The impact of streaming on Australia's screen industry – the first ten years and the future

We are approaching a significant milestone for the local screen industry and broader culture: the ten-year anniversary of subscription video on demand (SVOD) in Australia. Back in 2014, Netflix and Stan announced their upcoming launches, with local player Stan debuting on Australia Day (26 January) in 2015, followed by global streaming juggernaut Netflix in March. Since then, a variety of other platforms, big and small, have entered the market, and all our local broadcasters have heavily invested in their online services, like ABC iview and 9Now.

Over the past decade, the way we watch movies and TV shows has changed dramatically. This shift has been driven by the rise of smart TVs, the impact of the COVID-19 pandemic and an escalating cost-of-living crisis. Today, Australians have become used to accessing film and television ‘on-demand’ from vast libraries of content, often tailored to our tastes by algorithms, all from the comfort of our homes.

Despite predictions of a “streaming war” as more major players like Prime Video and Disney+ entered the local scene – characterised as a battle royale in which only a few SVODs would survive as people grew tired of having multiple subscriptions – Australian audiences have adapted to this crowded market. Research shows audiences are happy to subscribe to multiple platforms to enjoy the wealth of content available across more than a dozen streaming services in Australia.

However, the deeper implications of these transformations for the local screen sector are yet to unfold. While streaming platforms often claim they don't need regulation because they plan to invest heavily in Australian content, the reality is more uncertain and less encouraging.

Our research has found that “globalisation has allowed [US global streamers like Netflix] to channel capital into less established markets to produce content that is both authentically local and produced for the enjoyment of a global cosmopolitan audience hungry for such sense of authenticity”. This approach presents exciting opportunities. However, there’s also potential for these resources to be directed toward content that simply uses Australia as a backdrop for ‘global’ productions, leading to government investment in so-called ‘local’ content that isn’t authentically or meaningfully ‘Australian’.

As the screen industry increasingly calls for local content or spending quotas for streaming services in Australia – similar to policies in Europe and Canada – the federal government promised to introduce new local content regulations for the streamers in July 2024. However, July has come and gone without any policy updates or announcements.

Ten years of unregulated streaming has significantly impacted our screen sector. There are key concerns about the sharp decline of children’s content, to the point that international outlets like The New York Times have questioned the sector’s future; the fragmentation and rising costs of accessing sport; the diversity of content available to Australian audiences; and the challenge audiences face in finding local content that is out there.

A multi-faceted understanding of our local screen industry is vital, especially as audiences, particularly younger ones, are moving away from traditional elements that previously scaffolded the industry like linear scheduling, event viewing and regular consumption of local content on free-to-air channels.

This shift brings challenges, especially in tracking audience engagement with on-demand viewing. SVODs, unlike free-to-air TV or theatrical releases, operate as ‘black boxes’, withholding their data on viewer habits and content consumption for commercial reasons and claiming to base their content commissioning and acquisition on this data.

As a result, screen creators often have little insight into whether their films or shows are reaching audiences, who is watching them, or if their content is even easily discoverable on streaming platforms.

Understanding video-on-demand

In a study led by SIGN founder and co-lead Jessica Balanzategui, we discovered that Australian children struggle to find and recognise local kids’ content in the streaming age [1]. Using Swinburne University’s specialised ‘BabyLab’ research facility, we observed children, aged 7–9, as they chose shows on streaming platforms, without them knowing we were watching from a nearby room. We also interviewed the kids and their parents about their content choices and use of streaming platforms.

Netflix and YouTube were the most popular platform choices, but the kids rarely gravitated toward. Australian content. Many didn’t even realise which shows were Australian, with some assuming their favourite Australian shows were American.

Child: "I watch a lot of American. […] They always show the flag and speak American. America’s a crazy place […] I do like American shows a lot, but not really Australian shows."

Researcher: "But what about Little Lunch and InBESTigators?" [two Australian shows the child had previously identified as his favourites].

Child: "Little Lunch is definitely American."

Researcher: "No, that one’s an Australian show!"

Child: [Physically recoils. Shocked pause] "Well… InBESTigators is American!"

Researcher: "InBESTigators is Australian too!"

Child: [Shocked pause] "WHAT!?"

The children generally didn’t know how to find or identify Australian shows on streaming platforms. However, there’s some good news: ABC platforms were the third most popular choice, and the kids tended to associate these platforms with Australian content.

Researcher: And which streaming platform is the easiest to use?

Child: Probably ABC ME. Because its mainly all Australian, and only a few of them aren’t, and you know that if you just scroll a little bit, you’re gonna find a good kids’ show.

We’ve also explored how the freedoms afforded by streaming platforms have reshaped familiar genres. SIGN co-lead Alexa Scarlata analysed Netflix’s revitalisation of the romantic comedy, showing how the “largely private nature of SVOD engagement and the repeat-viewing encouraged by a fixed monthly price has enabled audiences to lean into the type of predictable, sappy content that might see them publicly ridiculed at the box office”. The genre has also been adapted to appeal to underserved audiences like tweens and Netflix’s culturally and sexually diverse viewers.

We’ve studied how the SVOD landscape has created opportunities for genre-specific services to emerge, like the horror-focused platform Shudder, which caters specifically to horror fans. Similarly, Lynch and Scarlata revealed that SVODs have “strategically embraced a very particular brand of science fiction”, focusing on established creators and featuring violent, gritty, and sexually charged content that thrives in the streaming environment.

We’ve also examined how traditional demographics fit into the streaming world. Large “generalist” platforms like Netflix and Prime Video, which aim to attract as many subscribers as possible, insist that taste clusters and taste communities are more important now than demographics. However, our research into smaller niche platforms such as Hayu (focused on reality TV) and Passionflix (which adapts romance novels), shows that demographic thinking – especially gendered thinking – remains fundamental to their core business models: “these platforms assume a female demographic that has taste, agency, and choice, and they speak to them in both familiar and innovative ways”.

As we reflect on ten years of streaming in Australia, there is a lot to mull over as we plan for the next decade: how can audiences, the screen sector and policymakers support a sustainable, innovative and inspiring screen sector?

– Associate Professor Jessica Balanzategui, RMIT University; Dr Alexa Scarlata, RMIT University; and Dr Andrew Lynch, Swinburne University of Technology.

Reference

[1] This study is part of a broader project in partnership with the Australian Children’s Television Foundation based at Swinburne University of Technology with a team of researchers across RMIT and Swinburne Universities.

Balanzategui, J., Baker, D., & Clift, G. (2024). What is ‘children’s television’ in the streaming era?: Assessing content discoverability through Australian children’s streaming platform fluencies. Convergence, 0(0).