Netflix is cutting off subscribers who pay through Apple’s App Store. Affected customers must enter new payment details for their Netflix account and may experience a price increase as a result of this change.
Apple takes a 30% cut of all App Store transactions—a fact that has always rubbed Netflix the wrong way. The streamer refused to accept App Store-based subscriptions until 2015, and it stopped accepting new signups via the App Store just three years later. In addition to the dreaded Apple tax, Netflix experienced a “voluntary churn” issue on the App Store, meaning that customers who joined the streaming service from an iPhone were more likely to cancel their service.
It’s been several years since Netflix ditched Apple’s payment system. As a result, legacy users who joined Netflix via the App Store have managed to avoid four price hikes. Customers who signed up for the Standard plan in 2015 or 2016 paid just $10 a month, while those who joined in 2017 or 2018 paid $11.
The Netflix Standard plan currently costs $15.50. Legacy subscribers who paid via the App Store may experience a price increase of up to $5.50, which adds up to an extra $66 per year. Of course, customers who are unwilling to fork over $15.50 can opt for the $7 ad-supported plan, which has improved substantially since launch (but includes ads, obviously).
Note that Netflix is one of the few iOS apps that can redirect customers to an external webpage for signup. Other apps that have attempted to bypass Apple’s payment system, such as Fortnite, have faced punitive measures from Apple. Things are changing; Apple recently introduced support for external purchase links in iOS apps. But these external links are still subject to a billing fee and other draconian rules. The special treatment enjoyed by Netflix is unfair and should be extended to other apps.
If you pay for Netflix through the App Store, you will be asked to set new payment details from your web browser. Failure to manually renew your subscription will result in cancelation. Those who enjoyed Netflix’s pre-2019 pricing are now forced to choose between Netflix’s $15.50 Standard plan or its $7 ad-supported plan.
Source: Netflix via The Verge
