Australia has passed a new law forcing major streaming services like Netflix and Disney+ to invest a portion of their local revenue into producing original Australian content. The legislation is a major step in regulating global platforms to protect and fund homegrown stories.
Aussie rules: Under the Communications Legislation Amendment Bill 2025, platforms with over one million subscribers must spend either 10% of their programming budget or 7.5% of their revenue on new Australian commissions. The mandate applies to genres like drama and kids' content, pointedly excluding reality TV. The move brings the digital giants under rules similar to those traditional broadcasters have faced for years.
The billion-dollar question: The rules have teeth. The Australian Communications and Media Authority (ACMA) can impose penalties for non-compliance of up to 10 times a service's annual revenue. For a player like Netflix, that could theoretically translate to a fine approaching A$1 billion.
Cheers and fears: The reaction is predictably split. The local screen industry, which has lobbied for this for over a decade, is celebrating the new security the law provides. But the platforms warn the rigid requirements and steep penalties could stifle flexibility and lead to higher subscription prices.
The legislation, part of the government's Revive national cultural policy, finally crossed the finish line after years of debate over potential conflicts with the country's free trade agreement with the United States—a hurdle that has now been cleared.
The wider lens: The move is part of a global trend of governments increasing scrutiny on streaming platforms. Italy recently updated its rules to ensure major cultural events remain free-to-air, while a UK report showed streaming is propping up the BBC's viewership as broadcast audiences decline. Meanwhile, UK regulators are also reviewing the audience protection tools used by video-on-demand services, signaling pressure on streamers from multiple angles.
