Universal Pictures: Film Cut Dilemma Amid Geopolitical Conflict

Universal Pictures’ animated movie Abominable was scheduled for release in Malaysia on November 7, 2019. However, Malaysia’s Film Censorship Board ordered the studio to cut the scenes showing a map with the controversial “nine-dash line.” Without those cuts, the Malaysian government would not allow the movie’s release in Malaysia. The nine-dash line was a geopolitically sensitive issue in the South China Sea region, pitting China against neighbouring countries. China claimed historic rights over the territories bound by the nine dashes it had drawn on a map in the South China Sea. In contrast, Malaysia, Vietnam, the Philippines, Indonesia, Taiwan, and Brunei also claimed the part of the sea adjacent to their coastline. The US government also challenged the Chinese claims under the nine-dash line.<br><br>Universal Pictures was in a fix: Not deleting the map scene would mean that Malaysia and other countries in the South China Sea could ban the movie. However, deleting the scene could provoke the Chinese government, which in the past had reacted strongly against studios and actors who had disregarded Chinese restrictions. China was a significant market that no Hollywood studio could afford to lose. But should Universal Pictures focus only on its commercial interests at the cost of taking a morally sound position?

The case study can be used in a course on business environment in an undergraduate or graduate program in management, to understand the impact of international conflicts on doing business across international borders. This case is also suitable for courses on international business and international marketing, to appreciate the influence of geopolitical disputes on business decisions. It is also suitable for courses on geopolitics and business in the global political economy. Working through this case will give participants the opportunity to do the following:<ul><li>Understand the geopolitical significance of territorial disputes between different countries.</li><li>Assess the influence of such disputes on business decisions while operating in different countries.</li><li>Understand and balance the commercial and ethical dimensions of a business decision.</li><li>Acknowledge the need to customize the product to manage the acrimonious international relations.</li><li>Identify ways to resolve predicaments emerging out of geopolitical conflicts.</li></ul>

• Geopolitics
• South China Sea
• Nine Dash Line
• Content Customization
• Censorship