“We are seeing consumers hit with the ‘Australia Tax’ on digital content.”
A new report explains why Australians are the global illegal download champions, paying up to 400% more for shows like Orange is the New Black and Walking Dead.
Consumer advocacy group CHOICE has today released a range of new data, showing it costs Australians $27.26 to watch Season 2 of Orange is the New Black on Google Play.... 219% more than US Netflix subscribers pay.
“Time and again we are seeing consumers hit with the ‘Australia Tax’ on digital content," said CHOICE Chief Executive Alan Kirkland.
CHOICE says Foxtel subscribers pay 431% more for the show and it is further evidence of the so-called 'Australia Tax'.
Netflix / Via tumblr.com
The other show highlighted is Walking Dead, where Australians are stuck paying $39.99 for Season 5 while others pay $8.41.
AMC / Via tumblr.com
A breakdown of the analysis shows the wildly different prices it costs to access the shows in Australia.
Choice
Australian cable TV giant Foxtel responded with a scathing media release calling the report "disingenuous" and "hypocritical".
“To compare Foxtel’s service with that of Netflix in the US is nonsensical," said Bruce Meagher, Group Director of Corporate Affairs at Foxtel.
"Netflix is essentially a library service. So while it is true that consumers can get access to Orange is the New Black and House of Cards as part of their Netflix subscription that’s basically where the new content offering ends."
Mr Meagher argues US subscribers to Netflix usually purchase the subscription on top of other cable subscription serves, whereas Foxtel subscribers get full access to a whole suite of channels for higher price.
"(CHOICE) objects to geographic licensing of content and claims that broadcasters like Foxtel are 'local middle men wanting to clip the ticket.' If free to air or subscription broadcasters were not able to aggregate the best international content... we would not have the resources to invest in Australian content."
Australians who access Netflix legally use overseas IP addresses to access the US content.
The company is expected to establish a base in Australia in the coming months which is widely tipped to spark a new war over pay TV content.
Netflix / Via flowtv.org
