Who has an interest in seeing the decline of investments only as a simple incident, rather than a market failure signal justifying intervention?
The Australian government, faced with this significant decline, has identified a change in the payoffs of local actors, thus increasing the incentive for regulation to correct the strategic imbalance.
These quotas are not just a pretext, but a strategic response to force streaming platforms to internalize the costs of local production, which until now was a negative externality for Australia.
In the absence of regulation, the dominant strategy of platforms is to minimize local expenses, hence the establishment of a new game where contribution becomes mandatory to maintain access to a market.
For example, refusing to impose quotas would amount to accepting a Nash equilibrium where global actors exploit the market without investing enough, to the detriment of local talents.