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

Spherex Classification Tool Now Approved for Home Entertainment Content in Australia

Spherex

Regulation

Classification

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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nScreenNoise - Interview Spherex: Avoiding the cultural dead zone

Spherex

Culture

One of the conundrums of streaming is that although a service can deliver content globally, it is not guaranteed to be acceptable in a particular local market. Netflix found this out when it announced global availability in 2016 at CES and was quickly banned in markets like Indonesia, where some of the content was deemed too violent or sexual. In 2016, without boots on the ground in a local market, it wasn’t easy to assess whether a show or movie would be culturally acceptable.

Today, global media companies are acutely aware of the importance of their content’s cultural fit. Moreover, they have a company like Spherex to help them prepare their content to ensure it fits with any country of interest. I interviewed Teresa Phillips, the Co-Founder and CEO of Spherex, at the recent OTT.X Summit in Los Angeles. She explained how the company is leveraging AI and its massive cultural profiling database to help companies prepare content for target markets. She also explained how, in the near future, AI would aid the company in measuring a movie or show’s cultural distance from a regional market and help it avoid falling into the failure zone between cultural fit and novelty interest.

Listen to the full interview here.

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Spherex Featured in the DPP's IBC 2024: Demand versus Supply Report

Spherex

Industry

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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