Sustainability of Australian Content Quotas

Australian content on commercial free-to-air television is mandated by a system of quotas which specify minimum levels of overall content as well as specific requirements for first-release drama and children programs. In the new digital world the viewing opportunities available to consumers have already been expanded substantially. In traditional free-to-air television viewers choices in digitally-equipped households have increased threefold by multichannelling. In addition, new viewing opportunities are available on the Internet and on mobile devices. Neither the new digital channels nor the Internet and mobile viewing opportunities are subject to Australian content quotas. Future arrangements for Australian television content are included for consideration in the current Convergence Review. In the digital environment several important factors impact on the sustainability of Australian content quotas. The Internet opportunities are not conducive to Australian regulation as the program sources may be located in foreign jurisdictions. In the multichannelling environment the disparate treatment of a broadcaster’s main channel, which is subject to the quotas, and the secondary channels which currently are not, may not be sustainable in the longer term. A different system based on a proportion (currently 10%) of total program expenditure is applied to predominantly drama channels on subscription TV. The paper reviews the likely sustainability of Australian content quotas for television and prospective mechanisms that may be more conducive to conditions in the future digital environ