Date:

September 5, 2023

How Cross-Platform Release Windows Impact Localization & Local Age Ratings

In early 2020, the COVID pandemic forced studios to rethink how and when to release major motion pictures. The pandemic cut available theaters and release times by more than half, and the industry and revenues worldwide suffered significantly. With the public no longer able to watch films in person, a new strategy for releasing theatrical films was necessary, and the "Cross-Platform Release" strategy was born.

The concept is straightforward: release premium first-run titles in as many theaters as possible (if at all), then soon after on Transactional Video-on-Demand (TVOD), where consumers could buy or rent it. If a title was underperforming in certain markets, it could be released on Premium Video-on-Demand (PVOD) to help bolster awareness and revenue. Then, based on consumer response, release it on SVOD. Previously, a first-run film could be released domestically in over 4,300 theaters and run for months before it went to TVOD or SVOD.

Necessity is the Mother of Invention

A perfect example of this strategy is the Disney/Pixar animated film " Onward ." The film opened the weekend of 6 March 2020, in 4,310 theaters to $39.1M in revenue. Thirteen days later, it was still in 4,310 theaters, but COVID reduced daily audiences, and revenues fell to $33,296. With a budget of $175M, making $61.5M worldwide at a time when theaters were closing wasn't going to cut it. Pulled from theaters on 19 March 2020, the film was released on TVOD the next day. It was released to SVOD two weeks later. Using a combination of TVOD and SVOD, "Onward" went on to gross $142M worldwide when projections were it should have done much more.

Fast forward to today when people are back in theaters (" Barbie ," anyone?), and theatrical releases compete with big-budget, first-run streaming titles. Among the lessons learned from the pandemic were studios recognized some consumers prefer watching movies at home to physically going to theaters. Consumers, especially families, were willing to wait weeks to avoid crowds and risk their health.

The cross-platform release strategy allowed studios to use traditional distribution to release titles, meet consumers where they were, and extend the revenue life of films before they went to SVOD. The current movie " Meg 2: The Trench ," which, despite grossing $353M worldwide since its 4 August release, grossed just $74M in the U.S., prompting Warner Brothers to release it to TVOD 20 days later. The film was the "Top 10" TVOD title for the week ending 27 August.

It's the Same, Only Different

There has always been a form of the "cross-platform release strategy," but not like today. In the "old days" of the 1980s through the late 2010s, a movie was released in the theater and then went to videotape or, later, DVD where it could be bought or rented. Streaming made wide distribution possible, and COVID accelerated consumer dependence on streaming because they had nowhere else to go for entertainment. Consumer behavior changed permanently as a result. While economics remains the critical factor, content creators and distributors that depend on international distribution to extend the financial life of their work make ensuring it is ready for global audiences imperative.

Streaming and Regulation Complicates Localization and Distribution

There is a lot to consider when preparing titles for cross-platform release. Not only is language translation a critical component of the process, but costs related to subtitling and audio dubbing, regulatory compliance and any required edits, multi-lingual marketing, and distribution can vary significantly across platforms.

For example, a title released theatrically likely has different age rating criteria than one heading for linear or streaming distribution in the same country. Those differences can impact age ratings, watershed, and even the types of platforms or channels where it can be released. The refusal to edit or change a film's offensive language or action to earn a lower TV age rating could force it into late evening airtime, significantly reducing audience size and advertising revenue.

Navigating these obstacles requires expertise not typically available to everyone who owns or licenses content for non-native language markets. Here are some suggestions for making the process go more smoothly.

First Things First

The first step in solving a problem is understanding it. Last year, we discussed the five key steps to preparing a global release title. In that post, we share the hows and whys for thinking about international releases early in the production process, learning as much as possible about your audience, and not being afraid to ask for help. These tips are as relevant today as they were a year ago.

Failing to Plan is Planning to Fail

The time required to prepare an original film or TV series for international release is substantial. While localization is the most time-consuming part of the process and can take months, other overlooked components exist. There can be fundamental differences between literal script translation and addressing cultural issues that will impact ratings. For example, how drugs are used or represented matters to audiences, and regulators in dozens of countries worldwide can be stringent in ensuring the audience doesn't see something they shouldn't. Failure to know those differences and plan accordingly is sure to impact its age rating, its audience, and your revenue.

