Netflix stops offering subscriptions via iTunes

  • TECH
  • Wednesday, 02 Jan 2019

Auto-playing trailers for Netflix shows will now be available on their mobile app too.

New and returning Netflix viewers will not be able to subscribe via their iTunes account, as the streaming service moves to bypass the Apple "app store tax". 

Viewers will now have to sign up for their subscriptions directly through Netflix, which can be paid through debit/credit cards or gift cards obtainable in convenience stores.  

Existing viewers subscribed via iTunes will not be affected, unless the subscription lapses.  

This is similar to how Netflix cut subscriptions via Google Play as of May last year.

Only customers already choosing to be billed via the Google Play Store before that date can continue paying their Netflix subscription there, though not new Netflix watchers. 

Not going through app stores means Netflix will not need to pay Apple and Google a "tax" of up to 30% of the payments made via the app stores. 

This could potentially save the company millions annually, with a study by research company Sensor Tower revealing Netflix earned US$853mil (RM3.529bil) last year on the Apple App Store, of which Apple's cut would be around US$256mil (RM1.059bil).

Subscription based apps – like Spotify and Kindle e-books – are increasingly moving payment off app stores, in a move to cut costs.

However, these savings seem unlikely to result in lower prices for customers. 

For instance, Netflix premium costs RM51/month directly, but RM49.90/month via iTunes.
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