Netflix's extreme price increase leaves people outraged
The Netflix tax is almost here with Australians set to pay up to 20 per cent more to stream their beloved TV shows and movies, and people aren’t happy.
After months of "tests", the streaming service is given it’s prices a hike, with the new prices taking effect from today, June 28 for new sign ups.
A Netflix spokesman said existing customers will receive an email on Wednesday informing them of a 30 day notice period before prices increase.
The tax is being introduced after a new 10 per cent GST tax was announced for digital content such as online video, games, apps and e-books.
This will be the first increase Netflix has issued in its prices since launching locally in 2015.
Australia's single-user standard-definition Netflix plan will rise from $1 to $9.99 per month including GST.
The two-user HD plan increases $2 to $13.99 and the four-user Ultra HD plan jumps $3 to $17.99, an increase of 20 per cent.
The online service began testing the water last month to see how Australians would react to the increases.
Australian subscribers will only be offered a 30-day grace period before the price hike kicks in, unlike US users who were given up to 24 months in the fear of a backlash.
US users also have access to a considerably larger Netflix library than Australian subscribers.
GST tax set for other digital content is set to be implemented next year.
People have taken to social media to vent their frustration at the price hike, and the digital tax overall.
Some have even suggested it will re-ignite the issue of piracy.
However, some people are prepared to cop the increase given the difference in cost compared to other TV and movie services.
