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Question: SVOD services have created unparalleled opportunities

19 Sep 2024,6:28 PM

 

SVOD services have created unparalleled opportunities to measure and cater to Australian audiences’ television tastes. There is no need for specific diversity incentives or quotas, because SVODs are already well-equipped to meet changing consumer demand across different markets. What are the arguments for and against this statement? Answer using specific examples from SVOD services and contemporary Australian television content.

 

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Introduction

The rise of Subscription Video on Demand (SVOD) services has significantly transformed the television landscape worldwide, including in Australia. Services like Netflix, Amazon Prime, Disney+, and Stan have revolutionized the way audiences consume content by offering vast libraries of television shows and movies, often curated based on detailed data analytics. These platforms provide unparalleled opportunities to measure and cater to individual and collective viewing preferences, raising the argument that there is no need for specific diversity incentives or quotas, as SVOD services already have the tools to meet changing consumer demands. While SVODs may be seen as effective in responding to audience preferences, the question arises: does this ability negate the need for diversity incentives or quotas in Australian television content? In answering this question, it is crucial to consider the roles of market dynamics, cultural diversity, and representation, supported by both theory and evidence from contemporary Australian television content. This essay will explore the arguments for and against this statement, assessing whether SVODs can naturally accommodate diverse preferences without regulatory measures.

The Data-Driven Advantage of SVOD Services

SVOD platforms have access to vast amounts of data, which allows them to track viewer preferences and behaviors with precision. The argument for not needing diversity incentives is that these services are inherently responsive to what audiences want, using advanced algorithms to recommend content that aligns with individual tastes. This data-driven approach means that SVOD platforms can cater to a wide range of preferences across different demographics, including minority groups, without external regulation.

For instance, Netflix's recommendation algorithm tracks viewing history, the time spent on each title, and even pauses or rewinds, providing a detailed map of individual tastes. In Australia, this capability is significant, as the platform can respond to niche markets, offering content that appeals to diverse cultural groups. For example, Netflix Australia offers a wide selection of international content, such as Korean dramas (K-dramas) and Bollywood films, reflecting the multicultural nature of the Australian population. This demonstrates how SVOD platforms can, in theory, meet diverse tastes and cultural representation organically.

However, while data-driven models allow SVODs to tailor content to individual preferences, it does not guarantee equitable representation across all groups. Algorithms are designed to prioritize what has been historically popular, which can lead to the marginalization of underrepresented communities. This is particularly concerning when it comes to the representation of Indigenous Australians or other minority groups who may not constitute a large proportion of the audience but deserve adequate representation nonetheless.

The Role of Market Demand in Shaping Content

One of the core arguments against diversity quotas or incentives is that SVOD services operate within a competitive market, where success is determined by their ability to attract and retain subscribers. This competitive pressure means that these services have a vested interest in catering to diverse audience preferences, as failing to do so could result in losing market share. In Australia, where the population is multicultural, it could be argued that SVOD platforms are naturally inclined to offer diverse content to meet the demands of various cultural groups.

For example, Stan, an Australian-based SVOD service, has produced local shows such as The Other Guy and Bump, which offer unique perspectives on Australian life. These shows resonate with local audiences by reflecting both mainstream and niche experiences within Australian society. Similarly, international platforms like Netflix have invested in local content such as Clickbait and Stateless, which incorporate Australian talent and settings, potentially catering to both local and global audiences.

However, while market demand may drive some diversity in content, it does not always ensure the inclusion of underrepresented voices. Market-based approaches often prioritize profitability over equity, meaning that niche content representing smaller minority groups may be overlooked if it does not attract a sufficiently large audience. Furthermore, relying solely on market dynamics ignores the importance of cultural representation beyond commercial interests. This is particularly relevant in Australia, where issues of Indigenous representation and stories from marginalized communities may not generate immediate commercial returns but are nonetheless critical to the national cultural narrative.

The Importance of Cultural Representation and Quotas

Cultural diversity in media is not just about catering to market demand; it is also about ensuring that all segments of society are represented fairly. One of the strongest arguments in favor of diversity quotas or incentives is that they can ensure that marginalized groups, who may not have a strong market presence, are still given a platform. Quotas can help correct historical imbalances in representation, ensuring that Australian television content reflects the country's diverse population.

