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Date:
July 16, 2021

Hong Kong That Was Then, This Is Now

On June 11, 2021, Hong Kong’s government expanded its film regulations to more closely reflect mainland China’s censorship rules. The regulations, which went into effect immediately, were issued under the stated purpose of protecting “national security” and attempting to provide balance “between protection of individual rights and freedoms on the one hand, and the protection of such legitimate societal interests on the other.” What this means is content that includes “any act or activity which may amount to an offense endangering national security” or “which is objectively and reasonably capable of being perceived as endorsing, supporting, promoting, glorifying, encouraging or inciting such act or activity” will be prohibited from being shown on any platform in the Hong Kong Special Administrative Region (HKSAR).

Since returning to Chinese mainland control in 1997, Hong Kong has enjoyed relative autonomy from the Beijing government, including maintaining its own film classification system. The Office for Film, Newspaper and Article Administration (OFNAA) administers the Film Censorship Ordinance (FCO) through the Film Censorship Authority (FCA). The FCO classifies content into three categories:

• Category I – approved for persons of any age

• Category II – has two sub-classifications:

1. IIA – Not suitable for children, and

2. IIB – Not suitable for young persons and children

• Category III – approved only for persons age 18 and above

While categories and age groups have not changed, the FCA has been granted expanded authority to ban films on the basis of endangering national security. Plus, the FCO instructs censors to be “vigilant” in carrying out their new responsibilities. Prior to June 11th, “National Security” was not a consideration of Hong Kong’s content classification system. Key language of the new rules centers on how films or documentaries present themselves. Specifically, Item 17 under Section “ V. Approaches in Classification,” adds the following:

17. The fact that a film purports to be a documentary or purports to report on or re-enact real events (as opposed to a fictitious event) with immediate connection to the circumstances in Hong Kong necessitates an even more careful consideration of its contents by the censor, as the local audience may likely feel more strongly about the contents of the film or be led into believing and accepting the whole contents of the film, and the effect on viewers would be more impactful. The censor should carefully examine whether the film contains any biased, unverified, false or misleading narratives or presentation of commentaries, and the tendency of such contents to lead viewers to imitate the criminal or violent acts depicted.

The document does not define the words “biased,” “unverified,” or the phrase “false or misleading narratives or presentation of commentaries,” nor does it specify how these terms should be identified or quantified. This vagueness is the crux of criticism about the new rules. Many complaints suggest the new rules are intended to stifle freedom of expression within Hong Kong. It certainly adds another obstacle for content creators and distributors to navigate in releasing content into that market.

Assessed content that violates the new standards will result in:

(1) a higher category rating;

(2) a requirement that edits or cuts be made to the film;

(3) a combination of the first two, or

(4) a complete exhibition ban.

Censors’ decisions may still be appealed to the Board of Review with an anticipated response within 14 days. However, that timeframe may be extended by the HKSAR Secretary of Commerce and Economic Development for any reason. Certificates of Approval and written determinations including reasons for mandating changes are required in all cases. This differs from mainland China’s regulations as its decisions are final and cannot be appealed.

Other differences between mainland China and Hong Kong remain, such as how LGTBQ+, sexuality, horror and thematic content are assessed and classified. None of those criteria was rewritten by the new “national security” regulations. While other regions, notably the Middle East, Ireland, New Zealand, Australia, Indonesia, and Germany include “national security” in their content regulations, the difference is in how those regulations are defined, applied, or whether they are enforced at all. Countries or regions that classify content commonly refer to graphic violence, graphic sexuality and similar reasons when banning films – all of which are clearly defined. In this case, filmmakers worry that given the lack of specificity in how the new regulations are to be applied, content that is permissible in Hong Kong today may be banned tomorrow, thus bringing Hong Kong’s classification board more in line with mainland China’s censor board. Only time will tell if and when Hong Kong’s regulations mirror the mainland’s or will be replaced by them.

From a practical standpoint, these new regulations will have a significant impact on content creators, directors, distributors, and exhibitors planning to distribute film and television content in Hong Kong. The common approach to determine which types of content are appropriate for various age groups and maturity levels is still the best one; however, the “national security” concerns undoubtedly raise the stakes. Hong Kong isn’t the first region where political concerns over depictions of governmental actions result in changes to film classification rules. This is an indicator of more things to come.

