Netflix have confirmed they will be increasing the price of streaming plans for all Australian customers by the end of July.
While the news coincides with the launch of the ‘Netflix Tax’ on July 1, which requires 10% GST to be applied to digital products, the price increase for two of Netflix’s three streaming plans goes beyond a simple 10% rise.
The ‘basic’ plan offering standard definition video on a single device will increase roughly in line with the 10% GST from $8.99 to $9.99, while the ‘standard’ plan, which features HD video on up to two devices, increases by 16.7% from $11.99 to $13.99
However the biggest increase is for Netflix’s ‘premium’ plan that supports 4K Ultra HD on up to four devices, which will increase by 20% from $14.99 to $17.99, an increase twice as big as required by the introduction of the ‘Netflix Tax’.
“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,” a Netflix spokesperson said in a statement (via The Sydney Morning Herald).
“We also adjust plans and pricing to respond to local market changes, such as tax or regulatory changes. Since launching in Australia in 2015, we have not changed pricing. In light of the upcoming GST increase, we will be rolling out updated plans and pricing starting June 28 in Australia.”
Netflix had previously tested the price increases to select Australian customers in May.
The price increases are already reflected on the Netflix website for new customers. Netflix said existing members will receive 30 day notices of the price change “from June 29 onward”.
