Logo
News

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

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.

Manish <span>Content Strategist</span>
Written By
Manish Content Strategist

With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!

Think Your Professional Journey
Deserves A Spot In Our 40 Under 40 Report?

Featured Blogs

News

Spotify Lite Officially Launched In 36 Countries With Support For 2G Connections Also.

4 min read  

In the age of high-speed internet and advanced devices, there are still demand lightweight apps that can run on low storage devices and poor internet connections.Recently, one of the best offline music apps, Spotify, announced its lightweight version of its app. Dubbed as Spotify Lite, it launch

News

Meta Ventures into Decentralized Social Media with New Text-based App

4 min read  

Could this be the game changer for Meta's sinking ship?Meta is developing a new decentralized social app called P92, which will allow users to share text updates. According to a statement from a Meta spokesperson, the app will provide a separate space for creators and public figures

News

LinkedIn Utilizes Generative AI to Enhance Profiles and Recruitment Ads

4 min read  

LinkedIn has announced that it is expanding its use of generative AI assistants on its platform. The AI-powered writing suggestions will be initially offered to LinkedIn users to improve their profiles and to recruiters writing job descriptions. The tool identifies the essential skills and

News

Instagram Will Soon Allow Friends To Add To Your Posts

4 min read  

The trend that began with big-time Instagram influencers has now reached the general audience too. Collaborator posts are on a high note in terms of the most used Instagram post formats. To facilitate better on-platform access for users to collaborate, Instagram is working on new features that will

Featured Interviews

Interview

Interview With Coyote Jackson, Director of Product Management, PubNub

MobileAppDaily had a word with Coyote Jackson, Director of Product Management, PubNub. We spoke to him about his journey in the global Data Stream Network and real-time infrastructure-as-a-service company. Learn more about him.

MAD Team 4 min read  
Interview

Interview With Laetitia Gazel Anthoine, Founder and CEO, Connecthings

MobileAppDaily had a word with Laetitia Gazel Anthoine, Founder and CEO, Connecthings. We spoke to her about her idea behind Connecthings and thoughts about the company’s services.

MAD Team 4 min read  
Interview

Interview With Gregg Temperley, Founder Of ParcelBroker App

MobileAppDaily had a word with Gregg Temperley, Founder. We spoke to him about his idea behind such an excellent app and his whole journey during the development process.

MAD Team 4 min read  
Interview

Interview With George Deglin, CEO Of OneSignal

MobileAppDaily had a word with George Deglin, the CEO and co-founder of OneSignal, a leading customer messaging and engagement solution, we learn multiple facets related to customer engagement, personalization, and the future of mobile marketing.

MAD Team 4 min read  
MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH
Join our expansive network, build connections and expand your brand presence.