Australian Government Introduces Quota System On Streaming Services Like Disney+

One of the biggest problems facing the film and television industry around the world is globalisation, as major streaming services like Disney+, Netflix and Amazon Prime Video become more popular, resulting in a reduction in local programming, which impacts local jobs and culture.   

Governments around the world are trying different strategies to combat this massive shift in the entertainment industry, and today, Australia has introduced content quotas on global streaming services such as Disney+.

The new rule requires any global streaming service with more than one million Australian subscribers to spend 10% of their total Australian expenditure, or 7.5% of their revenues, on local original programming, which can include dramas, children’s shows, documentaries, and other formats.

It’s taken a while for this rule to come into force, as Australia held off on introducing it while President Trump was advancing his tariff plans to avoid any issues. 

Australia’s free-to-air broadcasters have been pushing for the introduction of these quotas, since they are required by law to create local content, but the global streamers were able to get away without complying, as the rules didn’t apply to streaming services. 

As you might expect, streaming services like Disney+ have been opposed to the idea, since they would have to spend more on creating original content, which their local investments in local content offset.   

We’ve already seen Disney+ invest in many Australian original programs such as “Artful Dodger”, “The Clearing”, “Shipwreck Hunters Australia” and more. 

Minister for the Arts Tony Burke said in a statement regarding the new quota rules:

“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.  Since their introduction in Australia, streaming services have created some extraordinary shows. This obligation will ensure that those stories – our stories – continue to be made.  These platforms are having no problem getting their content into Australia. With this legislation we’ll be able to ensure that no matter which remote control you’re holding, Australian stories will be at your fingertips.”

Roger’s Take:  Personally, I think this new rule is a great thing for Australia.  Since it means the major streaming services will have to invest in more local content, as we’ve seen that these global corporations will change strategies quickly to save money and being forced to invest in local content is likely the only way that it’ll continue.  Without quotas and restrictions, we would likely see a continued decrease in the amount of local content made globally, as the major studios gain more and more market share as audiences shift from linear to streaming.  

I also think having a percentage linked to how much money is generated in Australia is also a fair system, since the bigger the platform, the more they have to spend, but also that money has more flexibility, ie creating an expensive sci-fi drama series, rather than a European style system of making it a percentage of the content available, which encourages studios to spend money on more cheaper titles just to increase the amount of shows created. 

There are likely to be some disadvantages, as I could easily see the major streaming services ultimately increasing the subscription costs by 15% to 20% to cover the extra costs, resulting in this being passed onto the consumer.  However, it should hopefully mean the world gets access to more Australian content, which is more interesting for viewers, since it would get rather dull if every single original show on Disney+ was made in Los Angeles, Atlanta or New York!

What do you think of the idea of Australia introducing a quota system for streaming services?  Let me know on social media!