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Netflix to impose digital tax, increase price from Jan 9, 2020

Netflix will likely be revising the worth of its Primary plan from RM33 to RM35, Normal from RM42 to RM45 and Premium from RM51 to RM55 beginning Jan 9, subsequent yr.

The worth of its mobile-only subscription plan will stay at RM17 a month.

The corporate’s head of communications for South-East Asia, Leigh Wong, mentioned the brand new worth additionally displays the 6% digital tax on international service suppliers, however added that the “the timing is coincidental”.

“Tax is barely a part of our pricing. We aren’t adjusting this solely on the idea of tax,” he mentioned.

That is the primary time Netflix has elevated the worth of its plans because the service was launched in Malaysia in January 2016, he mentioned.

“Present Netflix subscribers will likely be notified from Jan 9 onwards on a rolling foundation. Customers will get no less than a one-month discover in regards to the worth change,” he informed The Star.

“They are going to be knowledgeable that the brand new costs will likely be mirrored within the subsequent billing cycle.”

Wong mentioned the worth adjustment will permit Netflix to proceed investing closely in higher content material and consumer expertise.

“For instance, we’ve to proceed to enhance our knowledge compression or adaptive streaming know-how,” he mentioned.

Wong mentioned viewers use much less knowledge for streaming on Netflix, claiming {that a} 1GB will permit them to observe as much as 6.5 hours of content material.

“Customers can watch The Irishman (Martin Scorsese’s three-hour mob drama) twice or catch a whole season of Strangers Issues,” he mentioned.

Netflix additionally plans to announce worth changes in Singapore, Wong mentioned.

The Primary plan permits clients to observe Netflix on one display in SD (normal definition), Primary in HD (excessive definition) on as much as two screens concurrently, and Premium in UHD (extremely excessive definition) on as much as 4 screens on the similar time.

Different firms have additionally introduced they are going to be charging 6% tax – Google Malaysia on its Gsuite providers, Sony on its Playstaion Retailer, and Fb for its advertisements.

The federal government first introduced {that a} 6% digital tax will likely be imposed on international service suppliers efficient Jan 1,2020, finally yr’s Finances tabling.

Registration for international service suppliers is necessary when the overall worth of digital providers supplied to customers in Malaysia exceeds RM500,000 per yr.

In keeping with the Royal Malaysian Customs Division’s Service Tax Business Guides, digital providers are outlined as “service that’s to be delivered by info know-how medium with minimal or no human intervention from service supplier”.

Examples of such digital providers embody software program, software, videogames, music and movie streaming providers, subscription-based media, database and Cloud storage providers, promoting and on-line platform (together with internet marketing house on intangible media platform and providing a platform to commerce services or products), in addition to search engines like google and yahoo and social networks, amongst others.

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