Netflix could soon be bypassing the iTunes element in its payments method in order to get a higher margin from its iOS subscribers. The company seems to be testing the format for the last two months in about 10 countries and plans to roll it out to about 33 countries including India soon, as reported by TechCrunch.
According to the report, new or relapsed subscribers will not be able to pay for the media streaming service through their iTunes account anymore. Instead users will be redirected to the mobile website of Netflix to log-in details and make the payments directly.
The streaming giant seem to be taking this step in order to establish a direct relationship with its users and more importantly avoid sharing a cut of its revenue with Apple, which currently demands 30 percent of the first-year subscription, and 15 percent in the subsequent years. Similarly, Netflix discontinued Google Play billing back in May for new and lapsed subscriptions on Android devices.
Cutting out Apple and Google for in-app purchases is a move many big app developers seem to be taking lately. Even Spotify seems to have moved its users away from iTunes to pay for subscriptions. The popularity of the app also helps these brands to take that risk and change certain things in a market where Apple clearly seems to have the upper hand.
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But the move seems to be more important for Netflix now more than ever. The company recently reported slow growth and even a miss in its quarterly revenues and subscriber additions. So, it clearly needs to think about more ways to bring in revenue through its 130 million userbase. Not just that, the streaming giant also seems to be experimenting with video promos between episodes and is closing off the option to leave user reviews on videos.