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Date:
January 25, 2023

Localization is Key to Market Growth During a Recession

How to respond to budget cuts and better compete in the global marketplace

Despite governmental and economist statements to the contrary, a review of content-buying companies' Q4 earnings , news reports , think tank analyses , and layoffs suggest that many in the Media and Entertainment (M&E) industry believe a recession is already upon us. Amazon , AMC , Roku , DirecTV, Warner Brothers , and others have responded to the threat by announcing job, budget, and production cuts.

Given the increased competition between distribution platforms and the decline of theatrical distribution, how do companies stay competitive? How do they increase market share with fewer resources devoted to content? How do you cut and grow simultaneously?

We believe the answer lies in the localization of content developed for other markets.

Content Impacts

In the past, studios, television networks, and production companies responded to a recession in several ways:

1. Halt or decline funding of projects

2. Reduce the number of projects being green lit

3. Cancel shows with marginal audience shares/minutes watched

The above are all pure cost-cutting measures. They reduce a wide range of expenses related to the development, production, and distribution of content, which from an accounting perspective, may address the problem. It doesn't feed its subscriber's appetite for new content. That's a real challenge as cutting production expenses may appease executives; fewer shows to watch and lower subscriber numbers due to increased churn will not appease viewers or shareholders.

How Cutting Production Impacts Market Share

Market research indicates consumers want four things from their streaming service:

1. Competitive pricing

2. Access to popular shows/movies

3. An ad-free option, and

4. Original programming

The reduction of the production budget impacts each of these areas. Without a constant supply of popular or original content, ad revenue will be harder to attract, and competitive pricing may become irrelevant because consumers won't see the value in subscribing. Relying on reruns is not the answer because many series reruns are available on numerous linear, OTT, or FAST channels. This undermines the overall value proposition, leading to increased churn rates and declining revenues. Production budgets are trimmed to keep shows in production, but those cuts could manifest in lower story and production quality, neither desirable outcomes.

What Is the Best Option?

Not everyone has this ability, but importing or exporting new content from other countries or cultures is a good option. There are risks here, too, such as choosing the wrong titles, incompatible markets, or cutting corners in the localization process. Recognizing the importance of getting the story, language, and culture right can have big payoffs. Following the bru-ha-ha over the subs and dubs quality of "Squid Game," consumer expectations of accurate language translations, staying true to the original storyline, and cultural integrity are much higher than they used to be. As the last two Best Picture Oscar winners, " Parasite " and " Coda ," prove, audiences are more than willing to deal with subtitles and dubs.

Companies that create shows for non-US markets, such as Netflix , Disney , Amazon Prime , and others, have an advantage in this situation because those films or series are localized for other countries at a fraction of the cost of a new title. For example, in 2022, the cost per series episode ranged from $4M to $30M . The average price of translating a single episode of a 30-minute TV show can start at $10,000 per language and go up depending on the type of content, desired markets, age rating, and story or cultural complexity. It's a deal by comparison.

Then there's the benefit of single languages being spoken or understood in multiple countries. Localizing a title using subtitles, dubbing, or both allows a title to reach much broader audiences. The top five non-English languages include Chinese (1.3B), Spanish (471M), Hindi (342M), Arabic (315M), and Portuguese (232M). The total population across all these languages, including English, is 3 billion. Not all platforms have subscribers in each of these countries. Still, the point is that localization is a way to provide new content to voracious subscribers economically.

If you have titles you'd like to release outside of native markets, Spherex can help you understand the effort required to make that happen. Spherexgreenlight ™ is an AI/ML platform that can provide cultural and regulatory insights for over 200+ countries and territories worldwide. Contact us to learn how we can help your title reach its full potential.

Related Insights

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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Automating Peace of Mind: Navigating YouTube's Global Guidelines with SpherexAI

For media companies distributing content across YouTube, compliance is no longer just a legal requirement—it’s a prerequisite for discoverability, monetization, and channel survival. YouTube enforces strict policies governing child safety, vulgarity, graphic content, and cultural sensitivity. For content owners, ensuring compliance across multiple categories and geographies is a complex and labor-intensive process. To address this issue, SpherexAI provides a scalable solution tailored for any content creator or owner.

YouTube’s Expanding Compliance Landscape

YouTube’s Community Guidelines cover a wide array of regulated categories. Content can be removed or age-restricted—and creators may face penalties—if videos violate policies on:

  • Nudity and sexual content: Content that includes sexually gratifying imagery or non-consensual sexualization is prohibited.
  • Violence and graphic imagery: Footage showing serious injury, bodily fluids, or torture intended to shock viewers can be flagged or removed.
  • Child safety: Content that exploits minors, includes inappropriate family content, or features children in dangerous stunts is not allowed.
  • Illegal or regulated goods: YouTube restricts promotion of firearms, narcotics, and gambling services, among others.

