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Netflix, Spotify subscriptions now cost more in Chicago

The Netflix application appears alongside other streaming media services. (Photo: Matthew Keys for The Desk / Creative Commons)
The Netflix application appears alongside other streaming media services. (Photo: Matthew Keys for The Desk / Creative Commons)

The subscription rate for Netflix just went up — but only in Chicago.

On Wednesday, the city’s began enforcing the so-called “cloud tax” that imposes a 9 percent tax on “patrons of amusement,” which the city has determined includes streaming Internet services like Netflix and Spotify.

The law allows for services to defer collection of the tax for another three months, though many services have elected to begin collecting the tax from customers immediately, the Associated Press reports.

Netflix currently costs around $9 a month for new subscribers. The tax will push a new Netflix subscription to around $9.80 a month.

City officials say they expect to bring in an additional $12 million annually from taxes imposed on streaming digital services.

 

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About the Author:

Matthew Keys

Matthew Keys is the publisher of The Desk and reports on the business and policy matters involving the broadcast television, streaming video and radio industries. He previously worked for Thomson Reuters, Disney-ABC, Tribune Broadcasting and McNaughton Newspapers. Matthew is based in Northern California, has won numerous awards in the field of journalism, and is a member of IRE (Investigative Reporters and Editors).