Australia Requires Streaming Platform To Invest 10 Percent Expenditures For Local Content

JAKARTA The Australian government announced plans for implementing a new law requiring streaming services to invest part of their revenue in local content production in the country.

The Labor Party (Labor)-led government will require streaming platforms such as Netflix, Disney+, and Amazon Prime Video to allocate a minimum of 10 percent of their total spending in Australia, or 7.5 percent of total revenue, to fund drama production, children's programs, documentaries, as well as Australian-made art and educational content.

The Minister of Art, Tony Burke, and the Minister of Communications, Anika Wells, stated that this policy aims to maintain the sustainability of the national creative industry while ensuring that typical Australian stories remain in the digital era.

"Since it first arrived in Australia, streaming services have produced a number of amazing shows," Burke said in an official statement, Tuesday, November 4, quoted by VOI from Reuters. "This obligation will ensure our own stories continue to be made and enjoyed by the public."

So far, Australia already has local content quota rules for free-to-air television stations, but there is no similar obligation for internet-based streaming platforms largely owned by US companies.

The plan to implement this local quota, called a number of media, could cause trade tensions with the United States, given that many large streaming services come from the country.

The government has so far not explained in detail how the calculation between the 10 percent expenditure option or 7.5 percent revenue will be applied in practice.

This policy marks Australia's great step in strengthening cultural sovereignty amid the dominance of global content, as well as a new test of the trade relationship between Canberra and Washington in the digital era.