Managing compliance with each of these categories—especially when content is global and multilingual—is a logistical challenge for distributors.

Enter SpherexAI: Precision Compliance Automation at Scale

SpherexAI applies multimodal AI to analyze video content across dialogue, visuals, audio, and metadata. It detects compliance issues not only by scanning for policy violations but also by identifying subtle cultural or regional sensitivities that could result in content removal or limited distribution.

For example, the platform flags:

  • Dialogue with excessive profanity or sexual references, aligned with YouTube’s vulgar language policy.
  • Visuals showing partial nudity, firearm use, or dangerous stunts, which may trigger strikes or age restrictions.
  • Culturally sensitive depictions—such as religious imagery or portrayals of death—that may violate local norms and platform rules.

SpherexAI outputs include timestamped alerts and severity levels, allowing content owners to make targeted edits rather than performing full manual reviews.

Equal Rules for All Creators

Whether you’re a major studio releasing film clips or a digital-first creator uploading your first series, YouTube holds all content publishers to the same standards. Community Guidelines are enforced platform-wide, regardless of a channel’s size, history, or market familiarity.

This presents a significant challenge for new entrants. Many first-time creators or distributors may be unaware that a thumbnail featuring misleading imagery, a prank involving minors, or a scene with unedited drug references can lead to demonetization or a channel strike. But YouTube’s enforcement is uniform: content that violates policy is subject to the same sanctions across the board.

SpherexAI helps level the playing field by equipping every content team—regardless of experience—with access to the same tools used by top studios. Its patented knowledge graph, built on over a decade of regulatory insight and expert human annotation, powers its AI models with unmatched precision. The result: faster reviews, greater accuracy, and fewer costly mistakes.

Cross-Platform, Region-Aware, and Regulation-Ready

Unlike tools focused on metadata or age ratings alone, SpherexAI delivers:

  • Granular analysis: Scene-by-scene breakdowns for violence, vulgarity, sexual content, and self-harm risks.
  • Cultural intelligence: Predictive models assess content suitability across 240+ territories using Spherex’s proprietary “cultural distance” framework.
  • Workflow integration: The platform’s API allows integration into existing supply chains and CMS platforms for automated review at scale.

Reducing Risk, Unlocking Revenue

YouTube’s monetization eligibility hinges on content safety. Channels can be demonetized or de-prioritized in search and recommendation if flagged for repeated violations. Well-known creators Logan Paul, ScreenCulture, and LH Studios have all been sanctioned for violations. By proactively identifying and resolving compliance issues before publishing, SpherexAI empowers content owners to:

  • Avoid strikes or takedowns
  • Retain monetization rights
  • Accelerate time-to-market
  • Protect brand reputation

Conclusion

YouTube is a dynamic platform for global content distribution that requires rigorous adherence to evolving content standards. For studios, broadcasters, and new creators alike, SpherexAI offers an AI-powered safety net automating policy compliance while preserving creative integrity. When SpherexAI is integrated into your production workflow, you can publish confidently at scale, with full compliance, and with no brand risk.

Ready to streamline compliance and expand your YouTube strategy globally?

Book a demo or visit spherex.com to learn how SpherexAI can support your team.

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Spherex CEO Teresa Phillips Talks Practical AI for Global Content Localization at EnTech Fest

At this year’s DEG EnTech Fest, Spherex CEO and Co-Founder Teresa Phillips joined a panel to explore one of the most practical and impactful uses of AI in entertainment today: localization.

During the session titled “Practical AI For Speed and Savings in Localization,” Phillips shared how Spherex is leveraging AI to deliver “deep video understanding” that accelerates compliance and rating decisions in over 200 markets. As she explained, understanding the context—cultural, visual, and narrative—is crucial in determining whether a piece of content is suitable for audiences worldwide.

“AI can now detect not just what happens in a scene, but how it might be interpreted in different cultural and regulatory environments,” said Phillips. For example, in Scandinavian countries, if a trusted figure, such as a clergy member, commits an unethical act onscreen, it can dramatically impact a film’s age rating. SpherexAI is trained to identify these nuanced moments, flagging them for human review when needed.

Phillips also highlighted the role of AI in augmenting human decision-making, noting that “AI agents can be trained to ask humans the right questions—like whether the drinking in a scene is casual or excessive—ensuring more consistent, scalable evaluations.”

The conversation also acknowledged the broader industry shift that AI is bringing to localization workflows—from quality control (QC) to artwork generation, compliance, and project management. With automation poised to displace some entry-level roles, Phillips raised a key question for the future: “If junior roles are the first to be automated, how do we bring new talent into the industry? We have a responsibility in our organizations to create opportunities for the next generation.”

Joining Phillips on the panel were Silviu Epure (Blu Digital Group), Chris Carey (Iyuno), Kelly Summers (The Sherlock Company), and Duncan Wain (Zoo Digital), offering a 360° view on how AI is transforming the way stories cross borders.

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