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Australian Government to apply local content quotas to streamers from 2024

International streaming giants including the likes of Disney and Netflix will be forced to invest in more local content, under new quotas set to be implemented by the Federal Government.

Details of the policy were outlined this morning by Arts Minister Tony Burke at a launch event in Melbourne. The new National Cultural Policy, named Revive, introduced requirements for streaming platforms to ensure access to local content in the third quarter of 2023, and to commence no later than 1 July 2024.

Streamers set to be brought in line with local TV networks

The policy will require international streamers to reinvest revenue back into local productions, yet a period of extensive negotiations will still be required to iron out the finer details of the policy, including what percentage is to be reinvested.

The local industry has previously argued for 20% of local revenue to be put back into local productions. Arts Minister Tony Burke and Communications Minister Michelle Rowland will consult with the industry in the first half of 2023 on the details of actions to be taken.

Speaking to Mumbrella, CEO of Screen Producers Australia, Matt Deaner said that while the specifics of the policy are not currently clear, it does get the ball rolling, and shows a commitment from the government.

“What we’ve got today is really a timeline announcement. There isn’t a formal proposal from the government yet, but what the timeline announcement sets is that this will happen, and the government is committed to this happening.

“It will force a bit more of a crucible of the conclusion of some of the arguments that have been flying back and forth about what’s needed, and some of the policy detail that has certainly from our end been proposed, but not really been decided upon officially.

Matt Deaner, Screen Producers Australia

On the policy, a Netflix Australia spokesperson said: “Netflix’s position is clear: we don’t oppose regulation, but do want it to be sustainable, equitable and evidence-based. We look forward to positive consultation with the government on Revive to shape media regulation that creates good outcomes for Australian storytellers and audiences, and will continue to see our many home-grown films and shows enjoyed here and around the world.”

Local TV networks, including Nine, Seven, and Ten are already subject to local content quotas, with parent companies for Nine and Ten, Nine Entertainment Co, and Paramount already owning streaming services Stan and Paramount+.

A Paramount ANZ spokesperson said: “Paramount ANZ is already one of the largest investors in Australian content across all its platforms including free-to-air, BVOD, pay TV and streaming service Paramount+.

“Since the launch of Paramount+ in August 2021, we have invested in and commissioned 19 Australian programs across a variety of genres. We are proud of the fact that we have commissioned more local content than any other streaming service within the same timeframe.”

Deaner added that more details about the industry will need to be disclosed before further discussions.

“There’s two bits of information and data that haven’t been clarified from different people. For example, we don’t know what the earnings in this market for each service are, and I don’t think the government does either, so things like that are really important markers to determine what the percentages are applied to, and then what will be of that.

He also said then it will need to be compared to the current levels of expenditure.

“They haven’t been measured in a thorough way, so some of these levels need to be established once you’ve got a set of information a bit more concise that what is sitting around at the moment.”

What the policy will do, Deaner said, is bring the streamers to the table to engage with the issue.

“You haven’t got the participants that are going to be regulated really engaging at the moment, so this is a way.”

“And so the benefit of what is being posed, is that you can’t sort of bury it in the sand all the time. You can only do it for so long. It brings it out so they can then go well, this is what we really have a problem with, this is what we could leave.”

The streaming giants all have existing commitments to local content. Prime launched six new Australian Amazon Originals at its Upfront last year, while Disney announced its first wave of local content commissions and acquisitions for Disney+ with nine Australian originals in May.

According to an Australian Communications and Media Authority (ACMA) report, SVOD providers including Amazon Prime Video, Disney, Netflix, Paramount+ and Stan have reported $335.1 million in expenditure on local programs in the 2021-22 financial year.

Amazon Prime and Disney+ were also approached for comments.

This article has been updated since publishing. 

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