Raphael Stevens

CARA, the Classification and Rating Administration, is an independent division of the Motion Picture Association that assigns film ratings.
The team at CARA is responsible for screening around 700 films a year.
Some rules determine how many F-bombs can be used before a film must be classified as R.

A poster of Motion Picture Association film ratings hangs next to a poster displaying a message about new cleaning procedures in the lobby of Cinemark’s Century 16 at the South Point Hotel & Casino on in Las Vegas, Nevada.
Ethan Miller | Getty Images

How many F-bombs can a movie have before it’s rated R?
That’s up to Kelly McMahon and a secretive panel of raters that is charged with dishing out the movie industry’s five all-important designations — G, PG, PG-13, R and the extremely rare NC-17.

Though it toils in relative obscurity, the panel’s ratings for about 700 movies each year can help determine whether films are suitable for children and have a big impact on a movie’s box office performance.
One of the group’s rules, for instance, says the F-bomb can be used as an expletive just once in a film rated PG-13, which means suitable for people 13 and older.
“Used more than once as an expletive, it gets kicked up to an R,” said McMahon, chair of the Classification and Rating Administration (CARA), a Los Angeles-based division of the Motion Picture Association.
Warner Bros.’ “The Batman,” for example, has a lot of profane dialogue, including the use of s—, b—- and a——. But it only used the F-word once, allowing it to remain PG-13.
There are exceptions, usually when the word is just repeated in a short time or used as part of an emotional scene, McMahon said. But any movie with more than three F-bombs likely couldn’t remain PG-13, she said. And if the word is used to signify sex, the film automatically gets an R rating.

To protect the integrity of the screening process, six of CARA’s 10 members are cloaked in anonymity. But in an interview with CNBC, McMahon peeled the curtain back on how the group factors in nudity, violence and other elements to assign ratings for movies including blockbusters like Paramount and Skydance’s “Top Gun: Maverick” and streaming titles like Netflix’s “Spiderhead.”

Three films a day

Established in 1968 as a guideline for parents, the MPA panel is made up of full-time and part-time employees who don’t have any other relations to the entertainment industry. To be selected, candidates must have a child between the ages of 5 and 15.
Most members serve for around seven years — or until their youngest child reaches the age of 21, McMahon said.
“We strive for a diverse group of raters in terms of race, gender, ethnicity, geographical upbringing, religious views, political views,” she said, adding the majority of Americans parents would ideally agree with the group’s ratings.
The panel screens around three films a day, watching each movie from start to finish — including the credits. Raters are watching for sex, nudity and language, which are consistently among parents’ top concerns, McMahon said.
“We get a lot of our guidance from surveys and talking to other parents,” she said.
Before the pandemic, the raters watched movies together in an office screening room, then met to discuss the movie’s contents and vote. During the pandemic, the panel met virtually. At least five raters must have seen the film for CARA to provide a rating; the group tries to have an odd number of raters watch films so votes won’t end in a tie.
“It is a simple majority that rules,” McMahon said.

What’s in a rating?

Though initially intended as a guide for parents, movie ratings have since evolved to be part of studio marketing, said Paul Dergarabedian, senior media analyst at Comscore.
An R rating, for example, can signal that a movie is for adults and might contain strong language, intense or persistent violence, sexually oriented nudity, drug abuse or other mature elements. Children under the age of 17 need to be with an adult guardian to see R-rated movies.
R-rated comic book movies like “Deadpool,” “Deadpool 2” and “Logan” were explicitly billed as gritty, dark and violent and had strong box office performances. The “Deadpool” films each raked in $780 million worldwide and “Logan” tallied more than $600 million in 2017.

Ryan Reynolds stars in “Deadpool 2.”
20th Century Fox

The rating might also signal that a film is violent, gory or psychologically disturbing − all elements of a good horror movie.
“Horror fans have long coveted movies that bear the stamp of an R rating,” Dergarabedian said.
Universal’s “The Black Phone” also earned the rating for violence, bloody images, strong language and some drug use. So did David Cronenberg’s “Crimes of the Future,” for disturbing violent content and grisly images, graphic nudity and some strong language.
If they’re not happy with their rating, filmmakers can challenge CARA’s decisions through an appeals process, or simply re-edit their films to get a different rating. That could mean cutting a shot that raters found tipped the scale toward an R rating, or reducing the number of times a swear word is used.
Most opt to re-edit, McMahon said. But there have only been two appeals in the past two years, she said.
“The reason we have a lot less appeals now is because we do work so closely with filmmakers,” McMahon said. She and the panel’s other three public members act as liaisons with filmmakers and studios to preview scripts and help translate guidelines.
Exactly which rating a studio or filmmaker wants depends on the audience they’re going after. The G rating, for example, is for general audiences with no age restrictions, and means the film does not contain any nudity, sex, violence, profane language or troubling themes. The most recent film to earn this rating was 2021’s “Paw Patrol.”
PG is one step above, and means the movie has some material that might not be suitable for children, including some profanity, depictions of violence or brief nudity. But movies can’t show drug use to get the rating. Universal and Illumination’s “Minions: The Rise of Gru” got the PG rating for action violence and rude humor.

