New Netflix Subscribers Aren’t Allowed To Pay Via iTunes. Here’s Why

Netflix no longer provides the option for Apple users to subscribe via their iTunes account. Existing users on iOS devices won’t have to worry as this new change only affects new subscribers

Netflix no longer provides the option for Apple users to subscribe via their iTunes account. Existing users on iOS devices won’t have to worry as this new change only affects new subscribers

As you might or might not know, when someone purchases a subscription through the iOS app, Apple gets a cut of the profits. For more info on cancelling iTunes billing, you can refer to their guide. By forcing users to sign up via its website instead, the company can sidestep Apple's hefty cut of subscription fees. Fortnite remains in the App Store on iTunes, so Apple receives a 30% cut of all in-app purchases (about $100m from Fortnite over the past 9 months).

In the third quarter, Netflix gained 50 million new users, bringing it to over 600 million app installs worldwide.

In an interview with VentureBeat, a Netflix spokesperson stated that the company would no longer "support iTunes as a method of payment for new members". Apple will no longer get a cut of the subscription revenue, and you no longer will be able to activate the subscription using the iOS app. Netflix only sent out a short statement confirming the news and saying that iTunes is no longer a method of payment for the new customers.

Meanwhile, the tension between Netflix and Apple and Google seems to grow. Whether we are talking about Apple earning 15 percent or 30 percent, that is a lot of free revenue Apple gets from apps with these in-app subscriptions.

As mentioned, both new and existing users now have to begin a subscription through a web browser on iOS, such as the default Safari browser app.

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New users that want a Netflix subscription and must pay for it will have to visit the official website. As long as you have not missed a billing period, you will still be able to pay using the in-app subscription option. You probably have billing information setup on your iOS device for other apps and services.

How to Pay for Netflix on iOS Devices?

While some argue that 30% is a fair price to pay for secure and easy distribution to a billion devices, others have argued that the cut essentially wipes out their margins and makes it much more hard to produce high-quality software for iPhones and iPads without resorting to tricks and in-app purchases.

However, it turns out that idea was much better than giving Apple loads of money. Specifically, high-profile companies like Spotify chose to remove the option to get around the Apple payment method for the same reasons. On iTunes, it costs RM49.90/month while Netflix charges RM51/month for the same premium subscription.

On Monday, the top-grossing app in the United States was the gaming sensation Fortnite, whose developer has cut Google out of downloads on Android devices and is trying to build its own app store.

The move will allow Netflix to keep all proceeds from its new paying iPhone and iPad customers. Google has also received plenty of flack for taking a huge cut from in-app subscription sales.

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