'Australia tax' and Foxtel monopoly mean consumers pay 400 per cent more for digital programs, Choice says

Updated

Australians are paying up to 400 per cent more than viewers in the US and UK to watch popular digital programs, consumer group Choice says.

Choice said the mark-up on Foxtel for programs like Orange Is The New Black and The Walking Dead is between 300 and 400 per cent more than accessing the programs on the US streaming-service Netflix.

Communications Minister Malcolm Turnbull will today host a public forum to discuss ways to reduce online piracy.

Choice chief executive Alan Kirkland said consumers are being hit with the "Australia tax" on digital content and that it should not be considered illegal for Australians to access shows on US-based Netflix.

"Our view is it's legal. People who have a US Netflix account are paying for access to that content," he told ABC News 24.

"They're going out of their way because it's not an easy thing to do to make sure they're paying for content and to the extent there's any confusion we think the Government needs to remove it."

He said the fact that Australians were willing to pay for affordable content through Netflix showed a willingness to pay for content.

"We are concerned that the Government is being influenced by the local cable industry to bring in laws that prop up outdated technology and business models at the expense of cheaper internet streaming services," he said.

Mr Kirkland blamed the business model of local intermediaries that cause a lack of affordable digital content in the Australian marketplace.

"Foxtel is a monopoly," he said.

"It's shielded by regulation from international competition and what you see is that consumers pay a lot more than they should, a slow pace of innovation and poor services when compared to overseas."

Foxtel says comparison is 'nonsensical'

Foxtel corporate affairs spokesman Bruce Meagher said Choice was being "disingenuous".

"Choice have made invalid comparisons between completely different products to justify their claims," he said in a statement.

"To compare Foxtel's service with that of Netflix in the US is nonsensical.

"Netflix is essentially a library service which, due to its success, has been able to commission a few high-quality and popular dramas.

"So while it is true that consumers can get access to Orange Is The New Black and House Of Cards as part of their Netflix subscription, that's basically where the new content offering ends."



Topics: piracy, copyright, television, television-broadcasting, australia

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