Report: Govt drops budget plans to hit Netflix
Broadcasters looking for a 'level playing field' could be waiting longer, according to news reports.
- Published by David Knox
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- Filed under Streaming
The federal government has reportedly backed away from plans to add a fee onto goods bought from overseas internet retailers, despite broadcaster complaints that Netflix has been able to undercut other players such as Stan and Presto.
There have been suggestions the Federal Budget would add the fee to help create a level playing field between Australian businesses and overseas companies, but there were concerns it would be seen as unpopular with consumers.
According to News Corp the move was dumped in favour of working out a longer-term solution with the states.
But Senator Nick Xenophon said the government had “missed an opportunity to level the playing field for small retailers, and with it supporting jobs for small businesses.”
Last week FreeTV Australia’s chairman Harold Mitchell also told SKY News Business, “Free TV, Foxtel, everyone wants a level playing field.
“There’s a new budget coming up and I think the Treasurer is onto this, I’d have to say.”
He also made an unfortunate analogy likening Netflix as a fad, asking host Tom Switzer:
“Do you remember when you got your first Monopoly set all those years ago? The whole weekend you played Monopoly?
“Six months later where was the box of Monopoly? I think that’s a bit like Netflix.”
8 Responses
What a stupid comment by Harold Mitchell.
I hadn’t realised that he’d used Monopoly as the fad analogy. That is hilarious. So not only is he completely unaware of the incoming tide washing around his shins but he would appear to be incapable of introspection while he repeatedly bleats about trying to maintain the effective monopoly that FreeTV Australia have enjoyed for decades.
Seriously, provide a competitive product or perish.
I think Harold has lost the plot. Netflix US have had YoY growth every year since they launched the streaming service. It’s definitely not a fad, and the sooner FreeTV realise that their business model is not much more sustainable that the newspaper industry, the better.
Oh, the arrogance Harrold, more like broadcast television is turning more into a fad!
I find all this monopoly talk rather amusing seeing as they’ve had one for so long.
Hence the “unfortunate analogy” observed.
To be fair, they probably _should_ be subject to GST – it’s pretty much a fundamental tenet of GST laws in Aus or worldwide that goods or services are considered to be ‘purchased’ at the location of the consumer. Strictly speaking, GST should apply to all new goods/services purchased overseas when they are brought into the country – the only thing that prevents that in the case of individuals is that it’s considered not worth the money to chase it.
“Six months later where was the box of Monopoly? I think that’s a bit like Netflix.”
Yeah, you just keep thinking that Harry…
Ask anyone in the US if they think Netflix is a fad or not…