A Global Policy Shift That’s About to Get Personal
This week’s bombshell from the United States—slapping a 100% tariff on foreign-made films—isn’t just trade policy. It’s a creative industry wake-up call that should have every Australian marketer, agency, and content creator paying attention.
Why? Because while the US is aggressively protecting its creative economy, Australia is still waiting for the most basic ask: that global streaming platforms invest meaningfully in the market they’re mining for profits.
And the numbers? They’re staggering.
The Revenue Reality Check Every Creative Should See
Let’s talk about Netflix’s Australian performance in 2024. The streaming giant generated $1.3 billion in local revenue—impressive growth despite cost-of-living pressures squeezing household budgets across the country.
But here’s where it gets interesting from a business perspective: 93% of that revenue—around $1.2 billion—was immediately transferred offshore as “distribution fees” to Netflix entities abroad. The company declared just $23.3 million in Australian profit and paid a modest $10.1 million in tax.
For creative agencies and production companies, this should be alarming. We’re watching a masterclass in global profit optimization while local creative talent and infrastructure are treated as cost centers, not strategic assets.
Local Content Quotas: The Campaign That Never Launched
In 2023, the federal government promised to introduce local content quotas for streaming platforms—the same requirements that have sustained commercial television for decades. The creative brief was clear: if Australians are watching, Australians should be creating.
But this campaign has stalled indefinitely.
Concerns about impacting a potential US free trade agreement have reportedly pushed the legislation off the priority list. Despite strong consultation feedback and creative sector support, implementation seems to have no timeline.
Two quota models were workshopped: subscriber-based and revenue-percentage targets. Both faced pushback from streaming services and commercial TV networks worried about higher production costs—a classic case of short-term thinking undermining long-term industry health.
The Billion-Dollar Question: Investment or Strategic Misdirection?
Netflix points to $1 billion invested in Australian content between 2019-2023. Shows like Territory and Apple Cider Vinegar have found global audiences, which sounds like a success story.
But let’s examine this through a marketing lens. When Australian locations, crews, and talent are used to build content owned and controlled offshore, what’s the actual brand value retained locally? Are we building sustainable creative IP, or just providing cost-effective production services?
Without stronger frameworks, Australia risks becoming a content supplier rather than a creative powerhouse—beautiful backdrops and skilled labor for stories owned elsewhere.
What This Means for Australia’s Creative Economy
The US tariff announcement highlights something every agency understands: cultural influence and economic power are inseparable.
If Australia wants a resilient, competitive creative sector that can compete on the global stage, we need policies with the same clarity and urgency we bring to client campaigns:
Clear Strategic Objectives
- Enforce local content quotas with realistic but firm deadlines
- Review tax structures to ensure fair local contribution from global platforms
- Protect IP ownership so creative value developed here benefits local creators and the broader economy
Measurable Outcomes
- Track not just investment dollars, but where creative control and long-term IP ownership sit
- Monitor the pipeline of local creative talent and infrastructure development
- Assess the multiplier effects of streaming investment on broader creative industries
The Creative Brief Australia Needs to Write
The alternative to action? A future where Australian stories reach global audiences—but are conceived elsewhere, controlled elsewhere, and ultimately profitable elsewhere.
For a creative industry that’s spent 25 years building expertise across retail, automotive, FMCG, and entertainment, this isn’t just policy—it’s about protecting the ecosystem that makes great creative work possible.
The US just showed us what decisive creative economy protection looks like. Australia’s response will determine whether our next generation of creators are writing the brief, or just executing someone else’s vision.
What’s your take on streaming platform accountability? How do you see this impacting Australian creative agencies and production companies? Share your thoughts.
