Screen Producers Australia has submitted 22 recommendations to the Australian Government’s National Cultural Policy Consultation, putting streaming platforms’ market power over independent producers at the heart of its drive for structural reform.
The group’s submission argues that the move to digital streaming has fundamentally changed commissioning practices, exposing small and medium-sized production companies to contract terms that threaten the long-term sustainability of the sector. The SPA is calling for “fairness” requirements to be built into Australian film regulation, either through the terms of trade model or as a condition for being considered “Australian” content under the domestic content regime.
SPA CEO Matthew Diener said: “SPA has tried every means possible to bring this unsustainable situation to the government’s attention as an area of urgent regulatory need, including this year’s appeal to the ACCC.” “While these pressures have been recognized in other areas through the News Media Bargaining Incentive and the ACCC’s Digital Platforms Inquiry Report, SPA is calling on the government to understand the impact of these platforms on independent screen production in Australia.”
The proposal identifies three principles by which commissioning relationships should be governed. It is a good faith negotiation that includes a reasonable period of time and a willingness to change terms for mutual benefit. Fair value of intellectual property. Commercial success is factored into extensions and new season contracts. It is transparent and requires the Commissioner to share data on viewership, viewership and commercial performance.
“Australian small and medium-sized screen companies are no longer able to negotiate commission agreements on fair and reasonable terms that allow them to operate sustainably,” Mr Diener said.
The SPA acknowledged recent developments on local content obligations for streaming platforms, but characterized them as only addressing the early stages of a more complex set of issues. The filing specifically sounds the alarm about what are called “offset pass-through arrangements,” a practice in which some streaming providers structure financing to effectively recover the value of producer offsets from producers, diluting actual content spending commitments from the mandated 10% to about 7-8% in practice.
The proposal distinguishes between tax incentives, which it describes as generous, and a lack of regulatory action against structural market imbalances, including for government-run broadcasters. SPA’s members represent more than 800 manufacturing companies, driving more than A$3 billion ($2.1 billion) of annual production activity in the independent sector.
One of the most impressive data points in the filing is the state of children’s content. New Australian children’s programming on commercial free TV fell from 391 hours before deregulation to just 48 hours in 2024, and children’s drama fell from 98 hours to 10 hours. On streaming services, Australian children’s content accounted for less than 3% of the total time of Australian content available on the five major SVOD platforms. The filing also cited Screen Australia data showing Australian films captured just 2.6% of local box office receipts in 2025.
The application also notes that the number of majority-Indigenous-owned businesses among SPA members has increased from 18 to 27 over the past four years, demonstrating the growth in Indigenous film storytelling across genres from science fiction and comedy to thrillers and documentaries. Other recommendations include a review of the export strategy, noting that Australia imports $8 of cultural products for every dollar exported, new modernized co-production agreements, and emergency legislation for two producer offset reforms that have already been announced but are yet to become law.
“With the right policy settings that renew our thinking and recognize some harsh realities, our industry could once again witness a renaissance in Australian film storytelling,” Mr Diener said.
