Netflix has taken a radical decision, starting to close subscriptions that use the payment method via Apple Store. This change by which Netflix closes subscriptions paid by App Store, forces iPhone or iPad users to enter new payment details for their Netflix accounts. Moreover, users will not incur a price increase for their Netflix subscription as a result of this process.
This change came as a result of politics Apple, which charges a 30% fee on all transactions made through App Store. This never sat well with Netflix, which until 2015 refused to accept subscriptions made through App Store. Later in 2018, it completely stopped accepting new registrations and subscriptions through this method. In addition to the fees being deemed excessive, Netflix found that users who joined the platform via iPhone devices tended to drop out of the service more quickly, Apple facilitating the possibility of unsubscribing directly from the settings menu.
After Netflix shuts down paid subscriptions via App Store, users will incur a price increase for subscriptions. Over the years, Netflix has made significant changes to its payment policy with a direct impact on its customers. Old users who joined the service through App Store they managed to avoid four price increases. For example, those who signed up for the Standard plan in 2015 or 2016 paid just $10 a month, while those who joined in 2017 or 2018 paid $11.
Today, Netflix's Standard plan costs $15,50 per month. Old users who paid via App Store could see a price increase of up to $5,50, which means an additional cost of $66 per year. However, for those who don't want to pay $15,50, there is the option of a $7 ad-supported plan, which has improved significantly since launch.
It's important to note that Netflix is one of the few iOS apps that can redirect customers to an external web page to sign up. In contrast, other apps that tried to avoid the payment system of Apple, such as Fortnite, have been sanctioned by Apple.
In conclusion, this change by which Netflix closes subscriptions paid by App Store comes with direct consequences for Netflix subscribers who use Apple App Store for payments. They must be prepared to enter new payment details and face possible price increases. It's a new chapter in the strained relationship between the streaming giant and the company Apple, and the consequences of this decision will be resimlong-term goals by users.
