Netflix raised its prices in full quarantine in Mexico

The services of streaming they are highly sought after and the best company for users, especially in this era of coronavirus; However, Netflix, one of the most popular platforms of the population at the national level will raise your costs in the country.

That’s right, Netflix confirmed that Mexicans will disburse the payment of the new tax applied to digital platforms and announced from a few months ago.

The streaming service company revealed that the Mexican government is incorporating VAT into digital services, so it will announce little by little about the cost modification.

“We have begun to notify our users that there will be an adjustment in our prices, at the same time we have worked to minimize the impact on our Basic plan. Members will see this tax as a separate item on their bill from June 1”

The adjustment to costs will be as follows:

* Basic Plan, a device in standard quality: it will go to a price of 139 pesos, before 129 pesos.

* Standard Plan, two devices in HD quality: it will be at 196 pesos, from 169 pesos.

* Premium Plan, four devices in UHD quality: it will be 266 pesos, previously 229 pesos.

And it is that the new tax applied corresponds to the 16% VAT on digital transactions, since in December 2019, Congress approved reforms to the Federal Law on Telecommunications and Broadcasting, and the Federal Law on Value Added Tax (VAT).

Therefore, now platforms such as: Netflix, Uber and Mercado Libre must withhold VAT tax.

However, the popular content distribution company assured that it will absorb 50% of the tax in the basic plan, so users will only pay 8% more, that is, only 10 pesos.

Confinement elevates Netflix

It must be remembered that the company grew during the confinement for COVID-19, since added 15.8 million subscribers during the first quarter of this year, that is, he added more than double his followers.

Between January and March it reported earnings of USD 709 million, an amount that doubles the 344 million registered during the same period of 2019.

March was the key month for the company, as it noticed how paid subscriptions to its service skyrocketed. This is a record for the content platform, since at the beginning of last year, it marked at least 9.6 million new subscribers.

The company trusted that the situation now being experienced worldwide by the coronavirus will help it continue to grow in the coming months, and it projected an increase of 7.5 million paying subscribers between April and June, although it warned that it will depend on the containment measures taken by each country.

Netflix confirmed that the rise in numbers is due to the fact that people are spending more time at home. and consuming entertainment, although they foresee that said growth will collapse when everything returns to normal.

In addition to significantly increasing paid subscriptions and thus billing, the COVID-19 pandemic and the resulting confinement orders in much of the world have also allowed Netflix to cut several of its costs significantly, including marketing costs.

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