Presto applauds Government move to force US streaming rival Netflix to pay GST
Foxtel streaming service Presto has welcomed the Government’s plan to force US rival Netflix to pay Goods and Services tax (GST) after insisting it was “critical” all players operate by the same rules.
Treasurer Joe Hockey yesterday confirmed draft legislation for the so-called “Netflix tax” will be released in tonight’s budget, although it is unlikely to take effect for several months.
Netflix said there was “still a distance to go” before any proposed taxes would be introduced and declined to comment on “something that hasn’t been confirmed yet”.
A spokesman added: “Netflix has been and will be compliant with all applicable laws and regulations, and pay taxes as required under local and national law.”
Hey Presto, now its a level playing field (lol), how about you bring HD and Stereo sound to your offering?
Sure, let’s level the playing field. Once the price of admission to selling direct to Australia from overseas is the collection of a little bit of tax see if more foreign companies won’t cannibalise local businesses (e.g. those here will move offshore to take advantage of labour cost efficiencies).
They’re fiddling while Rome burns around them.
Rupert.
For years Foxtel have had consumers over a barrel and have done nothing to make pay TV an easier, cheaper or a better experience. It only launched Presto in response to Netflix’s arrival…why did it take so long? Because it was milking us for every cent until competitive forces finally forced its hand. What a massively cynical business, in the image of the man/men behind it. I will never sign up.
I hope Netflix wipe the floor with these bloated incumbents (and pay their dues along the way, of course).
You know your business is f**ked when you’re cheering at your competitor having to charge $1 more.
My prediction. Quickflix to go within 1-2 years, with Presto following soon after. Stan will constantly struggle while Netflix will continue to absolutely dominate. Ive got my fingers crossed that this finally damages Foxtel – its been a monopoly for too long and Aussies are over it.
Gotta love how in touch this government is. For more than a year people have been complaining about the “Australia tax” where digital content here is more expensive than overseas. So what does the government do? They make it even more expensive!
Sorry Presto and Stan but Netflix isn’t even on the same playing field, while you guys were arguing over who gets to bat first Netflix has taken the rest of us to the pub for celebratory drinks.