← Back To All Posts
Date:
October 22, 2021

Netflix Hits a Global Nerve: Exploring Controversy in Media

As the uproar over the Dave Chappelle comedy special "The Closer" refuses to die down, it is clear that Netflix has hit a nerve. Netflix is no stranger to controversies. Issues with its content continue to grow in international markets alongside the company's slate in local language programming.

In 2019, Netflix removed an episode of the " Patriot Act " from its library in Saudi Arabia, in which Minhaj criticized the Saudi government over the killing of journalist Jamal Khashoggi. In the same year, Netflix edited a graphic suicide scene in " 13 Reasons Why " nearly two years after its release after backlash from mental health groups and countries such as New Zealand where suicide is a sensitive issue. In 2020, the platform cancelled " Messiah " after one season. The series, filmed in Jordan, received criticism from Jordan's Royal Film Commission, asking Netflix to not stream the series for being anti-Islamic.

This time the backlash is literally 'closer' -- at home in the United States and from Netflix employees. The controversial comedy special comes from Dave Chappelle devoting material to ridiculing gay and trans people and describing himself as "team TERF" or "trans-exclusionary radical feminist." Starting with a trans employee at Netflix, the show received intense criticism for being transphobic.

Netflix, in its response, chose to stand behind the show. Leaked emails from Ted Sarandos show him reiterating his support for the Chappelle special. He further went on to say that the company has a strong belief that ''that content on screen doesn't directly translate to real-world harm." The leaked emails created further backlash, and eventually Sarandos retracted his statement -- but the damage had been done.

While correlation and causality are often debated, it is undeniable that what we consume impacts us personally and culturally. For example, an Otago University study in New Zealand found that teenagers have been " shocked " by the portrayal of suicide in the controversial Netflix series "13 Reasons Why." Studies further found a spike in suicides rates in months after Netflix released the show. In India, film regulators (CBFC) believe that smoking on screen glamourizes the habit; hence, it is mandatory to add smoking warnings in films. Earlier research studies identified a correlation between on-screen sexual content and adolescent attitudes and behavior towards sex. Even though it's inconclusive that violence in entertainment leads to real-life violence, there are instances of a connection between the two.

Netflix is known for pushing the envelope when it comes to content. Still, it is naïve to assume doing so does not impact a culture, a country, or individuals where it is consumed.

Americans enjoy personal rights different from other countries, which sometimes leads to a myopic view of other cultures. The First Amendment of the U.S. Constitution guarantees freedom of speech. There is no "hate speech" exception to the First Amendment; thus, there is no legal definition of what precisely constitutes "hate speech" in the U.S. In contrast, many countries in Europe and other parts of the world have laws against hate speech. For example, in the Netherlands, Article 137d of the Criminal Code includes sexual orientation to protect against hate speech. In Iceland, Article 233a of the General Penal Code considers pubic denigration and hatred towards sexual orientation or gender identity in its protection clause. In South Africa, the draft Hate Crimes Bill introduced in 2016 addresses racism, racial discrimination, xenophobia, and discrimination based on gender, sex, sexual orientation, and other problems resulting from hate crimes. The Bill includes provisions that criminalize hate speech in ways that could restrict the right to freedom of expression.

Netflix defended "The Closer" comedy show citing freedom of expression. Creative freedom is indeed one of the essential factors for media and art to function. Comedians push our boundaries, compel dialogue around uncomfortable topics, and poke at society's issues. Still, there is a limit to freedom of expression -- one cannot incite violence. When individuals, especially in vulnerable groups, go from feeling offended by speech to feeling unsafe as a result, it has likely gone too far. Social media platforms like Twitter, YouTube, and Facebook have permanently banned influencers who promote hate speech. A recent study looks at Twitter's deplatforming of influencers, including one comedian who used his platform to promote racism under the guise of comedy. The study found that the activity and toxicity of the influencer's supporters was reduced when he was removed from the service.

Incidents such as these open our minds to perspectives on what freedom of expression means to different people. In their list of demands to Sarandos, the protesting employees at Netflix demanded that the company add disclaimers to transphobic content. Their request seems reasonable given that one of Netflix's core values is ' Inclusivity . ' Sarandos in response , however, said he did not feel the show needed disclaimers.

In our experience at Spherex, a robust content advisory system is valuable in informing the audience what to expect when they are watching a show. A content advisory can take the form of a pre-roll or a ticker, or a description on the content page -- the critical aspect is that it provides sufficient information for vulnerable individuals or groups to make the right decisions about content for themselves and their families. It also conveys responsibility and sensitivity on the part of the platform to acknowledge the potentially harmful impact of content. An example of this would be Disney+'s handling of its classic content. The service has introduced warnings about stereotyping and racism on its library titles.

Regulators all over the world invest themselves in protecting their audiences even outside the bounds of the law. South Africa's Film and Publications Board (FPB) holds regular dialogues on sexual violence and displays appropriate content warnings because it is an issue of concern. Similarly, regulators in the U.K. (BBFC) , New Zealand (OFLC) , Australia (ACB) , among others, periodically update consumer advisory guidelines in line with current social issues. As exhibited in many countries, age ratings in conjunction with consumer advice and additional trigger warnings wherever applicable successfully mitigate audience anxiety and prevent vulnerable groups from feeling threatened by messages or portrayals in content.

Companies that distribute content globally to diverse audiences, like Netflix, must lead the way in promoting greater tolerance and harmony in the world. Their content is viewed by and influences millions of people daily, and they must bear responsibility for what they produce and release. Afterall, "With great power comes great responsibility."

Related Insights

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.

Read Now

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.

Read Now

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.

Read Now