In October 2016, Netflix, Inc. users in New Zealand are expected to get a surprise not a pleasant one sadly, as there will be a hike in the price of online foreign goods and services. This turn of events has been due to the government of the country and cannot be blamed on the companies. The indirect price jump in goods and services will greatly affect the media streaming giant.
As per the reports by New Zealand Herald Reports, the government of the Southern country is introducing goods and services tax (GST). This tax will be applied on all intangibles good, services, consumer goods etc. on all foreign websites. Most of the items that will be taxable under this law will be appliances, foreign websites, online downloads along with accounting services. Todd McClay, the revenue minister of the country stated that all the international business that are conducting their business in the region are expected to pay GST provided that their sales are or surpass the $60,000 mark in a year’s time. According to the information shared by the minister, the company will be able to generate as much as $180 million on every purchase of locals made on goods and services in a year, due to this new bill.
A number of companies are being affected by this new bill not only the video streaming media. Other international companies that are being affected by this bill are Amazon, Inc. and Apple, Inc. In the region, Netflix subscription ranges between $10 to $16 per month for the users, thanks to the GST, now it will range between $11.50 to $18.40 per month. Although, this will pose to be a major change for some of the international companies in the Southern region but for Netflix, Inc. we believe that the affect will not be so significant. The users will keep on buying the subscription and will continue to use it the way they did before the bill was passed, the sole reason of this indifference will be the variety that the social streaming service offers which include TV shows, movies as well as its own documentaries. The streaming media’s major productions have even received high praise in the region as well which includes House of Card, Narcos and The Orange is the New Black.
Netflix, in the on-demand video subscription industry, has created quite a momentum and a big name by receiving 34 Emmy nominations along with Oscar nominations. With its release, Beasts of No Nation, the streaming media giant has officially made its entry on the big screen. In other news, in Australia the company has managed to get over 2.5 million users in the first quarter of fiscal year 2015.