Netflix is tightening its subscription model, cancelling subscriptions made through iTunes. Netflix had cancelled new signups through iPhone in-app purchases many years ago, but will now discontinue those previously grandfathered in.
Apple’s in-app subscriptions make customer acquisition very easy, but at a high cost. Apple can take as large as 30% of an app’s revenue, something that other tech companies have decried in the past. Elon Musk himself has labeled it as the “Apple Tax”, and has priced his Twitter Blue in-app subscriptions higher to make up for it. The Verge says:
Netflix confirms to The Verge that it has begun booting longtime subscribers off their Apple iTunes billing plans in some countries and will require them to pay Netflix directly using a credit card or debit card instead. As first reported by Cord Cutter News, Netflix has begun telling customers in “some territories” that their plans would need to be switched over. Netflix spokesperson MoMo Zhou told The Verge in an email that the change affects “members on the basic plan who were using an iTunes method of payment,” and later added that this includes Canadian and US users.
It’s been a good run for anyone who signed up before Netflix stopped accepting subscriptions through Apple’s payments system. One person indicated today on X that they’d kept the streaming service’s old $9.99 price for years.
The end to in-app purchases could cause disruption to many Netflix users. However, users can continue their subscriptions directly through netflix.com, which could prove tricky for some. USA Today provides help:
Netflix subscribers using Apple accounts to pay for their subscriptions should update their payment method, adding a credit or debit card by the next monthly renewal date.
To check if you are being billed for your Netflix subscription through Apple, visit the membership and billing section of your account page. Additional guidance can be found on Netflix’s Help Center.
This story is yet another example of the end of the cheap subscriptions. With high interest rates and lower investments, companies are cutting costs in any way they can. Netflix has already turned around its low earnings by introducing ad-supported tiers, higher subscription prices, and cracking down on account sharing.
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