03 July 2017

Cheapest plan now offers SD streaming only

LAST week Netflix users were met with a surprise when the streaming service increased the cost for subscribers.

The price increase coincided with the government’s so-called “Netflix tax”, which stipulated GST be applied to international suppliers of digital products and services such as streaming platforms.

While only required to increase its pricing structure by 10 per cent, Netflix updated one tier of its service by more than 20 per cent.

When asked about the decision to increase the prices more than the required amount, Netflix said it was all about offering a better service to its customers.

“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” a Netflix spokesman told news.com.au.

Despite being an Australian-based services and already paying GST, streaming service Stan had no requirement to comply with the Netflix Tax.

Stan has added a new tier and increased its pricing.

Stan has added a new tier and increased its pricing.Source:Supplied

Yet, the Australian platform has followed the lead of its competitor and bumped its prices, while also adding a new tier to its pricing structure.

Stan has increased its Standard plan by 20 per cent, which takes it from $10 per month to $12 per month — the package will offer two simultaneous HD streams.

In an attempt to keep the attractive $10 entry-level price point, a Basic plan has also been added to the service, although it will only offer one stream in standard definition.

It is unclear at this stage whether existing customers wanting content in HD will have to pay an extra $2 per month for the benefit of HD streaming.

The company’s Premium plan — offering four simultaneous HD streams and 4K resolutions for select content — will remain at $15 per month.

News.com.au has contacted Stan for comment.

Are you upset by these pricing structures? Continue the conversation in the comments below or with Matthew Dunn on Facebook and Twitter.

Netflix’s subscriber additions jumped in the fourth quarter, thanks to an aggressive international expansion. WSJ’s Lee Hawkins explains. Photo: Daniel Acker/Bloomberg News

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