By Anthony Frajman
In a joint submission to the Senate, Australia’s film, television, and music industries have united to call for changes to content quotas.
The declaration centered around introducing content regulations on online streaming services, of which there are currently none, as well as updating some of the outdated Australian content rules for radio and television broadcasters.
Whilst Australian TV broadcasters currently have a 55% Local Content quota imposed on them between 6am and midnight, with additional specific minimum annual sub-quotas for first-run Australian adult drama, documentary and children’s programs, less than 5% of Australia’s Netflix’s content is locally made.
Pay TV networks must dedicate 10 percent of their programming to Australian content.
STREAMING IS HERE TO STAY
Streaming is becoming an increasingly prevalent player in Australia’s TV landscape. Stan recently announced a milestone of one million subscribers, Amazon Prime is establishing a presence in Australia with a large acquisitions and commissioning budget, and Disney, CBS and Telstra TV have entered or are entering the market.
Per the statement made by SPA [Screen Producers Australia], the majority of Australian content in the Australian Netflix library is made up of licensed content (over two-thirds licensed from the ABC).
A quantitative analysis of the Australian Netflix library by Dr Ramon Lobato and Alexa Scarlata of RMIT in the findings showed The Australian Netflix catalogue presently features a paltry 2.0-2.5 percent of local content.
The level of Australian content on Stan is higher (9.5 per cent), though its catalogue is smaller, and the service is based out of Sydney.
Oddly, there is more Australian content on the United States Netflix than there is in the Australian Netflix, though the library is larger.
While the submission notes that music streaming services have local curation teams in Australia and have demonstrated some support for Australian artists, there is no quota or benchmark on the services, just as there are no requirements on the video streaming services.
NEW ZEALAND CONTENT IS NOT AUSTRALIAN
Another flaw in the current system is a loophole in broadcast regulations allowing New Zealand productions to qualify as “Australian content”, disadvantaging local producers and creators.
This is in addition to competition already faced by local productions from the fact that New Zealand is often cheaper (labour costs are lower) or more heavily subsidised (some New Zealand television content attracts a 40 per cent tax offset) – making it even harder for Australian shows.
New Zealand content accounted for 25 per cent of Nine Network’s drama, 25 per cent of the Ten Network’s documentaries and the Seven Network broadcast 290 hours of New Zealand content.
The bodies have suggested a quota be imposed on streaming services, and the New Zealand loophole be addressed.
The submission comes amidst debate on whether to reduce or drop the quota on broadcast networks, and questions over the ABC’s future. The senate is currently running an inquiry into Australia’s content policies.
The sectors were represented in the call to the government by APRA AMCOS and SPA, in response to what is seen as the disruption of commercial television and radio broadcasters by new market entrants. Many claim the disparity between broadcasters and streamers is affecting the industry.
QUOTAS ARE NECESSARY TO PROMOTE AUSTRALIAN PRODUCTION
There have been quotas on radio in Australia since 1942, and on TV since 1961.
Without regulation, the study suggests the SVOD market is unlikely to generate significant investment in new Australian content, though it adds some value to existing content rights.
Australia’s independent production sector last year produced $1.2 billion in revenue, according to findings of a study released last month.
“Regardless of the technology or the platform, continually exposing Australian audiences to the wealth and quality of Australian music and screen content fosters a sustainable Australian industry and encourages the development of original and creative Australian works,” the CEO of APRA AMCOS, Dean Ormston, said.
“I share with the music industry a desire to have these content rules enhanced and evolved to ensure great Australian film, television and music continues to entertain Australian and international audiences for generations to come. In particular for screen content, we need local content obligations for new media and streaming services, as they have in Europe, as was recommended by a House of Representatives committee last year,” CEO of Screen Producers Australia, Matthew Deaner said.
“The local content rules on commercial television broadcasters have served us well but they need updating and loopholes closed. For example, the loophole that allows New Zealand content to be passed off as Australian means that in 2017, a significant level of proscribed genres, such as drama and documentaries, was from New Zealand,” Mr Deaner added.
