Australia Mandates Streaming Services to Invest in Local Content

Canberra, Australia — The Australian government announced on Tuesday that it will introduce legislation mandating streaming platforms to invest in local content. This applies to services like Netflix, Disney+, and Amazon Prime that each have over one million subscribers.

The new rules will require these platforms to contribute a minimum of 10% of their local expenditure or 7.5% of their revenue to create Australian content. This legislation is expected to be presented in parliament this week and will cover various genres, including drama, documentaries, arts, and educational programming.

Arts Minister Tony Burke and Communications Minister Anika Wells emphasized that the initiative aims to protect Australian jobs in the arts sector. Burke stated, “We have Australian content requirements on free-to-air television and pay television, but until now, there has been no guarantee that we could see our own stories on streaming services.” He added, “This obligation will ensure that those stories—our stories—continue to be made.”

The push for local content requirements was originally slated for implementation by July of last year. However, the plan was paused due to concerns about its compatibility with Australia’s free trade agreement with the United States. Burke mentioned that negotiations surrounding the agreement complicated the introduction of these new rules.

With the recent resolution of the U.S. elections and a strengthening relationship between the two countries, the Australian government has decided to move forward with the legislation. Wells noted that content like the popular children’s program “Bluey” showcases Australian culture to a global audience and that the government wants to ensure Australian stories remain an integral part of streaming services.

The Australian Writers Guild (AWG) and Screen Producers Australia (SPA) have welcomed the announcement, recognizing it as a pivotal step for the Australian screen industry. “This obligation is crucial amidst global uncertainty and will help establish a future for Australian content production,” said Claire Pullen, chief of AWG.

As streaming services have gained significant audience share from traditional television, the urgency to regulate these platforms has increased. Recent studies have shown that content investment by local streamers has sharply declined in the last few years. Experts believe that this legislation will lead to a significant boost in funding for Australian content productions.

While major streaming platforms have not yet commented, the impact of such legislation could reshape the landscape for local storytelling in Australia.