As the Australian Parliament tables legislation to require streaming services to expend a percentage of their revenue on original Australian content, ABC Alumni Chair, Dr Michael Ward, and Director, Sandra Levy, unpack the cost to Australians of accessing quality original Australian programs behind their paywalls. They present a compelling argument for increased funding for quality Australian content available on ABC and SBS free-to-air streaming platforms, and for increasing Screen Australia's capacity to invest.

Introduction

ABC Alumni support the recent announcement that the giant American streamers, who have taken a fortune out of Australian pockets, will be required to spend some of their revenue on new Australian drama, children’s, documentary, arts and educational programs.

Top-class drama and documentary is expensive to make these days. But it’s pretty expensive to watch too.

Seven streamers made Aussie drama series in 2023-24. But to subscribe to them all for a year would have cost you around $1000.

The ABC and SBS (unlike Australian commercial free-to-air TV) are still producing drama and scripted comedy. Freely available, on ABC iview and SBS On Demand. They are popular services. 

More people watch ABC iview every week than any individual subscription platform – including the biggest, Netflix.

But the ABC is making far fewer hours of drama and scripted comedy than it did a decade or two ago. Why? Because ABC funding has been shrinking, and costs are inexorably rising. They will soon rise further. 

Requiring the streamers to put more money into Australian productions will push up demand for the skills of Australian production teams. Increased demand equals increased prices.

If we’re not careful, Australians will soon face a dilemma. If they want to watch real Australian stories rather than sport and “reality” contests, if they want their children to watch real Australian kids’ programs, they’ll have to pay – AND pluck the Australian content from an overflowing barrel of American product. 

The Australian productions they find will be designed to appeal to international audiences.  Lots of Outback Noir, not much Redfern Now.

The ABC has been starved of funds for well over a decade. The core funder of much Australian drama and documentary, Screen Australia, is overstretched too.

This detailed briefing in which ABC Alumni gives you the facts, and the arguments. But the bottom line is this: imposing a quota of Australian production on the international streamers – welcome though that is – will not on its own keep our culture alive. We need to fund Australian stories, made for Australian audiences to watch for free. And that means more dollars for the ABC, for SBS, and for Screen Australia.

So please, use the information in our briefing paper by Dr Michael Ward and Sandra Levy to push for adequate funding to keep Australian culture alive, and kicking.

Jonathan Holmes

ABC Alumni Briefing Note:

The need for local content on free services such as the ABC and SVOD Australian content law

ABC Alumni supports the recent announcement that Subscription Video On Demand (SVOD) will be required to invest in new Australian drama, children’s, documentary, arts and educational programs.

Key issues must be addressed to ensure the effectiveness of the new rules. These include:

• Making sure Australian drama, children’s, documentary, arts and educational programs are available on free-to-air services
• Increased funding for public service media (ABC and SBS)
• Increased funding for Screen Australia
• Maintaining strong Australian content definitions.

Freely available Australian content (not just behind the SVOD pay walls)

You need to spend $1,000 a year in subscription fees to watch the Australian ‘SVOD’ dramas made last year.

To watch the Australian dramas and comedies on the ABC in the last two years, go to ABC iView, a free service.

Figure 1. Annual cost of each service with new Australian dramas

Source: ABC Alumni research - see below for details

Australians have adopted SVOD while continuing to use free broadcast video on demand:

• ABC iView is watched by 62 % of Australians weekly
• 42 % watch SBS On Demand and
• commercial FTA BVOD services (between 25 and 39 %).

More people watch iView weekly (62 per cent) than five of the top six SVOD services (only Netflix exceeds the ABC).

Generational and income issues contribute to a ‘digital viewing divide’.

Over 60 per cent of people over 55 watch free-to-air television. 

43 per cent of Australians use free BVOD, and 46 per cent watch free-to-air television weekly.

Screen cultural policies must ensure local content is available from Australia’s freely available services, especially public service media.

Increased funding for Public service media (ABC and SBS)

The ABC needs increased funding for drama, documentary, children’s, arts and educational drama to:

• participate in an expanding Australian content market
• enable Australians to have a range of viewing options
• ensure producers have commissioning options, and
• continue to provide a free service.

Increased funding for Screen Australia

Screen Australia is the main public source of drama, documentary and children’s drama investment.

Demand for Screen Australia funds has more than doubled over the past five years.

The new SVOD content rule will increase demand on agency funds.

SVOD services have deep pockets- spending $225 million on Australian drama last year.

ABC and SBS/NITV together spent $50 million financing Australian drama over the last year.

This places public broadcasters with limited funds at a disadvantage.

Commercial free-to-air and subscription television spend has dropped from $164 million in 2015-16 to just $41 million last financial year (see Figure 2)

Figure 2. Australian drama financial contributions – Public, ABC, SBS/NITV & Commercial FTA / STV (2015-2024)

Source: ABC Alumni research based on Screen Australia annual Australian drama reports.

Maintain strong Australian content definitions

Local content tells local stories with a sense of nation, identity and for a culturally diverse Australia.

Industry development arguments must not override national cultural policy objectives.

ABC Alumni supports the proposed new SVOD content rule and policies.

Together with increased funding for the ABC and for Screen Australia to continue their key roles in delivering Australian content, the policy framework can ensure audiences have access to Australian stories regardless of income or the ability to pay for media services.

Dr Michael Ward and Sandra Levy

Appendices

Table 1 Streaming services that commissioned Australian drama in 2023-24 and subscription costs

Table 2 Total value of Productions financed by ABC (2020-2025)

Source ABC annual reports

Australian viewing habits 1 (ACMA report 2024)

ACMA, 2024, p. 5

Australian viewing habits 2 (ACMA report 2024)

ACMA, 2024, p. 9.

Australian viewing habits 3 (ACMA report 2024)

ACMA, 2024, p. 6.

Sources

ABC. (2025). Annual reports. https://www.abc.net.au/about/annual-reports/103532346

ACMA. (2024). Spending by subscription video on demand providers. Commonwealth of Australia (Australian Communications and Media Authority) 2024. https://www.acma.gov.au/spending-subscription-video-demand-providers

ACMA. (2024). Trends and developments in viewing and listening 2023–24. Communications and media in Australia. Commonwealth of Australia (Australian Communications and Media Authority) 2024. December 2024. https://www.acma.gov.au/publications/2024-12/report/communications-and-media-australia-trends-and-developments-viewing-and-listening-2023-24

Australian Parliament (2025). Communications Legislation Amendment (Australian Content

Requirement For Subscription Services) Bill 2025. Explanatory Memorandum. https://parlinfo.aph.gov.au/parlInfo/download/legislation/ems/r7404_ems_fd0d6384-2024-4fca-9835-318631f9dcec/upload_pdf/JC017014.pdf;fileType=application%2Fpdf#search=%22legislation/ems/r7404_ems_fd0d6384-2024-4fca-9835-318631f9dcec%22

Lotz, A. & Potter, A.(2022) .Effective cultural policy in the 21st century: challenges and strategies from Australian television. International Journal of Cultural Policy, 28(6), pp. 684-696.

Screen Australia. (2024). Drama Report 2023/24. Film, TV and video-on-demand drama production in Australia. https://www.screenaustralia.gov.au/fact-finders/reports-and-key-issues/reports-and-discussion-papers/drama-report-2023-24#finance-sources