After a limited regional trial in September, Netflix is now serious. New customers and returning users will no longer be able to pay for their streaming subscription with iTunes credit.
While nothing changes in current subscriptions, new Netflix users, as well as customers resurrecting a pausing subscription, must use alternative payment methods , Netflix currently accepts credit and debit / prepaid cards, direct debits via a bank account, PayPal or Netflix gift cards.
The change is not entirely surprising. As mentioned, the provider has already explored the consequences of the changeover in advance. Cause are undoubtedly the high commission premiums that Apple concedes for paid offers on iTunes and the App Store. In the first year of a current subscription, 30 percent of the revenue goes to the iPhone manufacturer, in the following years, after all, still 15 percent. Fees, which are an important pillar for Apple as a “service provider” in the realignment, but in some cases go “canned” with the vendors.
With around 125 million paying customers, Netflix is probably the most important one before Spotify constant source of income for Apple. Estimates in August attributed the two companies together 5 percent of subscriptions through apps. Meanwhile, this may have shifted a bit, Apple has blown in the summer to a subscription offensive and urges developers ever since to replace their bids with monthly rentals.
Netflix: iTunes billing is no longer available
Netflix communicates the new terms of payment in an updated Help document:
Netflix iTunes billing is no longer available to new and returning Netflix customers. Customers who are currently billing through iTunes can continue to do so until their account is terminated.