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Date:
December 21, 2022

Spherex M&E Predictions for 2023

Legendary novelist and screenwriter William Goldman famously said , "In Hollywood, nobody knows anything." He was right in referencing Media and Entertainment's ability to predict what will happen. With that, we offer our predictions of the events that may impact M&E in 2023.

1. The Shift from Linear to Streaming Is Terminal

Just as " Video Killed the Radio Star ," consumer preference and their adoption of any number of the alphabet soup of VODs signals that linear television's demise is upon us. Industry leaders agree. Disney's Bob Iger said linear "is heading for the great precipice," and industry analyst MoffettNathanson, LLC has stated linear TV is " hanging by a thread ."

This past year, cord-cutting continued to devastate linear TV. The percentage of households watching pay TV declined from a high of 85% in 2007 to 55% today . In Q3 of 2022 alone, pay TV slipped 6.2%, and satellite services fell 12.9% YoY, with a combined total loss of 1.68M subscribers. At the same time, virtual TV providers (vMVPDs), such as Sling TV, Hulu+Live, and YouTube, added 898K subscribers (14.6%). For the first time, streaming overtook linear in August, reaching a 34.8% share compared to 21.6% for broadcast and 34.4% for cable.

Hidden within those numbers are the changes in age preferences and indicators of the long-term viability of linear TV. For example, in the UK, people aged 16-24 years watch seven times less broadcast TV than their over-65 counterparts. In the US, four-in-ten teens reveal that their household doesn't have a pay TV subscription.

Advertisers are noticing these changes, too, and those changes are impacting their spending decisions. Local TV advertising is forecast to decline by 15% in 2023, and a third of its advertisers " will not resume linear TV spending anytime soon ." These changes present real challenges for networks looking to keep audience numbers while maintaining revenue and deciding what content in which to invest.

A recent story in the New York Times describes AMC's challenges as it tries to generate enough profit from streaming to make up for its traditional linear business, and this problem is not unique to the industry. Industry-wide, layoffs, restructuring, and changes in content priorities away from linear TV in favor of streaming are commonplace across the industry.

Paraphrasing, "2023 may not be the end of the (linear TV) Earth, but you can see it from here."

2. Generative AI Makes Itself Known

If you don't know what Generative Artificial Intelligence (AI) is, you will find out in 2023.

Generative AI tools generate new content, e.g., images, audio, text, or computer code, through an unsupervised and autonomous process of data collection gained from direct user interaction. It learns about the user and the task and improves on the fly.

Compare this to Discriminative AI, which requires teaching the task using static data. While Imagen , ChatGPT , and Latitude are all Generative AI tools with direct M&E applications, Spherexgreenlight™ is an example of Discriminative AI.

For example, using Imagen , a photographer can edit individual or batches of photographs to match a specific style. Suppose they're editing photos for a sci-fi movie, and all the images are required to look like they were shot on Mars. After defining the appropriate lighting in Adobe Lightroom Classic, Imagen automatically changes an entire catalog of shots " at less than ¬Ω second per photo ."

ChatGPT is a "research preview app" intended to "converse" with people and generate automated responses. The app can answer questions, have a conversation, make decisions, or write the following sentence for this post. To demonstrate its capabilities, we asked it to "describe its expected benefits to the film and TV industry."

"ChatGPT's expected benefits to film and TV content creators, directors, and distributors include increased efficiency and productivity through the use of AI-powered tools for scriptwriting, casting, and scheduling."

Latitude is a platform for creating new user experiences in online gaming. It removes the constraints programmed into traditional games by allowing users to create their own stories within the game universe and let them play those stories out. Its first released product, AI Dungeon , is a game influenced by the classic Dungeons & Dragons game and answers the question of whether AI can be a Dungeon Master . Players can add to the story by describing what they want in simple terms, and the platform generates it in real-time and inserts the objects or actions into the game.

These are just a few companies creating Generative AI products for M&E. We believe 2023 will be the year people begin to fully recognize the value they add to content creation, production, and distribution.

3. Foreign Language Content Becomes an Industry Staple

As consumers make streaming their entertainment delivery platform of choice, content quality and diversity will be recognized as critical factors when selecting their platform. Increasingly, the content created by women and people of color includes characters in non-traditional roles or relationships and originates outside Hollywood.

Foreign language content is breaking geographic and language barriers everywhere. Many of the top series across the major streaming platforms in 2022 were foreign titles. Extraordinary Attorney Woo (South Korea), Little Women (South Korea), Suzhal: The Vortex (India), and Slow Horses (UK) are a few examples. The Academy of Motion Picture Arts and Sciences announced 75 films from 92 countries were eligible to receive the Best International Film Oscar at the 95 th Awards ceremony in March, an increase of 13 films from 2022. These films are also acceptable for the coveted "Best Picture" Oscar.

With the increased awareness of quality storytelling worldwide and consumers' willingness to " overcome the 1-inch tall barrier of subtitles ," audiences are being "introduced to many more amazing films." Success breeds success. Foreign language titles attract significant audiences, and revenue means studios and producers will invest the necessary resources to localize their titles and distribute them internationally properly. As a result, not only will consumers have access to many more amazing stories, but localization will become an integral and necessary component of post-production in 2023 and beyond.

That's a Wrap!

This coming year will continue to be one of innovation and change. Come back in December 2023, and let's see how well we did!

Related Insights

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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Automating Peace of Mind: Navigating YouTube's Global Guidelines with SpherexAI

For media companies distributing content across YouTube, compliance is no longer just a legal requirement—it’s a prerequisite for discoverability, monetization, and channel survival. YouTube enforces strict policies governing child safety, vulgarity, graphic content, and cultural sensitivity. For content owners, ensuring compliance across multiple categories and geographies is a complex and labor-intensive process. To address this issue, SpherexAI provides a scalable solution tailored for any content creator or owner.

