Netflix Is Testing A Price Hike [Updated]

Netflix Is Testing A Price Hike [Updated]

Netflix is testing out how users react to a weekend-only price hike, according to reports.

The Australian broke the news of the tests, which show increased prices on weekends for selected new susbscribers by $1, $2 and $3 a month – depending on your membership level. The tests had regular pricing of $8.99, $11.99 and 14.99 a month shown again on the Monday. said Netflix had confirmed tests were underway, but not with Australian subscribers.

Legislation introduced by Treasurer Scott Morrison will see digital goods such as e-books, games, apps and subscription streaming services – such at Netflix – from overseas providers attract the Goods and Services Tax as of the new financial year.

Dubbed the “Netflix Tax”, it is expected to raise $350 million for states and territories over the next four years.

Could a price hike from Netflix be a way of recouping some of the costs associated with administrating GST?

We have reached out to Netflix for more information, and will update this story as we hear more.

Update: Netflix has a statement on its testing of different pricing. It says that this wasn’t specific to weekends, and that those tests were limited to Australian subscribers.

We continuously test new things at Netflix and these tests typically vary in length of time. In this case, we are testing slightly different price points to better understand how consumers value Netflix. Not everyone will see this test and we may not ever offer it generally. Reports that we are testing “weekend-only” pricing are inaccurate and entirely false. As our statement clearly states, this testing varies in length and time and the fact that some members saw this test on a weekend is completely unrelated. This testing is limited to Australia.