The federal government is quietly scrapping plans for local content requirements

The federal government has quietly shelved plans to introduce local content requirements for major streaming platforms, with no indication of when it might return to work on the policy.

Local content quotas were a centerpiece of Labor’s major policy aimed at rejuvenating local industry after the pandemic and was launched nearly two years ago.

However, concerns about how the policy might interact with Australia’s free trade agreement with the United States are flagged as a primary concern.

Advocates for local content rules have accused streaming platforms of trying to “weaponize” the trade deal to block the changes.

The plans have already been delayed for months, with the government originally hoping to have the new rules in place by July 1, 2024.

Some industry stakeholders now expect the policy to be delayed until late next year at the earliest, after the next federal election.

There had been speculation that the rules would have required streaming giants such as Netflix, Amazon, Paramount and others to spend a percentage of their revenue producing local content.

The government was consulting with streaming platforms and advocating for local creative industries on the models earlier this year.

Arts Minister Tony Burke told the Labor meeting on Tuesday that the interaction of any new local content rules with the US free trade agreement was a stumbling block.

In addition, the timing of the US election made it difficult to directly negotiate this issue with the US.

Screen Producers Australia, which has lobbied hard for local content rules for streaming platforms, expressed hope that commercial issues could be resolved.

Chief executive Matthew Deaner argued that streaming platforms were relying on free trade issues to try to block the changes.

“There is no doubt that most US streaming companies have weaponized (the US FTA) to delay the promised regulation this year,” he said.

“Australia has not been afraid to take on powerful interests in the past … we need to find that resolve again or these digital platforms will continue to play by their own rules and ignore local audiences.

“This situation prevents the Australian public from accessing their own content on screen and makes business conditions difficult for many independent producers.”

The Greens criticize the delay in the changes

Mr Burke suggested that key stakeholders were happy not to see the policy rushed through to avoid any problems with its implementation.

While some key industry figures are disappointed by the delays, they agree it would be a problem to see the changes go wrong.

Greens senator Sarah Hanson-Young was, however, scathing about the delays and the suggestion the US was to blame.

“We shouldn’t let Americans dictate whether or not we protect and support our Australian stories and culture,” she said.

“The Albanian government has broken its promise to the Australian screen sector and audiences. They missed the July 1st deadlines and now everything has been put on ice.

In a statement, a spokesman for the Department for Infrastructure, Transport, Regional Development, Communications and the Arts said the delays were unfortunate but work on the policy was continuing.

“The Government is undertaking a genuine consultation process and taking time to consider views on how best to support ongoing investment and the production of Australian stories,” he said.

“The consultation is taking longer than we would have liked, but we are determined to get it right.

“The Government is looking to introduce legislation as soon as possible.”