Last year, Netflix cut its base price in India to accommodate a 15% service tax. Now that GST has been implemented, that tax has been increased from 15% to 18%. And again, Netflix has silently absorbed the tax, without changing its total pricing. The most expensive plan, which cost ₹695 before taxes, is now priced at ₹678, with other plans undergoing similar adjusted cuts. As a result, Netflix's revenue per user has gone down by 2.5% in India. It's unclear whether this price change is temporary; the company may increase its pricing slightly to adjust for this loss. Netflix didn't have any immediate comment to offer -- we'll update this post if they provide a statement. Incidentally, Australia started levying tax for cross-border digital services on July 1, on the same date as Netflix's price cut in India. But in Australia, right before this tax was implemented, Netflix hiked prices by 20%, even though the tax was only 10%. MediaNama has asked Netflix about its reasoning for this difference in approach. Australia isn't the only country where Netflix has passed on the tax burden to subscribers; last year, the company did the same thing for its subscribers in New Zealand, when that country's GST came into effect. In New Zealand's case, however, Netflix's price hike was pretty much equal to the tax rate. While Netflix has maintained that it won't change how much the service costs in India, it now looks like the company is as unwilling to increase prices as it is hesitant to…
- Digital India bill to be released post elections: IT Minister Rajeev Chandrasekhar says November 30, 2023
- How Will India’s Draft Broadcasting Services Regulation Bill Impact News Platforms? November 30, 2023
- Video: Briefing on the Impact of Draft Criminal Laws on the Digital Ecosystem November 30, 2023
- How Is Deepfake Regulation Linked To Platform Safe Harbour Provisions? November 30, 2023
- Final Call: Impact of Draft Criminal Laws on the Digital Ecosystem; Nov 30, 3:30 PM November 30, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...