- Netflix has given up the ability for Apple device users to pay for the streaming service through iTunes.
- Instead, new or expired users are asked to pay Netflix's streaming service's own website.
- This is the case Netflix can avoid paying Apple's 15 percent royalty on in-app subscriptions.
- This step will save Apple up to $ 256 million in annual revenue.
Netflix Does Not Pay Possibility for iPad and iPhone Users to Pay for Streaming Service iTunes deprives Apple of an estimated $ 256 million in annual revenue.
The change means that iOS users pay for Netflix through their website rather than Apple's service.
Netflix confirmed to VentureBeat that it pulled the plug on in-app payments. A spokesperson said, "We no longer support iTunes as a payment method for new members."
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The company has also updated the FAQ on its website with the following statements: " Netflix iTunes billing is not available to new or existing customers of Netflix customers, and if you're currently billed by iTunes, you can still use iTunes billing until your account resolves. "
The change will prevent Netflix from paying the 15 percent fee Apple will charge for in-app subscriptions and will retain all subscription revenue. Netflix has already tested a method for bypassing iTunes payments in 33 countries, which is now being rolled out worldwide.
It will be a costly change for Apple.
According to SensorTower, Netflix for Apple is the most important app in the US, bringing $ 43 million in November alone. According to new data cited by TechCrunch, the 2018 streaming service handed over around $ 256 million to Apple.
Netflix is not the first developer to comment on the high fees paid by Apple and Google for in-app purchases. In both cases, paid apps, in-app purchases and subscriptions are cut by 30%. In the second year of a subscription this drops to 15%.
Amazon has long had a confusing workaround stating that anyone using the Kindle app on their iPhone or iPad can not buy books directly from the app.
Epic Games, the creator of "Fortnite", has also decided not to offer the hit game through Google Play Store Google Play, which is called "Play Tax". Instead, Android owners must visit the Fortnite website to download the Android app through a dedicated installer.