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NAB 2025 – Recognizing a Changed Industry

Another National Association of Broadcasters (NAB) conference is in the books, and if anything has changed in the media and entertainment industry, the conference and attendees were there to discuss it. From content evolution to changes in audience preferences to AI being everywhere, to trade uncertainty, it was a topic of conversation at NAB 2025. Official categories included: Artificial Intelligence, Cloud Virtualization, Creator Economy, Sports, and Streaming. If a general conclusion could be drawn, it’s that the legacy media business no longer cuts in today’s market, and to survive these new realities, businesses must rethink how they fit in.

Everything Is Changing

One of the biggest takeaways from NAB is the impact the creator economy is having on the industry. Dozens of panels focused on how individuals and small-team productions have upended traditional business models and economics, attracting large audiences from traditional producers while also siphoning away ad revenues and production contracts. Recognizing this trend, hundreds of exhibitors demonstrated how their products or services support all types of creators while also providing benefits to traditional media companies. The NAB also introduced two new initiatives to support this growing sector: the Creator Council and the Creator Lab.

In a keynote session, media cartographer Evan Shapiro highlighted the extent of the shift, pointing out that by 2027, the creator economy is expected to grow to half a trillion dollars, nearly doubling its value from last year ($250 million). Shapiro, recognizing the difference between the creator economy and influencers, cites their effectiveness in attracting and engaging large audiences without having to deal with “gatekeeper-led content.” His final point was that this new reality presents the M&E industry with two options: embrace it or get left behind.

Market and Regulatory Uncertainty

The current uncertainty in global trade markets and the impact of tariffs on product purchases has cast a significant chill on many exhibitors at NAB. This was especially true for those companies whose products were manufactured or included parts from impacted countries or markets (services are not yet subject to tariffs). Many companies encouraged customers to expedite purchases to take advantage of existing inventories and avoid significant cost increases as tariffs are implemented. Attendees and speakers also expressed concerns about how regulatory changes from the FCC and regulators in other countries might impact  children's television programming, the news distortion policy, technical rules (e.g., ATSC 3.0), and TV carriage rules (e.g., non-duplication, and syndicated exclusivity).

Monetization Evolves as Markets Evolve

The continued growth of OTT/FAST and the rapidly expanding creator economy means competition for eyeballs and ads will only become more intense. Evidence of this was on clear display during NAB 2025:

  • Traditional Broadcast Disruption: The rise of streaming services and changing viewer habits are challenging traditional broadcast models, necessitating a reimagining of revenue strategies.
  • Fragmented Audiences: The audience is increasingly fragmented across linear streaming, on-demand platforms, and traditional broadcast, making it more difficult for advertisers to reach consumers effectively.
  • Hybrid Models: Streaming services are increasingly adopting hybrid monetization models, such as AVOD or FAST, to supplement their subscription revenues.

A key component of all of these strategies is high-fidelity metadata. Without it, content marketing, search, and discovery, as well as contextual advertising, are much more difficult to achieve. With it, compliance, brand safety, and audience acceptance increase significantly.

AI Everywhere

Artificial Intelligence (AI) and its increasing impact on content creation, marketing, and virtual production were everywhere at NAB 2025. Nearly 300 exhibiting companies from around the world demonstrated products that included or were enhanced by AI across every phase of content production, marketing, advertising, and distribution. Among them, Spherex highlighted its flagship product, SpherexAI, and demonstrated how it is transforming global video compliance and contextual advertising through scene-level intelligence and cultural insight. It also facilitates ad placement where they will resonate and yield better audience results.

The takeaways from NAB 2025 paint a clear picture: the media and entertainment landscape is in constant flux, demanding adaptability and innovation for survival. The undeniable surge of the creator economy, coupled with market and regulatory uncertainties and the evolving monetization models driven by streaming, presents both challenges and opportunities for traditional and new players. Overlaying all of this is the pervasive influence of artificial intelligence, poised to reshape every facet of the industry.

Ultimately, NAB 2025 underscored a fundamental truth: standing still is no longer an option. The future of media and entertainment belongs to those who embrace change, leverage new technologies, and understand the shifting dynamics of both content creation and audience engagement.

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Experience SpherexAI at NAB 2025

Spherex is headed to Las Vegas for NAB 2025, and we’re bringing a bold new expansion of our flagship product, SpherexAI. Join us at Booth W1456 in the West Hall of the Las Vegas Convention Center from April 6-9 to see how we’re transforming contextual advertising with cultural and emotional intelligence.