Think Locally, Plan Regionally

Spherex is helping creators streamline the global distribution process by identifying cultural events within titles that are problematic for audiences and regulators. One of the things we've found is that while localization is "local," there are regions where similar sensibilities exist. If you consider where films are being censored or banned for specific types of content, you'll note many countries have similar cultures, religions, forms of government, and regulations. Using the Spherex AI platform, you can identify similar markets; and instead of creating separate versions for individual countries, you may be able to prepare a single release and distribute it regionally. This strategy expands your content's markets and further monetizes it, reducing post-production localization and distribution expenses.

Cross-platform releases are here to stay. It results from the COVID-19 pandemic, such as the broader adoption of streaming as an entertainment source and a significant change in consumer behavior. After a title has run its theatrical course, there are plenty of opportunities to reach even larger audiences using this strategy. Spherex is the only AI platform with years of experience providing the intelligence and guidance creators and studios need to ensure their content reaches the largest audience with the lowest brand risk. The secret is knowing and planning. Click here to learn more about how Spherex can help your titles succeed.

How is the Economy Impacting Content Creation?

What should content creators make of platform subscribers and revenue numbers?

If you listen to media pundits, analysts don't expect Q2 of 2022 to bode well for linear or streaming platforms. Several said the industry was " slowing down " due to the state of the global economy. Market contractions are likely to lower ad revenue and impact subscriber totals. To some degree, the companies that have reported so far (more are coming this week) indicate the experts may have a point, but will it impact content development or market expansion?

Among earnings announcements so far:

Netflix posted a loss of 970K subscribers
Peacock netted no new paid subscribers in the quarter
Apple service subscriber growth slowed compared to previous quarters

Other prominent players in the streaming space are expected to report subscriber losses, slower subscriber growth rates, and revenues or earnings below projections. Fortunately, the state of the industry isn't as bad as some like to paint it. In fact, none of the companies reporting earnings so far have announced a reduction in their content spending this year despite these challenging economic times.

Netflix

Netflix CFO Spence Neumann said in their Q2 earnings call , "‚Ä¶if you zoom out a bit and look at past economic cycles, at least in the US, most forms of entertainment have been fairly resilient to downturns." People tend to keep streaming subscriptions as they optimize their entertainment spending. Neumann cited that operating income and Earnings Per Share (EPS) were higher than expected, and the company saw a 7.7% growth in screen time during the quarter. This growth included countries where the company increased prices. Bottom line: Netflix will not change its content strategy or curb spending.

Comcast

Comcast CEO Brian Roberts said during their Q2 earnings call that despite flat subscriber growth in the NBCU Media group, their investment in content was paying off. He cited upfronts generating "more than $7 billion in commitments, including $1 billion at Peacock" for the 2022/2023 season. Roberts touted the success of theatrical releases including "Jurassic World," "Minions: The Rise of Gru," and "Black Phone," emphasizing that "great content attracts massive audiences." Comcast indicated no intent to cut back on content development.

Apple

Apple's commitment to content continues, with CEO Tim Cook saying during their earnings call that the company grew to over 860M paid members of Apple TV+, Apple Music, and Apple Arcade platforms in the quarter, generating $19.6B in revenue. Cook highlighted that in 2.5 years, Apple TV+ has "earned 250 wins and 1,100 award nominations," including 52 Emmy nominations across 13 titles.

What this means for content creators is that, given the current global economy, there is no planned change in the amount of money invested in new content. Every major company that has reported quarterly earnings remains committed to its announced investment levels in new content development for 2022. That doesn't mean they won't adjust how or what they buy in the future. It means their focus remains on creating engaging content consumers want to watch. This is good news for companies that cultivate and localize content. It is a testament to their effectiveness in producing titles welcomed in over 200+ countries and territories worldwide.

Related Insights

The Global Rules of Content Are Changing

Video Compliance

Regulation

Culture

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

SpherexAI

Contextual Advertising

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

YouTube

Creator Economy

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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