Sooner or later it had to happen, Netflix joins many other services that have recently eliminated their subscription or purchase plans for the iPhone or iPad app. With this change Netflix will no longer have to offer the 30% commission to Apple , although in exchange it loses a possible market of new users.
Although Apple implemented a new subscription system whereby after the first year the fee was reduced to 15%, it seems that it is still not convenient for some companies. Netflix is the latest example of this. According to VentureBeat, iTunes is no longer a compatible payment method for members. That is, users will no longer be able to activate a Netflix plan from ap p, they will have to do so from a browser on the official Netflix website. Users who currently have an active subscription will not notice any changes, although when they need to renew it they will have to do so from outside the app.
Netflix has been one of the top 5 revenue apps in the App Store for the past few years. A service that year after year has gained in popularity and partly thanks to Apple devices, which are one of the largest platforms where Netflix users consume their content. Now that the service has considerable strength and the ability to be recognized on its own and not thanks to the App Store, they have decided to stop depending in part directly on it .
At AppleThe Netflix, Fortnite and Steam cases vs. the future of subscriptions in the App Store
Reasons for this change? There’s not much mystery here, the 30% commission the first year of subscription and 15% the rest. The 15% itself is already a considerable “loss” for a service like Netflix. Streaming services like Netflix or Spotify and Apple Music itself have minimal profits because the vast majority of their revenue goes to pay record labels and production companies. If you also subtract 15%, the benefit can be up to zero.
Little by little Netflix has been growing and betting on more forms of subscription for users other than just the App Store. If they have decided to take this step, it is probably because they are aware that the income of possible users who stop subscribing because they cannot from the App Store is lower than the income they recover from not having to pay the commission to Apple. Netflix gains in revenue, Apple loses in revenue, the user loses some comfort .
The solution is to reduce that 30%? Not at all, even if it’s 5% commission, if a company can save it, it will a. It’s just a matter of having enough capacity and independence to be sure that the user will make the effort to subscribe from somewhere else. Spotify is another example of a service that followed this same path. And there is even an intermediate alternative, which is to put more expensive subscription plans on the App Store than through the service’s own website.
This is where you can subscribe to one of the available plans and this is where you can manage your subscription. If you already have an account and you have it through the iTunesApp Store, you’ll need to renew it from the official website as well.