Netflix Stops Paying Apple Tax On Its Annual iOS Revenue- MobileAppDaily
Mobile App

Netflix Decides Not To Pay ‘Apple Tax’ Anymore

Previously Apple was making around $700,000 just by allowing Netflix to offer subscription in its app.

Netflix Decides Not To Pay ‘Apple Tax’ Anymore

Netflix iOS app has currently ditched the ability for new users to use iTunes billing as a payment method across all global markets. The change occurs four months after Netflix was seen testing a bypass of iTunes billing across many markets worldwide.

The current subscribers who use iTunes billing can continue to use the payment option until they cancel their account. The cling to iTunes billing caused the streaming giant to lose 15 to 30 percent of the subscription fees generated by iOS users.

The support section on Netflix’s website reads,

Netflix subscription count has been increasing every day, making it the App Store’s top grossing app and collecting more than $850 million in 2018 on the iOs App Store. Based on that figure, Apple’s take would have been around $256 million, a new data compiled by Sensor Tower estimated. The new change will make Apple miss out hundreds of millions in App Store revenue per year.

The new Netflix users on iOS will now have to open the Netflix website on Safari or any other browsers on their Apple devices to begin their subscription and set up the payment method. The iTunes billing option was a convenient method for the subscribers as they didn’t have to share their payment information again on Netflix and could just use the one stored by Apple.

The company isn’t the first to avoid the ‘Apple Tax’ system, the likes of Spotify and Financial Times have also discontinued the option to pay for its premium service using Apple’s in-app payment system.

Amazon also restricted movie and TV rentals and purchases to its own website, instead of allowing them to take place through its Prime Video app. Epic Games this year bypassed Google’s Play Store altogether after it launched Fortnite for Android. This made Google lose more than $50 million in marketplaces fees.

Netflix banked around $105 million in 2018 on Google Play, with Google earning close to $32 million of that. According to Sensor Tower, the numbers have been declining consistently and Apple could be on the same boat pretty soon.

MAD Team
Written By

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

Top Companies

InMobi
Singapore
Dot Com Infoway
New York, USA
M&C Saatchi Mobile
New York City, USA
Techmagnate
New Delhi, India
Fetch
London, UK
View full report

Latest Articles

Join our global community 135K Followers
Mobile App

Apple Design Awards 2019: Top 9 Apps Of The Year

MAD Team 4 min read  

“Work hard in silence and let your success make the noise.”Every app developer or app owner wants their app to get recognition and nothing could be better than the Apple Worldwide Developer Conference’s stage. At the ongoing annual event, Apple announced the winners of Apple De

Mobile App

Uber Bookings No Longer Available On Google Maps

MAD Team 4 min read  

HighlightsGoogle removes Uber booking integrations from Maps for AndroidUsers will have to go to Uber app to finish the booking processThe Maps will show cost estimation and duration for an Uber rideThe services had already been removed for iOS usersTaking an unexpected move, G

Mobile App

Reddit is Ready To Launch New Mobile App With Support For Real-Time User Tool

MAD Team 4 min read  

Reddit brings refreshing changes to its mobile app that was first launched on Android and iOS earlier this year. The updates include features such as support for real-time comments, chat, mod tools and more, making the official Reddit experience on mobile, more interactive and social. After testing

Mobile App

Password Management App Dashlane Raises $30M, Spotify Former CMO Joins Board

MAD Team 4 min read  

A password manager and identity management solution, Dashlane, raises $30 million in a new round of funding. There is also a new addition to its board, Seth Farbman, a former CMO of Gap and Spotify.The debt financing was led by Hercules Capital with participation from previous investments from F