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

[MacRumors]

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":

We no longer support iTunes as a method of payment for new members. Existing members who currently use iTunes as a method of payment can continue to do so.

Apple is a valued partner with whom we work closely to deliver great entertainment to members around the world across a range of devices including the iPhone and Apple TV.

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

 

[EdT]

Why?

 

[ob81]

The content providers are separating more everyday, instead on working together. Soon, cable, a consolidated option, will be king again.

 

[bryan1andersons]

Apple needs to charge less. I hope more big content providers do this to send a message

 

[WiiDSmoker]

Why?

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

 

[Skeptical.me]

I think Apple may have already made enough money out of Netflix.

 

[asdavis10]

Smart on Netflix's part. They know the value of their service is independent of Apple at this stage. If you want to watch Netflix on a device, you'll figure out how to create an account and watch Netflix on a device.

 

[ImAnAgent]

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

 

[rictus007]

The content providers are separating more everyday, instead on working together. Soon, cable, a consolidated option, will be king again.

I’ll like an app to consolidate all my subscriptions. Like the one from Apple but with the option to watch whatever I want without leaving the app.

 

[CheesePuff]

Why?

Maybe you could try reading the article you're commenting on?

 

[KrisLord]

I’m surprised this has been an option for so long when there’s an option to handle payment via the browser.

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.

 

[Cartoonkid]

I'm surprised it took Netflix so long to do this.

 

[FrankieTDouglas]

I’ll like an app to consolidate all my subscriptions. Like the one from Apple but with the option to watch whatever I want without leaving the app.

It may seem more convenient, but centralizing all of your usage into one app will cede way too much power to that one company. Take for instance even this topic: Apple makes a device, but locks app usage down to only what can be offered through its own app store. You're not allowed to side-load apps onto your phone, everything has to go through Apple, regardless if you're a company or a consumer. Apple is the consolidator, they set the usage and restrictions, and everyone is bound to their whims now. What Netflix is doing here is trying to exert some semblance of independence of platform, product, and userbase.

 

[macsrcool1234]

Great news. The 30% cut on IAP is absurd. No more milking free money for doing nothing Apple.

 

[bigboy29]

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.

 

[madKIR]

It's not about violating the Apple rules: nobody wants to pay their cut!

 

[AFPoster]

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

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.

 

[Dansbar]

I’ll like an app to consolidate all my subscriptions. Like the one from Apple but with the option to watch whatever I want without leaving the app.

I disagree. The consolidator would gain the sort of power seen in US cable companies. Switching between content providers apps on a modern device really isn’t much more bother than flicking between channels on a TV.

Hardware devices such as the Apple TV are incredibly useful for getting the content from those various apps back away from device and on to the TV again though.

 

[Benjamid]

Apple needs to charge less. I hope more big content providers do this to send a message

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...

 

[tobefirst ⚽️]

Netflix does not have a sustainable business model with or without Apple's cut.

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

 

[farewelwilliams]

I disagree. The consolidator would gain the sort of power seen in US cable companies. Switching between content providers apps on a modern device really isn’t much more bother than flicking between channels on a TV.

Hardware devices such as the Apple TV are incredibly useful for getting the content from those various apps back away from device and on to the TV again though.

disagreed. DIRECTVNOW's app has been buggy for the past several months (i'm not even talking about the "beta" DVR they have), but it looks like they moved all of their engineers to work on a dedicated DIRECTVNOW streaming device. and the person that designed Hulu's ATV app should be fired. let content providers provide the content and let apple do the human interfacing.

 

[Nicksd84]

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

Yea except proving the whole platform. Lol

 

[FrankieTDouglas]

disagreed. DIRECTVNOW's app has been buggy for the past several months (i'm not even talking about the "beta" DVR they have), but it looks like they moved all of their engineers to work on a dedicated DIRECTVNOW streaming device. and the person that designed Hulu's ATV app should be fired. let content providers provide the content and let apple do the human interfacing.

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

 

[genovelle]

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

Of course they are. I don’t do subscription that require me to give my information to yet another company, so when I couldn’t renew via my phone which is how I signed up earlier this month. My subscription ended and I’m done. People who come to a company via Apple’s advertising whether on their platform or via Apple’s extensive and effective marketing means they are Apple’s customer that is using them because of Apple. If they were already Netfix’s Customer or drawn by Netflix then they would have signed up on their site. Then they are responsible for processing credit cards and maintaining the service there is a reason Apps can be free. Bring your own people post the app for free. Use Apple’s marketing and platform pay 30%. Keep in mind before Apple they wouldn’t exist on mobile without paying AT&T or Verizon 60-70% if they were allowed on the network at all. How quickly people forget.

 

[gim]

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

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.