Netflix pricing announced

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938 posts

Ultimate Geek

#1265579 23-Mar-2015 11:03

DaveB:
myopinion: Could Spark just setup an overseas company/office and charge from there and get around the GST? Doesn't Google do this via Ireland?

So you are suggesting that Spark avoid paying tax - i.e. government income that goes to pay for services, health, education, roading, pensions and those in need of financial assistance? It's bad enough that an American company can supply a service here for which there is a charge, and, (like some other American organisations) avoid contributing to the country from which they are taking the money out of. Tell you what ..... by your logic, lets all avoid paying tax. I wonder how long this country would last?

I think you missed my point which everyone seems to do these days...which was how out of date collecting GST is.

NonprayingMantis

6434 posts

Uber Geek

#1265580 23-Mar-2015 11:05

dafman:
NonprayingMantis:
gmball: What I find interesting, is the common misconception around GST collection.

Any overseas service provider, providing goods/services to NZ is not required to collect GST as they are subject to the tax rules of their country.

Spark will try to create uproar by suggesting that Netflix are not allowing for a 'level playing field', yet Spark would be in exactly the same position if they were to offer their Lightbox service (or any other service) to offshore customers, any NZ service provider supplying services/goods for export is not required to collect/charge GST on exported products/services.

well of course, but that's not really the issues

Im not sure how Spark can suggest this isn't a level playing field, no one is stopping them from expanding Lightbox offshore (and not collecting GST), but I suspect they already know that they wouldn't stand a chance when competing with the likes of Netflix.

spark selling something overseas is irrelevant.

the point is that when selling an NZ service to NZers, Spark have to collect GST, which effectively raises the price they charge for the end customers.

Netflix are selling what is, quite obviously, a service specifically for NZers. They are buying advertising in NZ, doing deals for NZ specific content, charging NZD, hosting content on NZ based servers, yet because they happen to have set up an office in the bahamas or wherever, they avoid having to charge a higher price for their product.

It is, of course, totally legal what Netflix is doing, but it definitely is not a level playing field. Hence why Spark are lobbying for GST reform.
It's already happened in the UK to an extent (within the EU)
http://www.wired.co.uk/news/archive/2014-03/24/vat-loophole-to-close

" Companies such as Amazon, Microsoft, Google and Apple will no longer be able to exploit a tax loophole that lowered the cost of online purchases of apps, ebooks and music from January 2015. These companies are able to offer reduced prices by leveraging their global footprint. By basing digital content services in Luxembourg, companies have been able to benefit from the more attractive rates of VAT there -- just three percent for digital services like ebooks (although its standard rate is 15 percent). This is much cheaper than the UK's VAT rate (20 percent) and the rate in many other European markets -- generally between 15 percent and 20 percent."

Good on Spark for lobbying. However, they can't really cry foul - they would have (should have) known before committing to Lightbox that Netflix would be operating without a GST requirement in when it launched.

I don't think it's crying 'foul' They aren't claiming that Netflix are doing anything illegal.

They are simply saying the law should be changed to make it so that what is functionally an identical service should attract the same taxation. i.e. a service provides to NZers in NZ, buying a service exclusively for Nzers, in NZD, where the product (the content) is also hosted on NZ servers, should pay GST. Seems totally reasonable to me that if Lightbox attracts GST, so should Netflix.

The question abotu whether Lightbox could incorporate overseas is an interesting one. Maybe they could sell Lightbox to an entity like Southern Cross (which is incorporated in Bermuda I think) and then they could avoid GST just like Netflix.

However if they did that, imagine the outcry amongst the public about how Spark are 'evil tax-avoiding corporate money grabbers'.

Dairyxox

1594 posts

Uber Geek

#1265604 23-Mar-2015 11:32

I dont really like the new pricing model:

US 7.99 for basic (1 stream, not full HD)
US 8.99 for next tier (2 streams, HD)

An extra 1US Dollar, translates somehow to an extra 3NZD for the same upgrade for NZ pricing.

Finch

2851 posts

Uber Geek

#1265633 23-Mar-2015 11:55

Morning everyone.

I have never used Netflix, but I am somewhat interested.

Could somebody please explain what the difference is between the plans/pricing

Single-stream standard definition plan for $9.99.
Two-stream high-definition plan for $12.99.
Four-stream 4K ultra-high definition "family" plan for $15.99.

What does it mean by single, two, four stream? I can only stream on one device at a time or only one device at all times? I think I would be after the $13 plan because I would be able to stream on my phone and my TV in HD, is this correct?

Thanks.

PS: Is there any companies out there offering unlimited Netflix streaming? I think Vodafone partnered up with them?

Kickass

292 posts

Ultimate Geek

#1265637 23-Mar-2015 12:01

If you go to

www.netflix.com/addplan

you can view all NZ content by searching in the top corner (you may need a US account that is logged in to do this).

NonprayingMantis

6434 posts

Uber Geek

#1265638 23-Mar-2015 12:01

Finch: Morning everyone.

I have never used Netflix, but I am somewhat interested.

