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Date:
September 14, 2022

Q3 Content Censorship Roundup -- Box Office Edition

Picking your battles is key to box office success in Q3, 2022

The end of another calendar quarter is nearly upon us. It's that time to look at the titles that have performed the best at the box office despite being forced to make content changes or being banned altogether. What's different about Q3 is that each of the top three titles fell victim to censorship. We've been saying for a while that everyone should expect more regulation and censorship, and so far, we haven't seen much to persuade us otherwise.

"Minions: The Rise of Gru"

If you're familiar with the plot of the Universal Pictures "Despicable Me/Minions" franchise, you know the protagonist is a character named "Felonious Gru," who is determined to become the world's greatest supervillain. Throughout the franchise and to earn this title, he has attempted to steal the moon, immobilized people in line at a coffee shop, and stolen numerous items like diamonds and fantastical weapons.

Part of the plot of "Minion: The Rise of Gru" centers on a character called "Wild Knuckles," who fakes suicide to escape capture by a group of villains called the Vicious 6. Knuckles then kidnaps the 11-year-old-Gru and begins his training as a supervillain. At least that's the story everywhere in the world except in Mainland China.

Censors in China insist that characters who commit crimes be caught and punished. Even animated ones. In China, producers were required to add an epilogue explaining that Wild Knuckles didn't escape. He was caught, served 20 years in prison, and became an actor while incarcerated. Instead of becoming a supervillain, Gru turned his life around and " became one of the good guys " who got married and raised three children.

While this didn't require any cuts to the body of the film, the epilogue was inconsistent with the actual storyline, which was not lost on Chinese moviegoers. Some complained it looked like a " bad PowerPoint presentation " was added at the film's end, while others said they didn't care as long as they could see the film uncut. Three months into general release, the film grossed $33M in China. Its current worldwide gross is $904M .

"Thor: Love and Thunder"

Despite being banned in the world's largest film market (China), nearly all Middle East Muslim countries, and Malaysia for LGBTQIA+ content , Taika Waititi's "Thor: Love and Thunder" performed well at the box office. Since its release on 8 July, the film has grossed $342.3M in US/Canada domestic markets and $414.2M internationally, for a total box office of $756.5M .

"Top Gun: Maverick"

2022's top-grossing film, "Top Gun: Maverick," continues to make money on a global scale. China banned the movie for scenes viewed by its government as overtly patriotic towards the US and a brief display of the Taiwanese flag. The latter is guaranteed to get any production banned from Chinese markets. Even without access to China, "Top Gun: Maverick" now ranks as the 5 th Top Lifetime Gross title of all time. It has grossed over $1.5B worldwide and will only go higher.

Know When to Hold 'Em and When to Fold 'Em

You could argue that Universal Pictures and Imagination Entertainment caved when they offered to change the end of "Minions: The Rise of Gru." Still, you could also argue it was a wise business decision. In what amounts to single frames with subtitles, the producers complied with a country's censors with no change to the story as produced and had a $33M windfall they would not have had otherwise. It's as if the censors forgot it was a prequel, but clearly, the audience did not.

"Thor: Love and Thunder" and "Top Gun: Maverick" refused to make the changes censors demanded and still did very well at the box office. Audiences have praised both studios for sticking with the story and supporting the writers and directors who made them. The lesson here is that knowing the culture, the audience, and the regulators is critical when deciding whether to comply or not. The old saying that "an ounce of prevention is worth a pound of cure" is true in the movie and entertainment business. Resources are available to help creators identify cultural or regulatory problems at the earliest stages of production. Learn what they are, and you can save time, avoid stress, and successfully release your content in nearly any market in the world.

Related Insights

Teresa Phillips Joins OTT.X Buzz Panel to Celebrate Women’s History Month

On March 19, 2025, Spherex CEO Teresa Phillips joined a distinguished panel of female executives for the OTT.X BUZZ session—Women’s History Month Edition. This engaging discussion covered the latest trends in OTT and digital video while shedding light on women's unique experiences navigating the media and technology industries.

Moderated by Charlene Polite Corley, VP of Diverse Insights & Partnerships at Nielsen, the panel featured:

  • Teresa Phillips, Chief Executive Officer, Spherex
  • Jenn Chen, Chief Revenue Officer, JWP Connatix
  • Maria Hellström, Chief Executive Officer, Codemill
  • Laura Martin, Managing Director, Senior Internet & Media Analyst, Needham & Company
  • Paige Sherman, Director, Digital Video Programming, Shout! Studios

Teresa shared valuable insights on leadership, career development, and the evolving role of women in media. Reflecting on her journey in a male-dominated industry and the U.S. Army, she emphasized the impact of mentorship and sponsorship in shaping successful careers. Offering practical advice for early and mid-career professionals, Phillips highlighted the importance of adaptability, recognizing career pivot points, and leading through times of transition.

