The introduction of new local content regulations has stirred significant discussion about the future of Australian film and television production. Streaming services with over one million subscribers are now required to invest a minimum of 10% of their local spending or 7.5% of their Australian revenue in local content. This move has been celebrated as a major victory for the Australian film industry, with projections estimating hundreds of millions in additional revenue.
Netflix, the largest streaming service in Australia, reported revenues of approximately $1.3 billion last year. According to MediaWeek, the entire streaming market in Australia is valued at around $5.2 billion. If all streaming platforms comply with the new regulations, this could translate to an estimated $390 million dedicated to local content. Yet, this compliance remains uncertain.
A recent report from the Australian Communications and Media Authority (ACMA) revealed that the top five streaming companies collectively spent $414 million on 4,500 commissioned or acquired Australian programs in the last financial year. Paul Miller, Chair of the Streaming for Australia Coalition, remarked that the ACMA statistics illustrate that subscription video on demand (SVOD) services are already investing more than traditional broadcasters. He concluded that the local content quota is attempting to address a non-existent issue.
Understanding Local Content Investments
Despite the optimistic outlook surrounding the new regulations, critics question the definition and quality of local content being produced. Simon Nasht, an Australian documentary maker, examined the ACMA data and pointed out that of the 4,500 programs mentioned, a staggering 4,459 were acquired, with 3,901 being sports-related. This leaves only about 1.5% of the content produced as new and original programs. Nasht expressed skepticism on LinkedIn, highlighting the disparity between the focus on sports and the lack of investment in original Australian narratives.
Investment in local content has been declining, with funding for new Australian adult dramas dropping from $32.5 million in the financial year 2023-24 to $19 million in the following year. This constitutes just 6% of the total $309 million spent across the industry, according to ACMA figures.
Challenges in Implementation and Enforcement
The new legislation, which takes effect in January 2026, aims to include a range of content types, such as adult and children’s drama, documentary, arts, and educational programs. Notably, sports and the acquisition of existing content are excluded from these requirements. This raises concerns about the potential gap between current spending and what the law mandates.
However, the enforcement mechanism of the law remains unclear. The ACMA, responsible for regulation, is often criticized for being underfunded and ineffective. Additionally, the authority faces challenges in enforcing other regulations, such as the social media age ban, without extra resources.
The stipulation requiring platforms to have over one million subscribers raises further complications. For example, if the proposed merger between Netflix and Warner Bros (which owns HBO Max) proceeds, it could reduce the number of streaming options available and potentially impact revenue as a combined entity.
As streaming services prepare to navigate this new landscape, stakeholders are left questioning whether the regulations will truly benefit local content production or if they will simply serve to reinforce existing market dynamics.