“Minions: The Rise of Gru” is the sequel to the 2015 film, “Minions,” and spin-off/prequel to the main “Despicable Me” film series.

PG-13 is a stronger warning for movies that might depict violence, nudity, sensuality, profane language or other more mature themes. A a wide range of films and genres can fall in this category for different reasons.
Warner Bros.’ “The Batman” got the rating for violent and disturbing content, drug content, strong language and some suggestive material. Sony’s “Spider-Man: No Way Home” obtained the rating for sequences of action violence, some strong language and brief suggestive comments.

The rules

CARA’s rules can evolve, too.
As with the F-bomb, movies are now allotted a single use of the word mother—— with a PG-13 rating. Although it was once considered a sexual word, McMahon said the term is now more commonly used as an expletive.
If especially coarse words are used in a sexually charged way, the movie gets slapped with R rating, McMahon said.
The word s— can appear in a PG film, but only in a limited amount. Repeated use of the word b—- is acceptable in PG-13 movies.
With sex and nudity, context is once again key.
Showing the side of a woman’s breast — often referred to as “side boob” — or a person’s rear end can be considered PG or PG-13, if the appearance is brief and not associated with a sex act. In Paramount’s “The Lost City,” for example, actor Channing Tatum briefly exposes his butt during a scene. The film maintained a PG-13 rating because the nudity was for comedic effect.
With violence, the likelihood of triggering an R rating depends on how realistic it is and how much of it there is, McMahon said.
Raters also weigh “thematic elements,” a catchall within the PG and PG-13 ratings that encapsulates anything that isn’t violence, language or nudity, such as bullying, death, crime, discrimination, self-harm or war.
The rarest rating, NC-17, means that people under the age of 17 can’t be admitted to see the film. This rating doesn’t automatically mean a film is obscene or pornographic, but it signals that the content is only appropriate for adults. Most films that receive this rating are re-edited to get the more widely acceptable R rating, including “Midsommar” in 2019 and “The King’s Man” in 2021.
Sometimes, CARA adds short explanations to ratings that might appear during a film’s trailer or on promotional materials like posters. Filmmakers might suggest their own descriptors, but the raters ultimately assign them.
The descriptions can be comically specific. For “Team America: World Police,” a satire from the “South Park” team, for instance, the panel explained that its R rating was for “graphic crude and sexual humor, violent images, and strong language — all involving puppets.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is the distributor of “Minions: The Rise of Gru” and “The Black Phone.”

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In May, President Joe Biden issued a stark warning to China: The U.S. would come to Taiwan’s defense militarily if China were to invade.
“That’s the commitment we made,” Biden said in response to a question over the U.S.’ intention to protect Taiwan. “We agree with the ‘One China’ policy. We signed on to it.”

Although the White House quickly affirmed the president’s comments did not reflect a policy shift, his remarks came at a time of heightened concern over China’s interest in invading Taiwan after Russia’s invasion of Ukraine.
Biden’s warning contrasted with the U.S.’ long-standing position of “strategic ambiguity” when it comes to Taiwan. That policy makes it unclear whether the U.S. would come to Taiwan’s defense if China were to invade, the Brookings Institution’s Michael O’Hanlon told CNBC in an interview.
Any potential action could have repercussions on the global supply chain. Taiwan has positioned itself as the go-to supplier of the semiconductors found in thousands of electronics, from the iPhone to crucial military equipment. But the global reliance on Taiwan for the essential chips has come under increased scrutiny amid a global shortage.
Taiwan accounts for 64% of the total chip foundry market, according to data from TrendForce. Taiwan Semiconductor Manufacturing Company, or TSMC, accounted for 53% of total foundry revenue in 2021, according to TrendForce.
“I think for older generations, they may remember a Taiwan that produced cheap toys,” said Rupert Hammond-Chambers, president of the US-Taiwan Business Council, in an interview with CNBC. “That, however, has really shifted.”
Watch the video above to find out more about why tensions between China and Taiwan are on the rise, the importance Taiwan plays in the global supply chain, and what experts think could come of China’s increased aggression against its neighboring island.

