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

[oneMadRssn]

I’ve been paying via iTunes billing for years as the occasional discount on iTunes gift cards makes it cheaper than signing up directly via Netflix.

I’ll keep doing this until Netflix force me to switch, although the gift card discounts in the U.K. have been poor for the last year or so.

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.

Netflix gift cards go on sale about as often as iTunes gift cards. Even better, every so often a popular device will be bundled with Netflix as a promotional deal. Tons of those promotional gift cards usually end up on ebay. A few years back, I loaded up on those promotional cards and ended up with something like $600+ worth of Netflix credit for about $100-150 (I forget the details now, it had to do with a year of Netflix being bundled with some Samsung smartphones). That credit has only recently run out.

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 should care because you're literally paying for it. Netlfix isn't paying that 30% cut, you are.

If Netflix charges $11/month but only receives $7.70 due to Apple's cut, that means Netflix could charge $7.70 and you would still get the exact same service from Netflix. Netflix isn't paying that difference - you are. Maybe if Apple had fairer structures for subscriptions, Netflix wouldn't have increased their prices in 2017. Maybe if Apple makes fairer structures for subscriptions this year going forward, Netflix will be able to delay their next price increase.

Personally I always try to cut out the middle man. I'd rather my $11 all go to source than having some go to source and some go to middlemen. That's why whenever feasible I prefer to buy my beer directly from the brewery, my car directly from the manufacturer, and my streaming services directly from the provider. The cut that alcohol distributors, car dealerships, and app-store proprietors take is way out of proportion to value they add.

 

[aaronhead14]

Good for them. Apple doesn't deserve taking 30%. Netflix would be just as successful without Apple.

 

[cknibbs]

I personally would love to pay all my subscriptions through iTunes - including my phone bills etc. Buying iTunes gift cards at 20% off makes it all worth while.

 

[genovelle]

Except Apple is now launching their own content streaming service and directly competing with the companies on their platform.

I think this is why they are shifting. At the same time I believe their maneuvers are why Apple is focused on content. Just like when developers and partners turned on Apple and left them holding the empty bag, they created their own so their dependence is limited.

 

[LinusR]

Understandable on Netflix's part but a step in the wrong direction in my book. Having a centralised payment option is very convenient, the cancellation procedure is the same for all services using iTunes billing, and the reminders before payments are useful. The way Apple handles payments is great.

To those who say Apple doesn't provide any service and don't deserve the cut (I agree, 30% is quite steep), points above should balance that Also, to some people without credit cards this might be a deal-breaker. Those would have to set up an alternative payment method, which means yet another login with yet another password. And Netflix prepaid cards aren't as ubiquitously available as iTunes gift cards...

 

[genovelle]

Good for them. Apple doesn't deserve taking 30%. Netflix would be just as successful without Apple.

If Apple hadn’t created their model, they would have been paying 60-70% to the telecoms like AT&T. That’s what they required to get an app on their devices

 

[ipponrg]

Understandable on Netflix's part but a step in the wrong direction in my book. Having a centralised payment option is very convenient, the cancellation procedure is the same for all services using iTunes billing, and the reminders before payments are useful. The way Apple handles payments is great.

To those who say Apple doesn't provide any service and don't deserve the cut (I agree, 30% is quite steep), points above should balance that Also, to some people without credit cards this might be a deal-breaker. Those would have to set up an alternative payment method, which means yet another login with yet another password. And Netflix prepaid cards aren't as ubiquitously available as iTunes gift cards...

For me personally, I find it easier to manage my subscriptions in their respective apps/websites. I hate managing my subscriptions within my Apple account. But perhaps I'm one of the few on this forum.

 

[gim]

Netflix gift cards go on sale about as often as iTunes gift cards. Even better, every so often a popular device will be bundled with Netflix as a promotional deal. Tons of those promotional gift cards usually end up on ebay. A few years back, I loaded up on those promotional cards and ended up with something like $600+ worth of Netflix credit for about $100-150 (I forget the details now, it had to do with a year of Netflix being bundled with some Samsung smartphones). That credit has only recently run out.

You should care because you're literally paying for it. Netlfix isn't paying that 30% cut, you are.

If Netflix charges $11/month but only receives $7.70 due to Apple's cut, that means Netflix could charge $7.70 and you would still get the exact same service from Netflix. Netflix isn't paying that difference - you are. Maybe if Apple had fairer structures for subscriptions, Netflix wouldn't have increased their prices in 2017. Maybe if Apple makes fairer structures for subscriptions this year going forward, Netflix will be able to delay their next price increase.

Personally I always try to cut out the middle man. I'd rather my $11 all go to source than having some go to source and some go to middlemen. That's why whenever feasible I prefer to buy my beer directly from the brewery, my car directly from the manufacturer, and my streaming services directly from the provider. The cut that alcohol distributors, car dealerships, and app-store proprietors take is way out of proportion to value they add.

That's funny after reading your first paragraph.

1. So you bought Netflix credit from some seller on eBay, who sold you credit that was part of a Samsung promotion. Good job paying 3 "middle men" in that case!

2. And thanks for contributing to the price increase you described! $600+ Netflix credit for $100-150 probably means Netflix got much less from your money than from any subscriber who's paying through iTunes.

 

[bigboy29]

I'd like to know how you come to that conclusion. Attached is gross profit year over year.

Because they are burning money (going into debt) faster than that.

https://seekingalpha.com/article/4188634-real-netflix-problem-one-simple-chart

The original article might pop the paywall on you so here is a recap:

https://moneymaven.io/mishtalk/economics/can-netflix-survive-hqZnuF6BJkiDL4sU63tm2g/

 

[Tuckrat]

Except Apple is now launching their own content streaming service and directly competing with the companies on their platform.

