Netflix No Longer Offering In-App Subscription Options on iOS Devices

[4jasontv]

Netflix does not needApple whatsoever. Most people watch Netfflix using something else. Apple can take their platform and stick it up their *** as far as Netflix is concerned.

What does that mean? Of course that’s true, but that’s not useful because it can apply to any platform. Most people don’t use Facebook on iPhones. Nor do they use it to search Zillow. The question is if they make up enough percentage to impact their decisions. I’m sure Netflix isn’t as liberal as you with their wrist.
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???

iOS without 3rd party developers is nothing.

With 3rd party developers ( like any smartphone OS ) is a different story - the platform is greatly enriched.

That doesn’t make it nothing. Without app developers it’s nothing. Netflix isn’t an app developer. It’s using Apple’s mall to sell their cookie of the month subscription.

 

[Gameboy70]

Who is everyone that is agreeing that 30% is highway robbery? I don’t agree and I don’t care what apple charges.

Who is arguing the fee is unfair seems to be people who do not like the way Apple is being run. It’s amusing that people think Netflix should optimize their revenue but Apple shouldn’t. The “ Do as I say not as I do” crowd.

At any rate the people who lose IAP are the ones left out in the cold.

Apple has never explained their expenses that justify a 30% recurring cut (as opposed to one-time or one-year customer acquisition fees). That's their prerogative, but for the rest of us judging from the outside, 30% seems vastly beyond what could reasonably be attributed to server costs and transaction processing, or even customer acquisition—especially from the company that just dropped its App Store affiliate program.

Fairness arguments aside, the larger issue is that at some point, a publicly traded company will have to show increasing profits, so eliminating 30% commissions is inevitable; it's low-hanging fruit. Amazon did it with Comixology the instant they purchased it, and they've always disabled media purchases through their Kindle and Amazon apps. The margins aren't there to sustain it. Ditto for Spotify.

I predict that Hulu will follow suit this year.

 

[Stella]

What does that mean? Of course that’s true, but that’s not useful because it can apply to any platform. Most people don’t use Facebook on iPhones. Nor do they use it to search Zillow. The question is if they make up enough percentage to impact their decisions. I’m sure Netflix isn’t as liberal as you with their wrist.
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That doesn’t make it nothing. Without app developers it’s nothing. Netflix isn’t an app developer. It’s using Apple’s mall to sell their cookie of the month subscription.

In the context of the AppStore, Netflix is an App developer ( aka Third Party Developer ) . They put an App onto the AppStore that iOS users can use to watch Netflix content.

Without 3rd party developers ( app developers ), iOS would be rather boring.

 

[rocknblogger]

In the context of the AppStore, Netflix is an App developer ( aka Third Party Developer ) . They put an App onto the AppStore that iOS users can use to watch Netflix content.

Correct and more than likely they pay the Enterprise fee of $299 per year to host the app.

 

[FairlyKors]

Why? I rather pay Apple wich I love than Netflix wich I’m neutral about. Actually I will quit it if a good alternative comes around (wich I doubt, haha).
Same goes for Audible...

It seems the biggest issue here is loving a corporation. Corporations are amoral. Capitalism enforces that. If you don’t agree with a company’s behavior, or you don’t like their product/service, then you can “vote” with your wallet. The dynamic you’ve described sounds like a human relationship.

 

[LinusR]

Apple has never explained their expenses that justify a 30% recurring cut (as opposed to one-time or one-year customer acquisition fees). That's their prerogative, but for the rest of us judging from the outside, 30% seems vastly beyond what could reasonably be attributed to server costs and transaction processing, or even customer acquisition—especially from the company that just dropped its App Store affiliate program.

Since when are customers interested in the mark-up of retail? Do you wonder every time you buy a pair of trainers (let's say, for the sake of the argument, swoosh-branded) how much money they make with that exact pair? Or how much mark-up the department store added to the wholesale price if you didn't buy it in a flagship store? (In this analogy, the 30% Apple-cut is the reduction in the wholesale price of the pair to the department store, obviously.)
And, more importantly, are you angry with the department store that it added the mark-up? Are you sorry for the swoosh-brand? (If you buy the pair on Friday, don't forget that staff and space must be available to store the pair even if it is not bought, this is the recurring-part of your argument.)

 

[rodriguise]

All of this Apple hate is weird. As a consumer, I LOVED the fact that I could switch to iTunes billing as then - as mentioned - I could take advantage of periodic 20% discount on iTunes credit. So - this was a good deal for me personally, and I'll keep doing it as long as I can.

