Netflix, the popular video streaming giant, has decided to no longer accept monthly fees made by its subscribers for using the service through the Apple App Store in-app purchase system.
This development was first reported by The Streamable, wherein the publication said that Netflix has begun notifying subscribers who are currently paying their monthly fees through Apple’s in-app purchase system to start using an alternative payment method to maintain active accounts.
Even though Netflix stopped allowing its new and rejoining subscribers from signing up for the service via iPhones and iPads in 2018, it permitted its existing customers to continue using Apple’s in-app payment system.
However, the streaming giant now wants to stop paying a 15% to 30% cut on in-app transactions that go through Apple’s in-app payment processing system. This would help Netflix to reduce dependence on Apple and, in turn, enable them to earn more revenue.
For instance, the change in payment policy is already live for users in the U.S., as the updated wording on Netflix billing on Netflix’s Help Center reads, “Some Apple-billed members in select countries may be prompted to add a new payment method to continue their subscription.”
While the change in payment policy says “some” countries, Netflix’s representative Momo Zhao has confirmed to The Verge that all “members on the basic plan who were using an iTunes method of payment” will need to sign up directly for the service using a credit card or a debit card.
According to the spokesperson, the policy change will affect subscribers using Netflix’s basic plan in countries including the United States and Canada.
It’s unclear how many users are still paying for their subscriptions through Apple’s in-app purchase system since Netflix removed the option for new and rejoining subscribers over five years ago.
