Netflix says it can’t do anything about Aussies accessing US site, while being coy on GST issue
Hastings speaking at last night’s Netflix launch event in Sydney. Credit: Dan Barrett/ Televised Revolution
Netflix has claimed it is powerless to move the hundreds of thousands of Australians who are currently using virtual private networks (VPNs) to access the American library of the streaming service across to their newly launched Australian library.
In an interview with Sky News Business Reed Hastings, CEO of Netflix, acknowledged that the US streaming giant could enforce rules around only using American credit cards on the US version of the site but argued that consumers would just find other work arounds.
“You can pay with anything, you can pay with a gift card, you can pay with Paypal, so there is no effective block around payment method that works,” said Hastings, when challenged by host Helen Dalley about why the US video streaming giant refused to do more to combat the 200,000-300,000 Australians who use VPNs to circumvent geo-blocks which are designed to enforce existing local licence agreements.
Fun Fact
If you log into the Aussie Netflix using a VPN you can still get the US catalog.
Have anyone ever confirmed that 200-300,000 number? I doubt it, because it’s totally untrue. But then never let the truth get in the way of a good svod story.
@Hank Steakfist: exactly, this article focuses on only half the story. I’m a former US account holder who has just changed to an AU account for not much other than “neatness” (can use my preferred credit card for payment, and no longer have to set up separate overseas Nintendo, Sony and Apple IDs to download the Netflix app on my respective devices), but have retained VPN capability for the content flexibiity.
People will still use VPN’s until the content is the same in all countries, and I suspect they will play around with the country the IP address shows they are from to access various countries to see which content they want. I definitely will anyways…I already do in fact.
And the thing is – its perfectly legal! I am still paying, I am not stealing. And surely that’s the main point isn’t it?
So where is Aussie’s Google tax?
http://m.bbc.com/news/business-31942639
There really isn’t much Netflix can do. We live in a time where someone with very little technical expertise can spin up their own VPN service anywhere in the world, with a couple of mouse clicks. A couple more, and they can change its IP to another block entirely.
What could Netflix do? More importantly, why should they do it?
The fact is that Netflix runs two alternate subscription bases worldwide, one in the local territory and another via VPNs. People all over the world and not just Australia are using the VPNs and this suits Netflix. And again Netflix Australia is a foreign registered company with a domicile I think in Ireland. So it is really just another tax evader, no GST, no corporate taxes. If it got 300,000 subscribers that is $27million/annum in GST the Federal government doesn’t receive And unlike free to air and PAYTV it has no Australian content obligations whatsoever. The Producer Association is piss weak in welcoming them. It should be berating them as a rogue operator with little intention to contribute to the local industry.
Mmm… Perhaps Netflix could put some of that GST they don’t have to pay into a grants and funding pot to develop Aust writers. Screen Aust and Freemantle doing but Netflix could do as good will.
I dont understand why articles like this skirt around the real issue.
Netflix dont care who/what/where someone accesses their content from, as long as they pay for it.
The truth is, Netflix ONLY geoblock their content to appease the content owners and their backward regional based approach to content rights.
If they could let everyone have full access to their libraries tomorrow, they would.
Dole bludgers, single mothers on welfare and Netflix are the ones responsible for Australia’s fiscal challenges.
Anyone talking jobs or tax as an argument may as well stand alongside King Kunut and try and help him hold back the tide. The fact of the matter is, Netflix has the model. And it’s a global one. End of story. Anyone still paddling around in the regionally based, rights managed world is about to drown. Same goes for any CEO or MD whining about tighter legislation around content. You’ve already lost mate. Legislation is not a business model and anyone clinging to it ain’t going to last long either. Local content providers (Foxtel et al) have enjoyed a boon of overpriced, average quality stuff for a decade plus. And they saw the threat coming at least five years ago, but ostensibly did nothing because times were good and they were making shed loads of money for old rope. Time’s up. People now have options, legal ones, and the time you had to meet that threat has long since past.
Netflix should pay GST and Income Tax to Australia – otherwise this $20 billion multinational corporation will syphon huge taxpayer funds out of Australia which are much needed to provide our citizens with health, education, infrastructure…and an $35 billion NBN (which will greatly increase Netflix’s profits – at great cost to the taxpayer – no cost to Netflix) – why should Aussie taxpayers pay for Netflix’s greed?
Not entirely true…they could stop accepting Aussie credit cards. It would be very easy to implement. Yes that could be circumvented by some well connected people, but Anti Money Laundering rules would make it difficult.
I will probably get stan , netflix or both.the main reason I’ve pirated is so I can watch TV shows on iPad when I’m out in the middle of nowhere ( half the time) with no internet connection. Can I record shows off stan,netflix to watch later? It’s all about the binge for me
Global companies like Google, Apple and now Netflix have put chains around the ATO and the Govt’s FTA’s have added the padlocks. The ATO’s lock-picking allowance has also been cut. To find out who will be making up the taxation shortfall, look in the mirror. Google, Apple et al are no longer tax-collectors.
The more people that use VPN’s to bypass geo-blocking will only increase Netfix’s argument for Global Licensing deals.
I don’t understand why they don’t just launch Netflix GLOBAL and have everybody head over to the same place – and pay the same price to watch the SAME content! Until Aussie Netflix gives us a better selection – I’l keep using http://www.getflix.com.au to gain full access to the American version.
The “Netflix” tax is likely to be part of next month’s federal budget. Australian Communications Minister said, “The Copyright Act does not make it illegal to use a VPN to access overseas content”. So like before I will use a VPN service like PureVPN, hma, hola etc to access Netflix. It wont track my ip so no tax!
It’s a free site that allows you to ad in your browser the select a country example USA then creat an netflix account and enjoy the rest of the 7000 new realeses movies . Site is called Hola.org enjoy …. The legend