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Netflix Dodges Apple Tax

iPhone and iPad users who wish to subscribe to Netflix from the App Store app are now directed by Netflix to an external website. On the site, iOS and iPadOS users can sign up for Netflix. This is due to Apple’s recent decision to allow “reader apps” (apps that deliver digital content) to link to their own websites to help subscribers register and manage their accounts.

Back in September, Apple announced that it would allow reader apps to include an inapp link to their own websites. When you click the “subscribe” button in the Netflix app, a message appears stating that “you are about to leave the app and go to an external website.” The app also notes that Apple will not be responsible for any transactions and that all subscription management must be done through the Netflix platform.

The message reads: “Any accounts or purchases made outside of this app will be managed by the Netflix developer. Your App Store account, saved payment methods, and related features such as subscription management and refund requests will not be available. Apple is not responsible for the privacy or security of transactions made with this developer.”

You will then be taken to the Netflix website where you can subscribe. This bypasses Apple’s inapp payment platform. This means that Netflix does not have to give Apple a 30% commission on the transaction price for initial subscriptions and as much as 15% for recurring subscriptions made a year later.

The Apple tax was a thorn in the side of many. Companies like Spotify and Netflix prevented subscribers from signing up for certain subscriptions directly from the App Store so they wouldn’t have to pay Apple. Nearly two years ago, Apple removed Fortnite from the App Store after Epic offered gamers a link to their own payment platform in the app. Since then, things have escalated.

And finally, Netflix managed to avoid the Apple tax. Apple still has a set of rules that developers of reading apps must follow. A link published in an app cannot contain pricing information, and each developer must grant a “right” to obtain permission from Apple to include a link in an app. Times are changing for Apple.

Source and image credit phone arena

Category: Apple

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