Behind this figure on the decline of investments in Australia: there is more than just a correlation triggered by a decrease in audiovisual spending.
We are reducing here a multifactorial regulatory change to a simple reaction, ignoring hidden costs and political motivations.
A government acts for reasons deeper than the mere statistic, notably the protection of employment and cultural identity, which generates externalities for market players.
For example, countries like Canada have imposed obligations on streaming platforms via Bill C-11 well before any investment decline, precisely to support their local cultural production in the face of foreign dominance.
The decline in investments is a symptom, not the exclusive driver of this complex policy.