ABC boss proposes forcing Netflix to contribute to creation of Australian content with new fund
ABC boss Mark Scott has floated a proposal of forcing online giants like Netflix to contribute to a digital content fund which would help pay for original Australian TV and video content.
ABC boss Mark Scott
During a speech at Macquarie University this evening Scott also predicted plans to reform media reform would remain stalled, but warned that may also harm Australian storytelling.
Scott called for debate on the idea of a digital content fund which would include companies like Netflix, Apple and Google contributing a “percentage of revenue” to support the creation of local content.
So Mark Scott wants to add another tax to overseas content companies, Australia is only a small market and if these companies think they’re being exploited or there’s no money to be made they’ll soon pack up and leave resulting in a return to piracy.
@David Meanwhile the local television and production market shrinks and sheds jobs. We need a healthy local content industry and Netflix should play a part in that.
Maybe a more powerful scheme for Aussie content creators is a commitment by powerful global distribution platforms such as Netflix, Google Apple etc to promote and distribute Aussie content to other markets rather than just a “local content tax”
@Burt i don’t think the local industry is shrinking just changing and yes some may loose their jobs but so is every other industry feeling the effects from digital disruption and global forces. But I think a content fund which is just another form of tax is not the answer it will just drive companies away from coming to Australia and lets face it every man and his dog was begging for Netflix to come here.
But I do agree with Mark Scott on a more equitable Producer Rebate which I think makes more sense and is easier to implement which will encourage the production of Australian content.
So we need a force-funded TV show before we can “understand ourselves… and our place in the world?” Typical socialist nonsense from a man who doesn’t operate in a commercial environment.
I think this is a great idea… hitting Netflix with a blanket tax just because they’re global would be a bit meh (although I get why they would)… but if the government ensured Netflix’s participation in local content then that would fuel industry, and Netflix could then profit off the content. Seems like a win win?
“Netflix, … would raise $3.2 billion in GST revenue over a decade.” Is it just me or does that seem big? Let’s average it at $320m a year over the 10 years, the Government better hope Netflix has a quick growth plan above the 885,000 homes that are currently subscribing (according to Roy Morgan).
I suspect most of the respondents here are too young to remember the fight for local content on free to air television. The owners all swore it would send them broke while having cosy little closed shops. Same with Foxtel’s emergence. The fact is in a small English speaking market expensive local content such as adult and children’s drama and documentary will not be made unless there is regulation to force media companies to make it. These new digital companies are US multinationals with no interest in Australian drama and content because they have a large core North American market big enough for them to commission from. They too will have to be dragged kicking and screaming to invest in it. They don’t want to pay GST or Australian corporate tax so making a legislated contribution to local content is another thing they will not want to contribute to.
David, I can assure you that the local TV production industry is shrinking as many friends and associates lose their jobs.
The children’s TV production industry could be wiped out with the stroke of a pen, as the FTAs are not keen on the 20 hours per annum as part of their licence agreement. That would leave just the ABC to produce and commission and we know the incumbent govrenment’s feelings about that.
It all comes down to whether you think that (a) Australian kids are worth investing in and (b) Australian stories are worth telling. I am a yes on both fronts.
While I don’t like the idea of ‘being forced’ I see the sense is some form of small local production levy.
Then again, you may be totally comfortable for future generations to dine exclusively on overseas content or rely on YouTube for consumer content.
He doesn’t understand Netflix’s business model, which is to deliver expensive glitzy Hollywood content at a such a low price that piracy is no longer worth the bother. So on the one hand, you have lots of money going out, but on the other, small amounts coming in. How to make this work? Two ways: ramp up subscriptions globally so that small subscriptions multiplied across a huge population will add up; and focus development money on just the content that will appeal to that huge cross-section of the global audience.
Can Australian productions help appeal to that vast global audience any moreso than what Hollywood produces? Nah. Hollywood has decades of experience churning out stuff for a global audience. The average big budget movie now makes more money overseas than domestically, in some cases much more, 70-80%. Making shows for a small market like Australia does not fit Netflix’s business model.