Netflix increases subscription prices in the Philippines due to VAT; Disney+ catching up in subscribers

MANILA, Philippines — Streaming platform Netflix has reportedly increased the price of its monthly subscription in the Philippines from 12% to 13.5%. 

This is reportedly as a response to Republic Act (RA) 12023, which imposes a 12% value-added tax (VAT) on foreign digital service providers (DSPs), including streaming platforms, online advertising, and e-commerce.

The basic plan is now P279 per month, standard plan is P449 per month, and premium is now P619 per month. 

The price hike is now in effect for new subscribers, while existing users will see the changes reflect on their bill starting June 1. 

Other streaming services have also announced price increase due to VAT implementation.

Subscribers of streaming platforms are reportedly growing, with the Disney+ streaming service increading to 126 million, adding 1.4 million new subscriptions since the previous quarter.

It still trails Netflix in the quest for subscribers, which are estimated at about 300 million, even though the company has stopped publishing its precise sign-up figures. — With reports from Agence France-Presse

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