Australia Officially Adopts Controversial ‘Content Obligation’ Bill

Australia’s Parliament House. Photo Credit: Thennicke

Despite opposition from Netflix and others, the Australian government has officially established a “content obligation” for video streaming platforms. Will music giants like Spotify and Apple Music face content-spend requirements next?

As we reported, the current obligation applies to any on-demand video service with north of one million domestic subscribers. In short, the relevant DSPs will be compelled to drop 10% “of their total [annual programming] expenditure for Australia” or 7.5% of their overall yearly Australian revenue on creating “new local drama, children’s, documentary, arts and educational programs.”

Those percentages are, of course, nothing to scoff at – nor are the hefty fines in place for failing to hit the marks within three years post-passage. Non-compliant platforms will face decidedly stiff penalties, not-so-enthusiastic local coverage summed up.

Previously, Australia’s APRA AMCOS applauded the content obligation as “a significant new opportunity for Australia’s music creators.” And with the same entity having touched on local talent’s declining share of domestic streams, it’ll certainly be interesting to see if music DSPs will face an obligation of their own.

Even as things stand, the video-provider law’s language, and the precise definition attached to “significant” therein, might hit a bit close to home for Spotify.

Most are well aware of the service’s growing focus on video podcasts, music videos, and different types of visual media.

Per the legal text itself, “an online content service is an SVOD [subscription video on demand] service if” it has “any number” of paid subs in Australia, offers a catalog of video content, and has a “primary purpose, or a significant purpose…to provide audiovisual content on demand to those paying subscribers.”

Bigger picture, Australia isn’t alone in adopting streaming-service content and spending rules. In Canada, for instance, debates are ongoing when it comes to a controversial “streaming tax” and Quebec’s Bill 109.

As we broke down two weeks back, Bill 109 would require video and music platforms to prioritize French-language content. But doing so, Apple Music, Spotify, YouTube, and others retorted in more words, would negatively impact recommendations, the user experience, and possibly local artists’ income to boot.

Against this backdrop, music-DSP rep DIMA yesterday put out a release exploring the results of a Quebec-wide Leger survey.

According to the breakdown, 66% of respondents agreed that “the government should not influence which music is available on streaming services,” with 61% expressing the belief that “French-language music is already easy to find on streaming services.”