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Netflix No Longer Offering In-App Subscription Options on iOS Devices
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One can do it on Android but not on iOS. iOS is not that developed yet.
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I can completely understand why Netflix and other companies would do this. Why lose 30% to Apple or whoever when there is a very simple way not to. When you multiply that 30% of monthly fees of up to $14 that quickly adds up to a large chunk of lost revenue. As they say business is business.
I understand that many pay for services using discounted iTunes cards (i.e $100 for $85) and I feel for people who will lose out on little discounts but if you were the CEO/CFO of Netflix you would've done the same. They have a responsibility to maximize revenue and profit for their shareholders and letting Apple continue to take a large 30% cut is actually irresponsible.
I understand that many pay for services using discounted iTunes cards (i.e $100 for $85) and I feel for people who will lose out on little discounts but if you were the CEO/CFO of Netflix you would've done the same. They have a responsibility to maximize revenue and profit for their shareholders and letting Apple continue to take a large 30% cut is actually irresponsible.
It’s no different from any other aggregator like amazon. You pretty much have to play by their rules, however much you may dislike them, or you are welcome to not play at all.
So yes, the ios App Store is technically a monopoly, though Apple has clearly managed to escape scrutiny all this while thanks to their smaller market share compared to android. Apple charges 30% commission for no other reason than because they can. It’s not about right or wrong, fair or otherwise, but about leverage.
Apple, like any profit-maximising company, charges what they believe they can get away with.
That said, the App Store model is still clearly superior compared to the way PC software was distributed in the past, where you had pay a lot more, discovery was spotty, patching and updates were messier, and malware and piracy was rife. Security is also better, because these companies never get my payment information, and Apple does put in effort in weeding out seedy apps and disciplining bad players.
Basically, while 30% is still arguably reasonable for smaller developers who would otherwise lack the resources to distribute and promote apps on their own, we are starting to see a rebellion forming amongst larger companies who feel that the amount paid to Apple is disproportionate to Apple’s contribution to their overall success. At this point, Netflix is practically a household name. You don’t need Apple’s help to highlight your app; people will naturally seek it out and download it.
So my suggestion is still as follows: keep 30% for first year, further lower the cut to 5% or 10% for subsequent years. There is value in going through iTunes for me as a consumer and I would like to preserve that relationship as much as possible.
Why stop at 30%? Why not 50% of a sale is better than 50% of no sale?
If anything, Netflix and other content providers, spared the AppleTV from being just a “hobby” (Apple’s word). Without Netflix and similar streamers you’d still have to rent or purchase each movie or episode, as Apple is late to the subscription model.
Meanwhile, Netflix is built into countless smart TVs and TV peripherals. It’s probably installed on many more non-Apple phones and laptops. And it’s so popular, that if Apple tried to omit it outright, it would dissuade people from using AppleTV.
Why do you doubt the poster's comment ?
I'm sure that many will drop Netflix if they can't pay through their iTunes account. Fortunately, Netflix made the correct decision and allowed existing customers who pay through iTunes to continue doing so.
When Netflix raised their prices, I said I was going to drop them and I did so along with many others. I remain Netflix free to this day and I'm sure many other people have not returned.
The same logic can now be applied to Apple. 5 or 10% of a monthly subscription is better than the 0% they are now going to get.
Who said that the third company should be shady? It could be, say. Microsoft. They might agree to do it for 5%. You realize that "sideloading" is just another word for "download", right? The only reason this term even exists is because Apple does not allow iOS users to freely download the apps to iOS devices. And the reason they (Apple) are doing it? You guessed right, the 30% fee. Apple is the shady company here.
Yeah, I would argue that others have done just as much as Apple to make Netflix what it is today. My Sony TV remote has a giant physical Netflix button, for starters. Netflix is just as popular among non-Apple users if not more. It’s included with every Smart TV in existence.
Then there’s HBO and Prime who waited a long time before adding the iTunes in-app subscription option, at least here in Europe. Speaking of Europe, Sweden-based Spotify managed to build a whole damn universe of ubiquity without the aid of iTunes in-app. They added it very late in the game and offered it for a while, but as of September they’re doing exactly what Netflix is doing now - no more in-app for new customers. I think we can expect a lot of big players to follow suit in 2019. An iTunes brexit-style epidemic.
Myself I switched to Apple Music years ago but I’m starting to reevaluate. Apple refuses to release HomePod in my country while simultaneously refusing Google integration for Apple Music, so Spotify is looking pretty tempting again.
Face it, none of these players need To ride Apple’s coattails. Maybe the upcoming Disney streaming will bypass the iTunes thing altogether. What will Apple users say then? ”Yeah well we don’t need Star Wars and Marvel anyway, we have Carpool Karaoke!”...?
30% apple is taking
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You mean as an Apple consumer - not as a consumer .
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It’s greed plain and simple.
It has its place when it started and everyone was trying to establish a name , reputation and brand in the “app world” now customers have become much more tech savvy and know how to sign up to Netflix , so good on Netflix , others will follow and soon people will learn to buy subs outside of iTunes, Apple will be the big looser if they remain greedy .
Your example of App Store model vrs PC model makes no sense, two very different applications, if u want to compare to PC, how is the store concept working out on macOS - crap.
The reason you can say it’s superior is
By virtue that the user has no choice, they have to use iTunes . Had they had a choice , it would be as bad as macOS store. The best model in a monopoly , is the only model.
As a consumer , choice is the most important . Hence the monopoly of play and iTunes stores is not a good thing . Lack of competition and thier cuts, means we don’t get discounts . With Apple taking thier 30%.... maybe they can give us 10% discount ?! What do I get for my loyalty ?
