Netflix reveals $1 billion in Australian revenue

Netflix has reported its incredible Australian revenue for the first time, proving we are indeed a nation of avid content streamers.

Netflix has revealed that it made more than $1 billion from Australian subscribers in 2022.

It is the first time the company has reported its Australian revenue, after changing its billing structure last year.

The company’s local subsidiary, Netflix Australia, now bills customers directly, rather than through a Netherlands-based subsidiary. This change means that subscription revenue is now recognised and taxed locally.

In 2021, Netflix Australia reported $30.7 million in revenue. This figure jumped to $1.06 billion in 2022.

Previous estimates guessed that Netflix makes between $790 million and $1.4 billion from Australians per year, during the period that customers were billed by Netflix International BV.

However, from the beginning of 2022, customers were billed by Netflix Australia, meaning revenue from subscriptions was recognised and taxed locally.

Netflix does not disclose subscriber numbers, but the revenue figures suggest that the service has around five million customers in Australia.

“As Netflix continues to grow and invest in Australia, we want our corporate structure to reflect our business activities here,” a spokesman for Netflix said last year.

The federal government is now considering introducing quotas that would force streaming companies to spend a certain amount making shows locally, meaning more homegrown Aussie productions could be on the way.

There are suggestions for Netflix to spend between 10 and 20 per cent of local revenue on Australian productions, amounting to approximately $100 million and $200 million on Aussie content.

The Australian Communications and Media Authority (ACMA) estimates that streaming providers spent $335.1 million on Australian content in the 12 months to June 2022, marking an increase of 81 per cent from the previous year.

The ACMA is currently conducting a review of the quotas for streaming services. The review is due to report back to the government in July 2023.