Netflix has revolutionized entertainment. Nowadays, many people don’t even have cable anymore. It was to no surprise that the Quebec finance minister wants to capitalize on this craze and put a GST tax on Netflix. Between 1.2 million and 1.45 million Quebec households hold a subscription to the service. Netflix is unlike any other streaming company; it is considered a brand. Taxation on a service like this would bring in an excess amount of funds for the government. The minister strongly believes that Netflix is a taxable service, but the only problem would be insuring the company cooperates. In addition to this proposed tax, Netflix is increasing its subscription costs ranging from $1 to $2 more a month. Jeremy Hazen, a Quebec resident and customer of Netflix, discusses that he is not happy about the additional tax or the increase in cost.
He states that the increase in price may not seem a lot, but it is still a 34% difference of what he was paying prior with the increase in price and the GST. It’s clear most customers are unhappy with Netflix’s increase in cost, but Quebec residents like Jeremy are showing even more displeasure with the combination of an increase in price and an additional GST tax.
Netflix has changed the film industry, transforming the way individuals watch television. No other streaming websites meet the standards of Netflix. Competitors are attempting to recreate what Netflix has been able to accomplish.
Netflix has more of a selection, their website is easy to navigate, has a variety of high quality original shows, and their videos are in HD. A subscription with Netflix would still be much more inexpensive than having cable. Regardless of the price increase or the imposition of taxes, customers will continue to purchase the service because there is no sites that meet up to the standards of Netflix.
Personally as a frequent user of Netflix, I would continue to purchase the service despite the price increase or an addition of tax. I understand that Netflix needs more money to create more original shows and bring in other types of shows to broaden its selection. There are no other sites that meet up to the standards of Netflix. I believe the Quebec finance minister’s idea of taxing Netflix subscriptions will economically benefit the Canadian government. It is basically an easy way to bring in money for the government. Needless to say, I recognize the consumer’s perspective as it would not be ideal to pay extra for Netflix. Thinking from the finance minister’s standpoint, I believe it is a smart idea to tax a service like Netflix because it is such an attractive and popular service.
Word Count: 442
Photo Links:
https://www.filmfad.com/wp-content/uploads/2015/07/Netflix-Price-Increase.jpg
http://cdn.iphoneincanada.ca/wp-content/uploads/2017/09/netflix-canada-500-million.png
https://itube.aimersoft.com/images/topic/watch-netflix-movies-on-tv.jpg
https://cdn1.recombu.com/media/digital/Dec2015/Netflix-Apple-TV_w670_h377.png