New streaming quotas to drive surge in brand-funded Australian TV shows

Brands are set to help the streaming platforms meet the new local content quota requirements by fully or partially funded content and programming for Australian audiences.

Ryan Gosling and Margot Robbie in a scene from the movie Barbie, which was partially funded by Mattel.

The government’s local content quotas on streaming platforms is a “catalyst” for change which will drive brands to step in to fund a wave of new TV programming, according to media experts.

The government mandates for streaming services requires platforms with more than one million Australian subscribers to invest either 10 per cent of their local expenditure or 7.5 per cent of local revenue into creating drama, children’s, documentary, arts and educational programs.

While the move had sparked concerns some of the international players might opt to withdraw from the market, media and advertising experts told The Australian the legislation would drive a surge in brands footing the bill to create and co-produce quality TV content.

The Lego Movie, which was animated in Australia by production company Animal Logic, was partially funded by the Lego brand.

Omnicom Media Group chief media partnerships officer Marelle Salib said the legislation, along with the rapid adoption of AI technology, would help to usher in a new wave of brand-funded content models which would “fundamentally redefine” the market.

“As the content mix shifts, we anticipate a rise in AI-hybrid models, episodic short-form, and companion content,” Ms Salib said.

“Brands will be positioned to explore under-represented cultural narratives and passion-driven stories, opening up new creative white spaces. This is not just about volume but about the strategic curation of content that (will) resonate with diverse Australian audiences.

While Ms Salib acknowledged that costs would be a significant factor in the increases in local production, she believed AI technology would play a significant role in overcoming obstacles.

“The integration of AI alongside human creativity will become essential, not as a replacement, but as an enabler of efficiency and affordability,” she said.

“Brands that embrace this hybrid approach will be better equipped to navigate rising costs while maintaining creative integrity.

“The new environment will see brands transition from pure advertisers to co-investors and co-producers, participating more deeply in the content value chain. Hybrid investment models will become the norm, requiring a more sophisticated, collaborative approach to content creation and distribution.”

Brand-funded content, or branded entertainment as it is often called, is an established category within the marketing and advertising industry, the most successful examples of which include Barbie and The Lego Movie, which were partially-funded by Mattel and Lego, respectively.

However, brands such as Intel, Red Bull and Patagonia have a long history of investing in films and documentaries which align to the brand values. Other examples include a 2016 documentary exploring the impact of technology that was created by acclaimed director Werner Herzog for cybersecurity company Netscout and, locally, programs such as The Brighter Side series on Channel 10, which is funded by Commonwealth Bank.

The Brighter Side, funded by Commonwealth Bank, appears on Channel 10.

WPP Australia & New Zealand president Rose Herceg said the onus was on marketers to ensure they create quality content that audiences want to watch.

“Most (marketers) think branded content is a long advertorial for their business for an hour, and that’s the problem,” Ms Herceg said.

“It’s got to compete with actual content which means it has to be good and it has to be different. Brands have to come at it with a fresh perspective; it will be done but is it done badly or is it down brilliantly?”

Ms Herceg said while marketers and brands opt for documentary or educational content, there were significantly greater gains to be made from quality drama or comedy content.

“There’s no reason why you can’t talk to the values of a brand, you don’t even need to have product placement,” she said.

Hellofuture.tv co-founder and executive producer Emily Bull said the move was a win-win for all parties involved.

“When brands co-invest in Australian stories, they gain more than visibility, and they gain relevance,” she said.

“And the benefit flows both ways – audiences are actively seeking content that moves them, and when a brand aligns its purpose with a story that people genuinely want to watch, you get deeper engagement, stronger brand connection and real cultural impact.”