Proposed local streaming quotas loom ahead of Warner Bros Discovery’s Max launch
As the government is expected to legislate local streaming quotas, Warner Bros Discovery’s new streaming service Max could be required to increase its Australian content slate upon next year’s launch.
The proposed quotas have been created to set minimum levels of investment in local drama content for streamers operating in Australia, but Warner Bros Discovery is among some of the largest global entertainment companies reportedly opposing the plans.
The quotas, which Labor originally planned to introduce July 1 this year, hope to hold streaming platforms to similar local content investment obligations as broadcasters.
There are two potential models – the first which would force platforms with more than 5 million subscribers to allocate 30% of their total content to Australian dramas, and the second which would multiply a service’s Australian revenue and introduce a 10% floor, with adjustments according to sports programming. Reality programming has not been included in the quotas.
Large streaming platforms including Netflix, Disney+, and Amazon Prime Video, however, argue that they are already large investors in the local market and such quotas are not necessary.
With Max confirmed to launch in Australia in the first half of next year, Warner Bros Discovery will now need to make preparations to ramp up its local content.
Currently, the entertainment company has a content deal with Foxtel Group, which sees all HBO and Max original films and shows exclusively available on its platforms.
It is unclear what the launch of Max down under means for the Foxtel deal, especially after it re-signed a multi-year deal just 18 months ago.
“We have had a longstanding and really important relationship with Foxtel and I think the time has come for us to expand that into the DTC [direct-to-consumer] space,” said Warner Bros Discovery’s APAC president, James Gibbons.
A Warner Bros Discovery spokesperson told Capital Brief on Friday that it is too early to discuss Max’s content strategy, but said the company has a “long and proud history” of producing local content.
“Additionally, Warner Bros. International TV Production Australia currently has a number of scripted dramas in production for other platforms, including The Twelve and the feature-length film How To Make Gravy,” the spokesperson said.
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