Could somebody please explain what the difference is between the plans/pricing

Single-stream standard definition plan for $9.99.
Two-stream high-definition plan for $12.99.
Four-stream 4K ultra-high definition "family" plan for $15.99.

What does it mean by single, two, four stream? I can only stream on one device at a time or only one device at all times? I think I would be after the $13 plan because I would be able to stream on my phone and my TV in HD, is this correct?

Thanks.

PS: Is there any companies out there offering unlimited Netflix streaming? I think Vodafone partnered up with them?

it means how many concurrent streams you can watch.

so, if it's just you, you will only ever be watchign one stream at a time.

If you have a large family, (and a good enough broadband connection) you might conceivably need to have 3-4 streams going at the same time e.g. you watching something on the ipad, wife watching something on the TV, kids watching on their laptops.

Are there any companies offering unlimited streaming? - yes. Netflix are offering unlimited streaming.

You should avoid that VF offer like the plague - it's not good value at all, and you are forced to keep it for 2 years! Just subscribe separately and pay the $13 per month for 2 streams with HD. Much more sensible.

BarTender

3606 posts

Uber Geek

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Lifetime subscriber

#1265644 23-Mar-2015 12:07

NonprayingMantis: it means how many concurrent streams you can watch.

so, if it's just you, you will only ever be watchign one stream at a time.

If you have a large family, (and a good enough broadband connection) you might conceivably need to have 3-4 streams going at the same time e.g. you watching something on the ipad, wife watching something on the TV, kids watching on their laptops.

Are there any companies offering unlimited streaming? - yes. Netflix are offering unlimited streaming.

You should avoid that VF offer like the plague - it's not good value at all, and you are forced to keep it for 2 years! Just subscribe separately and pay the $13 per month for 2 streams with HD. Much more sensible.

A few things to be aware of with the concurrent streams. You can only stream them from the same IP Address, so if for example you were streaming on your mobile over 3G/4G and trying to stream from home that won't work since the two requests will be coming from a different IP Address.

In regards to unlimited streaming, I suspect he meant zero rated streaming. As such I don't think any ISPs are offering to zero rate Netflix traffic (anyone say Net Neutrality). However the vast majority of ISPs offer unlimited plans. So you would probably need to move to one.

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nathan

5695 posts

Uber Geek
Inactive user

#1265649 23-Mar-2015 12:10

Finch: Morning everyone.

I have never used Netflix, but I am somewhat interested.

Could somebody please explain what the difference is between the plans/pricing

Single-stream standard definition plan for $9.99.
Two-stream high-definition plan for $12.99.
Four-stream 4K ultra-high definition "family" plan for $15.99.

What does it mean by single, two, four stream? I can only stream on one device at a time or only one device at all times? I think I would be after the $13 plan because I would be able to stream on my phone and my TV in HD, is this correct?

Thanks.

PS: Is there any companies out there offering unlimited Netflix streaming? I think Vodafone partnered up with them?

yes it means concurrent devices

old3eyes

9120 posts

Uber Geek

Subscriber

#1265664 23-Mar-2015 12:31

reven: pricing is good, about $1 more expensive than the US (at current exchange rate) but you factor in sales tax/gst and its pretty much even.

EDIT: ok, they aren't collecting GST, but still some states they are charging sales tax, so still nearly even.

Sales tax in the US is from zero to 9.5% depending in what state you live in..

Regards,

Old3eyes

tdgeek

29753 posts

Uber Geek

Trusted

Lifetime subscriber

#1265669 23-Mar-2015 12:37

BarTender: As such I don't think any ISPs are offering to zero rate Netflix traffic (anyone say Net Neutrality). However the vast majority of ISPs offer unlimited plans. So you would probably need to move to one.

Unlimited BB is getting to be common and low cost, that takes care of zero rating

TyroneB

126 posts

Master Geek

#1265682 23-Mar-2015 12:52

Can confirm that that search does work and doesn't need an account. Some interesting animes there.

No a lot of recent shows though. :(

qyiet

454 posts

Ultimate Geek

Trusted

#1265700 23-Mar-2015 13:12

BarTender:
A few things to be aware of with the concurrent streams. You can only stream them from the same IP Address, so if for example you were streaming on your mobile over 3G/4G and trying to stream from home that won't work since the two requests will be coming from a different IP Address.

That may be the case with some services, but with Netflix I frequently have two streams being accessed from different public IP addresses with no issues.

Warning: reality may differ from above post

trig42

5815 posts

Uber Geek

ID Verified

#1265701 23-Mar-2015 13:13

Netflix doesn't do recent shows (unless they are their own - like House of Cards, Orange is the New Black). If you want new shows, you need Hulu.

Netflix generally gets them a year after they have been on TV (or about when the DVDs come out).

TyroneB

126 posts

Master Geek

#1265724 23-Mar-2015 13:29

Doesn't seem like they new movies either.

Is this just a sky situation with all old content?

trig42

5815 posts

Uber Geek

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#1265749 23-Mar-2015 13:37

Yep, but a lot cheaper than Sky. And you can watch when you want.

The people that thought Netflix was bringing New Release titles have been misled. That is not their business model (hence why the price starts at $10 a month).

Lightbox is the same.

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