizing how brands connect with global audiences. This strategy identifies moments of cultural tension and resolution within content, enabling advertisers to strategically place their messages for maximum impact.

When viewers encounter cultural dissonance—a scene that challenges their deeply ingrained values—they unconsciously seek resolution. Research indicates that brands offering this resolution through culturally aligned messaging achieve significantly higher engagement, recall, and positive sentiment.

Consider a scene in a TV show where a young woman defies her family's expectations by pursuing a career in the arts. In some cultures, where familial respect and tradition are paramount, an ad for an educational institution that helps young people find their passions might be appropriate. Conversely, in cultures prioritizing individual expression and self-discovery, an ad for a bank that helped a young woman open a clothing store featuring her designs could resonate more effectively.

By strategically placing ads that align with cultural expectations, brands can forge deeper emotional connections with viewers, ensuring their message is not just seen, but genuinely felt.

AI-Driven Solutions: The Next Frontier of Cultural Intelligence

Imagine a technology that can analyze video content, not just for keywords or demographics, but for the subtle nuances of cultural and emotional context. This technology could identify moments of tension, humor, sadness, or joy, and pinpoint exactly where an ad would resonate most effectively with a specific audience. Such AI-driven solutions are transforming the advertising landscape, empowering brands to tailor their messages with unprecedented precision and cultural sensitivity.

How AI-Powered Advertising Enhances Performance

By leveraging AI for cultural intelligence, brands can achieve:

  • Strategic Ad Placement: Ads are placed at moments when viewers are emotionally primed to engage, increasing effectiveness.
  • Brand Safety Assurance: Prevents ad placement in content that could be misaligned with brand values or culturally sensitive.
  • Higher Engagement & Recall: Ads become part of the storytelling experience, reinforcing brand messages rather than disrupting them.
  • Scalability Across Global Markets: AI-driven insights allow brands to optimize campaigns for diverse cultural contexts without manual intervention.
The Future of Culturally Intelligent Advertising

As digital content continues to transcend borders, understanding how different cultures react to media is no longer optional—it's essential. Advertisers that embrace cultural intelligence and leverage AI-powered solutions will not only protect their brand integrity but also forge stronger, more meaningful connections with global audiences.

In a world where content is universal but cultural experiences are unique, the brands that adapt will be the brands that thrive. The future of culturally intelligent advertising starts now. Click here to learn how SpherexAI can elevate your advertising strategy.

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Spherex Classification Tool Now Approved for Home Entertainment Content in Australia

The Albanese Government has updated the Spherex Classification Tool approval to include ratings for theatrical releases, home entertainment, and streaming content in Australia. Spherex was previously approved to classify online films.

The update underscores the Australian Classification Board’s confidence in Spherex as a tool to help Australian viewers make informed choices about the content they consume. This means Australians can now access a range of new films sooner than they might across all formats and windows.

Spherex has a longstanding relationship with the Australian Classification Board. Since 2020, Spherex has collaborated closely with the Australian Government to ensure its technology reliably generates classification decisions that meet Australian standards and viewers' expectations.

As the world’s only commercial provider of local age ratings, Spherex has successfully produced classification decisions for high volumes of online content in over 100 countries. Since 2018, Spherex has issued over one million age ratings for digital content, including films, TV shows, and trailers, distributed by its clients worldwide.

Spherex customers, including Umbrella Entertainment, Madman Entertainment, and Sugoi Co., rely on its AI-based platform to obtain local age ratings in Australia and significantly improve efficiency, cost reduction, and market reach.

Discover how Spherex's cutting-edge AI-based platform can streamline your content classification process and enhance your market reach while reducing costs.

Visit spherex.com today and see how we can support your content distribution needs.

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Spherex Featured in the DPP's IBC 2024: Demand versus Supply Report

Spherex was featured in the DPP’s IBC 2024: Demand versus Supply Report, a comprehensive look at how the M&E industry is meeting key customer demands. The report focuses on the topics of empowering creators, understanding audiences, engaging users, and innovating the newsroom. It also highlights many of the technical innovations seen at the recent IBC Show.

An article by Spherex’s CEO Teresa Phillips titled "Navigating Cultural Resonance in Global Media: The Art and Science of Culture Mixing" was featured in the report, exploring how Spherex is pioneering the future of culturally informed content.

Teresa shares how cultural mixing has become a critical strategy for creating content that appeals to diverse audiences in today's global media landscape. This phenomenon involves blending elements from different cultures to craft films and television shows that resonate globally while adhering to local regulations.

However, the process of culture mixing is fraught with risks. Superficial or stereotypical representations can lead to accusations of cultural appropriation or insensitivity, alienating audiences and damaging a company's reputation. For example, imposing Western concepts on Eastern content without proper context can feel inauthentic and jarring to local viewers. These missteps highlight the need for a nuanced understanding of cultural elements to ensure that content is respectful and engaging.

To address these challenges, M&E companies are increasingly turning to data-driven solutions. Platforms like SpherexAI utilize artificial intelligence to analyze visual, audio, and textual elements, providing insights into how well content aligns with cultural and regulatory standards across over 200 countries and territories. This approach helps media companies understand the "cultural distance" between a title's origin and its target market, enabling them to make informed decisions about global distribution.

By leveraging these advanced tools, M&E companies can go beyond traditional content localization. They can create media that actively engages and resonates with diverse audiences. As the industry continues to evolve, those companies that embrace culturally informed, data-driven approaches will be better positioned to succeed, fostering cross-cultural understanding and trust while delivering globally appealing content.

Download the report here.

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