Netflix is reportedly looking to become the latest tech firm to avoid paying out fees to Apple. Normally, Apple handles all the billing for apps itself, but at a cost to the developers in the form of high commissions. If you’re unable to access Netflix through the app on an Apple device, you may need get back in using a browser since Netflix is attempting to take control of billing away from Apple. For Apple’s cash cow service, this is bad news. The App Store generated about $11.5 billion in revenue for Apple last year. That money comes from the commission Apple takes from developers. Of the millions of apps available in the App Store, Netflix currently ranks number three on the highest-grossing charts.
But according to a report, Netflix is testing a way to avoid sharing those huge profits.
Until recently, if a user downloaded the Netflix app on their Apple device and signed up for the service on that Apple device, billing was handled by Apple and was by and large quite simple. Now after the initial charges for the first month, developers are trying to break people out of the Apple ecosystem and keep more for themselves; and rightfully so too.
That minor inconvenience is a big part of Apple’s business plan since, Apple touts itself as the company of convenience. But is a bit too controlling for third party developers and Apple should share more with them since they are harder to code for than windows or android due to the very secretive nature of their code-bases.
Works Cited
Jones, R. (2018, August 21). Netflix Tests New System That Lets It Avoid Paying Apple. Retrieved August 21, 2018, from https://gizmodo.com/netflix-tests-new-system-that-lets-it-avoid-paying-appl-1828488485