Netflix pulls Apple iTunes billing for new subscribers
04 January, 2019, 11:24
While it is unclear as to why Netflix has removed the iTunes billing option, it appears that Apple apparently takes a 15 percent cut of recurring in-app subscriptions done through iTunes accounts on iOS devices.
Netflix is no longer allowing new customers to subscribe via iTunes using in-app purchase on their iPhone or iPad in order to avoid paying a 30% commission to Apple. As a result, Netflix does not have pay Apple a share of the revenue, VentureBeat reports.
Consumers spent more than $1.22 billion on apps and games between Christmas Eve and New Year's Eve. Interestingly, Apple seems to have already begun working on its next-generation iOS operating system, iOS 13.
While Apple is mostly dependent on device sales, its fastest-growing business segment has been in services such as the App Store, Apple Music, iTunes, iCloud storage and device warranties.
Apple's data indicates that 78 percent of all devices released in the last four years are running iOS 12.
Schiller also thanked for "the inspiring work of our talented developers and the support of our incredible customers around the world, the App Store finished off an outstanding 2018 and kicked off 2019 with a bang". The growth in mobile streaming could lift the number of new Netflix subscribers, and the new App Store policy will let the company keep that revenue.