Netflix, Disney+ in the crosshairs

The government is considering whether to force streaming video giants like Netflix and Disney+ to put more Australian produced content on their platforms as part of its response to the consumer watchdog’s Digital Platforms Inquiry.

Under current laws, 55 per cent of content that appears on free-to-air broadcasters has to be Australian.

Much of the quota is now met with reality television and game or panel shows, which is much cheaper to produce and less risky than funding new scripted drama or comedy.

The reforms will be looked at early next year, and will involve determining the impact they currently have on free-to-air broadcasters and whether they should be expanded to cover streaming video on demand services as well.
 

The proposed change is one of several the government has announced in response to the Australian Competition and Consumer Commission’s (ACCC) report published in July.

Others include establishing a dedicated special unit inside the ACCC to keep an eye on tech platforms like Facebook and Google, in what looks to be a world leading step to regulate big tech companies.

The special unit will cost $26.9 million to set up, and initially focus on online advertising and ad-tech services.

In a joint statement this morning, Treasurer Josh Frydenberg, Attorney-General Christian Porter, Communications Minister Paul Fletcher, and Prime Minister Scott Morrison outlined the government’s response to the inquiry.

The government said the ACCC’s inquiry and feedback gathered during a consultation process emphasised reform was needed to “better protect consumers, improve transparency, address power imbalances and ensure that substantial market power is not used to lessen competition in media and advertising services markets”.

Alongside the new ACCC unit, the government also announced reforms to media regulation aimed at ensuring a level playing field for publishers, online and off.

Voluntary codes will be developed to address imbalances in the bargaining power of news media to compete with Facebook and Google for the advertising dollars that support commercial news organisations and keep articles like this one free for you to read.

Privacy laws will also be reviewed to ensure we aren’t being taken advantage of, and have the power to protect our data.

The ACCC has welcomed the government’s response, and said the “immediate commitments and road map for reform address the ACCC’s main competition and consumer priorities, including concerns about privacy and the use of data”.
 

“We’re proud that Australia will now be one of the first countries in the world to develop such a comprehensive road map for broad reforms relating to digital platforms,” ACCC chair Rod Sims said.

“Google and Facebook have grown to have almost unfettered market power with significant impacts on consumers that must be addressed,” he added.

The proposed changes come after more than 100 written submissions during a 12-week consultation with stakeholders.

The government will also look at advertising rules and restrictions, new ways to enforce regulations, and removing redundant legislation as part of a second phase of reforms later next year.
 

Struggling media companies in rural and regional areas will also receive assistance to create a sustainable and adaptable media.

The government said “local and regional journalism is essential in informing and strengthening local communities”, and the Regional and Small Publishers Jobs and Innovation Package will be enhanced to “better support the production of high quality news … with a particular focus on the production of public interest journalism that is at greatest risk of being under-provided”.

That $60 million package was announced in December last year and currently includes funding for scholarships and cadetships, as well as the competitive grants program to help regional and small publishers adapt to a changing media environment, which takes up a $50 million majority of the package’s total funding.

While the response to the inquiry mentions the government is “committed to maintaining the health and vibrancy” of the ABC and SBS, there doesn’t appear to be any increased funding on the cards for either public broadcaster.

NOT ALL ACCC RECOMMENDATIONS WILL BE ACTIONED

While a number of the ACCC’s 23 recommendations have been accepted by the government, not all of them have.

Support has been given to seven of the recommendations, with a further 11 being supported “in principle” or “subject to consultation and design of specific measures”.

A recommendation to create a mandatory take-down code to be enforced by the Australian Communications and Media Authority was not supported.

The recommended code would force Google and others to remove material that infringes copyright, including content owned by news media.

That recommendation has been put on the backburner and will be reconsidered at the end of next year as part of a review of copyright enforcement reforms that were introduced last year.

A proposed adjustment to tax law to encourage philanthropic support for journalism was also rejected because the government is already in the middle of reforming the deductible gift recipient framework and wants to finish implementing them before considering further changes.

Comment on the proposed local content changes has been sought from Netflix and Disney.

Do you think streaming video providers should have to play by the same rules as free-to-air broadcasters and put more Australian stories on our screens? Let us know what you think in the comments below.