Netflix has stopped offering the ability to subscribe to their streaming service within Apple’s iPhone and iPads. You can no longer subscribe to the service from within the iOS app.
The company tried this out in some countries earlier this year and now they have decided to launch it for everyone, which means they will no longer have to pay Apple 30 percent for new customers.
Changes in Subscription Methods
Previously, you could use iTunes billing as a payment method for Netflix. Existing customers will still be able to do this, but new customers will need to subscribe directly through Netflix’s website or other platforms. This change is significant as it reflects a growing trend among major companies to avoid the high fees associated with app store transactions. You can see an official statement from the company below.
We no longer support iTunes as a method of payment for new members. Existing members who currently use iTunes as a method of payment can continue to do so.
Apple is a valued partner with whom we work closely to deliver great entertainment to members around the world across a range of devices including the iPhone and Apple TV.
Implications for Users and the Industry
Netflix is so popular that it has probably decided that it no longer needs to pay Apple 30 percent for new customers. This move could set a precedent for other streaming services and subscription-based apps. By bypassing Apple’s payment system, Netflix can save a significant amount of money, which can be reinvested into content creation or improving their service.
For users, this change means that subscribing to Netflix will require an extra step. Instead of a seamless in-app purchase, new users will need to visit Netflix’s website to sign up. While this might seem like a minor inconvenience, it highlights the ongoing tension between app developers and platform owners over revenue sharing.
Moreover, this decision by Netflix could influence other major companies to follow suit. Spotify, for example, has already taken similar steps to avoid Apple’s fees. If more companies adopt this approach, it could lead to significant changes in how app stores operate and how they generate revenue.
Broader Industry Trends
This move by Netflix is part of a broader trend in the tech industry where companies are seeking more control over their revenue streams. By avoiding the 30 percent fee, companies can offer more competitive pricing or invest more in their services. This trend is not limited to streaming services; it extends to gaming, software, and other digital goods.
For instance, Epic Games, the creator of Fortnite, has also challenged the traditional app store model by launching its own game store with a lower commission rate. These actions are pushing for a more open and competitive digital marketplace, which could benefit consumers in the long run.
In conclusion, Netflix’s decision to stop offering subscriptions through Apple’s iOS app is a strategic move to avoid high fees and gain more control over its revenue. While it may introduce a slight inconvenience for new users, it reflects a larger industry shift towards more favorable business models for developers. This change could have far-reaching implications for the app store ecosystem and the future of digital subscriptions.
Source MacRumors
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
