Netflix made over R28 billion in the UK last year

Netflix made about R 28.19 billion and paid nearly R140.9 million in tax in the UK last year. Picture: Denis Balibouse/Reuters

Netflix made about R 28.19 billion and paid nearly R140.9 million in tax in the UK last year. Picture: Denis Balibouse/Reuters

Published Oct 18, 2022

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Netflix made £1.4 billion (about R 28.19 billion) in the UK last year.

The streaming giant – which boasts original titles like ‘Stranger Things’ and ‘The Crown’ – revealed how much it took from customers in Blighty for the first time as it shared that it paid nearly £7 million in tax.

The 1 630% rise in revenue comes after Netflix – which made only £79m in 2020 – opted to stop directing British takings through European territories with lower tax rates, a practice used by other Silicon Valley-based businesses.

Its profit rose to £31.7m, thus prompting it to pay nearly £7m, almost double its 2020 tax bill of £4m.

In late 2020, Netflix – which spent a large chunk of its £1bn production budget making content in the UK – vowed to start declaring its income from their British customers yearly starting this year.

The latest accounts from the entertainment company also highlight the increase in its UK base – its largest outside the US – with staffing increasing by 44% to 396 employees this year.

A spokesperson for the company said: “The UK has one of the world’s leading film and TV industries, that’s why we invest more in production here than anywhere outside North America. Last year we spent over $1bn, creating thousands of jobs and making world-class series and films across every corner of the country.

“We’re committed to investing in the UK’s creative community, bridging the skills gap and creating high-quality jobs on some of our biggest global hits like ‘Bridgerton’, ‘The Witcher’ and ‘Three-Body Problem’.”

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