Netflix wants you to pay it directly (and not through iTunes)
Netflix doesn’t show commercial ads (at least not in the traditional sense yet, anyway). The streaming-TV giant relies on those $10.99-amonth fees that most of its subscribers pay to watch shows such as “Narcos” and the recently released “Insatiable.”
So it would make sense that Netflix would want to keep as much of those subscription fees for itself.
That doesn’t happen if someone pays for their subscription via Apple’s iTunes, and that’s why Netflix is looking at bypassing iTunes as a payment option for its subscribers.
Netflix is said to be testing out removing the option to pay for their subscriptions through iTunes in 33 countries in Asia, South America and Europe, and instead have them pay directly through Netflix’s own billing service. According to a report from TechCrunch, the test is set to last until the end of September, but could be reinstated depending on reaction to the pilot program.
When asked about the company possibly doing away with iTunes as a bill-paying option, a Netflix spokesperson said, “We are constantly innovating and testing new signup approaches on different platforms to better understand what our members like. Based on what we learn, we work to improve the Netflix experience for members everywhere.”
Apple lists Netflix as one of the highest-grossing apps on the App Store — as of Wednesday, it trails only Fortnite and Pokémon Go — but there are no public figures on how many people pay for Netflix through iTunes.
Michael Pachter, media analyst with Wedbush Securities, said there’s a reason why Netflix is running its iTunes test outside of the United States.
Paying via iTunes “is far more popular outside the U.S. — think places like Brazil — where few people have internet (on devices) other than through their phones,” Pachter said. “I don’t know how many subscribers access via iTunes, nor what percentage will switch to a direct app instead, because it’s impossible to track.”
Netflix had 130.1 million subscribers worldwide at the end of its second quarter.
Of that amount, 57.4 million came from the United States, and the remaining 72.8 million from international markets.