The Australian media industry continues to be divided on the government’s proposal to impose a local content levy on intentional streamers such as Netflix and Disney+.
Screen Producers Australia, headed by Matthew Deaner (pictured), has come out in support of the federal government-suggested 20 per cent levy on streaming platforms, saying that it is the only way to ensure there is more Australian content on streaming platforms.
The group, which represents 800 film and television producers nationally, said the cost of the levy to streamers would only be about half of what streamers say they already invest in Australian and Australian-related content.
The big five streamers – Netflix, Stan, Amazon Prime Video, Disney+ and Paramount+ – have reported that in 2021-2022 they spent $668.5 million on Australian and Australian-related content.
Of that, $253.7 million was on Australian commissions, $81.4 million was spent on acquisitions and $333.4 million was spent on “Australian-related” – which includes things filmed here.
According to Screen Producers Australia, 20 per cent of the streamer’s revenue equates to $342 million, half of what they say they are spending on Australian and Australian-related content.
The difference is, they say, that the levy stipulates that it must be directed towards commissions. Meaning that an additional 35 per cent would be spent on original Australian content (rather than Australian-related) content.
“With an obligation of $341.5 million of commissions from the application of Model 3, this would require an additional spend of just $87.8 million per year on commissioned Australian content,” the group claims.
TV Networks Say No
This comes as Australian television networks have come out in opposition to the proposed levy saying that there are already enough Australian shows on free-to-air television and local streaming services.
, an industry body that represents Nine, Seven and Network 10, said it is against the introduction of investment requirements for streaming service providers, given that research shows the screen production industry in Australia is booming.
“There is no demonstrable market failure which would suggest a need for the introduction of these obligations,” it said.
It said the move would drive up local production costs and limit what viewers will be able to watch on free-to-air television and streaming services.
“This will mean diminished Australian programs, sport and news available on free and accessible services, with more content pushed behind paywalls of (streaming video on demand services),” it says.