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Date:
January 3, 2023

Who are the Big Winners of Q4?

Happy New Year! Everyone at Spherex wishes you and yours a healthy and prosperous 2023.

What's that old saying, "Out with the old, in with the new"? Or maybe it's, "What's past is prologue" or "The more things change, the more they stay the same." Whether your perspective is optimistic or pessimistic, the end of the old year and the start of a new one requires retrospection.

Content Censorship

Unsurprisingly, Q4 continued the trend of increased censorship of political, religious, culturally critical, and LGBTQ+ content over the first three quarters of 2022, all of 2021 and 2020. Here are a few examples, as reported in Spherex's World M&E News .

  • Indian regulators question whether the color of a bathing suit insults religious sentiments 
  • Myanmar's censorship board must first approve all foreign film and TV content
  • Russia added a journalist portrayed in the documentary "Navalny" to its "Wanted" list 
  • China's cultural regulations are causing independent filmmakers to look for ways around them with mixed results 
  • Pakistan terminates the independence of its Central Board of Film Censors (CBFC) and places it under the political control of the Ministry of Information and Broadcasting 
  • The Turkish Culture Ministry demanded its investment back from the producers of an award-winning film after a campaign by conservative media claimed it was " LGBT propaganda
  • Catholic groups in South Africa, Kenya, and Brazil boycotted Netflix over LGBTQ+ content 
  • Countries and media companies announce rules or ban generative AI content, including China and Getty Images 
  • New content regulations went into effect in Ireland , Singapore , and Jamaica 
  • Disney films "Black Panther: Wakanda Forever" and "Black Adam" were banned in China due to the former film's portrayal of an LGBTQ+ relationship and one of the latter's lead actors, Pierce Brosnan, past comments regarding the Dalai Lama. 

External to these actions impacting M&E is the increase of anti-LGBTQ+ rhetoric in the news media around the world, often echoing the opinions of political and religious leaders. From the US to South America to Europe to Africa to Asia and Australia , the increasingly threatening anti-LGBTQ+ commentary and laws will continue to pressure the M&E industry to avoid creating or distributing such content. Thankfully, 2022 was also the year some in the industry began to resist those pressures, some later than others. Even then, those efforts were met with a direct political response intended to punish their perceived non-compliance.

Now for the Good News

Q4 wasn't all doom and gloom. The big winners of the quarter, in fact for the entire year, are foreign film and TV titles. During this quarter, they were not only recognized for their quality by being nominated or winning more industry awards than ever before but more were picked up for distribution in the coming year. Thanks to streaming, more were produced and released to international audiences than ever before. Top films from India , South Korea , and Europe have begun to prove audiences are finally overcoming that "1-inch subtitle barrier."

  • Five foreign titles released in Q4 grossed over $1.06B in box office revenue, four of which were not in the domestic US market. 
  • Trade publications worldwide, including the Hollywood Reporter , Variety , and The Guardian (UK), include foreign titles in their "Best of" lists for 2022. 

A Year to DEI For (Diversity, Equity, and Inclusion)

Diversity, equity, and inclusion began to take hold in Hollywood and elsewhere heading into 2022, and there is hope that the trend will continue. Two studies released yesterday (2 Jan 2023) indicate while that trend may have stalled due to the economy, signs of progress and hope are also visible.

San Diego State's study found a 1% decline in the total number of women and people of color (POC) in top creative roles in the 100 top-grossing titles in 2022, but it increased by 1% when looking at the top 250 titles. USC's study found " no change between 2021 and 2022."

The optimism comes from the study's finding that "Films with at least one woman director employed substantially more women in other key behind-the-scenes roles than films with exclusively male directors. On films with at least one woman director, women comprised 53% of writers, 39% of editors, 19% of cinematographers, and 18% of composers. On films with male directors, women accounted for 12% of writers, 19% of editors, 4% of cinematographers, and 6% of composers (top 250 films)."

Evidence of this optimism is reflected in the fact that several titles up for major film awards this season were directed by women of color. If you look at the cast and crew of Gina Prince-Bythewood's " The Woman King ," Chinonye Chukwu's " Till ," Jessica M. Thompson's " The Invitation ," and Domee Shi's animated Pixar film " Turning Red ," you'll see a highly diverse team of professionals.

While censorship continues to be something M&E considers, it is essential not to lose sight of the increased tolerance and inclusion happening simultaneously. We anticipate this will continue to be encouraged, produced, and recognized in 2023.

Happy New Year, everyone! We're looking forward to it!

Why Content Culturalization Matters During a Recession 

The media is currently reporting and hypothesizing how a recession could impact the M&E industry. Will it reduce subscriber numbers , jobs, stock prices, and revenues? Who stands to win or lose ? These are essential industry questions, but only one deals with the core product the industry creates: content.

The lack of new content motivates subscribers to drop one service and move to another with better options. Without new content, there is little justification for consumers to subscribe to a service or advertisers to buy time on one. Older content lowers interest and reduces perceived value, which increases churn. In recessionary markets, the challenge our industry faces become where to invest and where to cut costs. One area of production to avoid cost reduction is culturalization and localization.

Why? Because both are crucial to releasing content internationally. Although English is the recognized " language of business " and 1.1B people have some understanding of it, in terms of native speakers, it comes in a distant third behind Mandarin (918M) and Spanish (460M), with 397M speakers. Considering all languages, people who understand or natively speak English are only 16.5% of the world's population. If you want to reach the other 83.5% of the market, culturalization and localization are essential to your content production strategy, providing a positive return on investment .

Who says? In a recent interview , Disney's VP of Distribution Operations, Andrew Aherne, discussed how content developed for Latin American countries is playing "extremely well in Europe and other markets." Netflix's Co-CEO and Chief Content Officer, Ted Sarandos said of "Squid Game" director Hwang Dong-hyuk and his production team , "They didn't try to make the show different so that it would travel, but tried to find all the things about Korean cinema and Korean drama and build them up in a way and new levels of production values" that resulted in 1.65 billion hours viewed in the series first 28 days of release. None of these successes would be possible without culturalization and localization.

Economic downturns, whether short- or long-term, pressure studio and postproduction companies to look for areas where they can save money. Spherex is the only company that provides services and technologies that provide the market and cultural intelligence necessary to make more informed and targeted localization decisions, minimize production times and reduce costs. The combination of SpherexRatingsand Spherex Greenlightensures your titles are linguistically and culturally appropriate for every country and territory on Earth. Contact us today to see how we can help prepare your content for a successful global release.

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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