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Spirit delayed a shareholder vote on a planned tie-up with Frontier for a third time.
Spirit said it would have more time to negotiate with Frontier and rival bidder JetBlue.
A Frontier deal carries more risk for shareholders, but may not be dead yet.

A Frontier Airlines airplane taxis past a Spirit Airlines aircraft at Indianapolis International Airport in Indianapolis, Indiana.
Luke Sharrett | Bloomberg | Getty Images

The fate of Spirit Airlines’ merger with fellow budget carrier Frontier Airlines is growing murkier.
Spirit this week delayed its shareholder meeting for a third time, opening the door to more talks from both Frontier and rival suitor JetBlue Airways. The latter two delays each came just hours before Spirit shareholders were due to vote on the Frontier tie-up, a now $2.6 billion cash-and-stock combination after Frontier recently sweetened the offer in an effort to ward off JetBlue’s advances. JetBlue is offering about $3.7 billion in an all-cash takeover.

Ahead of the most recently scheduled vote, which was slated for Friday morning, it didn’t appear Spirit had enough votes to get the Frontier deal approved, according to people familiar with the matter.
Spirit would be on the hook to pay Frontier a break-up fee of more than $94 million if it deems JetBlue’s offer superior and scraps its original deal.
“We’re working hard to bring this process to a conclusion while remaining focused on the well-being of our Spirit Family,” Spirit CEO Ted Christie said in a note to employees late Thursday after the vote was postponed yet again. Spirit declined to comment further on Friday.
JetBlue, for its part, cheered the delay. CEO Robin Hayes said in a statement late Thursday: “We are encouraged by our discussions with Spirit and are hopeful they now recognize that Spirit shareholders have indicated their clear, overwhelming preference for an agreement with JetBlue.”
Neither JetBlue nor Frontier offered further comment on Friday.

At stake is a chance to become the country’s fifth-largest airline, behind giants American, Delta, United and Southwest. A Spirit-Frontier merger could create a budget airline behemoth, while JetBlue says its buyout offer would “turbocharge” growth at the airline, whose service includes more amenities and Mint business-class on some aircraft.
“Spirit’s board is hell-bent on a Frontier deal. They’ve never wavered,” said Brett Snyder, a former airline manager who now runs the Cranky Flier travel site. “Their challenge is how do they get the votes?”
If the Frontier deal goes to a vote, Spirit shareholders will being deciding on a cash-and-stock deal. Banking stock could mean a future benefit for shareholders if the travel rebound boosts the stock price. But they risk the reverse in the event of a recession or travel slowdown, though budget carriers such as Spirit and Frontier are less sensitive to the ups and downs of business travel than larger airlines.
JetBlue’s cash-in-hand offer avoids the gamble.
“With the Frontier deal, you’re putting faith in what happens after the merger to make your money. With JetBlue, it’s: Here’s the money, take the money, go away,” Snyder said.
JetBlue has repeatedly sweetened its offer for Spirit, including increasing a reverse break-up fee should regulators block the deal. The airline’s persistence has put pressure on Frontier, which recently upped its own offer to match JetBlue’s reverse break-up fee.
Spirit’s board has rejected each of JetBlue’s proposals, arguing a takeover wouldn’t pass muster with the Justice Department, which is suing to block JetBlue’s own regional alliance with American Airlines in the Northeast U.S.
The Biden administration’s Justice Department has vowed to take a hard line against deals that threaten competition, even assuming divestitures. JetBlue, for example, promised to divest Spirit assets in the Northeast to make its proposed Spirit takeover more palatable.
But that’s only a concern if a Frontier deal is dead — and despite the shareholder vote delays, it may not be, according to Bob Mann, an aviation analyst and former airline executive.
“I see it more of a case of Spirit being just unquestionably careful about listening and reviewing [JetBlue’s offer] and they may ultimately conclude on their own it doesn’t make sense,” he said.
Should a Frontier deal fall short at the shareholder vote and pave the way for JetBlue, Frontier could still end up ahead: JetBlue’s plan is to convert Spirit’s tightly packed and no-frills Airbus planes into its own, which include seatback screens, more legroom and free Wi-Fi.
Whatever JetBlue pays for Spirit “is a down payment,” Mann said. “Integration costs are going to be billions on top of that and take years.”
That would leave Frontier as the largest and stand-out no-frills budget airline in the U.S. at a time when nearly everything’s getting more expensive.

