Netflix could be asked to invest nearly $100 million in Australian programs if new content obligation legislation passes through Parliament.
The Albanese Labor Government will introduce an Australian content obligation on streaming services that will mandate streaming services with more than one million Australian subscribers will need to invest at least 10 per cent of their total expenditure for Australia – or 7.5 per cent of their revenue – on new local drama, children’s, documentary, arts and educational programs.
For Netflix, Australia’s most popular subscription stream with 6.2 million, this could amount to nearly $100 million, which is around 7.5 per cent on local revenue of $1.3 billion.
In the 2023-24 financial year, the five main streamers — Amazon Prime Video, Disney+, Netflix, Paramount+ and Stan – spent $341.5 million on commissioned and acquired acquired ‘Australian programs’, according to the latest ACMA report that monitors spending. Australian commercial broadcasters (Seven, Nine and Ten) spent $1.65 billion on Aussie programming in the same period.
Currently, broadcasters need to adhere to a local content quota level of 55 per cent.
The new rules fall short of a 2023 proposal that streamers with 1 million to 1.99 million spend 10 per cent on local content and larger streamers spend 30 per cent.
The Minister for the Arts, Tony Burke, said the new legislation would provide vital support to our domestic screen sector and arts workers by ensuring quality local stories continue to be produced in Australia.
“We should never underestimate how important it is for Australians to see themselves on screen. It helps us to better understand ourselves, our neighbours better and allows the world to see us,” Burke said.
“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.”
Minister for Communications, Anika Wells said: “We want to make sure no matter which platform people are watching, Australian stories are part of their experience.
“Many streamers are already producing great Australian shows like Apple Cider Vinegar, The Narrow Road to the Deep North and Boy Swallows Universe; this announcement makes sure shows like these continue to be part of our national identity.
Katrina McGowan, the director of the documentary Revealed: How To Poison A Planet called for streamer local content quotas at the Cairns Crocodiles, Presented by Pinterest, event this year.
“Netflix, Amazon, Disney, they have a huge presence here, probably everyone here has at least a subscription to one. But they have no obligation to invest that back into Australia content (unlike commercial broadcasters),” she said.
“One thing that the industry is really pushing for at the moment is to implement content quotas. So if streamers are going to have a large presence in Australia, they should be commissioning 20 per cent back into Australian productions. That would increase opportunities for the filmmakers, and for Australian stories to get told.”
Netflix, Disney and Warner Bros. Discovery did not respond to B&T’s request for comment prior to this article being published.
