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Netflix Tests Disabling In-App Subscriptions on iOS in Some Countries
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HobeSoundDarryl
macrumors G5
Looks like someone is becoming very nervous about someone sniffing around with over a quarter of a $ Trillion dollars in cash reserves.
A trillion dollar valuation is not equal to having a trillion dollar in cash reserves. Apple doesn't even have the $29X-$3XX million in cash reserves so commonly thrown around here (when you deduct the ever-growing debt that what was once debt-free Apple has been accumulating the last few years). Look it up if in doubt.
But yes, if I'm Netflix, I'm a bit uncomfortable seeing Apple making moves toward my space. And yes, if I'm Netflix- or any app with revenue streams- I'm always looking for ways to grow my own revenues instead of enriching some other company. Any amount taken "right off the top" is a (first) bite right out of gross profits.
If this was the other way, none of us would be finding any fault with Apple maneuvering to reclaim profits from some other source. In fact, it's very likely we would be faulting that other source as ripping off Apple by daring to take so much of Apple's revenue... AKA "how dare they?" when any company is trying to make more money possibly at Apple's expense (even indirectly) or in the way of Apple domination or any market in which Apple plays.
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Netflix is profitable as is. This is probably their way of further increasing profits. Just because a company is doing okay doesn't mean they aren't always striving to increase profits.
I believe the Google Play store allows for other payment options. So an app developer can use Google for payment processing (where Google would get a cut) or offer their own payment option.
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Does Netflix charge more if you subscribe in-app like Spotify does? If so then yes this would be improving the experience.
What details do you think they get that they don't get if you are billed through iTunes?
What details will Netflix get that they don't already have? I imagine they have your name already, which is probably (along with your IP) enough to match you against tons of other sourced data out there. Unless you're suggesting Netflix sells your payment info, which is simply untrue.
Content licensing haha have you watched Netflix lately? It’s filled chock o block wall to wall with poor man Netflix original copies of the shows we really want. Instead of paying for the shows we want they make a substandard copy.
Netflix are laughing all the way to the bank.
This is about getting our details to fill and form their databases so they can sell us for more profit.
Subscribing through Apple protects us. They want us out of that protection.
I think what that says is that any service that is available for purchase externally, must also be available for use on the iOS app. Not necessarily saying that if you sell it on the site, yo must also sell it in App.
How do they have my name?
iTunes protects us from that stuff. Apple doesn’t share ****.
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See reply above.
Subscribers such as myself do so via the web app itself. Now I'm just perpetual yet I do download shows/movies to watch later on iOS/AppleTV.
Interestingly enough the main reason for Netflix to place on the iOS App Store / Google Play Store (which it failed to mention anything in this article ... is for users/subscribers.
Netflix - Let's inconvenience them (subscribers) to get more revenue.
Result: A few users leave the platform and look for the multitude of alternatives:
Marvel is pulling a LOT o content from Netflix
Disney is pulling a LOT of content from Netflix.
- users: Let's all get an Android box or use old school BitTorrent and just not pay a dime!
Yeah this is going to work long term well. Netflix has gotten large and fat over the years ...YET their overspending for production of movies and shows that unfortunately is NOT getting the viewing rates or subscribers growth that they once had.
https://www.bloomberg.com/view/arti...rnings-subscriber-growth-disappoints-faithful
July 16, 2018, 5:40 PM EDT
- The company spent an astonishing $10.1 billion on cash programming costs in the last 12 months; 4.5x what HBO spent in 2017 on buying or producing its movies and TV shows.
- The costs for marketing Netflix programming also nearly doubled to $1 billion in the first six months of 2018 from a year earlier ...
- In all, Netflix has committed to spending an astonishing — that word again — $18 billion in coming years for its entertainment programming.
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Shows I watch:
Altered Carbon
Anon
Suits
... nothing else appeals to me really.
Movies:
all the big action blockbuster hits.
* And to think Netflix was a Video Tape Vending machine company at Blockbuster long ago? Curious if that brand could be brought back again to heavily compete? Hmmm.
how so? Giving Apple 30% is massive chunk and I never used in app purchases for subscription and this will certainly not deter people from using netflix. After all, you only need to subscribe once and please don't tell me people are so damn lazy these days to go on a website and do it from there.
I can safely say that those lazy slackers will still amount for less revenue lost than the 30% Apple is taking right now.
So good on Netflix, I would have done this ages ago.
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really? How often do you use this "feature"? I would rather that Netflix uses the extra 30% to improve the film collection and services then lose a massive chunk of money because people are so damn lazy these days
I’m sure they actually operate as a business and have monitored the in app subscription situation for a while.
Some will have been introduced to the platform as new, and that is where in app subscriptions would have gained new customers. But once you are at a certain critical mass the costs may become to much and you have build up enough of affinity to retain the majority of such customers whilst accepting you may loose a few. Decisions will be made based on an analytical model of such situations.
I don’t see a problem with this. And Netflix has got subscriptions through many different channels and resellers. For example ours comes through our broadband package.
Some will have been introduced to the platform as new, and that is where in app subscriptions would have gained new customers. But once you are at a certain critical mass the costs may become to much and you have build up enough of affinity to retain the majority of such customers whilst accepting you may loose a few. Decisions will be made based on an analytical model of such situations.
I don’t see a problem with this. And Netflix has got subscriptions through many different channels and resellers. For example ours comes through our broadband package.
Apple is the one running the credit cards which is about 3% for Visa/Mc/Amex/Discover and hosting the apps which server space isn’t free. They should take a 5-10% cut but not 15-25%.
Where do you get this "most people" assertion? I'm willing to bet only a minority subscribes through iTunes.
You only sign up once. Not difficult to sign up via the browser. And I’m sure Netflix would offer signup in the app if Apple allowed them to do so without taking a cut.
People are lazy. Why Apple is so successful with the in-app purchases to begin with? Any extra steps to make a purchase is an inconvenience.
Beside, it's Apple's platform, either play by Apple's rules or do HTML5 web app. Amazon took the other road by not playing with Apple from the get go on their Kindle and streaming services, thus their customers are already trained as such. Netflix now has to re-train their customers. We'll see if this affect them negatively or not.
If Apple ever removed Netflix, I would just get a cheap android tablet to view Netflix. Therefore I doubt Apple would be stupid enough to remove Netflix.
LOL, yeah right. After a month or two their numbers will be exactly the same.
You cannot run a business if you are blaming your customers. Like it or not, consumer behavior wants convenience. Besides, the 30% is optional. Amazon opted out from the get go. Netflix could've done the same, but clearly greed takes a while to sink in.
Oh well, not that I care. Stopped paying netflix way back.
My Apple Stock loves that Apple makes money, but I have always felt it is wrong for Apple to require 15 - 30% of subscription fees. For services like Netflix, Apple provides very little with a great return. This just lowers Netflix's profits and encourages Netflix to have to raise their rates.
Makes me wonder how Apple makes money from the Kindle app. You can’t buy kindle books with the app. It’s stricly for reading ebooks you already purchased elsewhere and the app itself is free.
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Nope. Sub, unsub when content gets boring which happens often with the drivel they put out these days. Then resub at a flick of a button.