For instance, the Australian Content Standard requires free-to-air television networks to broadcast a certain amount of Australian-produced content, which includes provisions for reflecting Australia’s multicultural identity. Without such regulations, there is a risk that market forces alone would fail to provide sufficient representation for smaller cultural groups. This is where the argument for diversity quotas in SVOD platforms becomes relevant—while these services can measure and cater to audiences, they are still businesses driven by profit, and there is no guarantee that all cultural voices will be equally represented without regulatory oversight.

In Australia, Indigenous stories are particularly vulnerable to underrepresentation without specific incentives. While there has been an increase in Indigenous content on Australian television, such as the ABC’s Cleverman, SVOD platforms may not prioritize such content unless it proves commercially viable. Quotas or other diversity incentives could ensure that these important stories continue to be told, regardless of market forces.

The Limitations of SVOD Algorithms in Promoting Diversity

Algorithms are central to SVOD services' ability to cater to audience tastes, but they are also limited in their ability to promote diversity. Algorithms operate based on historical data and are designed to show content that aligns with established viewing patterns. As a result, they often reinforce existing biases rather than challenging them. This can lead to a lack of diversity in the content that is recommended to viewers, as algorithms tend to favor content that appeals to the majority or aligns with past viewing habits.

For example, if a viewer primarily watches mainstream Hollywood content, the algorithm is likely to continue recommending similar types of shows, even if more diverse content is available on the platform. This creates a feedback loop where minority content may be marginalized, not because it lacks value, but because the algorithm is not optimized to promote diversity. In the Australian context, this could mean that content representing Indigenous Australians or other minority groups may not be prominently featured, even if it exists within the platform's library.

The role of algorithms in shaping viewing habits underscores the need for diversity incentives or quotas. Without intentional efforts to promote underrepresented content, algorithms alone are unlikely to provide the level of diversity necessary to reflect Australia's multicultural society. While SVOD services have the technical capability to cater to diverse tastes, their reliance on algorithms limits their effectiveness in promoting true diversity.

Contemporary Examples of Australian Television and Diversity Initiatives

In recent years, Australian television content has increasingly reflected the country's diverse population, but much of this progress has been driven by policy interventions rather than market dynamics alone. For example, the Australian government's investment in the Indigenous Department of Screen Australia has led to the production of films and television shows that highlight Indigenous stories, such as Samson and Delilah and Mystery Road. These productions are critical for ensuring that Indigenous Australians are represented in national narratives, but they are often the result of specific funding and policy incentives rather than market demand.

Moreover, Australian free-to-air television networks are subject to quotas that require a certain percentage of locally produced content, which includes diverse cultural representation. While SVOD services like Netflix and Stan are not bound by the same regulations, the absence of such quotas could result in a decrease in the production of locally relevant, diverse content. For example, the success of The Heights, an Australian drama that features a multicultural cast, was partly due to support from government initiatives aimed at promoting diversity in media. Without such incentives, it is questionable whether similar shows would be produced in the same volume.

These examples highlight the importance of policy interventions in promoting diversity in Australian television. While SVOD services have the capacity to cater to diverse tastes, market forces alone are unlikely to ensure the same level of representation without regulatory measures.

Conclusion

SVOD services have undoubtedly transformed the way Australian audiences consume television, offering unprecedented opportunities to measure and cater to diverse preferences. However, the argument that these platforms can naturally accommodate diversity without the need for quotas or incentives overlooks several key issues. While SVODs are well-equipped to respond to consumer demand, their reliance on algorithms and market dynamics can marginalize underrepresented voices, particularly when those voices do not align with mainstream viewing habits. Furthermore, cultural representation is not solely a matter of market demand; it also involves ensuring that all segments of society are fairly represented, regardless of their commercial viability. In this context, diversity quotas and incentives play a crucial role in ensuring that Australian television content reflects the country's multicultural identity. Therefore, while SVODs have the potential to enhance diversity, specific diversity initiatives are still necessary to ensure equitable representation in the rapidly evolving television landscape.

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