Netflix pricing announced

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jonathan18

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#169684 23-Mar-2015 08:53

From NZ Herald:

Netflix has announced its pricing plan ahead of its New Zealand launch tomorrow. New Zealanders will be able to access films and TV shows from the online streaming service from $9.99 a month. Netflix, which has nearly 50 million subscribers across nearly 50 countries, will offer a one-month trial of its content for those who sign up. Prices range from:

• 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.

Netflix will be available on a range of devices, including smart TVs, Apple devices, and gaming platforms; exclusive shows inlcude Bloodline, Marco Polo, Sense8 and Unbreakable Kimmy Schmidt, and in the coming months there will be Marvel's Daredevil, Sense8 and Crouching Tiger, Hidden Dragon II: The Green Destiny. Also available will be all seasons of Lost, Star Wars: The Clone Wars, Broadchurch, The Tunnel and Chris Lilley comedy shows Ja'mie: Private School Girl, Summer Heights High and We Can Be Heroes.

READ MORE
• Netflix joins forces with Vodafone for NZ launch
• NZ 'joins the Netflix family' - but where's House of Cards?
• Binge on this: Getting the Netflix NZ hard-sell

Movies include The Matrix, Ocean's and Lord of the Rings trilogies, Happy Feet, Wedding Crashers, Cars, Monsters Inc, Up and Zoolander. Members can also catch up on seasons one and two of the critically-acclaimed series Orange is the New Black. Season three will premiere June 12 exclusively on Netflix.

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#1265453 23-Mar-2015 09:03

the $12.99 plan is most comparable to Lightbox in terms of stream quality (2 streams, HD).
the $12.99 is GST exclusive (Netflix are not collecting GST)

Interestingly, if they were collecting GST, then $12.99 plus GST would be $14.93, almost exactly the same price as Lightbox ($15).

reven

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#1265454 23-Mar-2015 09:04

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.

NonprayingMantis

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#1265455 23-Mar-2015 09:05

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.

there is no GST. Netflix aren't collecting it.

Inphinity

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#1265462 23-Mar-2015 09:13

jonathan18: Members can also catch up on seasons one and two of the critically-acclaimed series Orange is the New Black. Season three will premiere June 12 exclusively on Netflix.

Curiously, Netflix had previously said neither House of Cards nor OitNB would be available on Netflix NZ as they were already licensed to other distributors here.

jonathan18

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#1265465 23-Mar-2015 09:15

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.

The other factor is that those of us paying for US Netflix are at the mercy of changes in the exchange rate, and so the cost has certainly gone up over the past few months (though luckily I'm on the grandparented rate, though can't remember how long this lasts).

Once the pricing is released and in place for NZ, Netflix won't be quick to increase it so should the NZ$ continue to drop it's feasible that at some stage it'll be cheaper to subscribe to the NZ service (and continuing to pay for a DNS or VPN service would still be worth it, given it ensures access to world-wide content).

reven

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#1265469 23-Mar-2015 09:19

jonathan18:
Once the pricing is released and in place for NZ, Netflix won't be quick to increase it so should the NZ$ continue to drop it's feasible that at some stage it'll be cheaper to subscribe to the NZ service (and continuing to pay for a DNS or VPN service would still be worth it, given it ensures access to world-wide content).

thats my thinking as well, sign up to get free month trial (and use my much short .co.nz email address, instead of my long gmail one, annoying to enter via onscreen keyboards on tvs :)) and just access via unotelly for the foreseeable future.

That will also have the added benefit of clearing out my default profile which is filled with kids + my viewing habits and setup profiles properly from the start.

gmball

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#1265488 23-Mar-2015 09:32

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.

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.

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NonprayingMantis

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#1265493 23-Mar-2015 09:41

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."

dafman

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#1265507 23-Mar-2015 09:51

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.

myopinion

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#1265519 23-Mar-2015 10:00

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

1101

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#1265570 23-Mar-2015 10:43

NonprayingMantis:
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.

all irrelevant surely
We are buying the product from the us/bahamas/where-ever. The product is sent to us (sort of , they allow access) from the US/wherever.
If we buy a plane ticket, online, from the US, for a plane ride in the US, we wouldnt pay gst on that either . Just because a company has a special deal/product targeted at NZers doesnt change anything.

Any rule that NZ govt makes over these gst charges, is completely unenforceable in another country.

DaveB

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#1265573 23-Mar-2015 10:50

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?