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Date:
July 16, 2021

Hong Kong That Was Then, This Is Now

On June 11, 2021, Hong Kong’s government expanded its film regulations to more closely reflect mainland China’s censorship rules. The regulations, which went into effect immediately, were issued under the stated purpose of protecting “national security” and attempting to provide balance “between protection of individual rights and freedoms on the one hand, and the protection of such legitimate societal interests on the other.” What this means is content that includes “any act or activity which may amount to an offense endangering national security” or “which is objectively and reasonably capable of being perceived as endorsing, supporting, promoting, glorifying, encouraging or inciting such act or activity” will be prohibited from being shown on any platform in the Hong Kong Special Administrative Region (HKSAR).

Since returning to Chinese mainland control in 1997, Hong Kong has enjoyed relative autonomy from the Beijing government, including maintaining its own film classification system. The Office for Film, Newspaper and Article Administration (OFNAA) administers the Film Censorship Ordinance (FCO) through the Film Censorship Authority (FCA). The FCO classifies content into three categories:

• Category I – approved for persons of any age

• Category II – has two sub-classifications:

1. IIA – Not suitable for children, and

2. IIB – Not suitable for young persons and children

• Category III – approved only for persons age 18 and above

While categories and age groups have not changed, the FCA has been granted expanded authority to ban films on the basis of endangering national security. Plus, the FCO instructs censors to be “vigilant” in carrying out their new responsibilities. Prior to June 11th, “National Security” was not a consideration of Hong Kong’s content classification system. Key language of the new rules centers on how films or documentaries present themselves. Specifically, Item 17 under Section “ V. Approaches in Classification,” adds the following:

17. The fact that a film purports to be a documentary or purports to report on or re-enact real events (as opposed to a fictitious event) with immediate connection to the circumstances in Hong Kong necessitates an even more careful consideration of its contents by the censor, as the local audience may likely feel more strongly about the contents of the film or be led into believing and accepting the whole contents of the film, and the effect on viewers would be more impactful. The censor should carefully examine whether the film contains any biased, unverified, false or misleading narratives or presentation of commentaries, and the tendency of such contents to lead viewers to imitate the criminal or violent acts depicted.

The document does not define the words “biased,” “unverified,” or the phrase “false or misleading narratives or presentation of commentaries,” nor does it specify how these terms should be identified or quantified. This vagueness is the crux of criticism about the new rules. Many complaints suggest the new rules are intended to stifle freedom of expression within Hong Kong. It certainly adds another obstacle for content creators and distributors to navigate in releasing content into that market.

Assessed content that violates the new standards will result in:

(1) a higher category rating;

(2) a requirement that edits or cuts be made to the film;

(3) a combination of the first two, or

(4) a complete exhibition ban.

Censors’ decisions may still be appealed to the Board of Review with an anticipated response within 14 days. However, that timeframe may be extended by the HKSAR Secretary of Commerce and Economic Development for any reason. Certificates of Approval and written determinations including reasons for mandating changes are required in all cases. This differs from mainland China’s regulations as its decisions are final and cannot be appealed.

Other differences between mainland China and Hong Kong remain, such as how LGTBQ+, sexuality, horror and thematic content are assessed and classified. None of those criteria was rewritten by the new “national security” regulations. While other regions, notably the Middle East, Ireland, New Zealand, Australia, Indonesia, and Germany include “national security” in their content regulations, the difference is in how those regulations are defined, applied, or whether they are enforced at all. Countries or regions that classify content commonly refer to graphic violence, graphic sexuality and similar reasons when banning films – all of which are clearly defined. In this case, filmmakers worry that given the lack of specificity in how the new regulations are to be applied, content that is permissible in Hong Kong today may be banned tomorrow, thus bringing Hong Kong’s classification board more in line with mainland China’s censor board. Only time will tell if and when Hong Kong’s regulations mirror the mainland’s or will be replaced by them.

From a practical standpoint, these new regulations will have a significant impact on content creators, directors, distributors, and exhibitors planning to distribute film and television content in Hong Kong. The common approach to determine which types of content are appropriate for various age groups and maturity levels is still the best one; however, the “national security” concerns undoubtedly raise the stakes. Hong Kong isn’t the first region where political concerns over depictions of governmental actions result in changes to film classification rules. This is an indicator of more things to come.

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Artificial intelligence is poised to reshape how content reaches and resonates with global audiences this year. As discussed in The Wrap’s article, "8 Artificial Intelligence Predictions for 2025," industry leaders expect significant transformations in how AI will foster innovation across the media and entertainment landscape.

