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Date:
September 14, 2022

Q3 Content Censorship Roundup -- Box Office Edition

Picking your battles is key to box office success in Q3, 2022

The end of another calendar quarter is nearly upon us. It's that time to look at the titles that have performed the best at the box office despite being forced to make content changes or being banned altogether. What's different about Q3 is that each of the top three titles fell victim to censorship. We've been saying for a while that everyone should expect more regulation and censorship, and so far, we haven't seen much to persuade us otherwise.

"Minions: The Rise of Gru"

If you're familiar with the plot of the Universal Pictures "Despicable Me/Minions" franchise, you know the protagonist is a character named "Felonious Gru," who is determined to become the world's greatest supervillain. Throughout the franchise and to earn this title, he has attempted to steal the moon, immobilized people in line at a coffee shop, and stolen numerous items like diamonds and fantastical weapons.

Part of the plot of "Minion: The Rise of Gru" centers on a character called "Wild Knuckles," who fakes suicide to escape capture by a group of villains called the Vicious 6. Knuckles then kidnaps the 11-year-old-Gru and begins his training as a supervillain. At least that's the story everywhere in the world except in Mainland China.

Censors in China insist that characters who commit crimes be caught and punished. Even animated ones. In China, producers were required to add an epilogue explaining that Wild Knuckles didn't escape. He was caught, served 20 years in prison, and became an actor while incarcerated. Instead of becoming a supervillain, Gru turned his life around and " became one of the good guys " who got married and raised three children.

While this didn't require any cuts to the body of the film, the epilogue was inconsistent with the actual storyline, which was not lost on Chinese moviegoers. Some complained it looked like a " bad PowerPoint presentation " was added at the film's end, while others said they didn't care as long as they could see the film uncut. Three months into general release, the film grossed $33M in China. Its current worldwide gross is $904M .

"Thor: Love and Thunder"

Despite being banned in the world's largest film market (China), nearly all Middle East Muslim countries, and Malaysia for LGBTQIA+ content , Taika Waititi's "Thor: Love and Thunder" performed well at the box office. Since its release on 8 July, the film has grossed $342.3M in US/Canada domestic markets and $414.2M internationally, for a total box office of $756.5M .

"Top Gun: Maverick"

2022's top-grossing film, "Top Gun: Maverick," continues to make money on a global scale. China banned the movie for scenes viewed by its government as overtly patriotic towards the US and a brief display of the Taiwanese flag. The latter is guaranteed to get any production banned from Chinese markets. Even without access to China, "Top Gun: Maverick" now ranks as the 5 th Top Lifetime Gross title of all time. It has grossed over $1.5B worldwide and will only go higher.

Know When to Hold 'Em and When to Fold 'Em

You could argue that Universal Pictures and Imagination Entertainment caved when they offered to change the end of "Minions: The Rise of Gru." Still, you could also argue it was a wise business decision. In what amounts to single frames with subtitles, the producers complied with a country's censors with no change to the story as produced and had a $33M windfall they would not have had otherwise. It's as if the censors forgot it was a prequel, but clearly, the audience did not.

"Thor: Love and Thunder" and "Top Gun: Maverick" refused to make the changes censors demanded and still did very well at the box office. Audiences have praised both studios for sticking with the story and supporting the writers and directors who made them. The lesson here is that knowing the culture, the audience, and the regulators is critical when deciding whether to comply or not. The old saying that "an ounce of prevention is worth a pound of cure" is true in the movie and entertainment business. Resources are available to help creators identify cultural or regulatory problems at the earliest stages of production. Learn what they are, and you can save time, avoid stress, and successfully release your content in nearly any market in the world.

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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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