I say well done Netflix, let others follow. As a consumer I want to see competition and discounts .
As others have said already. This is the industri standard. Other companies , like Google charge the same fee.
Google lower to 15% after a year subscribtion _after_ Apple had changed to that:
”For apps and in-app products offered through Google Play, the transaction fee is equivalent to 30% of the price. You receive 70% of the payment. The remaining 30% goes to the distribution partner and operating fees.
As of January 1, 2018, the transaction fee for subscription products decreases to 15% for any subscribers you retain after 12 paid months”
Source: https://support.google.com/googleplay/android-developer/answer/112622?hl=en
This is not specific to Apple.
Because a robust app platform is good for every developer or company that provides an app. Especially considering the Netflix app is also free and was available even if you didn’t pay through iTunes.
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Why do you care as a consumer how much the service fees are. Either an app is worth the price or not.
Correct. Apple loses revenue and Netflix looses a sale. Lose/lose.
Really? Apple is shady? It's service fees are out in the open. You as a developer can decide if the ios app store is for you.
Seems Netflix did an experiment and decided all in all the revenues lost is less than the service fees paid. If it tips in the future IAP you can be sure will be back.
No. It's business, plain and simple. And why do you have such a vested interest in the Netflix service fees on the ios app store. Netflix stock holder?
Conjectures are always fun to discuss.
SCOTUS will decided in June if the class suit regarding "monopolistic" practices can proceed against apple. At any rate, if you don't like apples practices there are many other options available to you. However, there is a reason for the popularity of the ios app store.
Why do you deserve anything for your loyalty. My wireless provider has rewarded my loyalty with what? Discounts over the years? (Not) My internet and TV provider service has rewarded my loyalty with higher prices over the years. If you do not like Apple and their products or the philosophy, Samsung would love to have you as a customer. But don't expect apple, or any other company to kow-tow to you because you've been with them for a while.
Except for netflix shareholders, how has this move benefited the consumer. It hasn't. You're among a group of folks that just want to see apple "punished", and are annoyed that it is doing so well and the management is not running the company the way you want it.
Yeah okay then. Those that want to know can find more details I posted on this earlier in the thread. Netflix CFO must be uninformed also I guess?
https://forums.macrumors.com/thread...s-on-ios-devices.2162657/page-9#post-26951232
https://forums.macrumors.com/thread...s-on-ios-devices.2162657/page-2#post-26948806
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Ultimately, you pay Apple’s surcharge. I saved several dollars every month when I subscribed to Hulu directly. If Apple’s payment processing charges were similar to what retailers are charged for bank card transactions, it wouldn’t impact you or Netflix much. But thirty percent either raises your expense or diminishes what Netflix can spend on creating content.
As for the App Store, it’s popularity is a given because it’s the only one! Apple will have to prove that customers prefer it—and it alone. That will be difficult because its sibling, the MacOS App Store, hasn’t been as popular as the open market.
You should love your family, not some company who exists for profit only.
"I rather pay Apple wich I love..."
Geez, brainwashed.
If they value their partnership with Apple so much then why didn’t they make that interactive episode of Black Mirror compatible on Apple TV?
Netflix is no longer allowing new or resubscribing members to sign up for a Netflix subscription using an in-app purchase via the App Store, Netflix today told VentureBeat. The change appears to have been implemented late last month.
Earlier this year Netflix experimented with disabling in-app subscription options for Netflix subscribers in a number of countries, and as of today, Netflix says the experiment has concluded and the change has been rolled out to the entire Netflix platform.
As described on a Netflix support page, iTunes billing options are no longer available to new or rejoining Netflix customers. Those who currently pay for their subscriptions via iTunes can continue to use iTunes billing until their accounts are cancelled.
When opening up the Netflix app on an iOS device, there are no longer fields for signing up for a Netflix account within the app nor are there instructions on how to obtain a subscription, likely to avoid violating Apple's App Store rules. The app simply offers a sign-in window and says that members who subscribe to Netflix can watch within the app.
Apple's App Store Review Guidelines prohibit developers from asking iOS users to use a purchase method other than in-app purchase, which Netflix is skirting by offering no sign up options at all.
iPad and iPhone users who want to sign up for Netflix will now need to do so through the Netflix website rather than through the Netflix app.
Netflix undoubtedly made this change to avoid paying subscription fees to Apple. Apple collects a 30 percent commission on all subscription fees during the first year after a subscriber signs up for a service using an iOS app, and 15 percent every year thereafter.
Netflix does not need to pay the subscription fee for customers who sign up for the service outside of the App Store, and this change means that Apple will not be able to collect a portion of the $7.99+ subscription fee from future Netflix subscribers.
Update: A Netflix spokesperson provided the following statement to MacRumors, calling Apple a "valued partner":
Article Link: Netflix No Longer Offering In-App Subscription Options on iOS Devices
I don't think Netflix is going to reduce my subscription rates now that IAP have been removed. So it's incorrect that ultimately you pay Apple's surcharge.
I attached a screenshot showing Hulu's IAP, which aligns directly with their website, except for a one-month promo. So if you are saving several dollars each month, it's not something a new Hulu subscriber can do with today's rates.
All of these business have to balance out the business lost vs the 30% gained by not offering IAP. You can assume, everybody will just go to Hulu and sign-up, but that's an assumption.
As far as popularity, Apple doesn't have to prove anything. Don't want the app store or ios, go to android. You want ios, you get the ios app store.
