Streaming giant Netflix no longer supports billing via iTunes for new or rejoining customers, as it looks to avoid giving a cut of its subscription revenue to Apple, VentureBeat reported.
According to estimates, the move could deprive Apple of around $256 million in annual revenue. Until now, it has been pocketing 15 per cent of all subscription fees paid to Netflix from iOS devices via iTunes, in line with the commission it takes from app transactions (across subscriptions, paid downloads, and in-app purchases).
Netflix had already started testing the water last year, when it enabled iOS users in 33 markets to use alternatives to iTunes as payment methods.
It has now rolled this out globally, which means it gets to keep all of the revenue from new users who join via iPhone or iPad. These users will be asked to pay by visiting Netflix’s website, outside of Apple’s payment mechanism.
Existing members can continue to use iTunes to make their monthly payments.
Google also charges 15 per cent on each in-app subscription. Netflix stopped letting users pay through the Google Play store in May last year.
Spotify, Financial Times and game studio Epic Games are examples of other companies trying to avoid paying the commission fee to the tech giants.Subscribe to our daily newsletter Back