Netflix bypasses Apple’s 30 percent iTunes cut

Avatar By Le Williams | 2 years ago

Streaming video giant Netflix is preventing new and existing customers in Europe, Latin America, and Asia from paying for subscriptions through iTunes, redirecting them instead to sign up to its service via a mobile version of Netflix’s own website, according to TechCrunch.

This move to bypass Apple, which takes a 30% share of new subscription revenue and a 15% cut on renewals made on its platforms, appears to form part of the Scotts Valley, California-based company’s bid to extract maximum profit from slowing top-line growth.

In a statement to TechCrunch, Netflix confirmed that it is now “testing the iTunes payment method” in 33 countries, having first rolled out the experiment in 10 countries in June. The test is expected to run until Sept. 30.

“We are constantly innovating and testing new signup approaches on different platforms to better understand what our members like,” a Netflix representative said to The Verge. “Based on what we learn, we work to improve the Netflix experience for members everywhere.”

The streaming video giant is not the first company to encourage users to shun iTunes.

Notably, Spotify Technology released in a website statement that it has discontinued an option which enabled new customers to sign up for its service via Apple’s app. In the same post, the music streaming firm urged its existing subscribers to cancel automatic renewals of Spotify payments with the iPhone maker in order to resubscribe directly.

Netflix is currently calling its own move to bypass Apple a test. However, it is unlikely that the company’s plans to make this experiment a temporary one.