Netflix Prices Going Up: What Are the New Prices for Australians?
Netflix subscription prices are going up in Australia as the government will begin implementing a 20 percent tax scheme for all digital products, goods and services beginning July 1. This price increase has been debated and discussed among consumers for months and the streaming platform finally released its confirmed new prices Wednesday.
By July 1, entry-level Netflix subscribers paying for an $8.99 plan will have to pay $9.99 a month. Those with an $11.99 subscription plan will have to pay $13.99 under the new scheme. Those under the premium plan for $14.99, on the other hand, will have to shell out $17.99 monthly. The increases reflect $1, $2, and $3, respectively, per subscription level.
Ten percent of the Goods and Services Tax (GST) will go to the government while Netflix will reap from the extras of the price hike. The company first did a trial price hike in May that only selected consumers saw. Netflix, however, confirmed the new price scheme will soon be reflected for all subscribers.
Netflix justified the price increase in Australia with a promise that subscribers will still get to enjoy more original programs from the service. "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," according to a spokesperson. The company also pointed out it hasn't introduced any price changes since the service launched in the country in 2015.
Subscriber reactions have been divided. While some complain about the new rates, others say the price remains relatively cheaper than similar services like Foxtel.
In the US, Netflix's $2 price increase test resulted in loss of subscribers. The move came as some states were also considering adapting the same digital goods and services tax measures as Australia. The decision has been deferred pending better reviews of schemes and guidelines.
