Netflix may need to invest in local shows, but little relief for news media
Wednesday, 12 February 2025
Streaming television services such as Netflix and Amazon Prime may be required to invest in local content, and television manufacturers may be require to bundle local apps on new TVs, under a Government proposal.
A discussion paper on “media reform” released by Media and Communications Minister Paul Goldsmith on Wednesday also envisages merging the NZ Film Commission with NZ On Air.
Goldsmith told Parliament’s Social Services and Community select committee on Wednesday that the Government was focused on ensuring New Zealand continued to have access to “our stories and music”.
“There are things that we can do to help the efforts of local media producers to be able to compete more effectively with the global players,” he said.
However, Goldsmith made clear that the Fair Digital News Bargaining Bill, which the Government backed last year as a means to provide tens of millions of dollars of additional annual funding for the news media, had been parked for now.
Other countries were ensuring TVs had local apps pre-loaded and available in a prominent way, and New Zealand should do the same, he said.
“We want to ensure that streaming platforms and TV broadcasters invest in local content and implement measures to make sure that it’s discoverable on their pages.
“We can have a discussion around exactly what that means, but I think that's an important requirement,” Goldsmith said.
“So we’re asking the question; ‘should we have a basic requirement about a certain amount of New Zealand material that should be there?’ and also to encourage them to invest in the production of that.”
The discussion paper released by the Ministry for Culture and Heritage said that a “manual scan” in September indicated Amazon Prime had just over 10 New Zealand titles in its catalogue, while Netflix held fewer than 10.
Disney and Apple+ had none, while Sky TV’s Neon had more than 50 home-grown titles including local productions commissioned by Sky, it said.
The possible merger of the Film Commission and NZ On Air reflected the fact that while the former had been focused on the big screen and the latter on television and music, “those worlds had merged”, Goldsmith told the committee.
The Fair Digital News Bargaining Bill would effectively force at least Google and Meta to enter into licensing deals for news content shared through their platforms on terms that could ultimately be set by a regulator.
But Goldsmith said it made sense for the Government “to take a bit of stock” and see how a fresh initiative played out in Australia.
The Australian government implemented a law similar to the Fair Digital News Bargaining Bill three years ago.
But it’s now proposing to tax tech companies that seek to bypass its intent by pulling news content from their platforms.
“The Australians said, ‘we think we need to do it slightly differently through potentially a tax rebated against money is that handed over to local media’,” Goldsmith said.
“Now that’s an interesting approach and I think it makes sense. I think most New Zealanders would say, ‘well, actually, see how it works out in Australia before we as a very small country set out in our own direction’.”
There has been speculation that attempts to advance media bargaining laws in both New Zealand and Australia could fall victim to the risk of retaliation on behalf of US tech companies by US president Donald Trump.
Goldsmith told the committee the Government was dealing with “a rapidly evolving international situation” and he planned to meet with his Australian counterpart in Sydney next week and “get a sense of where they're at”.
The Fourth Estate was a very important part of the country’s democracy, he said.
But in a comment that could unnerve mainstream media outlets, he said the way that function was provided could change.
“There are independent, internet-based bloggers who can call out problems and challenge the powerful in the way that journalism does as well and so these things are constantly evolving,” he said.
There’s no way the Government could “come in and fund the media like it used to be” and it was up to those institutions to “innovate and respond in their own way”, he also said.
Screen producers welcome reform
President of the screen producers’ guild Irene Gardiner, who has been lobbying for regulation of international streaming companies for years, said the discussion paper showed a good understanding of the challenges being faced by New Zealand’s local production sector.
“The document proposes a local content investment percentage for the streamers, and it may be that a levy system or a hybrid of the two strategies would work better,” Gardiner said.
“We will put some further thought and research into that. But any regulation in this area will help level the playing field.”
Free-to-air television audiences, and, consequently, ad revenue, have been decimated by streamers’ presence in New Zealand.
Possible NZ On Air/Film Commission merger
In a joint statement, NZ On Air and the Film Commission said it was crucial that every dollar they invested had the greatest possible impact.
“If change can enhance this, it is in the public interest to explore those options,” the agencies said.
The agencies looked forward to working with the culture ministry to flesh out opportunities and risks of the proposed merger.
“We acknowledge that during this consultation period there will be many questions and some uncertainty for both stakeholders and agency staff. We encourage all who have an interest in this mahi/work to engage with the consultation process so that your views, concerns or support for different options are heard.
“While the consultation process and policy considerations continue, both agencies remain committed to delivering the best outcomes for audiences and the sector, and continuing to collaborate where it makes sense.”
The Film Commission was founded in 1978. Its functions today include providing financial support to film-makers through various grants, administering screen rebates for larger films, and developing the skill and reputation of the country’s film sector both locally and globally.
NZ On Air, formed in 1989, distributes funding for local TV shows, journalism projects and podcasts. It also administers the new gaming rebate, and like the commission it supports screen industry development.
A third organisation, Te Māngai Pāho, provides funding for Māori-language programming across radio and television.
What’s being consulted on?
The five proposals being consulted on are to:
Require TV manufacturers to ensure local media services are prominent and visible on devices such as smart TVs so they can be easily found by audiences
Require streaming platforms and TV broadcasters to invest in local content and implement measures to ensure it is more ‘discoverable’ on their platforms, supporting the production of and engagement with New Zealand stories
Require more captioning and audio description on content that is broadcast or streamed to ensure access for disabled Kiwis
Revise the broadcasting standards regime (including the Broadcasting Standards Authority) with platform-neutral and system-level regulation
Consolidate NZ On Air and the Film Commission into a single entity, supporting more efficient administration of government funding for local content and industry development
Submissions can be made to the culture ministry until March 23.