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President Joe Biden blasted the Supreme Court on Friday as “out of control” in its decision to overturn the constitutional right to abortion.
Biden signed an executive order that aims to ensure the safety of abortion patients and providers, including through clinics near the borders of states that restrict access.
While the order is an attempt to quell public outcry from incensed Democrats, the directive is vague and leaves much of the details to be worked out by Health Secretary Xavier Becerra.

U.S. President Joe Biden speaks before signing an executive order to help safeguard women’s access to abortion and contraception after the Supreme Court last month overturned Roe v Wade decision that legalized abortion, at the White House in Washington, July 8, 2022.
Kevin Lamarque | Reuters

Calling the U.S. Supreme Court “out of control,” President Joe Biden signed an executive order Friday designed to bolster access to abortion in states that are banning it following the court’s ruling two weeks ago to overturn the constitutional right to terminate a pregnancy.
Biden, flanked by Vice President Kamala Harris and Health Secretary Xavier Becerra, rebuked the conservative majority on the court for stripping U.S. citizens of fundamental rights he said were protected by the Constitution, such as the right to privacy in health matters like seeking an abortion.

“We cannot allow an out-of-control Supreme Court working in conjunction with extremist elements of the Republican Party to take away freedoms and our personal autonomy,” he said from the White House.
The president called out Justice Clarence Thomas’ comments in a concurring opinion overturning Roe v. Wade that invited challenges to past rulings on contraceptive access, gay marriage and other issues.
“What century are they in?” asked an incredulous-sounding Biden, who promised to veto any future Republican-led effort to ban abortion nationwide. The Affordable Care Act guarantees women free birth control and contraceptive counseling.
Biden then signed an executive order that promises to protect the safety of abortion patients and providers and access to the procedure through mobile clinics near the borders of states that restrict access to abortion.
The order also instructs the Department of Health and Human Services to issue a report within the next month detailing actions to safeguard medication abortion, ensure access to emergency contraception and IUDs and bulk up reproductive education.

It directs HHS to take steps to protect access to the abortion pill, though it’s unclear what exactly the federal government plans to do. The Food and Drug Administration approved the abortion pill, mifepristone, more than 20 years ago as a safe and effective way to end a pregnancy before the 10th week.
In December, the FDA permanently allowed the pill to be sent by mail from licensed pharmacies and health care providers. Planned Parenthood, a health care provider that supports access to abortion services, praised the decision at the time as a significant expansion of reproductive rights.

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The order comes two weeks after the Supreme Court voted to reverse its landmark 1973 Roe v. Wade decision and end 50 years of legal precedent. So far at least eight states, including Texas, Alabama and Missouri, have banned abortion and another dozen are expected to restrict or outlaw access to the procedure over the next two months.
Democrats, enraged and upset by the court’s decision, have pressured Biden and Congress to do more to respond to the ruling. And while the order is an attempt to quell some of that public outrage, the directive is vague and leaves much of the details to be worked out by Becerra and legal experts.
Biden also directed HHS on Friday to ensure that pregnant women who are experiencing miscarriages and other complications have access to emergency medical care.
Abortion rights activists are worried that medical professionals will delay treatment for miscarriages and ectopic pregnancies for fear that state prosecutors might interpret these interventions as a type of abortion.
Meanwhile, advocates for abortion rights have urged lawmakers to suspend the Senate’s filibuster rules that require a minimum of 60 votes to pass legislation, a monumental task in a chamber split 50-50 between Democrats, who seek those abortion rights protections, and the Republicans, who largely support the court’s decision to reverse Roe.
Biden acknowledged that reality in his White House address Friday and urged Americans to vote their conscience in the November midterm elections. “The fastest way to restore Roe is to pass a national law codifying Roe, which I will sign immediately upon its passage at my desk,” he said.
Women who live in states banning abortion either have to order the pill from overseas, which carries some risks, or cross state lines to receive a prescription in a state where the procedure remains legal.

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Roger Goodell spoke with CNBC’s Julia Boorstin in an exclusive interview Friday.
Goodell said the NFL will select a new Sunday Ticket partner by the fall.
Amazon, Apple and Disney have all placed bids to be the NFL’s new exclusive streaming provider for Sunday Ticket, CNBC has reported.
Goodell confirmed NFL+ will launch in time for this season.