I could care less about what kind of agreement Apple and Netflix have between them. Don't care. Netflix does not have a sustainable business model with or without Apple's cut.

You realize people have been saying Netflix doesn’t have a sustainable model for 20 years.

 

[racerhomie]

And where is the marketplace that allows me the right to resell apps I no longer use? If I could resell my apps it would give developers more motivation to improve their apps so as to compete with a used market place. Theft is claiming ownership over goods you already sold.

Like I said it’s good enough for most people. If you don’t like it , switch to Android.

 

[Michael Goff]

And where is the marketplace that allows me the right to resell apps I no longer use? If I could resell my apps it would give developers more motivation to improve their apps so as to compete with a used market place. Theft is claiming ownership over goods you already sold.

You’re not buying the app, you’re paying for a license to use the app. Ergo, you’re stealing the license to use an app when you pirate it.

 

[DeepIn2U]

Because Apple doesn't deserve the 30% of the $7.99 or higher monthly from Netflix or any other company.

All this smack talk and likes.

Funny just how quickly Netflixes mobile users and home user subscriber growth and loyalty spiked once iOS and TVOS apps debuted for Netflix and many other companies.

So yeah let’s break up Apple’s curated system and go back to the WinCE, PalmOS (up to v5; OS4 Cobalt was skirt completely), PocketPC Phone Edition ir Smartphone Edition, BBOS, S60 and UIQ Symbian platform days and hunt all over the net for the right compatible version of the app that actually works or hasn’t been injected with rogue code (blatantly obvious, not fixed), or that hasn’t been an illegal copy robbing game developers of their sales (ahem Nokia’s S60 platform has issues with Sega and every other publishing houses games for Ngage).

Let the loathing continue
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Good. Apple isn't doing anything to earn that 30% they are getting from every sub.

So providing a VERY large, non segmented window to over a billion subscribers is doing nothing?! Where you submit one version of the update using tools they created that they used for free to check compatibility, and upload to all devices that follow uniformity for ease of diploment (versioning and alpha downloading or downloading in pieces to be continued without flaw) is doing nothing ... right? Hmmm

 

[Shiro_Simba]

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.

I’ll be honest with you. Happy continue to debate with you in 2019, happy new year! Though let’s not fall back into policing / moderation mode okay ? Deal ?

 

[I7guy]

I’ll be honest with you. Happy continue to debate with you in 2019, happy new year! Though let’s not fall back into policing / moderation mode okay ? Deal ?

If you believe a post doesn't adhere to the Macrumors rules for appropriate debate you can report the post, but you don't get a pass on "do as I say, not as I do". Okay?

And, Happy New Year!

 

[4jasontv]

Like I said it’s good enough for most people. If you don’t like it , switch to Android.

I am not very good at this. Is telling people who stand up for their individual rights to become Androids a form of irony?
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You’re not buying the app, you’re paying for a license to use the app. Ergo, you’re stealing the license to use an app when you pirate it.

I am not arguing that isn't the way things are. I am saying we let people like Bill lead us down the wrong path.

 

[grkm3]

If I was Netflix I would run a 20% sale if you change your billing to PayPal

Give the money to the users and not apple

 

[Remy149]

If I was Netflix I would run a 20% sale if you change your billing to PayPal

Give the money to the users and not apple

They will never do thsr because they always charged the same rate to costumers regardless where f if they signed up through Apple or directly on their website. This move isn’t being done to benefit consumers it’s meant to increase profit margins and please shareholders. Don’t be surprised when the inevitable price increases happen in the next year or so. If hbo can afford to charge $15 a month for hbo now it’s not hard to think Netflix who has more content wouldn’t do the same. In fact my 4K enabled account is almost that expensive now

 

[SoyCapitanSoyCapitan]

Good. Apple isn't doing anything to earn that 30% they are getting from every sub.

It’s 30% in year one, 15% after.

Apple has to employ people to vet the apps for security problems, pay people to maintain and develop the App Store, pay hosting costs, pay for further development of iOS app development kit, etc

So to say “Apple isn’t doing anything for the money” is ignorant. Apple covers a lot of costs. A lot of stuff that is published for free on the App Store would cause Apple to lose money if they were not making money on paid apps and subscriptions.

Netflix is now cost saving because they need every penny as they burn through cash and have a mountain of debt. Trump’s mouth is wrecking the stock market so if Netflix has to pay for productions and keep shareholders happy they are forced to do these things.

