Published: Tue, May 16, 2017
Economy | By Melissa Porter

Netflix is Testing Price Hikes

The price rises are only targeting Aussie subscribers right now and are wound back on Mondays.

In a bid to cover the taxes, Netflix might charge its Australian subscribers an increase of up to 20 per cent on its price offerings.

However there is speculation that a new tax imposed on the streaming service by the Australian government could be passed on to customers.

It has not been confirmed, however, if users in other markets will be included in the tests.

While earlier reports by The Australian newspaper suggested that Netflix is testing price increases that would only be implemented on weekends (with prices returning to normal during weekdays), the company denied that interpretation of its recent tests.

Could a price hike from Netflix be a way of recouping some of the costs associated with administrating GST?

"We continuously test new things at Netflix and these tests typically vary in length of time", the company said in a statement. "Not everyone will see this test and we may not ever offer it generally".

Legislation introduced by Treasurer Scott Morrison will see digital goods such as e-books, games, apps and subscription streaming services - such at Netflix - from overseas providers attract the Goods and Services Tax as of the new financial year.

What the exact point of this endeavor is remains to be seen, but Netflix says it hasn't made any permanent decisions on different price points.

Also, a Netflix spokesperson was quoted saying that even though the pricing seemed to have lifted up during the weekend, i.e. on May 13th and 14th, no subscribers were charged higher than the current rate.

This latest move could further alienate Netflix down under and push more users towards Australian-based streaming services like Stan.

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