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Australia will introduce legislation requiring digital services to allocate a specified amount of funds in domestic programming, according to official sources on Tuesday.

Services including Netflix and other streamers that have one million users will need to contribute at least 10% of their local spending or seven and a half percent of revenue toward Australian productions.

Legislation is being presented to lawmakers in coming days and will apply to documentaries and informative content.

Government ministers announced this initiative is designed to safeguard acting employment within the sector. Streaming services have not yet responded publicly.

'Outstanding content'

"There are Australian content requirements for broadcast TV and pay television, but until now, we lacked no guarantee of viewing our own stories on streaming services," a government spokesperson commented.

"Since launching in Australia, digital platforms have created some extraordinary shows. This obligation guarantee that those stories – Australian content – continue to be made."

As reported by reports, legislation will be introduced to legislators this week.

These updated content requirements were meant to be in place by July last year but concerns regarding potential conflicts with a free trade agreement with the US resulted in the initiative being delayed.

The government mentioned difficulty conducting negotiations with American counterparts during their electoral process.

After President Trump was elected, concerns emerged about whether the rules could lead the US administration to implement retaliatory tariffs against Australia.

Currently, with the dust settled, amid strengthened ties between the countries, these regulations are now back for consideration.

While industry groups welcomed the announcement, streamers are still to comment on the matter.

Back in 2022, digital services released a report emphasizing their cultural and economic impact to the country's entertainment sector.

However, some observers interpreted this as strategic positioning against any attempt at future regulation.

Industry decline

Current local productions available online feature multiple programs spanning various genres.

Like many countries, Australia's creative industries experienced challenges in recent years, partly because of reduced activity during the Covid-19 pandemic.

In the financial year 2023-24, funding for feature films and TV series made in Australia decreased by almost one-third, as reported by industry statistics.