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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

The Global Rules of Content Are Changing

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

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

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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