Netflix is a successful and profitable company with a large subscriber base globally. Netflix’s revenue is generated through subscriptions from its users. The company has been expanding its content offerings in various regions, including Australia. ‘Netflix Australia’ is something most Australians would want to have. However, not everyone is fond of streaming. Still, Netflix on average makes over $420K – $1 Billion monthly; to1.3B – $15.6B yearly (relying on which tier is most subscribed in Australia).
Netflix Australia Penetration Rate
Netflix has achieved a penetration rate of 65% in the Australian market. This is higher than the United Kingdom at 57% and the United States at 53%. It is interesting to note that even though the United States is the largest market for Netflix. It ranks third in regard to penetration.
How Much Does Netflix Australia Make a Year?
Here’s a simple calculation on average Netflix Subscribers and revenue generated:
|Subscribers In Australia||Tier 1 – $6.99 (Monthly)||Tier 1 – $6.99 (12 Months)||Tier 2 – $22.99 (Monthly)||Tier 2 – $22.99 (12 Months)|
|6+ Million||$420K AUD||$1 Billion AUD||$1.3B AUD||$15.6B AUD|
Netflix Australia makes roughly between $420K – $1 Billion monthly; to1.3B – $15.6B yearly (depending on which tier has how many subscribers).
Netflix to Pay Tax on Australian Subscriber Revenue: What it Means for the Streaming Giant and the Industry
Netflix has agreed to pay tax on its Australian subscriber revenue in a landmark deal with the Australian Taxation Office (ATO), following years of criticism for not paying its fair share of taxes in the country. According to the ATO, Netflix will pay more than AUD 8 million in back taxes and will now pay taxes on its annual Australian revenue, which is estimated to be over AUD 1 billion.
What Does This Mean for Netflix?
Netflix has been a dominant player in the Australian streaming industry for several years, with a reported 12.5 million subscribers as of 2021. While the streaming giant has always been a popular choice for Australian viewers, the company has faced criticism for not paying taxes on its local earnings.
The new agreement with the ATO is a significant step for Netflix, as it brings the company in line with local tax laws and helps to address concerns about the fairness of the tax system. However, the move is likely to have a significant impact on the company’s bottom line, as it will be required to pay tax on a substantial portion of its Australian revenue.
What Does This Mean for the Industry?
The deal between Netflix and the ATO is also likely to have broader implications for the Australian streaming industry. Other streaming services, such as Amazon Prime Video and Disney+, are also facing increased scrutiny over their tax arrangements in the country. The ATO has warned that it is closely monitoring the sector and will take action against any companies found to be avoiding tax.
This move towards greater tax transparency is likely to have a positive impact on the industry as a whole. It will help to create a more level playing field for smaller, local players, who may have struggled to compete with multinational companies like Netflix in the past. It could also lead to greater investment in local content, as streaming services seek to build stronger relationships with local audiences and governments.
What to Watch on Netflix Australia In 2023?
For those who are new to Netflix or haven’t streamed it much. Here’s the list of the top 15 web series/ Originals to watch on Netflix:
|Netflix Originals (that cost the most money)||Cost Per Episode/Overall (USD)|
|Outer Banks||$50 Million (Overall – Recent Season)|
|Squid Game||$21 Million (Overall Production Cost)|
|Wednesday||$30 Million (Overall Production Cost)|
|Stranger Things||$30 Million Per Episode|
|DAHMER – The Jeffrey Dahmer Story||$300 M (Overall Budget)|
|Bridgerton||$7 Million Per Episode|
|Lucifer||$35.8 Million (Overall Production Cost)|
|The Witcher||$10 Million|
|The Crown||$13 Million|
|Ginny & Georgia||$4-$5 Million Per Episode|
|Money Heist||$2 (It’s a long story)|
|All of Us Are Dead||Not Concluded|
|House Of Cards||$5-$7 Million|
|Orange Is The New Black||$4 Million|
Conclusion On How Much Netflix Australia Makes
The agreement between Netflix and the ATO represents a significant milestone in the ongoing debate over tax fairness in the Australian streaming industry. While the move is likely to have a significant impact on Netflix’s bottom line, it also highlights the need for greater transparency and accountability in the sector. This could ultimately benefit the industry as a whole, by creating a more level playing field for all players and encouraging greater investment in local content.