Paying Netflix through iTunes was once the cheapest way to use this popular VOD service. However, Apple has long ago adjusted the price list to a proper level. In turn, Netflix is not on the way paying 30% commission for subscriptions paid by iTunes. Therefore, the company decided to give up this payment method. The change concerns only new and returning subscribers.
Big maybe more. The most recognizable brands can afford to give up cooperation with giants in the form of Apple and Google. In turn, smaller developers have no choice but agree to pay a 30% commission on every transaction made using the AppStore and Google Play. Of course, each stick has two ends. On the one hand, application owners must share the profits with Apple. Instead, they receive access to users who are eager to reach their wallets. The most profitable application in the AppStore is Netflix, which earned in 2018 over 790 million USD from Apple users. This profit would have been even greater if it had not pay “a tribute” to Apple.
Netflix is not the only giant that has given up fees through iTunes
The company has for a long time tested a new way of charging fees from users of the mobile application. From now on, new Netflix users and those who return to use the site after at least one month’s break can no longer pay a subscription via the AppStore. Instead, they must log in to the Netflix website and set up a credit card payment there. Spotify also uses a similar solution. However, this does not mean that the Netflix application will disappear from the AppStore. IPhone owners can still install it. Current subscriptions paid via iTunes will also work. So Apple will continue to make money on Netflix users, but revenues will be lower than before.