Grumbling among Netflix subscribers

Business Finance

A 27% increase in rates on the eve of Québec’s sales taxes

Netflix subscribers are furious. They will have to collect further rate increases of 27% on the “Standard” subscription. And next January, taxes of 15% will be added to the bill in Quebec.

Yesterday, Netflix Canada announced that it was raising its “Standard” monthly fee by $ 3, from $ 10.99 to $ 13.99.

The “Premium” subscription, which offers 4K content and allows for simultaneous listening on four devices, also increases by $ 3 to $ 16.99 per month.

The basic Netflix package (without HD content) has also been increased from $ 8.99 to $ 9.99.

15 months ago, Netflix also revised prices up for its monthly $ 1 subscriptions.

These new rate increases have raised the buzz of many Netflix subscribers across the country.

On social media, it was the release, yesterday, as many customers said they would unsubscribe from the online entertainment service. 

On the Netflix Canada Facebook group’s Facebook page, several members said they wanted to “disembark” Netflix.

“I have unsubscribed. I am not satisfied. There are not enough films in French, not to mention the increase, “said Jacinthe Gaudreau.

At Netflix, it is argued that these price increases will contribute to the financing of television series as well as movies, among others.

In 2017, Netflix signed an agreement with the federal government to invest $ 500 million over the next five years in the production of original content in Canada.

“These are business decisions that fall solely and directly from the company. The agreement ensures that we have content from our artists and producers on their platform, “said Nathalie Huneault, a spokesperson for the Department of Canadian Heritage.

Taxes are coming

Netflix subscription prices are expected to continue to rise in Quebec, at least in the coming months.

The Quebec government plans always impose on Netflix, as of 1 st  January 2019, the collection of combined taxes of 15% (QST and GST) to its Quebec subscribers.

This measure was announced at the presentation of the last provincial budget, by then Minister of Finance Carlos Leitao.

Last June, the National Assembly passed a law to force Netflix, Spotify, Google Play Music and Apple Music to register with Revenu Québec and collect the QST from their Quebec customers. A simplified process has been put in place for these foreign giants.

Increased competition

In the Canadian market, the company is facing increasing competition.

The many cable companies have been enhancing their offerings in recent months, including a selection of recent Hollywood movies as well as specialty channel products. 

Next year, Disney will enter the streaming market. The Disney platform promises to offer movies from the Star Wars series as well as feature films from the Marvel franchise.

Salty hikes at Netflix

  • Netflix Basic Bundle (No HD Content) Increases from $ 8.99 to $ 9.99  
  • The Standard Monthly Plan goes from $ 10.99 to $ 13.99  
  • The Premium Package goes from $ 13.99 to $ 16.99    
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