Uncertainty over streaming service regulation ’causes great concern’, says SPA

Last week, the Australian film industry celebrated an increase in Location Offset participation, but this week the production community is feeling “huge anxiety”.

At least that’s according to Matthew Deaner, CEO of Screen Producers Australia, who warned that while the government is holding back on overdue streaming regulations, Australia is “well on track to grow as a service provider to Hollywood productions.”

“While the recent confirmation of an increase in Australian location compensation benefiting non-Australian projects was great news, the lack of adequate certainty for the domestic Australian industry and Australian projects under streaming regulation is causing great concern within our industry at this time,” Deaner said.

The SPA has backed an increase in the Location Offset for TV and film productions shot domestically from the previous 16.5% to 30%, which is likely to boost foreign investment and the services it could bring, but the SPA has been outspoken in its criticism of both the government and streaming providers.

The streaming rules, which will dictate how much of their local revenue streamers must spend on local Australian content, were due to come into effect on July 1 under national culture policy Revive, but the deadline passed without any terms being announced. “I’ve been contacted over the last week by members from across Australia who are concerned about the current state of our industry,” said Deaner, whose guild represents more than 500 local producers.

“Without the counterbalance of local work and robust commissioning, the changes that parliament passed last week mean that the Australian screen sector is on course to develop more as a service provider to Hollywood productions that are encouraged here to take advantage of generous rebates, rather than developing our own local storytelling capabilities. The data available tells the same story.”

He was referring to a recent ACMA report which showed that spending by the top five global streaming services on “Australia-related” or international screen projects rose to A$452.9 million (A$306.6 million) in 2022-23 from A$333.4 million the previous year, but spending on Australian content on the same platforms fell to A$324.1 million in 2022-23 from A$335.1 million the previous year.

“At the moment, Australian audiences are finding it increasingly difficult to find their culture and heritage on screen,” Deaner said. The balance of government intervention in our industry should always be towards Australians telling and producing Australian stories.”

Hollywood productions filmed in Australia in recent years include: Apples never fall AND Furiosa: The Mad Max SagaLocal productions of global streaming services include Netflix High level of heartbreak reboot, Disney+ drama Clearingand Paramount The Last King of the Cross.

Last month, the SPA responded to a government inquiry into the law changes by saying that regulatory changes, such as an increase in the location tax relief, would have a negative impact on local businesses if the rules governing investment in streaming networks were not implemented.

“Australia should be looking to find some kind of balance between domestic Australian film projects and the big international projects that want to work here because of our tax incentives,” Deaner said.

This week he added: “We greatly value our international and global manufacturing partners and the benefits they bring to our shores – but we must ensure that our local industry is strong, resilient and prioritised for support measures.

“Our Australian film industry should always strive to remain open to new entrants, to ensure diversity and grassroots stories are heard. Almost everyone starts out in the local industry. That is why local must always be our first, second and third priority as an industry, government and society.”

Streaming regulation remains a hot topic around the world. Last week, the Motion Picture Association-Canada, which represents major streamers north of the U.S., filed a motion in court seeking to shelve plans to introduce regulations requiring payers to pay for local news.

The issue comes down to how global streamers invest in the countries where they operate, and what that investment does to local production communities. Companies like Netflix, Amazon, and Disney+ generally see their hefty spend on original and acquired content as compensation for the need to play by established rules, while many producers want assurances that streamers will buy their content rather than artificially inflate production costs by overpaying for crew and cast.