Netflix Set To Increase Its Aussie Subscribtions Up To 20% As New GST Tax Kicks In

Netflix Set To Increase Its Aussie Subscribtions Up To 20% As New GST Tax Kicks In

Aussie Netflix subscribers will have to pay as much as 20 per cent more as of the 1st of July when the federal government’s new “Netflix tax” takes effect.

The new tax, announced in May’s budget and known as the digital goods tax, adds 10 per cent to any online goods purchased from overseas – such as SVOD providers like Netflix.

On top of the 10 per cent tax, it’s understood that Netflix had also planned to charge customers an additional 10 per cent and so will be slipping the subs increase as of today for new subscribers and in a month’s time for existing ones.

The price increase will be the first since the SVOD started streaming in Australia two years ago and comes at a time when Foxtel is offering a number of considerably low packages starting from as little as $10 a month.

Although it’s bad news for Netflix subscribers, it’s good news for the federal government’s coffers with some 2.8 million Australian households now Netflix subscribers.

Foxtel still wins the subscriber battle at 2.9 million households, however, Netflix could pinch that title anytime soon.

It also follows news, reported on B&T yesterday, that Facebook has unveiled tentative plans to play in the SVOD space with reports it’s prepared to spend a whopping $US3 million an episode on new shows aimed at a Millennial market.

The new price increases for Aussie Netflix subscribers will see the standard package rise to $9.99 a month, the two-user HD package rise to $13.99, and the top four-user package swell to $17.99 per month. Meaning those on the top package face a 20 per cent increase.

Commenting on the price hike, a Netflix spokesperson told B&T: “From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster.

“We also adjust plans and pricing to respond to local market changes, such as tax or regulatory changes. Since launching in Australia in 2015, we have not changed pricing. In light of the upcoming GST increase, we will be rolling out updated plans and pricing starting June 28 in Australia. Members will be notified of the changes via email and service notifications.”




Please login with linkedin to comment

Advertising Standards Bureau Bloke Fetch TV

Latest News

Sydney Comedy Festival: Taking The City & Social Media By Storm
  • Media

Sydney Comedy Festival: Taking The City & Social Media By Storm

Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]

Global Marketers Descend For AANA’s RESET For Growth
  • Advertising

Global Marketers Descend For AANA’s RESET For Growth

The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA  Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]