Government to Introduce Local Content Obligations for Streaming Services
Nearly 18 months after the initial deadline, the Federal Government is advancing regulations requiring streaming platforms to meet Australian content quotas. New legislation will mandate streaming services with over one million Australian subscribers to allocate at least 10% of their Australian spending, or 7.5% of their revenue, toward producing new local drama, children’s shows, documentaries, arts, and educational programs.
Background and Policy Development
The rules come more than two and a half years after Arts Minister Tony Burke first announced a July 1, 2024 deadline for these requirements in the National Cultural Policy. This announcement initiated extensive consultations involving streaming companies, free-to-air broadcasters, and various industry guilds.
By late 2023, the government sought industry feedback on two potential compliance models: one based on revenue and another on expenditure. However, despite a Senate committee's interim report emphasizing that implementing quotas should be a priority, the government missed the original deadline.
Delays and Influencing Factors
The delay is believed to be partly due to concerns related to the Australia-United States Free Trade Agreement (AUSFTA), which complicated the timing of the obligations' introduction.
Recent Developments
The issue resurfaced publicly last week when independent MP Zali Steggall presented the Change.org petition titled “Save Australian Stories” in parliament, drawing renewed attention to the need for enforceable local content regulations.
"Legislation will mandate streaming services with more than one million Australian subscribers to invest at least 10 per cent of their total Australian expenditure – or 7.5 per cent of their revenue – on new local drama, children’s, documentary, arts and educational programs."
"By the end of 2023, the government appeared to be on target, inviting feedback from industry on two models, one revenue-based and the other expenditure-based."
"Despite a subsequent Senate committee interim report recommending the quotas be introduced as a priority, the deadline was allowed to lapse."
Author's Summary
The Federal Government is set to enforce local content requirements on major streaming services, aiming to boost Australian creative productions despite previous delays linked to trade policies.