Calls for more local investment after Netflix reveals $1b revenue in Australia

"Its time they started giving back - clearly they afford it!" says Greens Communications spokesperson, Senator Sarah Hanson-Young.

According to media reports Netflix Australia made $1.06 billion in 2022, up from $30.7 million the year before.

The big leap in revenue comes after the company’s local subsidiary changed how it bills, the Australian Financial Review reported.

The revelation has led to more calls for investment into local content and the implementation of local content quotas.

Greens Communications spokesperson, Senator Sarah Hanson-Young said: “Another global tech giant making billions of dollars off the back of Australian households, its time they started giving back – clearly they afford it!

“We need laws fixed so some of the massive profits these tech giants make are invested back into the local industry, supporting local jobs and content.

“Today, Netflix has confirmed what we have long suspected; they are making huge profits off Aussie subscribers, and almost all of the revenue is sent overseas.

“The money spent by Australian consumers should be invested back into quality Australian content. As more and more of us choose to watch our content online, it is essential that we see our communities, culture and stories reflected back to us.

“We need quotas on streaming services like Netflix now. The Government has been promising to bring legislation on this for the past year.

“The Greens want to see a 20 per cent of local revenue quota implemented with sub quotas for children’s programming, drama and documentary and appropriate intellectual property protections for local creators.”

Screen Producers Australia has also been pushing for a 20% rule of local revenue to be spent on Australian content. The goveernment has confirmed regulation for 2024.

This week Netflix began production on a second season of Heartbreak High.

One Response

  1. Apparently Netflix Australia is a distributor of access to a Netflix service as opposed to a provider of services for its parent company, Netflix deciding to no longer funnel revenues through a Netherlands based subsidiary.
    It was previously estimated that Netflix made between $790 million and $1.4 billion, but customers were billed by Netflix International BV, but from Jan 1st were billed by Netflix Australia, because it was required to be taxed locally.
    After Netflix Australia paid $966 million to the Netflix Group in distribution fees and other costs, it made $22.7 million from total revenues of $1.06 billion. After paying $6.9 million in income tax, it reported $15.8 million profit for the year. Senator Sarah Hanson-Young may have some work ahead of her convincing Netflix of their obligations.

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