Numerous nations aim to impose tariffs on Netflix and other streaming platforms for digital services and content production

Nowadays, to watch movies and series, we have Netflix, Amazon Prime Video, HBO, and many other streaming platforms. These services have allowed us to enjoy a vast amount of content at a relatively low cost, as the monthly fee for one of these platforms is roughly equivalent to two movie theater tickets. Although Netflix and other streaming companies have been raising their prices, these services will become even more expensive because different countries have decided to impose tariffs.

Thanks to the internet, we can communicate with people worldwide and access services, stores, and products from other countries. We can purchase imported goods, and depending on their origin and price, we may encounter customs issues. In Spain, for example, we must pay an import tariff, which often occurs when buying items from China through stores like AliExpress, Taobao, Alibaba, and many others.

South Africa, Indonesia, and India want to charge tariffs on streaming companies like Netflix

Just as we pay extra fees when purchasing and importing products to Spain, the same applies to other countries. For instance, the United States wanted to increase the price of imported GPUs from China by 25%. However, we did not expect tariffs on digital products and services, but this will change shortly. The World Trade Organization is preparing for a new shift in the current regulations, which will expire in March. From that point, the ban on imposing digital media tariffs will no longer exist, raising concerns about higher prices.

For now, Indonesia, South Africa, and India are interested in ending this regulation to implement additional tariffs and fees on all types of digital services. For example, subscribing to Netflix in South Africa will become more expensive, as will making a Zoom call with a doctor in India or buying an eBook to read in Bali.

The digital commerce sector has grown by 8.1% annually

We can understand the imposition of tariffs on physical products because of a country’s import fees and regulations. We are used to importing certain goods from other countries, which often end up in customs, so we often look for ways to buy them from European stores. The issue here is that we are now talking about digital services and products, which have always enjoyed freedom regardless of where we live.

Furthermore, all countries advocating Netflix and other platforms’ tariffs are not regions with significant economic potential but rather the opposite. Both Indonesia and South Africa and India have fairly similar average monthly salaries, ranging from 150 to 350 euros. It is assumed that the tariff payment will be made by the company itself and received by the country’s government. These developing countries are striving to engage in digital goods trade, and these tariffs would yield greater benefits. According to data provided, this sector reached $3.82 trillion in 2022 and grew 8.1% annually on average over the last three years.

Several countries want to charge tariffs to Netflix and other streaming platforms for digital services and production.