Australian content quotas on Streaming platforms in 2024
Streamers such as Netflix, Disney+, Prime Video, Apple TV+ will be required to reinvest in local content, announced in a new govt cultural policy.
- Published by David Knox
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Australian content quotas will be introduced for streaming platforms including Netflix, Disney+, Prime Video and Apple TV+ as part of the Albanese government’s Revive National Cultural Policy.
Announced as part of a five year plan at The Espy in St. Kilda this morning, the government will introduce legislation for Australian screen content on streaming platforms in the third quarter of 2023 and to commence no later than 1 July 2024.
A figure has not been set on the investment required of subscription platforms, despite press articles yesterday of a 20% revenue investment.
Minister for the Arts Tony Burke (pictured) and the Minister for Communications Michelle Rowland will undertake further consultation with industry.
A “Make it Australian” campaign has pushed for a 20% requirement, also endorsed a Parliamentary inquiry but much higher than 5% touted by the former Morrison government.
While some platforms have been lifting their Australian output in recent years, the content requirement is expected to be applied to the Streaming platforms with the largest subscription bases. It is yet to be confirmed if it applies to smaller platforms, while Foxtel Group is already required devote 10% of all spending on drama channels on new local drama.
The Revive policy states, “These new streaming platforms are producing some high quality Australian content. However, unlike free-to-air broadcasting services and subscription television, these services have no requirements to make Australian content available on their platforms. The ready availability of mass content produced in other countries, particularly the United States, risks drowning out the voices of Australian storytellers.
“The Government has committed to take the necessary action so that Australians continue to be able to see and hear quality home-grown content, regardless of which platform they are using. It is important that streaming services invest in key genres, including children’s content, scripted drama and documentaries.”
Today’s announcement also guarantees security of funding and independence for ABC and SBS, by delivering five-year funding terms, and reinstating indexation for ABC funding.
The centrepiece of Revive is the establishment of Creative Australia, with an additional $199 million in funding over 4 years from 2023-24. Within Creative Australia, a dedicated First Nations-led Board will be formed, supporting the telling of First Nations histories and stories, and to strengthening the capacity of First Nations creative workers.
Screen Producers Australia:
“If done right, this will not only secure our industry but also mark the start of a cultural resurgence in bringing Australian screen stories to audiences here and abroad. That is an incredible legacy to build for the nation.
“The release of a new National Cultural Policy is a landmark event for Australia’s creative industries, and SPA congratulates Minister Burke and all involved in the development of this,” said CEO Matt Deaner.
“Arts and culture underpin national well-being and cultural identity. As well as being an important economic industry, they help to build a more compassionate and tolerant society. Culture is the core of our nationhood.”
Media Entertainment & Arts Alliance:
MEAA Chief Executive Erin Madeley said, “Arts Minister Tony Burke is to be commended for pushing through this new policy so soon after the election in the face of so many competing priorities for the new government. It shows just how importantly the Albanese government views the arts and cultural sector. Revive provides a solid framework for the arts going forward, and it recognises the central role that the arts and arts workers play in our national story and as a major part of the economy. The policy also places a welcome emphasis on participation in artistic and creative activities at a community level so that all Australians, whatever their background or their age, wherever they live, can benefit from cultural activity. And it is a refreshing change to have a government that recognises that cultural and creative work is a professional activity that must be underpinned by enforceable fair pay and conditions, including safe and inclusive workplaces.”
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14 Responses
Can’t see streaming services complying. I hope I’m allowed to but the Hollywood Reporter had an article on the future of streaming companies and it doesn’t look good.
hollywoodreporter.com/business/business-news/wall-street-streaming-guidance-2023-1235302958/
“lighting money on fire trying to chase profits that don’t exist”. It’s a very different business to when Netflix had the industry to itself. I guess if it’s cheaper to film and show local content but streaming services are trying to find that halo show.
The government has made a rookie error here. Instead of % they really should have used hours. That way we are guaranteed a certain amount of episodes or content. In saying this though, it will be good to see streamers invest in local content and its only a plus.
Can they force a “# of hours” rather than a “% of content available?”
If it’s percentage – we’re going to see the streamers reduce their international content available to us to artificially meet the %.
That’s why they’re going for % of revenue so the amount of international content isn’t a factor. And letting streamers determine how they spend that revenue rather than mandating a number of hours should see them go for quality over quantity. What will be interesting is what counts as local content as much of the content the big streamers have filmed in Australia over the last couple of years isn’t what you’d necessarily define as Australian – they’re often US productions filming in Australia for the tax breaks.
A friend of my sisters was visiting from America and was looking forward to some local content, but was disappointed and said our tv content was full of american shows.
Disney Australia has published it’s annual report. They have around 3m subscriptions, revenue of $705m, a profit of $46m and payed $13m in tax. So 5% would $35m, which would make 2 episode of the Mandalorian. 20% would make a season. Netflix has almost as many subscribers but paid only $876,000 in tax in 2021.
This plan seems bonkers to me. How do you determine the revenue of Amazon Prime Video when a Prime membership includes music, free shipping and other content?
I imagine Binge will also be included. Does that mean Binge will have content that isn’t available on Foxtel?
Does this mean less local content on Nine and Ten and more behind Stan and P+ pay walls?
Will those two be able to use the price they paid for sorting rights to meet the quota?
Will Kayo (with over 1 million subs @ $25+/month, so larger revenues compared to Amazon for example) need to invest 20% of their revenue to produce dramas?
Ohhhh! Does mean we might finally get an Aussie version of The Circle on Netflix next year??
The irony of forcing Australian’s to subscribe to US Netflix and Disney+ so they can watch subsidised Australian content seems lost on them. As soon as they start an Australian production, taxpayers pick up 40% of the costs, they will avoid taxes and all the money with go to the US and Europe. Britbox’s model is based around streaming old ITV and BBC shows and producing no content, will their model be viable if they have to pay 20% to US and UK owned and controlled producers for “Australian” content that they can’t sell in the US?
The way to succeed in entertainment is to produce content that the world wants to see, e.g. Netflix’s remake of Heartbreak High.
As commentators elsewhere have also stated, fully expecting this to mostly end up being reality content.
There is currently a cap on Free to Air networks meeting quota points with doco / reality. It means they have to pursue other genres too. It stands to reason Streamers will have a similar rule.
Imagine reintroducing Australian Drama and Children quotas back on FTA too? That would be a nice change, instead of seeing movie length reality shows 5 nights a week….
I’m with you,…well said! We live in hope.
The content reinvestment quotas have been an ongoing matter in Europe as well. The 5% figure proposed by the previous Liberal/LNP federal government was based on the Danish proposed figure of 5% at the time, which ended up being negotiated to 6% there in Denmark. Switzerland had approved 4%.
The industry in Australia is advocating for 20%, as alluded to in the article. It might also be a high point to negotiate from. Though Labor has been advocating for more arts for years, and for more jobs in Australia, so there’s a good chance that they may negotiate a higher percentage, which could be anything between 5% up to 20%.
There would also be pressure from the streamers for their general revenue. But if they’re operating in Australia, it’s reasonable to get reinvestment for the industry in Australia.