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

[Feenician]

I think this whole discussion of customer acquisition and whether/when Apple deserves a cut is fascinating.

Sure it will be interesting to see if Netflix take it all the way or roll it back. It will tell you whether the 15/30% commission is worth it to an already very dominant company like Netflix. My suspicion is that Netflix is important enough to many people that they will go and sign up outside the app. I'm not sure that's true for less successful services though.

 

[Dj64Mk7]

I... I can’t even believe I’m replying to you. Where the hell are you getting it that they aren’t?

Big money in tying it all together in a profile. They know where you are surfing, they know what you are buying. And to top it off they now know what youre watching. Haha

This isn't a deep state conspiracy. Netflix is not after you. Netflix is not Google. And even if they were, Google does not sell your personal information to third-parties. That's Facebook you're thinking of.

 

[Rogifan]

Sure it will be interesting to see if Netflix take it all the way or roll it back. It will tell you whether the 15/30% commission is worth it to an already very dominant company like Netflix. My suspicion is that Netflix is important enough to many people that they will go and sign up outside the app. I'm not sure that's true for less successful services though.

I’ll be interested to see if they ever attempt this in the US. If they chose to do so I don’t think there’s much Apple can do about it. They’re never going to remove Netflix from their app stores.

 

[Jeaz]

Good point.....So why would netfix or anyone else want to give up 30% when they don't have too.

Well, define “don’t have to”. Most people I know subscribe through iTunes since it’s the most convenient way to do it. Plus no need to expose your credit card to another source. Many aren’t so tech-savvy and when they login to the app and try to start viewing, the procedure that they have to go to a browser to signup might put them off.

I can understand why they do it, but I love how they try to spin as this is something they do as a favour to the customers.

Either way, bad PR-week for Netflix. First the “ads” between shows and now this.

 

[WarHeadz]

Well, define “don’t have to”. Most people I know subscribe through iTunes since it’s the most convenient way to do it. Plus no need to expose your credit card to another source. Many aren’t so tech-savvy and when they login to the app and try to start viewing, the procedure that they have to go to a browser to signup might put them off.

I can understand why they do it, but I love how they try to spin as this is something they do as a favour to the customers.

Either way, bad PR-week for Netflix. First the “ads” between shows and now this.

I’m sorry, I just don’t believe that someone who wants Netflix service will be offput by having to sign up through a browser. That’s just not reality.

 

[KPandian1]

Apple is bringing Netflix these customers. Apple legitimately deserves to get paid for every customer acquisition that occurs on its platforms.

No it is not.

 

[OllyW]

It's time for everyone to cancel Netflix. They are trying to steal from Apple. This is wrong on every level.

I think your post is wrong on every level.

 

[KPandian1]

It's time for everyone to cancel Netflix. They are trying to steal from Apple. This is wrong on every level.

Nice sarcasm.

 

[Feenician]

I’ll be interested to see if they ever attempt this in the US. If they chose to do so I don’t think there’s much Apple can do about it. They’re never going to remove Netflix from their app stores.

While I'm not saying Apple don't want the money, there is explicit provision for apps that have subscriptions outside the store. I don't think pulling Netflix (or any other app of any level of success) is on the cards at all. You have in-app subscription, Apple gets their cut. You have your subscription outside the app, you don't pay them anything (other than the $99 dev account fee).

 

[Splatt123]

It's time for everyone to cancel Netflix. They are trying to steal from Apple. This is wrong on every level.

You win most stupid comment of the day. Competition is good. Do you really want every streaming media company to pay money to Apple?

 

[dumastudetto]

You win most stupid comment of the day. Competition is good. Do you really want every streaming media company to pay money to Apple?

No, only the streaming media companies that leverage Apple's platforms to acquire customers.

I think Apple's value proposition is reasonable. You can sell subscriptions outside of Apple, but you must at least offer customers the option of buying using their Apple account.

It'll be interesting to see how Apple handles this.

 

[Rogifan]

No, only the streaming media companies that leverage Apple's platforms to acquire customers.

I think Apple's value proposition is reasonable. You can sell subscriptions outside of Apple, but you must at least offer customers the option of buying using their Apple account.

It'll be interesting to see how Apple handles this.

So why doesn’t Apple take a cut of Uber and Lyft transactions?

 

[mistasopz]

I can sortof understand Apple charging ~30% for purchasing an app on their store. They host the App afterall.

But taking 15% from subscriptions? 30% from in-app purchases that have absolutely NOTHING to do with Apple except using them as a payment processor is ridiculously high for a payment processor. MasterCard/Visa charges 1-2% of each purchase. Even your run of the mill non standard ones only charge 2-3%. Taking 15% of monthly subscription based services is very high and puts unecessary burdens on those companies.

Apple needs to adjust here to remain competitive. services like Netflix are already small margin and are fairly inexpensive. 15% of your fee can suddenly make the service unprofitable to deliver, and if that's the case, we al lose as the services that aren't profitable go away, even if they're great like Netflix.

