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Date:
September 20, 2022

Streaming TV is Having a Crisis of Scale

The global reach of OTT/FAST means that those platforms are fighting a continuous battle to bring new and successful content into more and more markets.

Building a successful content library involves much more than ensuring those titles have appropriate age ratings and content restrictions. The content also has to be good .

But the companies that provide content worldwide through over-the-top (OTT) or free ad-supported television services (FAST) are struggling to release enough popular content to grow their services.

This creates a cyclical challenge. Waning subscriber growth does not provide the financial resources to develop new content, and the lack of fresh/innovative content only accelerates subscriber loss.

Chicken, meet the egg

A recent Washington Post article states, "Streaming television is going through an existential crisis, involving the people who make it and the viewers who watch it. Its revolutionary zeal has naturally faded, as that initial wave of near limitless expansion, boundless creative opportunities and vast archival choices crashes ashore, after a spate of megamergers and a drop in new subscribers."

Yes, it's true. The hyper-growth of OTT and FAST streaming services is beginning to experience a rapid slowdown. What was once innovative content is now considered standard fare.

This fickle nature of global content consumption has caused streaming services' return on investment to hit a plateau due to the challenges of breaking into new markets. Thus causing stagnation of content as the production forces see budgets pulled. This content stagnation is leaving audiences who have not yet subscribed to a service hesitant to make the subscription commitment.

Solving global distribution challenges is daunting for the largest streaming platforms, let alone the small producers. Ensuring that your content resonates with international viewers is a challenge that must be prioritized for the showrunners and various creatives coming up with the next big streaming blockbuster.

Streaming platforms have had huge successes with sensations such as "Squid Games," but the content that resonates globally is rare; this is especially true for comedies.

One of the most significant issues for comedic content is the reliance on nuance. Nuance is challenging to translate as well as localize. It can also be difficult for local content reviewers to place appropriate content restrictions and age ratings accurately. An artificial intelligence-based content analysis tool can help creators identify any challenges with their content before it is released.

While major studios are slashing content development budgets, smaller producers still seek to create and find an audience. Avoiding the formulaic traps that led to the prevalence of medical dramas on broadcast television can be the solution.

Speak softly and tell a good story

The timing of this plateau of audience growth is less than optimal. Earlier this Summer, it was reported that streaming finally drew more viewers than cable and broadcast TV. But despite the overall growth of streaming, the writing was on the wall for the future of new content. We saw the rumors earlier this year , and it still all comes down to knowing your audience, the markets in which you want to release, and how to tell a good story.

Recognizing that different cultures view topics through distinctive lenses is crucial to bringing a concept to life. Whether it be intense themes such as suicide or drugs; or if it is light-hearted topics such as potty training or first dates, not all markets will interpret humor or drama through the same lens. We recently shared five tips for how creatives can keep their vision intact while avoiding content restrictions in global markets.

Running your content through a system that utilizes human-in-the-loop machine learning will provide you with crucial insight into the subtle distinctions of your content. It should be mandatory to bring new shows and movies to market.

By having insight into the potential sensitivities of a show or movie, streaming services can ensure their titles are on the path to success. Services such as Spherexratings™ and Spherexgreenlight™ are market-proven technologies that have helped some of the world's most prominent content creators and distributors with millions of titles reach new markets more quickly.

This skill of bringing quality, globally informed content to market is one of the critical ways streaming platforms can overcome the audience growth plateaus they are experiencing.

And if you are ready to bring your title to a new audience, contact us, and we will ensure your vision comes to life anywhere it gets watched.

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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