NFL Commissioner Roger Goodell during the NFL Football match between the Miami Dolphins and Indianapolis Colts on October 3rd, 2021 at Hard Rock Stadium in Miami, FL.
Andrew Bershaw | Icon Sportswire | Getty Images

The National Football League plans to select a streaming service as its new Sunday Ticket partner and will choose a winner by the fall, Commissioner Roger Goodell said Friday.
“I clearly believe we’ll be moving to a streaming service,” Goodell told CNBC’s Julia Boorstin in an exclusive interview at the Allen & Co. Sun Valley conference in Idaho. “I think that’s best for consumers at this stage.”

Apple, Amazon and Disney, which owns ESPN+, have all submitted bids to be the league’s exclusive Sunday Ticket distributor, CNBC reported last month. Goodell confirmed discussions have been going on for more than a year to find a new partner to replace DirecTV, whose contract with the league ends after this season.
Sunday Ticket is the only way fans can watch live NFL Sunday afternoon games outside of what’s broadcast in their local markets on CBS and FOX. DirecTV paid $1.5 billion for annual rights. The NFL now wants more than $2 billion a year, CNBC reported.
Contractual language with CBS and Fox would prevent any streaming service from charging fans significantly less than the current $300 cost for Sunday Ticket, CNBC reported.
DirecTV isn’t bidding to renew the package but is willing to partner with the winner, CNBC reported. In its current arrangement with the NFL, DirecTV mandates customers who sign up for Sunday Ticket also sign up for its pay-TV service, with rare exceptions. That requirement will go away with a new streaming service partner, potentially opening up Sunday Ticket to a much wider audience.
Goodell noted that many people who watch games on a streaming service don’t subscribe to traditional pay TV, allowing the league to capture a wider audience by moving Sunday Ticket to a digital provider.

“We really believe these new platforms give us an ability to innovate where we are today,” said Goodell. “It obviously makes it more available to our consumers, particularly the younger demographic, which is one that we really want to get to. I think this will make it more accessible for fans. I think it will be a better experience for fans.”

NFL+ confirmed

Goodell also confirmed the league will be launching its own streaming service, called NFL+, in time for the upcoming season in September. He didn’t provide details on pricing or what will be available on the service, but he emphasized NFL+’s content will likely improve over time.
“It’s really in an early stage,” Goodell said. “I think over the years it will continue to grow. It will be an important strategy for us going forward.”
Sports Business Journal reported in May that NFL+ is expected to launch later this month.
WATCH: NFL Commissioner Roger Goodell speaks to CNBC’s Julia Boorstin at Sun Valley

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WWE’s Vince McMahon paid $12 million to four women over the last 16 years., the Wall Street Journal reported.
WWE announced last month that McMahon was stepping back from his role as CEO and chairman − but retaining his responsibilities related to the company’s creative content.

Vince McMahon attends a press conference to announce that WWE Wrestlemania 29 will be held at MetLife Stadium in 2013 at MetLife Stadium on February 16, 2012 in East Rutherford, New Jersey.
Michael N. Todaro | Getty Images

WWE’s Vince McMahon paid more than $12 million to four women over the past 16 years to suppress allegations of sexual misconduct and infidelity, according to a report by the Wall Street Journal.
The women were all formerly affiliated with World Wrestling Entertainment, the Journal reported, citing people familiar with the agreements and documents. The newspaper reported in June that WWE’s board was investigating a secret $3 million settlement McMahon paid to a paralegal he allegedly had an affair with.

In its report Friday, the Journal reported three additional hush-money payments between 2006 and 2018: one for $7.5 million to a former wrestler who alleged McMahon coerced her into giving him oral sex and later declined to renew her contract after she resisted subsequent sexual encounters; another for $1 million to a woman who had worked as a WWE contractor and said she received unsolicited nude photos from McMahon; and a third in the amount of about $1 million to a former manager who worked with McMahon for a decade.
WWE did not respond to CNBC’s request for comment on the latest allegations.
WWE announced last month that McMahon was stepping back from his role as CEO and chairman − but retaining his responsibilities related to the company’s creative content − pending an investigation into his alleged misconduct. His daughter, Stephanie McMahon, was named interim CEO.
“I have pledged my complete cooperation to the investigation by the Special Committee, and I will do everything possible to support the investigation,” McMahon said in the release at the time. “I have also pledged to accept the findings and outcome of the investigation, whatever they are.”
WWE’s board is investigating McMahon’s deals with the wrestler and the former paralegal, the Journal reported. The WWE board is also investigating allegations against WWE executive John Laurinaitis, who used to wrestle under the name Johnny Ace.

The investigation, which began in April, was set off by several anonymous emails that threatened to reveal details of the settlement between McMahon and the former paralegal, the Journal reported.
WWE’s share prices were down about 1% at $64.21 Friday.
Read the full report by the Wall Street Journal.

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