New Zealand Film Industry Warns of Challenges Ahead as Australian Streaming Quotas Take Effect
Australia’s recent streaming content quotas have significantly altered the competitive landscape for New Zealand’s production community, according to a warning from the Screen Production and Development Association (SPADA).
SPADA indicated that New Zealand risks falling behind unless its policymakers quickly adapt, urging lawmakers to impose a levy on local revenue generated by streaming platforms. “The time to strike is now,” the association emphasized.
As of January 1, 2023, Australia introduced laws requiring services like Netflix, Prime Video, and Disney+—which have over one million local subscribers—to invest 10% of their total Australian expenditure, or 7.5% of their revenues, in local original content.
In response to these changes, SPADA pointed out that the new quota system has created urgency for New Zealand to take action. Unlike Australia, New Zealand’s international trade commitments complicate the implementation of local content quotas on streaming services. SPADA noted that the lack of “explicit cultural carve-outs” in various international agreements makes any similar initiative vulnerable to legal challenges.
Watch on Deadline
SPADA President Irene Gardiner remarked, “Australia has gone for a quota system because they already have local production quotas in place for free-to-air broadcasters. We don’t have that here, so SPADA has advocated for a levy on the streamers’ New Zealand revenue, which could then be invested back into local production through agencies like the NZ Film Commission, NZ On Air, and Te Māngai Pāho.”
She added, “We are actively engaging with policymakers on the best path forward, but the time to strike is now, so we can leverage what is happening in Australia.”
While some New Zealand content could technically qualify under Australia’s regulations, SPADA cautioned that “inclusion is not guaranteed and does not substitute for having domestic policy settings that support local production and sustainability.”
“Australian streamers currently pay no tax in New Zealand, face no regulation, and utilize broadband infrastructure partially funded by our government,” Gardiner noted, asserting that these discrepancies have led to global streaming platforms drawing audiences and advertising revenue away from local broadcasters.
Gardiner pointed out that the negative effects of international streaming services on local viewership and advertising revenue have posed significant challenges for New Zealand’s production industry. “As has happened globally, their negative impact on local viewership and therefore advertising revenue in the domestic market has been huge,” she stated.
SPADA highlighted the “levy-style or contribution models” used in markets such as France, Canada, and Germany. These models require international streaming platforms to contribute to domestic screen production, either through direct investments or payments into national content funds. Gardiner remarked, “With Australia moving ahead, New Zealand has a clear opportunity to act now. Delaying further risks long-term damage to local production, jobs, and the ability to tell New Zealand stories on screen.”
An industry report from Irirangi Te Motu indicated that traditional linear TV channels, including public broadcaster TVNZ and Sky’s Three, maintain the broadest reach at 84% of viewers. In comparison, global video platforms such as YouTube and TikTok reach 64%, while subscription streaming services reach 56%.
