“Netflix is further distancing itself from Apple’s iTunes tax bracket,” Manish Singh reports for VentureBeat.
“Earlier this year, the streaming giant enabled iOS users in more than two dozen markets to bypass the iTunes payment method as part of an experiment. The company now tells VentureBeat that it has concluded the experiment and has incorporated the change globally,” Singh reports. “‘We no longer support iTunes as a method of payment for new members,’ a Netflix spokesperson told VentureBeat. Existing members, however, can continue to use iTunes as a method of payment, the spokesperson added.”
“The move, which will allow Netflix to keep all proceeds from its new paying iPhone and iPad customers, underscores the tension between developers and the marquee distributors of mobile apps — Apple and Google,” Singh reports. “Apple and Google charge 15 percent on each in-app subscription on their platforms… New Netflix users with an iPhone or iPad will be required to sign up and pay by visiting the streaming service’s website. In the Android universe, Netflix stopped letting users pay through the Google Play store in May.”
Read more in the full article here.
MacDailyNews Take: As expected.
It’s simple math. If Netflix saw losses of less than 15% in subscriber additions during their 33-country test of bypassing iTunes payments, it makes sense make the change everywhere.
SEE ALSO:
Apple plans to give away original content for free to device owners as part of new digital TV strategy – October 10, 2018
Netflix has no idea what Apple is doing with $1 billion worth of shows – October 10, 2018
Apple to debut Carpool Karaoke season 2 for free through TV app – October 9, 2018
Netflix tests a bypass of Apple’s iTunes Store billing in 33 countries – August 21, 2018
It does make sense, for now. Apple does provide a second layer of protection on top of credit card payment but Netflix doesn’t care about that.
For users it just means another company to contact when you get a new card – especially because of card theft. Having been through that several times I know it’s a pain and generally miss some auto pay accounts.
I’m subscribed through iTunes so Apple gets a cut. I’ll be even more careful not to let the subscription expire now.
Apple charges too much and always has. The fact that gigantic successful companies like Netflix don’t need Apple’s retail services is not surprising.
But it does remind us how much of a bite Apple is taking out of little guys who DO need them.
Somehow I get Netflix directly through my Comcast Xfinity box, The xfinity box with it’s voice activated everything is pretty cool, It just works, Is Apple TV up to the task yet? Is there Apple content yet? I barely see a reason to try to figure it out. People are pretty used to entering their card numbers into websites, as all the info is saved with their passwords. Apple Pay has never demonstrated how it even works on TV. I don’t use it, I never see it as an option vs Paypal, etc.
If Netflix is a sufficiently known and desirable service (it is) then Apple offers it little to no benefit. There is no legitimate reason for Apple to get a cut, or to even have the avenue.
Absolutely correct. What goes around comes around…