Media Insider: Global streamers face local content quota under new media proposals released by Government

And it is proposing to overhaul the broadcasting standards regime, including the Broadcasting Standards Authority, with “platform-neutral and system-level regulation of professional media”, and to boost audio captioning services generally.

Under the media modernisation proposals, local and global streaming platforms would have local content investment “obligations”, according to a “media reform” document released by the Ministry of Culture and Heritage.

It specifies this as a requirement “to invest a proportion of annual revenue in the creation or acquisition of local content”.

The document says that a manual scan in September 2024 showed Amazon Prime had just over 10 New Zealand titles in its catalogue; Netflix held fewer than 10; while Disney and Apple+ had none.

As of this morning, there are just nine New Zealand movies and TV shows listed on Netflix, amongst the global streamer’s thousands of titles. There are just under 200 Australian titles and 120 Canadian titles.

The paper also proposes discoverability requirements for local content on streamers’ platforms: “to put in place measures to promote and clearly display local content and enable users to find new local content”.

The proposals will require a delicate period of consultation – riding a fine line between a local screen industry that is on its knees and the new Donald Trump-led American administration that could easily baulk at any imposition on US-owned streamers.

Trump has made clear he won’t stand for strong-arming of American-owned companies by foreign governments. For example, as The Australian Financial Review reported last month, almost 90,000 expat Australians in the US could have their tax rates doubled in retaliation for any clampdown on digital tech giants such as Google and Facebook in Australia.

The document released today notes: “New Zealand has obligations under international trade law to treat international content providers and creators no less favourably than domestic content providers and creators, in respect of the production, distribution, marketing, sale and delivery of content.

“In recognition of these trade commitments, the proposals in this document seek to ensure all media are on an equal footing. As these proposals are developed, further analysis will be completed to ensure consistency with these international obligations.”

“It is clear the media and content production sector is facing complex challenges,” says Media and Communications Minister Paul Goldsmith.

“We now live in a time where audiences have unprecedented access to global media, making competition for viewers and advertising intense. However, much of the legislation underpinning our media landscape is outdated and stifling innovation.”

“As the Government, we look to ensure regulatory settings treat all players equally, and don’t create unnecessary barriers. We have an interest in local production and a strong media, while realising it’s up to individual businesses to determine how best to respond to a changing market. The Government cannot solve these issues entirely.”

The idea of streamers being required to support the local industry will be welcomed by the screen sector.

“For some time Spada has been lobbying for Government regulation of the international streamers so they contribute to the local industry in some way,” Spada president Irene Gardiner wrote in December.

“This should have happened years ago, to avert the crisis we now face, but it’s never too late. The streamers don’t pay tax here, they use our broadband infrastructure, they harvest our data – and they don’t currently contribute anything. This has been remedied in many other countries with levies, quotas, or hybrids of the two. We’re a little late to the party.”

Spada had previously suggested that the most straightforward option might be a simple percentage levy on the streamers’ NZ revenue, she said.

That could then be invested back into the industry via existing funding agencies.

“For example, a 5% levy would generate approximately $25 million. The good news is the government is finally taking this seriously and looking into what might be done. It is the big tech-ers who broke our business model – they should be a part of the solution in trying to fix it. We just want a level playing field.”

Today’s paper notes: “Global streaming platforms (like Netflix, Prime Video, Apple TV and Disney+) are creating international productions in New Zealand, often using their own production companies. As of October 2024, Netflix had filmed 16 international productions in New Zealand and carried out post-production here on 12. Disney had filmed one international production in New Zealand and carried out post-production here on eight.”

Greenstone TV CEO Rachel Antony told The Spinoff in November that in reality, “the streamers are doing exactly what they have to do, which is nothing”.

“It just really hurts because, as New Zealand producers, we are already out in the world and hustling hard for international investment in an incredibly challenging market,” she said.

“It just feels like these big international streamers care so little that they can’t even be bothered considering the optics of not treating us like a service economy.”

Meanwhile, the document confirms plans to merge NZ on Air and the New Zealand Film Commission; this will be welcomed in many quarters, in light of the digital convergence of TV and big-screen productions.

“We will formulate a submission on the Media Modernisation proposals and share it in due course,” said a commission spokeswoman.

A new regulator

The document proposes overhauling media regulation, with a new regulator to replace the Broadcasting Standards Authority and one that was platform neutral.

“The role of the regulator (currently performed by the BSA) would be revised, with more of a focus on ensuring positive system level outcomes and less of a role in resolving audience complaints about media content,” says the document.

The regulator’s functions would include guiding and developing media standards in collaboration with the industry.

“Standards would apply to content across all professional media in New Zealand (no matter what the delivery platform).

“Protecting and promoting media independence and the freedom of expression would remain a core focus – these standards are not expected to differ substantially from the existing broadcast standards, except to the extent required by the different forms of media content covered.”

Submissions on all of the proposals close at 11.59pm on Sunday, March 23.

MORE TO COME

Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.