Spherex CEO Teresa Phillips highlights in the article how AI will enhance content creation, adaptation, and delivery. In 2025, generative AI will enable real-time, in-stream editing, Phillips explains, describing a breakthrough that could eliminate the need for multiple versions of content while ensuring cultural relevance across diverse markets.

This technological advancement marks a significant improvement in content localization. Using Generative AI, scenes and dialogue can be automatically adjusted to comply with regional regulations and cultural sensitivities while maintaining the original narrative. These changes are so seamless that viewers often don’t notice them, enabling content to be shared across cultural boundaries without requiring additional investment.

In addition to the impact of AI, Phillips predicts a paradox emerging in 2025's global media landscape. As economic and social instability increases, audiences will increasingly turn to entertainment as a source of comfort and stability. This trend is driving media companies to expand their international production capabilities, resulting in more locally produced content with global appeal.

For advertisers, this evolution presents an unprecedented opportunity. The intersection of global content and local cultural values creates moments of potential tension and opportunities for meaningful connection. By leveraging AI-driven insights, advertisers can craft messages that bridge cultural gaps and provide comfort to viewers navigating this complex media landscape.

As we move deeper into 2025, the role of AI in entertainment will continue to evolve, focusing not just on content creation but on fostering genuine connections across cultural boundaries. This transformation promises to make entertainment more accessible, relevant, and meaningful for audiences worldwide.

Read the full Wrap article here for more insights on AI's impact on the entertainment industry in 2025.

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In today’s digital-first world, video content is a powerful tool for marketing, brand building, and audience engagement. From blockbuster films and TV shows to YouTube vlogs and independent streaming platforms, video content reaches millions daily. However, as recent legal cases have shown, failure to comply with regulations can result in more than just legal trouble—it can irreparably damage marketing efforts, brand equity, and reputations in key markets. 

The Price of Ignoring the Rules

Violating content regulations can have wide-ranging consequences, from hefty fines to criminal charges and business shutdowns. Consider the case of Jetflicks, a U.S.-based unauthorized streaming service that illegally distributed television content. Five individuals were convicted in 2024 and are now serving jail time for copyright infringement. Their downfall serves as a stark warning: attempting to skirt content laws might offer short-term profits, but the long-term consequences can be devastating.

In September 2022, the Federal Communications Commission (“FCC”) announced a combined fine of $3.4 million against Sinclair Broadcast Group, Nexstar Media Group and 19 other broadcast television licensees for violations of rules limiting commercial matter in children's television programming. The broadcasters allegedly committed a willful and wanton violation of these rules by repeatedly airing a commercial for a HotWheels-themed toy during a Hot Wheels-themed show.

The Marketing and Branding Fallout

Beyond financial penalties and legal consequences, non-compliance can significantly damage marketing efforts. Take DrDisrespect, a high-profile YouTube gaming influencer, who was demonetized in 2024 after allegations of inappropriate communications with minors surfaced. While not an issue of copyright or censorship, the case illustrates how regulatory or ethical violations can erode sponsorship deals, advertising revenue, and audience trust. He was remonetized in January, 2025.

C8, a French television channel faced accusations from the French regulator Arcom of disseminating false information and violating broadcasting standards. The channel had previously been fined €7.6million over three years for repeated violations, including airing conspiracy theories, and content deemed homophobic and racist.

In response to these violations, Arcom revoked C8's broadcasting license. This action halted the channel's operations and sparked political debates, with some right-wing leaders condemning the move as political censorship. The incident significantly tarnished C8's reputation and raised concerns about media freedom in France. 

Reputational Damage: A Long-Term Cost

Losing access to key markets due to regulatory infractions can be catastrophic for a brand. In 2021, Mexican YouTuber Yoseline Hoffman (YosStop) was arrested for possessing and distributing explicit content involving a minor. Once a popular content creator, her brand was permanently tainted, leading to the termination of her channels.

Compliance as a Competitive Advantage

While the risks of non-compliance are severe, adhering to regulations can be a powerful competitive advantage. Brands that prioritize ethical content creation, copyright compliance, and platform policies can distinguish themselves in an increasingly regulated space.

For example, YouTube’s stringent policies have made it essential for content creators to understand and respect copyright laws. Those who comply can monetize their content, attract advertisers, and build lasting credibility. On the other hand, those who take shortcuts risk losing everything overnight.

Words to the Wise

For content creators, production houses, and streaming platforms, the message is clear: know the laws, respect the rules, and prioritize compliance. In an era where digital content can define a brand’s identity, losing credibility means losing everything. SpherexAI is the only tool available today that allows any content creator at any level to ensurefull regulatory and platform compliance in any market in any country. Don’trisk your reputation, demonetization, and brand by guessing wrong. Contact Spherex today to learn how to protect your business today.

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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.
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  • 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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