“Netflix is one of the highest-grossing apps on the iOS App Store, but it looks like the video streaming giant is contemplating how it might make an even bigger margin on its iPhone and iPad users,” Ingrid Lunden reports for TechCrunch.
“TechCrunch has learned and confirmed that Netflix, in its own words, is ‘testing the iTunes payment method’ in 33 countries. More specifically, Netflix is testing how to bypass iTunes,” Lunden reports. “Until September 30, new or lapsed subscribers in selected markets across Europe, Latin America and Asia will be unable to pay using iTunes. They are instead getting redirected to the mobile web version to log payment details directly with Netflix.”
“Others like Spotify also have moved users away from using iTunes to pay for subscriptions. It’s notable that both Spotify and Netflix have something else in common: Apple — now the world’s biggest company passing a $1 trillion market cap earlier this month — has made many big moves to encroach on their space, and thus it makes little sense for either company to cut Apple in more than it has to on its direct customer relationships,” Lunden reports. “As of May 2018, Netflix stopped allowing new or rejoining customers to use Google Play to pay for its service… Changing the billing to a direct format means that Netflix bypasses giving Google and Apple a cut on those subscriptions. Currently, Apple takes a 30 percent cut on the first year of a subscription, which goes down to 15 percent for subsequent years.”
Read more in the full article here.
MacDailyNews Take: Capitalism at work. Let’s see how much ease-of-use is worth in terms of Netflix subscriptions.
I do my Netflix subscription through iTunes on purpose just so I can give a cut of the money to Apple.
I thought app guidelines say that you developers can not redirect payment to outside venue.
No go. I cancel my Netflix account if I can’t pay it through Apple. I want my subscriptions to be in one place were I can control them.
Bollocks you will (if you even have one)
if M$ were to pull this you guys would be up in arms at how terrible and monopolistic they are.. but apple apparently can do whatever they want.
It’s Apples store, let low margin Netflix actually pay directly for infrastructure, Apple should kiss Netflix, Facebook, Google and Amazon goodbye….
Timmy will continue to make Apple codependent on evil companies if it makes a dollar. Whatever principles people think Apple used to have are obviously being gutted by a visionless beancounter.
completely hosted on AWS.
Maybe Netflix is doing this because of the elephant in the room. Disney did not renew its contract with Netflix and announced it is developing its own media streaming division that is expected to launch at the end of the year. Once they finalize the purchase of Fox and combined that with their massive amount of content they already own/control, the $hit is going to go the fan.
“Content is king” and Disney controls a massive amount of content and Apple and Disney are a perfect match to step in and squash the competition. Live content, sports, ABC, sitcoms, movies……???? All for $$.$$ a month?! Click, click, click goes the coaxial cables.
To be fair, I have been heavily investing in Disney for a while now anticipating this. But I could be wrong…….or not.
I pay my Netflix subscription directly to Netflix apple just nickels and dimes to death
It’s somewhat of a reversion.