UPDATE: New regulations set to launch in January 2026 mandate that major streaming services invest a minimum of 10% of their local spending or 7.5% of their Australian revenue into local content. This comes as Netflix, with reported Australian revenue of $1.3 billion last year, faces scrutiny over whether these requirements will significantly boost local film and television production.
The Australian film industry anticipated a financial boon, estimating that compliance could inject an additional $390 million into local content creation if all eligible streamers meet the new criteria. However, doubts are emerging about the true impact of these regulations. According to the latest report by the Australian Communications and Media Authority (ACMA), the top five streaming companies collectively spent $414 million on approximately 4,500 programs last fiscal year, with a mere 1.5% being original content.
Paul Miller, Chair of the Streaming for Australia Coalition, criticized the local content quota, stating, “The data clearly shows that Australia’s SVOD services are already investing at a higher rate than Australia’s broadcasters,” suggesting that the new rules aim to address a problem that may not exist.
The current landscape reveals that investment in original Australian content is declining. Streamers reduced their spending on new Australian adult drama from $32.5 million in fiscal year 2023-24 to just $19 million last year, representing only 6% of the total $309 million spent across the entire industry, according to ACMA figures.
Critics argue that the majority of the content being produced consists of acquired programming, particularly sports, with 3,901 of the 4,500 programs falling into this category. Filmmaker Simon Nasht highlighted this disconnect, stating, “To somehow spin that into pretending that you give the slightest damn about telling real, meaningful original Australian stories as drama, documentary, kids and culture?” His remarks underscore a growing frustration among local creators about the lack of genuine investment in Australian narratives.
Moreover, the new legislation does not clarify how compliance will be enforced, raising concerns about the ACMA‘s capacity to regulate effectively. The agency is already tasked with enforcing age restrictions on social media and is facing budget constraints.
With the streaming landscape constantly evolving, the arbitrary threshold of one million subscribers per platform poses additional complications. Should a merger between Netflix and Warner Bros proceed, it could lead to fewer platforms and reduced revenue.
As the clock ticks down to January 2026, the industry waits in anticipation to see if these new regulations will indeed foster a renaissance in Australian content production or simply serve as a façade for ongoing challenges in the streaming sector. Stay tuned for further updates as this situation develops.
