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Report: Budget to hit Netflix after all

...it's the latest plot twist in the push for a level playing field.

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2015-05-07_1038

Contradicting an earlier report that it was off the table, media today suggest the federal government will indeed impose a goods and services fee to online retail in next week’s Budget.

Fairfax reports it would apply to imports such as downloaded books, music, videos and software, effectively increasing a Netflix subscription by 10 per cent.

At the moment Netflix undercuts its rivals thanks to being a company located overseas.

Australian-based companies such as Fairfax / Nine-owned Stan and Foxtel / Seven-owned Presto as well as Free TV Australia have been pushing for a “level playing field” in the newly-competitive streaming content market.

Watch this space…

14 Responses

  2. Okay what I don’t get is the local Netflix is run in Australia and is a service so shouldn’t it already have the GST?

    Doesn’t Foxtel and the likes of iTunes music store already have GST built into there prices?

  3. I subscribe to both Netflix and Stan ignoring Presto (SD only). Would love to have Stan on more devices instead of a complicated streaming via Airplay. The GST will not make any difference for me.

    1. I very much doubt that any of the others will be raising their prices since basic Netflix with GST added will still be a little less than they are currently.
      NF – $8.99 + GST = $9.89
      Stan – $10
      Presto single service – $9.99
      Quickflix – $9.99

  5. Will be interesting to see the response from Netflix is if the Fed Govt does go through with taxing them. Netflix may absorb the cost so as to still set themselves apart from the local SVOD competitors, they have enough clout to do so? Until Stan becomes available on a wider variety of devices and Presto remains fixated with SD only, Netflix still wins hands down, even with a GST applied!!

  6. That’s if Netflix doesn’t pull a fast one and reduces their prices so that factoring in GST means full pricing remains the same!

  7. Funny how it wasn’t a “newly-competitive streaming content market” until the local oligopoly was upset by a well-established overseas competitor stepping in, isnt it?

    Yeah, thanks, but no thanks guys. The problem you have isn’t that Netflix is 10% cheaper than you – it’s that your customers know you, and know exactly how you behave and what you’re like.

    Satan himself could start up a streaming video service and many would still chose his offering over yours…

  9. I already subscribe to Foxtel (platinum HD package), Stan and Netflix (2 screen package) so I’m not happy to hear that because Netflix will have to start paying taxes they will increase subscription costs. Once again we see companies passing costs onto customers instead of taking it on themselves by reducing their profit margin.

    1. OMG…..I just watch FTA and have enough trouble keeping up with everything I want to watch…if I had all those services as well….not sure where I would fit sleeping in… 🙂

      1. To be honest my Foxtel IQ3 and my PVR (yes I have an additional PVR as I like to keep my FTA shows separate to my STV shows 😛 ) have pages of shows to watch but you’re right, there is just too much good stuff to watch and not enough time. But, that is what Summer Non-Ratings are for :p

  10. Level playing field right. They just want us to pay more for Netflix in the hope that it will discourage us.

    Nice try, I’ll give Netflix my extra money any day before I waste a cent on Foxtel presto or Stan.

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