Streaming juggernaut Netflix raked in $1.47 billion in revenue in Australia in 2025 but according to a new report, almost 92 per cent of that revenue was shipped overseas as “distribution fees” to its parent entities.
As reported in the Australian Financial Review, out of the $1.47 billion dollars generated on Aussie shores, a whopping $1.35 billion of it made its way abroad, as a result of major tech companies transferring large amounts of their money earnt in Australia, as their local outposts act as distributors or resellers of their parent entity’s wares.
Some of the shows that raked in big amounts of revenue for Netflix Australia included Wednesday (Season 2), raking in 124 million global views during its debut window, Stranger Things (Season 5) generating 94 million global views and Adolescence, which generated 145 million views globally and served as one of Netflix’s strongest subscription-driver titles.
Sending revenue abroad is something tech companies like Netflix, Google and Meta have been doing for years.
For example, in Australia, only revenue from advertisers serviced by Meta’s local teams is subject to Australian tax, even though the company employs only 128 staff in the country. This allowed 87 per cent of Meta’s revenue generated in Australia to be dispersed abroad to other Meta-owned businesses.
This model isn’t illegal, so there’s no implication that Netflix, or other companies, have done anything wrong.
In Australia, Netflix currently has 78 employees, and after its offshore fees, Netflix Australia made $119 million in revenue and $20 million in profit. According to Sky News, it paid $16 million in income tax and paid a dividend of $41 million.
Over the past year Netflix has made shows such as Apple Cider Vinegar and Territory in Australia.
According to technology analyst firm Telsyte’s annual Subscription Entertainment Study, Netflix had about 6.4 million subscribers in Australia as of June last year.
The streaming giant offers three subscriptions: standard with ads; standard; and premium. These subscriptions range from $9.99 a month to $28.99 a month (excluding extra screens).
Netflix has declined to comment.
