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Date:
August 17, 2022

Why Content Culturalization Matters During a Recession: Part Deux

Have the economy and increased regulation created content's "perfect storm?"

Despite optimistic Q2/Q3 reports from studios and platforms and indications of no mid-year budget cuts, a real possibility remains that unless the economy recovers to where revenues are more stable, the next fiscal year could see reduced content budgets and fewer purchased titles.

What a Difference An Economy Makes

We're seeing evidence of this as Warner Brothers Discovery discussed the cancelation of three films, including the $90M "Batgirl," during a recent earnings call , citing the need for better focus on how content helps the corporate brand and their respective franchises.

If titles in post-production are dropped, then content in any stage of development could face similar circumstances. While creators can't individually bolster the economy, there are a few things they can do to reduce the chances they'll find their projects on the chopping block. It starts with the title itself.

Last spring, we provided an overview of five recommended steps necessary to prepare content for global release. These include obtaining the final script, selecting markets, conducting cultural script analysis, localization, and performing a final review before regulatory submission. In writing about the slowing economy, we described how language and cultural differences directly affect global release decisions and budgets. Together, these posts link the importance of understanding how culture impacts the telling of a story and how that understanding demonstrates market viability and value to the studio or platform.

Don't Forget the Regulators

Recent media coverage shows how some regulators are doubling down on censoring "objectional" subject matter or characters in popular titles, particularly LGBTQ+ storylines or characters. The freezing out of titles or franchises from major markets and the resulting loss of millions of dollars in revenue will get a studio's attention. While some may be willing to take the economic hit for a tentpole release like "Top Gun: Maverick," knowing they will make money elsewhere, they may not be willing to do it for smaller films. This knowledge could impact production decisions for content unprepared for release to broader markets.

Overcoming Challenges

Ensuring your title is ready for the global marketplace is more crucial than ever. The combination of economic uncertainty and increased censorship levels can create the perfect storm for content creators trying to obtain the investment necessary to bring their stories to life. Spherex provides the tools and services to address both challenges. They're economical for even the smallest producers and will soon come to your desktop.

Contact Spherex today and schedule a demo of the technologies that can get you to global release and markets faster than ever.

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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