Key Takeaways from the Discussion Throughout the session, the panelists tackled some of the most pertinent topics facing women and the industry today, including:

  • Work-Life Balance and Corporate Support: The panel explored how companies can better support caregivers, highlighting policies that enable a more inclusive and sustainable work environment.
  • The Rapid Evolution of AI in Media: With AI and automation playing an increasingly central role in content distribution, Phillips emphasized Spherex’s role in leveraging AI-powered tools to help studios navigate cultural and regulatory landscapes worldwide.
  • Leadership in a Shifting Industry: The panelists reflected on how they’ve adapted to significant industry changes, from the rise of FAST channels to the increasing role of data-driven decision-making in content strategy.
  • Challenges and Opportunities for Women in Media: The discussion tackled informal workplace dynamics that impact women’s success, from navigating corporate culture to advocating for fair representation at leadership levels.
  • Balancing Authenticity and Career Growth: Panelists shared insights on maintaining personal authenticity while adapting to workplace expectations in male-dominated spaces.

Looking Ahead: Women Driving Industry Innovation -The panelists reinforced that women’s leadership in M&E is not just necessary—it’s a competitive advantage. As AI, automation, and viewer behaviors evolve, diverse leadership will play a pivotal role in shaping the future of streaming.

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Contextual Advertising in Media and Entertainment

As media consumption increasingly shifts toward digital platforms, advertisers are rethinking their strategies to capture audience attention effectively.Traditional targeting methods that rely on demographics, user data, and third-party cookies are becoming less viable due to evolving privacy regulations and changing viewer behaviors. In this landscape, contextual advertising has emerged as a powerful approach for media and entertainment companies looking to align advertising with content in a meaningful way. This shift has created both challenges and opportunities for advertisers.

What is Contextual Advertising?

Contextual advertising is the practice of placing ads that are directly relevant to the content a viewer is watching, rather than being based on their personal data or browsing history. This strategy leverages the tone, theme, and emotional context of content to determine the most suitable ad placements.

For example, an ad for a travel experience appearing during a heartwarming reunion scene in a film about family bonds is far more impactful than a generic placement. The key advantage is that contextual ads feel natural, non-intrusive, and more relevant, leading to increased engagement and improved ad recall.

A recent AVCA study found that 42% of viewers were more interested in brands and products when ads were placed next to relevant content, and 38% learned more about products shown in AI-enabled contextually targeted ads.

WhyContextual Advertising Matters to Media & Entertainment Companies

1. Ensuring Brand Safety in a Complex Media Landscape: With a vast and diverse content ecosystem, brand safety is a growing concern for advertisers. Ads appearing in inappropriate or controversial content can damage a brand’s reputation.

Unlike traditional keyword-based targeting, which may misinterpret context, AI-driven contextual advertising ensures that ads appear in culturally appropriate and brand-safe environments.

Brand safety varies from country to country. Content considered neutral in one region may be perceived as controversial in another. Effective contextual advertising solutions must account for:

  • Local sensitivities
  • Regulatory restrictions
  • Cultural norms

This adaptability protects advertisers from unintended associations while preserving viewer trust across global markets.

2. Achieving Cultural Relevance for Global Audiences: With media distribution now spanning international markets, a one-size-fits-all approach to advertising no longer works. Different cultures interpret content in unique ways, and an ad that resonates in one region may be ineffective—or even offensive—in another. Contextual advertising powered by scene-level intelligence allows advertisers to tailor messages that align with regional values, traditions, and cultural expectations, increasing engagement and brand affinity across markets.

3. Scene-Level Intelligence: Placing Ads at the Right Moment: Beyond broad thematic targeting, scene-level intelligence enables advertisers to place ads at moments of peak emotional engagement. AI-powered analysis can detect pivotal narrative shifts, humor, suspense, or joy, allowing brands to insert ads at moments where viewers are most receptive. This enhances ad recall and emotional association with the brand, making advertising more effective and less intrusive.

4. A Privacy-First Alternative to Audience Targeting: With increasing data privacy regulations, brands must seek alternatives to traditional audience-based targeting. Contextual advertising provides a privacy-compliant solution by relying on content analysis rather than user tracking. This ensures brands can still deliver highly relevant messaging without relying on third-party cookies or invasive data collection.

A Smarter Approach with Advanced AI Technology

One advanced solution driving innovation in contextual advertising is SpherexAI. This technology analyzes content at a granular level, identifying specific scenes and moments where viewer engagement peaks. By processing visual, audio, and narrative elements, it can determine optimal ad placement opportunities that complement rather than interrupt the viewing experience.

SpherexAI provides scene-level intelligence that helps advertisers navigate the complexities of global content distribution, ensuring that ads align seamlessly with viewer expectations. This approach allows brands to:

  • Maximize engagement
  • Maintain brand integrity
  • Unlock new revenue opportunities
  • Deliver a more natural and immersive ad experience

NextSteps

For more information on maximizing your ad impact, visit Spherex or stop by booth W1456 during the upcoming NAB Show in Las Vegas. Use code NS7763 for a complimentary exhibitpass.

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AI’s Breakthrough Year: How Artificial Intelligence is Revolutionizing Global Entertainment in 2025

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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