Washington – The government of Australia announced its intention last week to introduce legislation mandating that online streaming providers achieve a specific level of Australian content on their streaming platforms, based on either a percentage of revenue (7.5%) or a percentage of an acquisition budget for Australia (10%).
As the Computer & Communications Industry Association has indicated in its recent filing with the Office of the United States Trade Representative on global trade barriers, such mandates are inconsistent with core provisions negotiated under the Australia-United States Free Trade Agreement (AUSFTA). Given the popularity of U.S. online streaming services in Australia and the strong growth of these services as consumers seek to consume video outside traditional broadcasting, CCIA estimates that these mandates could result in forced spending of up to US$1 billion by 2030.
Extending such measures to streaming services, in addition to being inconsistent with AUSFTA commitments, is both unnecessary and counterproductive, as streaming services have been one of the key drivers of increased investment, production, and global reach for quality Australian content. In fact, the Australian Communications and Media Authority reported that the five main online streaming services have contributed to a 60 percent increase in Australian titles and a 35 percent increase in hours of programming in recent years, and helped expand viewership of such programming around the world, demonstrating that heavy-handed intervention is unwarranted.
The following can be attributed to CCIA Vice President for Digital Trade Jonathan McHale:
“Australia’s decision to introduce legislation forcing U.S. streaming companies to spend over $1 billion on Australian video content by 2030 would, if passed, be clearly inconsistent with Australia’s international trade commitments. These commitments explicitly exempted internet-enabled services from the burdensome micromanagement of content decisions long applicable to traditional broadcasting. We call on Australian policymakers and U.S. trade negotiators to reverse this ill-considered step and work to develop measures to support Australian audiovisual production that are consistent with trade commitments.”
