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Date:
May 10, 2023

New Content Challenges Face Media & Entertainment

Due to government-mandated regulations, exporting content to international markets poses a significant challenge for many in the Media and Entertainment (M&E) industry. These regulations can take different forms and are intended to guide the public on the age appropriateness of film or TV titles. From a creator and distributor perspective, keeping up with the changes and understanding their rationale requires skills and knowledge outside their core competency. Non-compliance can result in financial penalties and is complicated because regulations are subject to change, and no two countries implement rules similarly. This post explores three types of changing regulations globally: local content requirements, prohibitions on Diversity, Equity, and Inclusion (DEI) content, and revised age-rating criteria.

Local Content Requirements

As the streaming industry continues to grow, platforms are investing billions of dollars in attempts to produce original content. Stories that resonate with audiences are more likely to attract their attention. Regulators have noticed and are implementing new regulations to secure their share of the economic benefits and require investment in local productions.

Local content requirements exist in many countries, including Canada, France, Denmark, Australia, and India. Canada recently passed Bill C-11 , " the Online Streaming Act ," which brings streaming platforms under the Canadian Radio-television and Telecommunications Commission (CRTC) regulatory authority for the first time. The CRTC now requires content creators to prove that each piece of content meets Canadian standards, and streaming platforms ensure search algorithms prioritize Canadian content. Fines can be imposed for non-compliance.

Diversity, Equity, and Inclusion

Despite the M&E industry's support for DEI, many governments worldwide have continued restricting or prohibiting content depicting LGBTQ characters or storylines in film or TV shows. Successful films with diverse stories or leads, such as " Black Panther: Wakanda Forever " and " Strange World ," have been banned or require higher age ratings in countries such as Russia, Saudi Arabia, Singapore, Iran, and the UAE. Although recent studies indicate gains in Hollywood, others show DEI improvements in British Columbia and European productions have been slow to take hold.

In the U.S., some states, including Florida and Texas, have passed laws that limit how LGBTQ+ or race-related issues can be shown or discussed in educational institutions or venues. This includes prohibitions on public access to books, videos, or films mentioning aspects of LGBTQ+ life and the performance of plays or movies with diverse stories or leads.

Age-Rating Regulatory Changes

Content classification regulations are being revised in countries worldwide to expand the number of age groups they consider and to ensure content is more appropriately classified in order to meet the country's cultural and legal requirements.

Vietnam's Ministry of Culture, Sports and Tourism (MCST) announced it added two new age groups to the existing four: P (all ages), 13+, 16+, and 18+. The new categories are "K" for viewers under 13 and "C," indicating a film cannot be distributed. More specific classification criteria will accompany the new age groups on topics or content such as violence, nudity and sex, drug use, horror, offensive language, and dangerous imitable behavior. The rating criteria for nudity and sex have expanded to consider the age of the characters and their possible impact on the viewer.

In addition to the classification changes, all titles, except films rated "P," must now prominently display the classification level " during the dissemination process ," which means trailers, ads, posters, etc. The content shown on TV or streamed must now exhibit the classification label within three seconds of airing and then three times over the course of the showing if the title is longer than 20 minutes long. The new regulations are available here .

India's Union Cabinet has announced it will begin amending the 1952 Cinematograph Act to add three new sub-categories to the existing "UA" rating. The new sub-categories UA 7+, UA 13+, and UA 16+ provide more details to parents or guardians and take Indian culture and norms into account. The "UA" classification is analogous to the "Parental Guidance" or PG rating in the U.S. and provides guidance on whether a film is inappropriate for children under 12. The IT Rules of 2021 already require streaming services to use these age classifications with content descriptors, and the amendment would bring cinema ratings on par with streaming.

The Importance of Staying Current

Navigating the regulatory landscape is challenging for content creators, who must stay informed and adapt to changing regulations to succeed in global markets. ‚Äã Failing to comply with country regulations and policy changes can delay a title's release, increase post-production costs, adversely impact market acceptance and revenue, and damage a brand. Few content companies have the expertise or capacity to stay current on all changes affecting global M&E markets, but Spherex has you covered. Subscribe to World M&E News to have the latest international regulatory news delivered directly to your inbox.

If you have content you want to distribute globally, Spherex ratings and Spherex greenlight are the best tools available to prepare your titles to ensure audience acceptance and reduce brand risk.

Contact Spherex today to learn more.

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.

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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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