Why do networks not want local quotas on Streaming?

Producers have long been calling for local quotas on Streaming services, but it’s not a position that lobby group Free TV Australia agrees with.

In its response to the Government’s Media Reform Green Paper, Free TV Australia claimed such
investment obligations would increase pressure on already scarce production facilities, cast and crew, which in turn could lead to production cost increases.

It also argued such quotas could lead to more ‘globalised’ content, rather than telling local Australian stories, and could act as a disincentive to co-productions with broadcasters.

Although local Streaming platforms have been increasing their Australian production output, currently they have no obligations to produce local content, but must report their local spend to ACMA. The Government now proposes to build on this decision by designating an Australian content investment obligation for larger Subscription and Advertising-Based Video on Demand platforms.

Screen Producers Australia is pushing for those with more than 500,000 subscribers to invest 20% of locally sourced revenues on new Australian content, with minimum requirements in drama, documentary and children’s content. Europe has a similar 30% investment rule.

“It is only right that we set long term protections that will ensure audiences are able to see their own stories, culture and identity”

SPA CEO Matthew Deaner recently said, “These platforms are bringing in almost $2 billion in revenue from operating in Australia, and are immensely popular. Given these platforms are now one of the main ways in which Australians interact with screen content, it is only right that we set long term protections that will ensure audiences are able to see their own stories, culture and identity reflected back to them through Australian screen content.”

Media, Entertainment & Arts Alliance Chief Executive Paul Murphy agreed streaming platforms should be required to invest in Australian content.

“Content rules provide Australian audiences with programs they want to watch, provide cultural reference points and sustain a large chunk of our creative industries,” he said.

“The government’s media reform green paper talks at length about the merits of requiring the production of Australian content.

“It acknowledges that Australia is a relatively small marketplace and that without content rules, broadcasters and operators would either stop or massively reduce investment in screen productions.

“We need to heed the warnings in the green paper and get cracking”

“We need to heed the warnings in the green paper and get cracking on establishing a new and fair way for multi-billion-dollar companies to better serve the Australian market.”

 

Free TV believes the key reforms required include:

• prominence requirements so that Australians can easily find and use free-to-air broadcast channels and on-demand services in a connected environment;
• embedding the principles of net neutrality in the regulatory framework;
• the extension of anti-siphoning regulations to online platforms to ensure Australians are not forced to pay for the iconic sporting events they currently watch for free;
• fulfilling the Government’s commitment to review the amount commercial networks pay for spectrum as the current tax is well in excess of international levels; and
• addressing the financial pressures affecting the sustainability of free-to-air television broadcasting in regional and remote areas.

Free TV Chairman, Greg Hywood, said: “The Free TV industry has proposed a technology and regulatory pathway that recognises the central role that broadcast terrestrial free-to-air services currently play in the lives of Australians and the importance of ensuring they continue to be accessible to Australian communities.

“Free-to-air television delivers critical services that no other platform does – free, ubiquitous locally relevant viewing to all Australian homes.

“The upheaval in the media sector has only elevated the need for the strong and sustainable local services that people can go to for trusted news and public service information, to tune in to homegrown Australian stories and to watch iconic sporting events as a nation – no matter where they live or how much they earn. We need new rules for this new landscape but they need to be the right rules to ensure balance, quality, and accessibility for all Australians.”

Free TV Chief Executive Officer, Bridget Fair, added: “Any proposal for regulatory or technology change should be measured by whether it will secure a strong future for commercial television over the next decade and beyond.

“It is critical that all Australians continue to have access to free and universally available television services”

“Now is the time to start the conversation and lay the groundwork so that the right decisions to ensure a sustainable future of the Free TV industry can be made. It is critical that all Australians continue to have access to free and universally available television services into the future. We look forward to working with the Government to lock in the future of broadcast television for all Australians to enjoy”.

Seven West Media Managing Director and Chief Executive Officer, James Warburton, said: “Seven’s future is built on a multi-screen and multi carriage strategy, and the Green Paper starts the discussion about the future regulatory environment we and the industry need.

“The Green Paper proposes a new broadcast licensing scheme under which broadcasters could surrender spectrum in exchange for spectrum tax relief. The current proposal is like asking telecommunications companies to stop their technology innovation at 5G with no ability to upgrade to 6G and beyond. We think there is a better path.

“We support the Free TV Australia submission that outlines why the new broadcast licensing scheme needs to be discussed and reviewed, and we are happy to support the process of looking at achieving a dividend without surrendering services,” he said.

“Conversations focused just on live linear TV don’t reflect the TV business of today”

“Conversations focused just on live linear TV don’t reflect the TV business of today. This review of the regulatory model for free-to-air TV is an important opportunity to shape the future of Australian television businesses by reflecting how modern Australia consumes content.

“Delivering our content via spectrum will remain at the heart of our business model for the foreseeable future, but supplementary to this is the digital and IP growth engine. It isn’t an either/or proposition. Increasingly, the content of the free-to-air networks will be distributed through different technologies and found on various screen types and sizes. The regulatory environment needs to reflect this so that our content remains freely accessible to all Australians.”