Netflix is allegedly looking to be the latest technology giant to avoid paying charges to Apple's App Store. If you find yourself unable to access your account via the app on your Apple device, you may need to sign up again via a browser. For Apple's cash-purchase service this is bad news.
The App Store generated about $ 11.5 billion in revenue for Apple last year. That money comes from up to 30 percent revenue cut Apple takes from developers. Of the millions of apps available in the App Store, Netflix now ranks number three on the highest gross plans. But according to a report from TechCrunch, Netflix tries a way to avoid sharing the big profits.
Until recently, if a user downloaded the Netflix app on their Apple device and signed up for the service, billing was handled through Apple. It is still largely the case, but some users are now informed that they need to go through the trouble of renewing the subscription through a browser. The slight downside is a big part of Apple's business plan because it's very easy to just confirm a payment with thumbnail or face recognition and continue your life.
The test was first noticed by NDTV, which was forced into a browser when you try to sign up for Netflix in India. TechCrunch was confirmed with a Netflix customer service representative and a spokesman for the company that this test started in ten countries back in June and expanded to 33 countries in August. It will continue apparently until 30 September. Probably it will go further if the test is considered a success. We have reached Netflix for comment and a spokeswoman told us: "We are still innovative and testing new enrollment methods on different platforms to better understand what our members like. Based on what we learn, we are working to improve the Netflix experience for members throughout. "
The complete list of countries includes Australia, Canada, Germany, Japan and Mexico, and the United States is not on the list at this time. This applies only to some users in these countries. Others keep the option to pay via iTunes.
Last year Netflix's stock took a hit after the quarterly results showed that user growth fell. It seems that streaming service is looking to increase profits in every possible way. In May, it also canceled billing through the Google Play store, Android equivalent Apple App Store. But Android is a more open ecosystem for developers, and few dare to point to the Apple animal.
We have seen Spotify cut off the payment for subscription service through Apple and Amazon has forced users to make purchases in the browser for years to avoid paying a fee to their rival. The highest gross app in the App Store is currently Fortnite, which makes a bundle from app purchases. The game has recently made waves when launched for Android as an exclusive only for Samsung customers. Fortnite developers also chose to avoid the Google Play store and asked users to download it from their own website. As a result, fraudsters push users to download malware-riddled fakes.
To avoid the big pseudo monopolies in the app market is that you really need to be a big company that's already established before you can risk adding an additional barrier to being paid. Fortnite can do what it wants right now; It's a phenomenon driven by impulse-buying children who want to crawl over their dead mother to get it installed on the device. For Netflix it makes sense to go with a careful test. The company changes, its choices are getting smaller and the original programming becomes weaker. It has also recently closed its user reporting system and added promoter for Netflix content between episodes as you watch the clock. By changing their billing requirements, the company has the risk that users will ask if this service is worth renewing.
Apple will be fine. The world's first trillion dollar company can be some storm. It would probably not be like this trend spreads to other popular apps, but if Netflix gives it trouble, Apple can always only buy the freaking company analysts have cautiously provided in the past year.