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Home / Technology / Netflix stops paying & # 39; Apple tax & # 39; at its $ 853M in annual iOS revenue – TechCrunch

Netflix stops paying & # 39; Apple tax & # 39; at its $ 853M in annual iOS revenue – TechCrunch



Earlier this year, Netflix was trying to bypass iTunes billing across markets worldwide. In 2018, Netflix – App Store's best wholesaler app – deleted the ability of new users to sign up and subscribe to the streaming service in their iOS app in all global markets. The change means Apple will miss hundreds of millions in App Store revenue a year – money that would otherwise have been provided by standard cut in app transactions.

According to new data prepared by the Sensor Tower, Netflix was grossed $ 853 million in 2018 on the iOS App Store. Based on this figure, Apple's recordings had been around $ 256 million, the firm said.

So far, the Netflix iOS app has generated more than $ 1

.5 billion through the app's subscriptions, with Apple's cuts coming at around $ 450 million plus, the Sensor Tower estimated.

Prior to the change, Netflix on iOS had an average value of $ 2.4 million per day in 2018, which means Apple made around $ 700,000 by doing nothing but letting Netflix offer subscriptions in its app. [19659002] (Note that the Sensor Tower figures are based on the App Store's 30 percent cut of transactions. After the first year, Apple's cut of subscription renewals is reduced to 15 percent. It is not included. But it gives you a rough idea about Apple's loss here.)

Netflix's iOS revenue has climbed steadily over the years.

In 2017, net sales of $ 510 million – up from $ 215 million users in the app in 2016 – whic h has earned the # 1 spot on the Top Grossing Chart for non-gaming apps. It has sneaked this position again this year, beaten by Tinder and Tencent Video.

Nettflix has actually achieved bragging rights to be the most gross productive iOS app all the time, App Annie reported this summer.

The stream service's decision to bypass the App Store is not a first. Many companies today lead their users to the web or other platforms to avoid market fees.

For example, Amazon has historically limited movie and TV rentals and purchases to its own website or other "compatible" apps, rather than allowing them to take place through its Prime Video app. books that are also not offered in the Kindle mobile app. Spotify also ended the opportunity to pay for its Premium service using Apple's payment system.

And this year's Epic Games bypassed Google's Play store completely – in addition to 30 percent cut – when it launched Fortnite for Android as a sideloaded app. That decision resulted in Google's $ 50 million + loss in marketplace fees.

Earlier this year Netflix had subscribed to the subscription in the app in its Android app on Google Play. It signaled its intentions to later take back the so-called "Apple tax" for itself.

However, Netflix still earns money on Google Play through existing subscribers. It amounted to around $ 105 million in 2018, with Google earning close to $ 32 million. But the number has gone down consistently, Sensor Tower said. Apple could soon be in the same boat.

VentureBeat was the first to discover the change to the Netflix iOS app. It would be surprising if Apple made available to Netflix, given that it has not done so with other major technology companies that made similar moves.


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