^^ This. With Apple working towards becoming a competitor, why would Netflix (or any other streaming company, like Amazon) want to continue giving them a cut?

 

[rocknblogger]

I disagree with you. Netflix wouldn't have the reach if it wasn't for Apple, a fee should be paid to the exposure each of these companies are having. Apple has made Netflix billions with it's over 1 billion activated devices around the globe, this is all about greed and just watch, Netflix will increase their fees in 2019 even though they're saving 10's of millions.

I and many others have been using Netflix for a lot longer than I've owned any Apple devices so I have to disagree. I don't think Apple did much for Netflix except to take a 30% cut. I think for a service like this 5% would be enough for just hosting the app and accepting a payment.

 

[travis64]

Great just got a $50 itunes card for netflix

 

[sofila]

Who cares what Apple deserves? As a consumer, this was an easy way to save 10-20% on a Netflix subscription by buying discounted iTunes credit.
My subscription is still billed through iTunes. Should Netflix decide to cancel that, they're going to lose me as a customer.

That only means that you will not be interested in Netflix's content any longer. So via Apple or not, it won't be worth for you to pay for a service you dislike. On the other hand, if you like Netflix enough, you will pay the quote requested.

 

[weckart]

I disagree with you. Netflix wouldn't have the reach if it wasn't for Apple, a fee should be paid to the exposure each of these companies are having. Apple has made Netflix billions with it's over 1 billion activated devices around the globe, this is all about greed and just watch, Netflix will increase their fees in 2019 even though they're saving 10's of millions.

Come off it. The Netflix app is on just about every smart TV or device. Apple is incidental.

 

[Naraxus]

I expect (and fully hope) we'll see more and more of these types of companies giving the finger to Apple and their outrageous 30% extortion fee. There's no rational reason for Apple to demand anywhere close to 30%.

 

[TriBruin]

I disagree with you. Netflix wouldn't have the reach if it wasn't for Apple, a fee should be paid to the exposure each of these companies are having. Apple has made Netflix billions with it's over 1 billion activated devices around the globe, this is all about greed and just watch, Netflix will increase their fees in 2019 even though they're saving 10's of millions.

Do you really think that Netflix needs Apple to "get exposure"? You must be in the RDF. Netflix is synonymous with streaming video. At this point, anything related to video has a Netflix client on it.

In fact, I bought an appleTV 4K to because I didn't like the native Netflix client on my TV. Maybe Apple should be paying Netflix a portion of the sale price?

 

[catportal]

I like how Apple tries to justify taking 30% cut on subscription services that they neither host nor develop but claim Qualcomm's % licensing agreement is anti-competitive.

 

[Michael Goff]

I like how Apple tries to justify taking 30% cut on subscription services that they neither host nor develop but claim Qualcomm's % licensing agreement is anti-competitive.

The difference is that people can get around the Apple tax. Also, I didn’t know subscriptions on an iPhone were Standards Essential.

 

[catportal]

The difference is that people can get around the Apple tax. Also, I didn’t know subscriptions on an iPhone were Standards Essential.

You can get around not signing bad licensing agreements too. There are other (albeit inferior) competitors. In this case people aren't paying the Apple tax, companies are being forced to.

 

[farewelwilliams]

Except Apple is now launching their own content streaming service and directly competing with the companies on their platform.

what do you mean "except"? apple can be a content provider too. the whole point is to aggregate the content into one place so a user doesn't need to figure out how to navigate to whichever provider has the show "House" for example.

Apple already writes software and runs the App Store. They seem to be doing fine (not perfect, but far better than other App stores)

 

[KevinN206]

Apple is launching a competing service without having to pay the same 30%. Simply put, anyone competing against Apple on the App Store is already at a huge disadvantage in terms of costs. Movies, Music, Original Contents, etc... Apple gets the home court advantage.

 

[Dominicanyor]

Wow 30% that’s a lot of money.

 

[thedeebs]

I let my Netflix subscription lapse months ago.
I managed to reactivate it just now through the subscription section of my account in iTunes and App Store settings on iOS. It let me select from any of the available plans and it billed to iTunes.
They may plug this hole soon so would recommend getting on it if you’ve previously subscribed to Netflix through iTunes like I had.

 

[rocknblogger]

I let my Netflix subscription lapse months ago.
I managed to reactivate it just now through the subscription section of my account in iTunes and App Store settings on iOS. It let me select from any of the available plans and it billed to iTunes.
They may plug this hole soon so would recommend getting on it if you’ve previously subscribed to Netflix through iTunes like I had.

Just keep in mind that they will more than likely cancel your account once the change rolls out 100%. Maybe that’ll take a week maybe a month or two, but eventually you’ll have to go to Netflix.com and update your payment method to continue using the service.

 

[Rogifan]

I disagree with you. Netflix wouldn't have the reach if it wasn't for Apple, a fee should be paid to the exposure each of these companies are having. Apple has made Netflix billions with it's over 1 billion activated devices around the globe, this is all about greed and just watch, Netflix will increase their fees in 2019 even though they're saving 10's of millions.

I don’t see what the big deal is for consumers. Just sign up from their website, not a big deal. And why should Apple get a cut of their monthly subscriptions anyway? Most of the time I’m watching Netflix on my smart TV which has nothing to do with Apple.

Using your logic Uber and Lyft should be giving Apple a percentage ride fees.