Amazon backdown reflects Government’s new FTA policy priority

Amazon's policy reversal signals a shift toward protecting the local free-to-air TV ecosystem under new regulations.

David Kennedy · Venture Insights6 October 2023Period: Q4 20234 min read

Last updated 8 June 2026

30%↓

Proposed levy on all ad revenue from Fire TV apps

30,000→

Monthly usage hours threshold for Amazon's ad-enabled app policy

Locked

Companies covered:AmazonFoxtelSamsungLGTCLAppleNews CorpComcastSky

Abstract

This report analyses Amazon's decision to back away from a proposed 30% levy on advertising revenue for apps on its Fire TV platform in Australia. The move follows significant criticism from local free-to-air (FTA) networks and the Australian Government. The brief explores how this reversal reflects a broader policy shift toward prioritizing the FTA TV ecosystem through upcoming prominence frameworks, anti-siphoning lists, and local content rules, marking a departure from previous 'harmonisation' regulatory approaches.

Key Takeaways

Amazon has officially backed away from enforcing a 30% levy on ad revenue from local FTA TV networks on the Fire TV platform.
The proposed policy targeted any app used for more than 30,000 hours per month, a threshold many local broadcasters exceed.
The Australian Government's impending prominence regime is expected to legally overrule such revenue-sharing demands from platform operators.

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Frequently Asked Questions

Amazon abandoned its proposed 30% levy on ad revenue for apps exceeding 30,000 monthly usage hours due to intense pressure from local broadcasters and the Australian Government. The impending prominence regime will legally prohibit platform operators from imposing such revenue-sharing demands on local free-to-air services.

Policy has shifted away from the 2020 'harmonisation' model toward a framework that prioritizes the public benefit of the free-to-air ecosystem. The government is effectively reviving the social compact principles of the 1992 Broadcasting Services Act to protect local content and visibility.

Hardware manufacturers like Samsung and LG, along with platform operators like Foxtel, must prepare for mandatory prominence requirements for local BVOD services. These regulations will prevent platforms from charging for app placement or enforcing ad-revenue splits on services that exceed the 30,000-hour usage threshold.

Amazon backdown reflects Government’s new FTA policy priority

Abstract

Key Takeaways

Frequently Asked Questions

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