For many popular apps that offer subscriptions, being able to do so from within the iOS app hasn’t always been the easiest thing, or even possible at all.
In large part, that’s traditionally been due to Apple charging its 30% revenue cut from these subscriptions, which inherently takes a chunk of profit away from the company that’s offering the subscription in the first place. A few months ago, before the launch of Apple Music, Spotify was a company that took exception to what it calls the “Apple Tax,” pointing out that it has to charge its subscribers more per month that subscribe through the iOS app, compared to when they subscribe via Spotify’s website. (Spotify wasn’t happy with this, since it was believed (and later confirmed) that Apple Music would cost $9.99 per month, but wouldn’t see a price hike in its iOS app due to it being an Apple product, and therefore cheaper than its competitors that offer in-app subscription options.)
Netflix has decided to go ahead and add the ability to subscribe to its video subscription service right from an iPhone or iPad, which the company announced via Twitter recently. The announcement comes as part of a short video featuring two characters in the hit shot Orange is the New Black, Crazy Eyes (Uzo Aduba) and Taystee (Danielle Brooks), and Siri, Apple’s digital personal assistant. While the pair have a conversation with Siri, the ad ends with the Netflix logo and “Subscribe Now on Your iPhone or iPad.”
The ability to subscribe to Netflix from within the iOS app is a big change for Netflix, and presumably Apple. It appears that subscribing to Netflix through the iOS app is the same price as subscribing from Netflix’s website, so either Apple negotiated a new deal with the streaming video juggernaut, or Netflix is simply paying that 30% revenue to Apple without hiking the price within its subscription for iOS users.
Interestingly enough, Apple was rumored to be changing its plans for revenue cuts, specifically for apps with subscriptions, including video and music. While the news died out soon after the initial report surfaced, this could be a sign that Apple has indeed begun changing things up. It will be interesting to see if other subscription-based apps start implementing this option for their subscribers, too.Download
- Netflix — Free
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