If I were tasked with defending the idea that the decline in investments is the only trigger for quotas in Australia, I would argue that the economic pressure faced by the local sector is such a strong signal that regulatory intervention becomes inevitable, almost immediate, because governments are reactive to sectoral crises.
However, it is crucial not to overestimate the ingenuity of this correlation, as the establishment of quotas, in this case, is more about a pre-existing political will for cultural support.
For example, countries like Canada have imposed funding obligations on streaming platforms well before any cyclical decline, as part of a digital and cultural sovereignty strategy, which dilutes the idea of a simple cyclical reflex.
The decline may have served as a timely justification, but it is never the sole causal driver of such a structural reform of public policies.