New Zealand’s Media Modernization Proposals to Boost Local Content Production

Under the media modernization proposals, local and global streaming platforms will be required to invest in and showcase New Zealand content. This reform, outlined in a document by the Ministry for Culture and Heritage, aims to revitalize the local production sector in the face of declining advertising revenue and streaming platform dominance.

Investment Obligations for Streaming Platforms

The document proposes that platforms like Amazon Prime, Netflix, Disney+, and Apple+ will face obligations to invest a portion of their annual revenue in creating or acquiring local content. Additionally, these platforms must implement measures to make local content easily discoverable by their users.

A manual scan in September 2024 highlighted the scarcity of New Zealand content on major streamers. As of that month, Netflix had over 10 New Zealand titles, Amazon Prime had more than 10, and Disney and Apple+ had none. Currently, Netflix lists only nine New Zealand movies and TV shows among its vast global catalog, compared to almost 200 Australian and 120 Canadian titles.

Consultation and Challenges

Implementing these policies will require careful consultation, balancing the needs of the struggling local production industry with the potential pushback from the Donald Trump-led American administration. Trump has already shown a willingness to retaliate against regulations imposed by foreign governments on US companies, as evidenced by potential tax rate increases for expatriate Australians.

New Zealand must also adhere to international trade laws, ensuring fair treatment of international content providers alongside domestic entities. The document emphasizes the need for proposals that maintain consistency with these obligations.

Alternative Approaches

During the proposal phase, officials considered alternative options, such as levies on streamers and content quotas. While content quotas might initially boost local content availability, they could lead to a focus on low-quality, filler content rather than encouraging new productions.

The Impact of Audience Shifts

With the shift from linear TV to global streaming platforms, advertising revenue has declined significantly. This erosion affects local broadcasters’ ability to commission and produce local content, with projected reductions between $60-80 million in 2024.

Several factors contribute to the reduced engagement with local content on these platforms:

• Local channels and apps can be hard to find on modern smart TVs and devices.
• Streaming services carry limited New Zealand content and invest minimally in local productions.
• Low levels of captioning and audio descriptions for on-demand content.

Without intervention, New Zealanders may miss out on cultural and societal benefits, harming the local media and production sector and indirectly impacting the economy.

Government and Industry Perspectives

Media and Communications Minister Paul Goldsmith acknowledges the challenges faced by the media and content production sector. He emphasizes the need for regulatory settings that are fair to all players while recognizing market dynamics.

Industry bodies like Spada have been advocating for regulation requiring streamers to support local production. Irene Gardiner, president of Spada, argues that foreign streaming giants should contribute to the local industry, utilizing local infrastructure and data without paying taxes.

Spada suggests a 5% levy on streamers,估算 generating approximately $25 million annually, which could support local content production through existing funding agencies.

Funding Agencies Merger

The document confirms the merger of NZ on Air and the New Zealand Film Commission. This move aims to create a more coherent and efficient funding regime for the screen sector, addressing overlaps between the two entities’ functions.

New Media Standards Regulator

The role of the existing regulator, currently performed by the Broadcasting Standards Authority (BSA), will be revised. The new regulator will focus more on positive system-level outcomes rather than individual audience complaints. Its responsibilities will include setting media standards and acting as a backstop for unresolved complaints.

The regulator’s scope will include New Zealand broadcasters and streaming platforms, global streamers, online media, newspapers, and magazines, but not platforms primarily hosting user-generated content like social media and search engines.

Submissions for feedback on these proposals are due by March 23, 2024, signal the government’s commitment to engaging the public in shaping the future of New Zealand’s media landscape.

Towards a Balanced and Innovative Media Landscape

While the proposed media modernization faces challenges, it represents a significant step towards ensuring local content remains discoverable and valued in an increasingly globalized media environment. By requiring investment from major streamers and merging funding agencies, New Zealand aims to foster a more vibrant and sustainable media sector.

As these proposals move forward, stakeholder feedback will be crucial. The government’s balanced approach, seeking to uphold international trade obligations while supporting local producers, reflects a nuanced understanding of the complexities involved.

The future of New Zealand’s media sector hang in the balance. Your feedback can help shape this vital landscape, ensuring that local stories continue to be told and heard.

Join the Conversation

We encourage readers to share their thoughts and opinions on these proposals. Your input is valuable as it will help inform the government’s decisions and shape the future of New Zealand’s media landscape.

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