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The Australian government is set to enact laws requiring digital services to invest a minimum percentage of funds in homegrown productions, as announced by government sources on Tuesday.

Services including Disney+ along with additional streamers with over one million users must allocate at least ten percent of their Australian expenditure or seven and a half percent of income toward local content.

Legislation is being presented to lawmakers this week and will apply to drama and informative content.

Government representatives announced the move is designed to protect acting employment in the sector. Streaming services are yet to commented on the matter.

'Outstanding content'

"We have Australian content requirements on free-to-air television and pay television, however previously, we lacked no guarantee of viewing our own stories via digital platforms," a government representative commented.

"Since their introduction in Australia, streaming services have produced some extraordinary shows. These requirements will ensure such productions – our stories – continue to be made."

According to sources, legislation is scheduled for presentation to Parliament in the coming days.

These updated production obligations were meant to be in place by July last year but concerns over how they would interact with a free trade agreement involving America led to the plans being put on hold.

The government mentioned challenges conducting discussions with the US while it was holding an election.

After President Trump was elected, there was then concern about whether the regulations might prompt the US administration to impose trade measures targeting Australian interests.

Now, following resolution, and with strengthened ties between the countries, those rules are now back for consideration.

While industry groups applauded the news, streamers are still to comment on the matter.

Previously, digital services released documentation emphasizing their cultural and financial contribution on the national creative economy.

Nonetheless, it was seen by some as strategic positioning against any attempt at future regulation.

Production slump

Current local productions available online feature multiple series across different genres.

Similar to other nations, the local entertainment sector experienced challenges recently, partly because of reduced activity during the Covid-19 pandemic.

In the financial year recently concluded, funding for movies and television dramas produced domestically decreased by almost one-third, as reported by industry data.