Netflix and Spotify fleece Swiss consumers

The Switzerland surcharge for both services is high by international standards, but users could find ways to avoid it. This is highlighted by *Schweiz am Sonntag*.

The movie and series provider Netflix and the music streaming app Spotify are now standard equipment for many Swiss. However, users here not only buy the app diligently - they also finance it generously, according to Schweiz am Sonntag.

Subscription costs in international comparison

At Spotify, a premium subscription costs 12.95 francs a month - a 20 percent surcharge in Switzerland compared to the 9.90 euros that the same offer costs in Germany. Netflix charges 11.90 francs for a monthly subscription here, almost 30 percent more than in Germany, where the same subscription costs 8 euros. Compared to the U.S., users here even have to pay almost 40 percent more for Netflix. And that's despite the fact that the selection in Switzerland is significantly smaller: At the end of 2014, just under 2,000 titles were available on Netflix in Switzerland, while users in the U.S. had access to over 8,000 movies and series.

Justification of the providers

Although neither service employs staff in Switzerland, they do not intend to adjust their prices even after the minimum euro exchange rate is lifted. Costs in Switzerland are high, a Netflix spokesperson told Schweiz am Sonntag. Marketing and content acquisition cost a lot in this country. Similar price differences can be found in Norway, for example. Music service Spotify is also hanging on to the surcharge. "Spotify will not make any price adjustments in Switzerland," a spokeswoman said. Whether the difference is justified or not cannot be judged without a cost analysis, says price supervisor Stefan Meierhans.

How users can save money

However, local users could save themselves the Swiss surcharge. With browser extensions such as Media Hint, Unblock-US or Zenmate, some of which have to be paid for, Netflix can be made to appear to be located in the USA or Germany, says Schweiz am Sonntag. This saves money and opens up access to the larger US offering. Netflix accepts Swiss credit cards for U.S. accounts, only the address entry has to be imaginative.

Netflix prohibits this trick in its terms of use, but it should be legally unobjectionable. Finally, even price supervisor Stefan Meierhans thinks: "If it's really possible," he says in response to a question from Schweiz am Sonntag, "an account abroad is certainly an alternative worth considering." (Schweiz am Sonntag/sis)
 

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