The Cultural Algorithm

According to PriceWaterhouseCoopers's (PwC) Media and Entertainment (M&E) outlook for 2018-2023, the U.S. industry, which represents one-third of the global M&E industry, is expected to reach more than $825 billion by 2023. This includes revenues from global content creators (Disney, Fox, Warner Bros., Starz, CBS, AMC, etc.), linear broadcast via multichannel video programming distributors (Comcast, AT&T, Verizon, Sky, Virgin, etc.), digital stores (Apple iTunes, Amazon Prime, Google Play, etc.), and digital streaming platforms (Netflix, Amazon Prime, YouTube, etc.).

Spread across thousands of islands bustling with beautiful flora and fauna, Indonesia is the world’s largest island country. Over the centuries, its people have welcomed several cultures they came across through trade and commerce. As a result, we now have a melting pot of cultures in Indonesia to study and appreciate. Though officially a secular nation, Indonesia is home to the largest Muslim population in the world, with about 87 percent of Indonesians following Islam. Other religions that coexist peacefully include Christianity, Hinduism and Buddhism. The people of Indonesia are traditional and prefer to follow a more conservative approach to life. Indonesian culture influences age ratings for digital music, film and television in myriad ways. Sexual Material in Music Sex and sexuality are topics that Indonesians do not openly discuss. In fact, transgressions can carry heavy consequences. Music that contains sexual lyrics is regulated by the broadcasting authority. In early 2019, the West Java provincial broadcast commission listed 85 songs labelled ‘adult’ which could only be aired between 10 p.m. and 3 a.m. Popular English language songs, including Ed Sheeran’s “Shape of You,” Bruno Mars’ “That’s What I Like,” and Ariana Grande’s “Love Me Harder,” were considered vulgar and negative . Decency and Decorum Indonesians prefer to dress modestly in public. The government has in recent years grown more conservative with regards to acceptable clothing choices, particularly for women. It came as less of a surprise when an advertisement for the South Korean female pop group Blackpink was banned because its members dressed in miniskirts. The Indonesian Broadcasting Commission ordered nearly a dozen domestic TV stations to pull the commercial, citing indecency . Indonesia’s decency filter is applicable to cartoons and works of animation as well. In 2017, the Indonesian Broadcasting Commission (IBC) issued a warning letter about a kissing scene in the cartoon series “Shaun The Sheep.” The authority pointed out that the show violated Article 14 on child protection and Article 16 on the limitation of sexual content in the Broadcasting Code of Conduct and Broadcasting Standards. “SpongeBob SquarePants” and “Doraemon” also drew attention from the IBC as each had a female character sporting swimwear in one or more episodes. The images of these characters in swimwear were subsequently blurred out. Religious Matters: As Islam is the predominant religion practiced in Indonesia, authorities protect religious sentiments and seek to minimize or eliminate potentially upsetting material. One example is the Hollywood movie “Noah” starring Russell Crowe. The 2014 film was banned by the Indonesian Film Censorship Board, stating that the story contradicted Quran teachings and may mislead people . The current trend in Indonesia continues toward a conservative approach. Government authorities closely monitor the Media and Entertainment industry to ensure the sensibilities of the Indonesian people are not offended.

"We are running into the global arena faster than anybody," Jeff Hirsch, Starz COO declared at a June 2019 conference. He was referring to the fact that the Starz digital platform will soon serve over 50 territories throughout the world. Starz is not alone in focusing on global growth; Roku reported, in its recent fourth quarter earnings release, an expansion into Brazil, one of the largest digital markets in Latin America, as well as a diversification strategy away from its heavy U.S. focus. As content owners and platforms grow geographically, so too is the depth of consumer distribution touchpoints—take for example Acorn-TV, the largest purveyor of British themed programming in the U.S. Acorn is now available over Apple TV Channels, Roku Channels, Amazon Channels, Android TV, Chromecast, Comcast/Xfinity, and via Vizio Smart TV.

After localization success with shows like " Narcos"and " Dark ," Netflix continues expanding its catalog of locally produced shows. Now in almost 200 countries, the streaming service has led efforts to create shows that not only cater to local sentiments, but also use local writers, producers and actors. While Amazon has experienced early success doing the same, particularly in India and Japan, other streaming companies lag. Still, when the European Union (EU) decided in October 2018 that all streaming companies will be required to raise local content percentage to 30 percent, Netflix balked.

