This should increase pressure on Google, Amazon, Facebook and other international companies that do not report local revenues.
“As Netflix continues to grow and invest in Australia, we want our corporate structure to reflect our business activities here. subscription generated in Australia will be recognized in Australia,” a Netflix spokesperson said.
According to documents filed by the Australian Securities and Investments Commission, in 2020 Netflix reported an after-tax profit of $878,234 on revenue of $20.54 million. But he only paid around $550,000 in tax in Australia despite estimates that his local subscriptions generated more than $1 billion in revenue.
Netflix does not disclose the number of subscribers it has in this country, but the Australian tax authority would have an understanding of the figures based on the GST paid by Netflix International BV.
In September 2021, Telsyte’s 2021 Australian Entertainment Subscription Study estimated that Netflix had 6 million Australian subscribers.
Netflix offers customers three tiers of membership, which as of September 2020 were priced at $10.99, $15.99, or $19.99 per month.
Using subscriber estimates as a guide, Netflix Australia could have earned anywhere from around $790 million to potentially over $1.4 billion, depending on its subscriber count in each of the membership tiers. Netflix Australia will have to start paying the Netherlands a service fee, as it received one when Australian subscriber revenue was routed through that country.
Netflix has moved to change its corporate structure in a number of its international markets, with Britain and Spain converting to a local entity structure late last year, and Mexico earlier. This year.
The streaming giant has also decided to offer a more transparent look at how its content is performing, launching a Netflix Top10 website that breaks down the top 10 movies and TV series by hours watched. Previously, it counted viewership by measuring the number of accounts that viewed a title, with a view counting whether a subscriber streamed at least two minutes of a show or movie.
In fiscal 2020, major streaming entertainment services, including Netflix, invested nearly $270 million in Australian content, according to the first SVOD Australian Content Investment Report from Australian Communications and Media Authority published in August.
The figure included Australian content and Australia-related productions, which include shows filmed here but not filmed in the country, such as Netflix. Clickbait. It was a $50 million production filmed in Melbourne, with the show set in the United States.
Netflix’s Upcoming Local Originals Include The Rebooted Raised from heartache, young adult drama series Gymnastics Academy: A Second Chance!, the true story of jessica watson True Spirit, fish out of water drama series Irreverent, and drama series Survive the summer.
New, owner of The Australian Financial analysis, owns subscription video-on-demand service Stan, a local Netflix rival.