It's the end of an era for grandfathered Netflix subscribers! After putting an end to new subscriptions through the App Store in 2018, Netflix is now targeting historic users who were still paying for their service through Apple. This decision, effective since February 27, 2024, sounds the death knell for a practice which allowed some to benefit from advantageous rates for years.
Understanding Netflix’s Motivations
Netflix's decision to cut ties with Apple for existing subscriptions is not insignificant. The video streaming platform seeks to maximize its profits and free itself from the commissions charged by Apple on in-app transactions (between 15 and 30%). By forcing users to pay directly through its website, Netflix recovers the entire subscription amount.
Consequences for subscribers
For affected users, the end of subscriptions via the App Store involves several changes:
- Loss of the preferential rate: subscribers who paid a reduced price via Apple will now have to pay the standard Netflix rate, i.e. €15.99/month for the “Premium” package.
- Change in payment method: Users will need to switch to direct payment by credit or debit card on the Netflix website.
- More ads: The cheaper plans (Essential and Basic) include ads, which was not the case for some subscriptions.
A significant financial impact
For some users, the end of subscriptions through the App Store will result in a significant increase in their monthly bill. This is particularly the case for subscribers to the “Basic” package who paid €7.99/month via Apple and who will now have to pay €9.99/month.
A controversial decision
Netflix confirms to “the verge” its desire to end subscriptions via the App Store . Of course, this decision was greeted with some suspicion by users. Some see this as a way for Netflix to artificially inflate its profits, while others fear this is just the start of a series of price hikes.
Towards single pricing?
The end of subscriptions through the App Store could be a harbinger of future one-size-fits-all pricing for Netflix. Indeed, the video streaming platform seems to want to simplify its offer and offer a single price for all its users, regardless of the platform used.
In conclusion, Netflix's decision to end subscriptions via the App Store is a major development which will have a significant financial impact for certain users. The move also raises questions about the future of Netflix's pricing and the platform's desire to maximize profits.