As the media and advertising industries look to AI for smarter targeting and better brand alignment, SpherexAI offers a groundbreaking solution. By analyzing the cultural and emotional context of streaming video at the scene level, SpherexAI helps advertisers engage audiences more meaningfully while reducing the risk of misaligned or unsafe ad placements.

The Power of Scene-Level Intelligence

At the heart of our advertising innovation is SpherexAI’s multimodal platform, which processes thousands of signals from every frame—visuals, audio, dialogue, and on-screen text—to create rich metadata that understands the tone, mood, and narrative context of video content.

This deep, scene-level intelligence powers a range of capabilities that can dramatically improve campaign effectiveness:

  • Smarter Ad Targeting – Ads are delivered when viewers are most emotionally receptive, based on the precise tone and content of each scene.
  • Seamless Integration – Ads align with the story arc instead of disrupting it, increasing both engagement and recall.
  • Cultural Sensitivity at Scale – Our patented Cultural Knowledge Graph ensures ad messaging aligns with local customs, values, and regulations in over 200 countries and territories.
  • Enhanced Brand Safety – SpherexAI actively prevents ad placements in scenes that could be offensive, inappropriate, or reputationally risky.

Whether you're building a global campaign or fine-tuning messaging for a specific region, SpherexAI ensures your ads resonate with cultural nuance and emotional precision. Best of all, this isn’t vaporware; SpherexAI can be added to your workflows today!

See It In Action

At NAB 2025, we’ll be demoing how SpherexAI empowers advertisers to connect with audiences in powerful new ways—by aligning their campaigns with the content people are already emotionally invested in.

Book a Demo

Ready to experience the future of contextual advertising? Book a meeting with the Spherex team or drop by Booth W1456 during NAB 2025. We’re excited to show you how scene-level cultural intelligence can elevate your strategy and unlock deeper audience engagement.

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Teresa Phillips Joins OTT.X Buzz Panel to Celebrate Women’s History Month

On March 19, 2025, Spherex CEO Teresa Phillips joined a distinguished panel of female executives for the OTT.X BUZZ session—Women’s History Month Edition. This engaging discussion covered the latest trends in OTT and digital video while shedding light on women's unique experiences navigating the media and technology industries.

Moderated by Charlene Polite Corley, VP of Diverse Insights & Partnerships at Nielsen, the panel featured:

  • Teresa Phillips, Chief Executive Officer, Spherex
  • Jenn Chen, Chief Revenue Officer, JWP Connatix
  • Maria Hellström, Chief Executive Officer, Codemill
  • Laura Martin, Managing Director, Senior Internet & Media Analyst, Needham & Company
  • Paige Sherman, Director, Digital Video Programming, Shout! Studios

Teresa shared valuable insights on leadership, career development, and the evolving role of women in media. Reflecting on her journey in a male-dominated industry and the U.S. Army, she emphasized the impact of mentorship and sponsorship in shaping successful careers. Offering practical advice for early and mid-career professionals, Phillips highlighted the importance of adaptability, recognizing career pivot points, and leading through times of transition.

Key Takeaways from the Discussion Throughout the session, the panelists tackled some of the most pertinent topics facing women and the industry today, including:

  • Work-Life Balance and Corporate Support: The panel explored how companies can better support caregivers, highlighting policies that enable a more inclusive and sustainable work environment.
  • The Rapid Evolution of AI in Media: With AI and automation playing an increasingly central role in content distribution, Phillips emphasized Spherex’s role in leveraging AI-powered tools to help studios navigate cultural and regulatory landscapes worldwide.
  • Leadership in a Shifting Industry: The panelists reflected on how they’ve adapted to significant industry changes, from the rise of FAST channels to the increasing role of data-driven decision-making in content strategy.
  • Challenges and Opportunities for Women in Media: The discussion tackled informal workplace dynamics that impact women’s success, from navigating corporate culture to advocating for fair representation at leadership levels.
  • Balancing Authenticity and Career Growth: Panelists shared insights on maintaining personal authenticity while adapting to workplace expectations in male-dominated spaces.

Looking Ahead: Women Driving Industry Innovation -The panelists reinforced that women’s leadership in M&E is not just necessary—it’s a competitive advantage. As AI, automation, and viewer behaviors evolve, diverse leadership will play a pivotal role in shaping the future of streaming.

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