Netflix Inc (NASDAQ:NFLX), Warner Bros. Discovery, Inc.'s (NASDAQ:WBD) HBO Go and Walt Disney Co.'s (NYSE:DIS) Disney+ were affected by a law signed by President Ferdinand Marcos Jr. on Wednesday imposed a 12% value-added tax (VAT) on non-resident digital service providers to bring them up to par with local providers.

The law also affected Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Spotify Technology SA (NYSE:SPOT) and Amazon.com Inc (NASDAQ:AMZN).

The VAT on foreign digital services will likely contribute 105 billion pesos in revenue in the next five years.

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Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. said the collected taxes go to the government's infrastructure and social welfare services programs.

Streaming giant Netflix's stock has increased 87% in the past 12 months as it continues to win market share with its diverse slate of content. JP Morgan's Doug Anmuth highlighted continued margin expansion backed by content, ads and gaming investment. He also projected high-margin revenue from ad-supported tier and paid sharing.

Walt Disney stock is up close to 15% in the past 12 months. Goldman Sachs analyst Michael Ng expects Disney's box office blockbusters and streaming growth to help offset Experiences and linear weakness.

Price Actions: At publication Wednesday, Netflix stock was up 0.62% at $710.51 and Disney stock was down 0.29% at $93.78.

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