YouTube’s Expanding Compliance Landscape

YouTube’s Community Guidelines cover a wide array of regulated categories. Content can be removed or age-restricted—and creators may face penalties—if videos violate policies on:

  • Nudity and sexual content: Content that includes sexually gratifying imagery or non-consensual sexualization is prohibited.
  • Violence and graphic imagery: Footage showing serious injury, bodily fluids, or torture intended to shock viewers can be flagged or removed.
  • Child safety: Content that exploits minors, includes inappropriate family content, or features children in dangerous stunts is not allowed.
  • Illegal or regulated goods: YouTube restricts promotion of firearms, narcotics, and gambling services, among others.

Managing compliance with each of these categories—especially when content is global and multilingual—is a logistical challenge for distributors.

Enter SpherexAI: Precision Compliance Automation at Scale

SpherexAI applies multimodal AI to analyze video content across dialogue, visuals, audio, and metadata. It detects compliance issues not only by scanning for policy violations but also by identifying subtle cultural or regional sensitivities that could result in content removal or limited distribution.

For example, the platform flags:

  • Dialogue with excessive profanity or sexual references, aligned with YouTube’s vulgar language policy.
  • Visuals showing partial nudity, firearm use, or dangerous stunts, which may trigger strikes or age restrictions.
  • Culturally sensitive depictions—such as religious imagery or portrayals of death—that may violate local norms and platform rules.

SpherexAI outputs include timestamped alerts and severity levels, allowing content owners to make targeted edits rather than performing full manual reviews.

Equal Rules for All Creators

Whether you’re a major studio releasing film clips or a digital-first creator uploading your first series, YouTube holds all content publishers to the same standards. Community Guidelines are enforced platform-wide, regardless of a channel’s size, history, or market familiarity.

This presents a significant challenge for new entrants. Many first-time creators or distributors may be unaware that a thumbnail featuring misleading imagery, a prank involving minors, or a scene with unedited drug references can lead to demonetization or a channel strike. But YouTube’s enforcement is uniform: content that violates policy is subject to the same sanctions across the board.

SpherexAI helps level the playing field by equipping every content team—regardless of experience—with access to the same tools used by top studios. Its patented knowledge graph, built on over a decade of regulatory insight and expert human annotation, powers its AI models with unmatched precision. The result: faster reviews, greater accuracy, and fewer costly mistakes.

Cross-Platform, Region-Aware, and Regulation-Ready

Unlike tools focused on metadata or age ratings alone, SpherexAI delivers:

  • Granular analysis: Scene-by-scene breakdowns for violence, vulgarity, sexual content, and self-harm risks.
  • Cultural intelligence: Predictive models assess content suitability across 240+ territories using Spherex’s proprietary “cultural distance” framework.
  • Workflow integration: The platform’s API allows integration into existing supply chains and CMS platforms for automated review at scale.

Reducing Risk, Unlocking Revenue

YouTube’s monetization eligibility hinges on content safety. Channels can be demonetized or de-prioritized in search and recommendation if flagged for repeated violations. Well-known creators Logan Paul, ScreenCulture, and LH Studios have all been sanctioned for violations. By proactively identifying and resolving compliance issues before publishing, SpherexAI empowers content owners to:

  • Avoid strikes or takedowns
  • Retain monetization rights
  • Accelerate time-to-market
  • Protect brand reputation

Conclusion

YouTube is a dynamic platform for global content distribution that requires rigorous adherence to evolving content standards. For studios, broadcasters, and new creators alike, SpherexAI offers an AI-powered safety net automating policy compliance while preserving creative integrity. When SpherexAI is integrated into your production workflow, you can publish confidently at scale, with full compliance, and with no brand risk.

Ready to streamline compliance and expand your YouTube strategy globally?

Book a demo or visit spherex.com to learn how SpherexAI can support your team.

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Spherex CEO Teresa Phillips Talks Practical AI for Global Content Localization at EnTech Fest

At this year’s DEG EnTech Fest, Spherex CEO and Co-Founder Teresa Phillips joined a panel to explore one of the most practical and impactful uses of AI in entertainment today: localization.

During the session titled “Practical AI For Speed and Savings in Localization,” Phillips shared how Spherex is leveraging AI to deliver “deep video understanding” that accelerates compliance and rating decisions in over 200 markets. As she explained, understanding the context—cultural, visual, and narrative—is crucial in determining whether a piece of content is suitable for audiences worldwide.

“AI can now detect not just what happens in a scene, but how it might be interpreted in different cultural and regulatory environments,” said Phillips. For example, in Scandinavian countries, if a trusted figure, such as a clergy member, commits an unethical act onscreen, it can dramatically impact a film’s age rating. SpherexAI is trained to identify these nuanced moments, flagging them for human review when needed.

Phillips also highlighted the role of AI in augmenting human decision-making, noting that “AI agents can be trained to ask humans the right questions—like whether the drinking in a scene is casual or excessive—ensuring more consistent, scalable evaluations.”

The conversation also acknowledged the broader industry shift that AI is bringing to localization workflows—from quality control (QC) to artwork generation, compliance, and project management. With automation poised to displace some entry-level roles, Phillips raised a key question for the future: “If junior roles are the first to be automated, how do we bring new talent into the industry? We have a responsibility in our organizations to create opportunities for the next generation.”

Joining Phillips on the panel were Silviu Epure (Blu Digital Group), Chris Carey (Iyuno), Kelly Summers (The Sherlock Company), and Duncan Wain (Zoo Digital), offering a 360° view on how AI is transforming the way stories cross borders.

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