New and returning subscribers of Netflix that have iOS devices will find themselves not being able to sign up through the iOS app. In an interview with VentureBeat, the streaming platform has confirmed that it no longer supports “iTunes as a method of payment for new members.” Back in August, it began testing the change in select markets and rolled it out to everyone across the globe last month. Those who want to pay for a subscription will now have to do so via the website of the platform. That includes those who used to pay via iTunes if it has been a month since they cancelled their subscription.
It is the latest example of a firm that has a high-profile, essential mobile app ditching the payment system of Apple to retain more profits for itself and stop handing the iPhone and iPad maker a portion of every subscription that is activated within the Netflix app.
As noted by VentureBeat, Apple takes a cut amounting to 15 to 30 percent from in-app subscriptions. Reportedly, it has been a growing point of contention between the tech giant and various app developers. Now, Netflix can receive all the proceeds from its customers who are using iOS devices– and the extra money that it can earn by not sharing with Apple will potentially be substantial, seeing as it occupies the top spot in the list of iOS apps that record the largest revenue.
While bypassing the payments for iTunes could likely have an effect on smaller applications, we doubt that this decision will affect the subscription numbers of Netflix in any way. Besides, the streaming titan is aware of what it is doing: earlier this year, it also dropped the option to pay via Google Play.
The leading subscription music app, Spotify, has also bypassed the in-app billing of Apple for similar reasons.