As one of the largest and most economically successful nations in Southeast Asia, Malaysia has had a multi-cultural story from the beginning. With influences from foreign European powers, to nations in the Pacific sphere, Malaysia has been inundated with huge blooms of culture and religion – from its inception, to its independence from the United Kingdom in the 1950s, and finally to the modern Malaysia of today.

Different landscapes, countless languages, and a bounty of traditions that have continued on through generations, are passed down in stories and song. The cultural fabric of any nation is made up of its people's beliefs, food, customs, language, and music. Each of these individual parts help make up the unique whole, but each one is tied to the people from which they originate. It is the people's food, the people's music, and the people's language for a reason.

Every culture has stories. Though most tales have a hero and a villain -- a beginning, middle and end -- the specifics vary widely. What's heroic in one culture is villainous in another, and what is deemed controversial might be viewed instead as simple pragmatism. In this era of cross-cultural communications, it can be difficult to parse out what parts of each story are culturally unique. When done successfully, the result is hugely rewarding for everyone involved in the process, including writers, producers, distributors, and local regulators (e.g. Boards).

A trend in platform naming involves appending "Plus" or "+" to the brand name. Amazon announced last week, for example, that it was rebranding its recently acquired "Epix" streaming channel as "MGM+." This is consistent with a trend that began a few years ago as major brands have adopted the "Plus" naming strategy.

Disney recently removed a LGBTQ+ moment from “The Rise of Skywalker” in Singapore, leaving many confused why the media company would make this kind of decision. The answer itself is simple: Disney did this to ensure a lower age rating for the film in its Singaporean markets. This edit translated directly into a wider distribution of the movie and a larger audience. In short — Disney earned more eyes on that film and it was able to better protect its brand in that market. Disney made sure it was not seen as irreverent of local customs or bring any doubt to its kid-friendly, family-focused brand in Singapore. And, as for the Southeast Asian country itself, LGBTQ+ rights have long been a hotly controversial topic despite growing progressive movements within Singapore’s traditionally conservative politics. While the choice on Disney’s part to remove the scene may be controversial in the eyes of some, it’s important to recognize the business rationale for adjusting content to respect local regulations and cultural sensitivities, while also acknowledging the differences in each culture that calls for such actions. And, in this case? While the seemingly strict crackdown occurred, the removal of the short scene had a positive outcome on the financial and brand successes of “The Rise of Skywalker” in Singapore. For a global company like Disney, its brand is paramount to its success, no matter the territory or region, and cuts like this are commonplace in the industry. How could this scene have impacted the Disney brand, though? It’s cut and dry — Singaporean censorship rulings firmly state that any film containing LGBTQ+ themes or content may completely be restricted to viewers 18 years of age and above, while any films focusing on homosexuality face harsher scrutiny and may be subject to a 21 and over rating. If the film had been left as is, it automatically would have received an 18 or even 21+ rating in Singaporean markets, due to featuring material that many Singaporeans aren’t comfortable viewing for themselves or for their families. By virtue of removing several seconds of film not integral to the movie plot, the maturity rating completely changed (receiving instead a PG-13 rating for violence) and allowed a much wider audience to be able to pay for, attend and enjoy a film they otherwise would not have been able to. This was a deliberate move on Disney’s part, rather than some last-minute effort or mistake. Regardless of Singapore’s specific laws, many have said this removal disenfranchises LGBTQ+ representation, and even J. J. Abrams stated in an interview , “In the case of the LGBTQ community, it was important to me that people who go to see this movie feel that they’re being represented in the film.” Others have said that it doesn’t matter that those few seconds were removed, as many viewed the scene as a simple ‘throwaway’ that did not push the envelope or give people from the LGBTQ+ community the representation they wanted or deserved. With many saying it was a step back for LGBTQ+ representation in film rather than a step forward, multitudes of voices on the internet have since called for openly LGBTQ+ characters in future Disney productions instead of relegating the representation to background characters. Content providers today distributing their titles internationally are often faced with the similar challenge of balancing storytelling and statistics, the integrity of their film with the profits of their franchise, and importantly, the physical distribution of their title within regions that may find some parts of it contentious. Many studios, as a result, elect instead to respect local laws and ensure their films are culturally appropriate so they have the ability to reach the widest market, impact the biggest audience and make the most money. Even just knowing when or where to change a small scene or remove a single frame in a region-specific compliance edit could allow the film to be seen by hundreds of thousands more viewers, and in some markets, even millions. This example of Singaporean censorship serves as a shining example for how being culturally compliant can be good for business and a brand, while also serving to stress the importance of executing that cultural compliance as openly and tactfully as possible.