Netflix Tests Disabling In-App Subscriptions on iOS in Some Countries

[Abazigal]

You say, compromises user experience? What User experience are you referring too? The one time setup that you have to do on Netflix's website? One time and only one time? I guess I can understand ones anxiety about having to visit to sign up for service, a little, but this is not a new concept, at all. But what other user experience is compromised? I still don't get that argument. Yes, while convenient to sign up in app, after that, the user experience is identical.
To each their own I guess.

Vs simply doing it on my device with one tap? Plus I get to view and manage my subscriptions all in one place?

Not to mention that when I subscribe via iTunes, Netflix doesn't get my credit card details. It all stays with Apple. If it's security we are talking about, all other things equal, wouldn't I want as few companies to have access to my card details as possible? If I could just use iTunes and Apple Pay to manage all my payments, I would.

Then there's also the trust in using Apple's built-in payments system over whatever the other companies are going with.

The very reasons that make it compelling for users to sign up via iTunes are precisely the reasons why companies don't want you to do so.

 

[Moorepheus]

Vs simply doing it on my device with one tap? Plus I get to view and manage my subscriptions all in one place?

Not to mention that when I subscribe via iTunes, Netflix doesn't get my credit card details. It all stays with Apple. If it's security we are talking about, all other things equal, wouldn't I want as few companies to have access to my card details as possible? If I could just use iTunes and Apple Pay to manage all my payments, I would.

Then there's also the trust in using Apple's built-in payments system over whatever the other companies are going with.

The very reasons that make it compelling for users to sign up via iTunes are precisely the reasons why companies don't want you to do so.

I get your point and I understand it.

 

[Rogifan]

I am not following your argument, so I will bow out of this one.

My argument is taking a cut of Uber transactions makes more sense than taking a cut of Netflix subscriptions. Yet nobody seems to be arguing that.

The issue I see here is that it compromises the end user experience. The whole point of using an app on iOS is precisely for the security and convenience. Why would I as a user want to key in my payment details in a web browser instead of quickly paying in the app using an account I already have on my phone, and in the process ensuring that my personal details never leaves Apple's servers?

That said, I concede that an argument can be made that it is precisely because of Apple's onerous demands that incentivise companies to come up with such bad experiences. If one day, Netflix completely removed the opportunity to subscribe in-app and mandated that I do so through their website (like what Amazon Prime has done), it would suck for their users, and I would completely understand why they are doing so, because Apple forced their hand.

In this regard, I suppose one could further argue that by reducing their cut, Apple is removing another incentive for companies to stop "gimping" their apps, though it's still debatable what a more reasonable cut is. Certainly not 0%. 7.5%? 5%? A sliding scale depending on how much money said app brings in?

So are you saying that making payments via Safari compromises security? Most of my bills are autopay. For every one, I had to enter payment details into the browser. No issues. I get that signing up/paying in-app is more convenient and I get why some prefer to have all their subscription in one spot via iTunes. But I think the security argument is overblown. And falls apart considering Apple’s rules only apply to digital media. I think Apple should do what Google does, which is allow alternate methods of payment. But they won’t because growing services revenue is so important now and a large percentage of services revenue is the cut Apple gets from IAP/subscriptions.
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You say, compromises user experience? What User experience are you referring too? The one time setup that you have to do on Netflix's website? One time and only one time? I guess I can understand ones anxiety about having to visit to sign up for service, a little, but this is not a new concept, at all. But what other user experience is compromised? I still don't get that argument. Yes, while convenient to sign up in app, after that, the user experience is identical.
To each their own I guess.

I could understand that argument more with digital book apps as every time you want to buy a book you have to go to their website to do it. But Spotify and Netflix are one time sign-ups. Not difficult at all to do so via browser.

 

[Abazigal]

I could understand that argument more with digital book apps as every time you want to buy a book you have to go to their website to do it. But Spotify and Netflix are one time sign-ups. Not difficult at all to do so via browser.

I think inertia can be a very powerful thing.

For Netflix to be willing to try this, they must be losing a lot of money via iTunes billing, meaning that a significant number of users are indeed paying via this method.

How many users might Netflix lose if they blocked them from paying via iTunes? Would the extra revenue from this reduced user base be enough to offset any potential loss in subscribers? Can we safely assume that most, if not all existing Netflix users will be compelled to sign up via their website eventually?

The more I think about it, the more I suspect Netflix may not end up up having that sort of pull. Apple will likely be able to resist whatever stunt they attempt in the near term.

So are you saying that making payments via Safari compromises security? Most of my bills are autopay. For every one, I had to enter payment details into the browser. No issues. I get that signing up/paying in-app is more convenient and I get why some prefer to have all their subscription in one spot via iTunes. But I think the security argument is overblown. And falls apart considering Apple’s rules only apply to digital media. I think Apple should do what Google does, which is allow alternate methods of payment. But they won’t because growing services revenue is so important now and a large percentage of services revenue is the cut Apple gets from IAP/subscriptions.

The downside to allowing alternate payments is that then Apple doesn't get a single cent.

The only app with the clout to force Apple's hand might be Facebook, but given that their revenues are entirely ad-driven, they have zero incentive to pick a fight with Apple for no real gain?

 

[Moorepheus]

I could understand that argument more with digital book apps as every time you want to buy a book you have to go to their website to do it. But Spotify and Netflix are one time sign-ups. Not difficult at all to do so via browser.

Yes, it's the one thing I don't like about Audible app, I have to go to their website to use my "CREDITS" to buy a book. But, doesn't take away from me listening to them on my iPhone.

 

[WarHeadz]

Lmao, you're so cute. if it's so few ppl using it, why Netflix have to make this move.
Is your own little universe means only USA and 20~50 y.o. ppl? cute.

They made the move because they know it wouldn’t make a dent in their subscriber base and they don’t want to be extorted. If it were financially worth it, they would have kept the capability to sign up through the App Store.

 

[LordVic]

For Netflix to be willing to try this, they must be losing a lot of money via iTunes billing, meaning that a significant number of users are indeed paying via this method.

doesn't matter if it's "Significant" or not. They have determined that any money going to a 3rd party just to process payments isn't really worth it. They're essentially giving away money. That's not winning strategy for any business.

there are currently 130m Netflix Subscribers. Since we won't ever know how many are via iTunes, I'm going to take a bold assumption and say that 10%. so 13 Million iTunes based subscribers.

lets say each one is paying an average of 9.99 (there are different tiers and this is the middle ground). That is $99,900,000 in revenue per month. 15% of that is $14,985,000

any business isn't going to willingly just hand over 15 million dollars to another company if they don't feel like the cost is worth the return.

in this case, lets say just 1 million of those 10 million stop using netflix because of this change (even that I believe would be a bold claim, it'sNOT that big a deal to go to the webpage in safari).

1 Million @ 9.99 would mean they would potentially lose $9,990,000 worth of revenue. Which with the above numbers, means that they are still UP in revenue of 5-6million

this is a net win for netflix.

this is also why Apple has to be really careful with how much money they're charging for these recurring subscriptions. I agree that Apple is ok to charge something. They are hosting the app's initial downloads. They are acting as payment processor. These aren't free services.

But the current numbers are no longer, especially due to Apple's smaller market share in the world, proving to be financially worth it for Netflix.

 

[edfoo]

So has anyone in the past week able to subscribe to a new Netflix subscription using iTunes credit?