 

[Gameboy70]

Since when are customers interested in the mark-up of retail? Do you wonder every time you buy a pair of trainers (let's say, for the sake of the argument, swoosh-branded) how much money they make with that exact pair? Or how much mark-up the department store added to the wholesale price if you didn't buy it in a flagship store? (In this analogy, the 30% Apple-cut is the reduction in the wholesale price of the pair to the department store, obviously.)
And, more importantly, are you angry with the department store that it added the mark-up? Are you sorry for the swoosh-brand? (If you buy the pair on Friday, don't forget that staff and space must be available to store the pair even if it is not bought, this is the recurring-part of your argument.)

We're talking about business logic, not consumer self-interest. I'm arguing that for a publicly traded company, the pressure to show increased profits over time will force companies to eliminate unnecessary expenses like 30% recurring commissions eventually. A fixed customer acquisition fee is fine; a recurring fee, even as steep as 15%, is untenable. When an affiliate links to an Amazon product, the session cookie is limited to 24 hours. You get commissions on whatever else the customer buys during that period, not in perpetuity.

Everyone has a intuition about whether the price of something is justified, even with incomplete information. Shelf space in physical retail is limited, hence the 30-50% markups—it's a seller's market—but the marginal cost of adding a new product to digital inventory is effectively zero.

Since you asked about the consumer interest, I'd like to be able to purchase Kindle books directly through the Kindle or Amazon app rather than Safari, but the economics don't work for Amazon to provide this option.

 

[m0sher]

I pay my Google Drive space $2.99 through Apple every month.

 

[LinusR]

We're talking about business logic, not consumer self-interest. I'm arguing that for a publicly traded company, the pressure to show increased profits over time will force companies to eliminate unnecessary expenses like 30% recurring commissions eventually. A fixed customer acquisition fee is fine; a recurring fee, even as steep as 15%, is untenable. When an affiliate links to an Amazon product, the session cookie is limited to 24 hours. You get commissions on whatever else the customer buys during that period, not in perpetuity.

Everyone has a intuition about whether the price of something is justified, even with incomplete information. Shelf space in physical retail is limited, hence the 30-50% markups—it's a seller's market—but the marginal cost of adding a new product to digital inventory is effectively zero.

Since you asked about the consumer interest, I'd like to be able to purchase Kindle books directly through the Kindle or Amazon app rather than Safari, but the economics don't work for Amazon to provide this option.

Thanks very much for clarifying your point -- I see where you're coming from!
Best wishes for 2019!

 

[mi7chy]

Seems like an issue with Apple management greed and low marketshare. To 3rd party services and developers, marketshare is king.

Current Apple management are too high on coke to heed Steve Jobs' warning.

 

[Shiro_Simba]

If you believe a post doesn't adhere to the Macrumors rules for appropriate debate you can report the post, but you don't get a pass on "do as I say, not as I do". Okay?

And, Happy New Year!

I see. Well given it was you that self moderated my posts as “bickering” when you chooose , in another thread , how about .... a gentleman’s agreement not to Antagonise each other on these forums in January ?

We can pick up in Feb.

 

[I7guy]

I see. Well given it was you that self moderated my posts as “bickering” when you chooose , in another thread , how about .... a gentleman’s agreement not to Antagonise each other on these forums in January ?

We can pick up in Feb.

We are having a friendly discussion, right? Neither of us sets out to antagonize the other, however, we may get passionate about our subject matter and each have a different view.

We can pick this up anytime you want. I tend to follow some threads closely and respond as such

 

[Dave.UK]

That’s fantasy. Apple users are the most educated, most affluent, and most profitable consumers on the planet. If people couldn’t watch on iPhones, iPads, Macs or Apple TV, Netflix’s business would crumble.

Who's talking fantasy here?! Hope you've got something to back that up as thats the crazziest assertion I think i've ever seen on here!

 

[Tech198]

In the context of the AppStore, Netflix is an App developer ( aka Third Party Developer ) . They put an App onto the AppStore that iOS users can use to watch Netflix content.

Without 3rd party developers ( app developers ), iOS would be rather boring.

Were only talking about Netflix though, not all developers.. iOS wouldn't be boring, just boring for those who wanna watch Netfix on iOS

 

[I7guy]

Seems like an issue with Apple management greed and low marketshare if Netflix still allows in-app subscription on Android. To 3rd party services and developers, marketshare is king.

Current Apple management are too high on coke to heed Steve Jobs' warning.

Still waiting for Apple to implode as a $750B or so company based on what has now become a meme.