Netflix tweaks sign up process to avoid Apple Tax.

Netflix

Netflix, an American online streaming giant has tweaked the sign up process for its new customers and recurring users to continue the service.

For Apple users, you need to sign up for the subscription through a web browser. “User will no longer be able to bill or pay through iTunes account for their renewals”.

Apple earns 30% on in-App purchase on every transaction made through iOS or ITunes platform.  

Netflix has 137 million paying subscribers worldwide and the minimum price for monthly plan coast you around INR800 (varying) in India.

This article Emailed on, Wednesday, January 02, 2019 to our Newsletter subscribers at 7 Am IST.

According to Sensor Tower reports, Netflix in-app purchase crossed $853 million in 2018 and Apple will get around 30% of it and it’s a huge amount of $256 million. What? It’s just a transaction fee?

Netflix original Move?

Apple has reportedly investing $1 billion to produce more original video content series to enter into online streaming space. It will surely divert the Netflix fans worldwide.

Netflix aggressive marketing in new Asian markets helps them to grow and get more paying users on-board. Hence, more revenue is coming in for Netflix.

Apple original content will be focused around adult dramas and Children’s shows.

As compared to Apple, Netflix spent around $8 billion on producing the original content for its subscribers in 2018.

To increase the margin and keeping the market share, tech companies are using such loopholes to bypass the so called “Apple Tax”.   

Other tech giant includes Amazon for video rentals and Movies, Amazon Kindle, and Spotify used the same technique. Apple app store earned approx. $38 billion in revenue in 2017.


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