End of an Era: Netflix’s Decisive Step Away from Apple iTunes Billing
Netflix Inc. NFLX has made a groundbreaking decision to discontinue billing through Apple Inc. AAPL for its loyal subscribers. The streaming behemoth will now require these subscribers to make payments directly to Netflix.
What’s the Buzz: Netflix has commenced the process of removing its long-standing subscribers from their Apple iTunes billing arrangements. These subscribers are now mandated to settle their dues directly with Netflix using a credit or debit card, according to a report from The Verge.
This transitional adjustment impacts all members on the basic plan who have been utilizing iTunes as their payment method.
Momo Zhao, a representative from Netflix, has confirmed the development, emphasizing that the change has been implemented. Consequently, subscribers who have relished the prolonged $9.99 price point will now need to shift to direct payment or face a potential price hike for the same subscription package.
Curious to Know More? Explore Currently Subscription Prices for Netflix in 2024
This strategic pivot symbolizes the conclusion of an epoch for Netflix clientele accustomed to Apple’s payment framework. Despite Apple introducing in-app subscriptions for iPhones in 2010, Netflix only adopted this method on its iOS app in 2015 due to its principled objection to Apple’s customary 30% commission.
In late 2018, Netflix opted to cease in-app subscriptions altogether, underscoring its firm stance against compensating Apple, as highlighted in the report.
Why It’s Signficant: While Netflix and Apple share a longstanding partnership, the streaming giant announced earlier in the year that it would not be crafting an app for the Apple Vision Pro, encouraging users to view its content via web platforms.
This decision was considered a notable setback for Apple, given its dedication to entertainment content for the innovative device.
Additionally, Netflix’s Co-CEO, Greg Peters, played down the market impact of Apple’s inaugural mixed reality headset, indicating that the market demand for the device does not justify an investment in app development.
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