Australian Netflix users could be facing a price hike

Netflix has confirmed it is testing a change to its pricing structures, in a move that could signal a future price hike for Australian subscribers.

The streaming company admitted to quietly raising the prices for its three service tiers — basic, standard and premium — on its interface in an attempt to gauge consumer reaction to the change.

The global streaming giant’s secret test was spotted by Australian subscribers over the weekend ending May 14.

However, Netflix head office confirmed the testing was ongoing and not just limited to the weekend.

A Netflix spokesperson told The New Daily that while the pricing structure may appear to rise, no subscribers will be charged any more than the existing rate.

“We continuously test new things at Netflix and these tests typically vary in length of time,” the spokesperson said in a statement.

“In this case, we are testing slightly different price points to better understand how consumers value Netflix.

“Not everyone will see this test and we may not ever offer it generally.”

The statement did not elaborate on the number of subscribers affected.

According to The Australian, the price changes tested were as follows: the basic ­service was lifted from $8.99 a month to $9.99, the standard service from $11.99 to $13.99 and the premium service from $14.99 to $17.99.

The test comes six weeks before the implementation of what has been dubbed the “Netflix tax” – legislation charging international suppliers of digital products and services a GST of 10 per cent.

When asked whether the tax would be passed on to Australian subscribers, a Netflix spokesman said: “We collect and remit tax wherever we are legally obligated to do so”.

Originally published at The New Daily.


About Alana Mitchelson

Alana Mitchelson is a journalist based in Melbourne, Australia. Follow her on Twitter at @AlanaMitchelson.

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