Do we WANT Netflix to stop being used on iOS devices? do we want them to just say "it's not worth it" and walk away? of course not. That hurts everyone. Apple needs to realize this isn't 2010 anymore. they no longer have a captive position as the dominant platform.

Exactly, 30% in-app purchaes, 15% subscriptions is unreal. Imagine if Mastercard or Visa charged companies these percentages to process these types of transactions. Unreal.

 

[Feenician]

I think Apple's value proposition is reasonable. You can sell subscriptions outside of Apple, but you must at least offer customers the option of buying using their Apple account.

It'll be interesting to see how Apple handles this.

That isn't true though. Prime Video doesn't have an option to subscribe in-app. Neither does PS Vue, nor most of the video/TV apps.

https://developer.apple.com/app-store/subscriptions/

Subscriptions Purchased Outside of an App
Subscribers who were acquired outside of your app can read or play content through the app. However, you may not provide external links in your app that allow users to purchase subscriptions outside of the app.

 

[netdudeuk]

Understand their reasons but it's a bit much to describe it as "improving the Netflix experience".

Well, it may help keep the prices stable and allow for further investment in Netflix originals.

 

[nauf8]

youll stil be able to signup and pay for your subscription on your iOS device. You will just have to do it through Safari by going to Netflix's webpage.

Thanks for the answer, however my point is other, maybe convenience?
Spotify did the same and now I have a subscription though their website and others, including Netflix, through Apple. I am afraid that others will follow soon ( with a reason) and i don’t want to have so many open fronts with subscriptions.
I understand that Apple ‘s cut is too much for some companies but I find risky the many subscriptions fronts.
Not an easy solution but in the end you must do what you ought to do

 

[bananas]

I have been a Netflix customer since day one (since they launched in my country) and I have always paid thru iTunes.
I'm not going to bother giving my credit card to Netflix. So it seems like it's time for me and Netflix to spend some time on our own and see if the relationship last or not

 

[Feenician]

Thanks for the answer, however my point is other, maybe convenience?
Spotify did the same and now I have a subscription though their website and others, including Netflix, through Apple. I am afraid that others will follow soon ( with a reason) and i don’t want to have so many open fronts with subscriptions.
I understand that Apple ‘s cut is too much for some companies but I find risky the many subscriptions fronts.
Not an easy solution but in the end you must do what you ought to do

That's the rub here. It's arguably less convenient for (some?) users who probably don't care if Apple are taking a cut or not.

 

[Tiger8]

I can sortof understand Apple charging ~30% for purchasing an app on their store. They host the App afterall.

But taking 15% from subscriptions? 30% from in-app purchases that have absolutely NOTHING to do with Apple except using them as a payment processor is ridiculously high for a payment processor. MasterCard/Visa charges 1-2% of each purchase. Even your run of the mill non standard ones only charge 2-3%. Taking 15% of monthly subscription based services is very high and puts unecessary burdens on those companies.

Apple needs to adjust here to remain competitive. services like Netflix are already small margin and are fairly inexpensive. 15% of your fee can suddenly make the service unprofitable to deliver, and if that's the case, we al lose as the services that aren't profitable go away, even if they're great like Netflix.

Do we WANT Netflix to stop being used on iOS devices? do we want them to just say "it's not worth it" and walk away? of course not. That hurts everyone. Apple needs to realize this isn't 2010 anymore. they no longer have a captive position as the dominant platform.

Wish I can reach out and shake your hand. Preach brother/sister!!!!

 

[RedWing512]

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.

Don't forget that Android also allows devs to distribute apps outside of Google Play, and by doing so, can skirt any payment requirements imposed (see: Fortnite).

 

[nburwell]

I had to check to make sure the U.S. was not on the list as my Netflix subscription is billed through iTunes. I'd be pretty peeved with Netflix if they brought this to U.S. users, especially when I usually buy iTunes gift cards when they're discounted. But it wouldn't be the end of the world. Their content is on point and enjoyable, so even though I wouldn't like it, I would pony up the money and sign up via their website.

 

[Dj64Mk7]

Isn't subscribing through iTunes more expensive than going through the website?

 

[Rogifan]

Isn't subscribing through iTunes more expensive than going through the website?

Depends what the dev does. I believe Microsoft eats the commission it pays to Apple. Spotify grosses up so if you purchase a subscription in app it’s more expensive.

 

[Dj64Mk7]

Depends what the dev does. I believe Microsoft eats the commission it pays to Apple. Spotify grosses up so if you purchase a subscription in app it’s more expensive.

Here are the current prices... Can you verify with the website prices?

 

[TonnyM]

There is a reason why Apple services revenue has been record high recently and this reason is, people are the willing to pay subscriptions via iTunes. I have one place where I can manage all subscription services and apps, instead of going to all separate web sites and accounts. I think that this move of Netflix is very shortsighted, why not let customers decide how they prefer to pay and spend their money.