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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 Future of Advertising: Why Cultural Intelligence Matters More Than Ever

In today's borderless media landscape, where streaming platforms deliver films and TV shows to over 200 countries instantly, advertisers face a critical challenge: ensuring their ads resonate with diverse audiences while maintaining cultural sensitivity and brand safety. Traditional advertising approaches, relying on demographics, basic localization, and keyword filtering, often fall short. These methods fail to capture the emotional and cultural nuances of different markets, leading to misplaced ads that miss the mark.

To navigate these challenges, brands must go beyond surface-level strategies and adopt a deeper understanding of how content resonates emotionally and culturally across markets. This is where innovative approaches come into play, offering a way to not just reach global audiences, but truly connect with them on a profound, culturally aligned level.

Emotional Arbitrage: The Key to Better Ad Targeting

A groundbreaking approach called "emotional arbitrage" is revolutionizing how brands connect with global audiences. This strategy identifies moments of cultural tension and resolution within content, enabling advertisers to strategically place their messages for maximum impact.

When viewers encounter cultural dissonance—a scene that challenges their deeply ingrained values—they unconsciously seek resolution. Research indicates that brands offering this resolution through culturally aligned messaging achieve significantly higher engagement, recall, and positive sentiment.

Consider a scene in a TV show where a young woman defies her family's expectations by pursuing a career in the arts. In some cultures, where familial respect and tradition are paramount, an ad for an educational institution that helps young people find their passions might be appropriate. Conversely, in cultures prioritizing individual expression and self-discovery, an ad for a bank that helped a young woman open a clothing store featuring her designs could resonate more effectively.

By strategically placing ads that align with cultural expectations, brands can forge deeper emotional connections with viewers, ensuring their message is not just seen, but genuinely felt.

AI-Driven Solutions: The Next Frontier of Cultural Intelligence

Imagine a technology that can analyze video content, not just for keywords or demographics, but for the subtle nuances of cultural and emotional context. This technology could identify moments of tension, humor, sadness, or joy, and pinpoint exactly where an ad would resonate most effectively with a specific audience. Such AI-driven solutions are transforming the advertising landscape, empowering brands to tailor their messages with unprecedented precision and cultural sensitivity.

How AI-Powered Advertising Enhances Performance

By leveraging AI for cultural intelligence, brands can achieve:

  • Strategic Ad Placement: Ads are placed at moments when viewers are emotionally primed to engage, increasing effectiveness.
  • Brand Safety Assurance: Prevents ad placement in content that could be misaligned with brand values or culturally sensitive.
  • Higher Engagement & Recall: Ads become part of the storytelling experience, reinforcing brand messages rather than disrupting them.
  • Scalability Across Global Markets: AI-driven insights allow brands to optimize campaigns for diverse cultural contexts without manual intervention.
The Future of Culturally Intelligent Advertising

As digital content continues to transcend borders, understanding how different cultures react to media is no longer optional—it's essential. Advertisers that embrace cultural intelligence and leverage AI-powered solutions will not only protect their brand integrity but also forge stronger, more meaningful connections with global audiences.

In a world where content is universal but cultural experiences are unique, the brands that adapt will be the brands that thrive. The future of culturally intelligent advertising starts now. Click here to learn how SpherexAI can elevate your advertising strategy.

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Spherex Classification Tool Now Approved for Home Entertainment Content in Australia

The Albanese Government has updated the Spherex Classification Tool approval to include ratings for theatrical releases, home entertainment, and streaming content in Australia. Spherex was previously approved to classify online films.

The update underscores the Australian Classification Board’s confidence in Spherex as a tool to help Australian viewers make informed choices about the content they consume. This means Australians can now access a range of new films sooner than they might across all formats and windows.

Spherex has a longstanding relationship with the Australian Classification Board. Since 2020, Spherex has collaborated closely with the Australian Government to ensure its technology reliably generates classification decisions that meet Australian standards and viewers' expectations.

As the world’s only commercial provider of local age ratings, Spherex has successfully produced classification decisions for high volumes of online content in over 100 countries. Since 2018, Spherex has issued over one million age ratings for digital content, including films, TV shows, and trailers, distributed by its clients worldwide.

Spherex customers, including Umbrella Entertainment, Madman Entertainment, and Sugoi Co., rely on its AI-based platform to obtain local age ratings in Australia and significantly improve efficiency, cost reduction, and market reach.

Discover how Spherex's cutting-edge AI-based platform can streamline your content classification process and enhance your market reach while reducing costs.

Visit spherex.com today and see how we can support your content distribution needs.

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Spherex Featured in the DPP's IBC 2024: Demand versus Supply Report

Spherex was featured in the DPP’s IBC 2024: Demand versus Supply Report, a comprehensive look at how the M&E industry is meeting key customer demands. The report focuses on the topics of empowering creators, understanding audiences, engaging users, and innovating the newsroom. It also highlights many of the technical innovations seen at the recent IBC Show.

An article by Spherex’s CEO Teresa Phillips titled "Navigating Cultural Resonance in Global Media: The Art and Science of Culture Mixing" was featured in the report, exploring how Spherex is pioneering the future of culturally informed content.

Teresa shares how cultural mixing has become a critical strategy for creating content that appeals to diverse audiences in today's global media landscape. This phenomenon involves blending elements from different cultures to craft films and television shows that resonate globally while adhering to local regulations.

However, the process of culture mixing is fraught with risks. Superficial or stereotypical representations can lead to accusations of cultural appropriation or insensitivity, alienating audiences and damaging a company's reputation. For example, imposing Western concepts on Eastern content without proper context can feel inauthentic and jarring to local viewers. These missteps highlight the need for a nuanced understanding of cultural elements to ensure that content is respectful and engaging.

To address these challenges, M&E companies are increasingly turning to data-driven solutions. Platforms like SpherexAI utilize artificial intelligence to analyze visual, audio, and textual elements, providing insights into how well content aligns with cultural and regulatory standards across over 200 countries and territories. This approach helps media companies understand the "cultural distance" between a title's origin and its target market, enabling them to make informed decisions about global distribution.

By leveraging these advanced tools, M&E companies can go beyond traditional content localization. They can create media that actively engages and resonates with diverse audiences. As the industry continues to evolve, those companies that embrace culturally informed, data-driven approaches will be better positioned to succeed, fostering cross-cultural understanding and trust while delivering globally appealing content.

Download the report here.

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