Netflix, the global streaming giant, has undergone significant shifts in its payment policies concerning Apple’s App Store over the years. These changes reflect Netflix’s strategic decisions to optimize revenue streams and navigate the evolving digital marketplace.
Initial Adoption of In-App Subscriptions
In 2015, Netflix introduced the option for users to subscribe directly through its iOS app, utilizing Apple’s in-app purchase system. This move provided a seamless subscription experience for iPhone and iPad users, allowing them to manage their Netflix accounts within the Apple ecosystem. However, this convenience came at a cost: Apple retained a 30% commission on all in-app subscriptions during the first year, which reduced to 15% for subsequent years.
Discontinuation of In-App Subscriptions
By December 2018, Netflix reevaluated its approach. The company ceased allowing new or returning subscribers to sign up via in-app purchases on iOS devices. Existing subscribers who had been using this method were permitted to continue, but new users were directed to subscribe through Netflix’s website. This decision was primarily driven by the desire to avoid the substantial fees imposed by Apple’s App Store, thereby retaining a larger share of subscription revenues.
Introduction of External Subscription Links
In July 2022, Apple revised its App Store guidelines, permitting reader apps—those that provide access to digital content like videos, music, and books—to include external links for account creation and management. Capitalizing on this change, Netflix updated its iOS app to feature a subscription button that redirected users to its website. This adjustment allowed Netflix to bypass Apple’s commission fees while still offering a user-friendly subscription process.
Termination of Legacy In-App Billing
In February 2024, Netflix took a decisive step by discontinuing support for subscribers who were still paying through Apple’s in-app purchase system. Affected users, particularly those on the Basic plan in regions like the United States and Canada, were notified to update their payment methods to continue accessing the service. This move marked the end of Netflix’s financial ties to Apple’s billing system, ensuring that all subscription payments were processed directly through Netflix.
Current Stance on App Store Policy Changes
As of May 2025, Apple has implemented further changes to its App Store policies, allowing developers to link to external payment methods without incurring fees or requiring special entitlements. While companies like Spotify, Amazon, and Patreon have swiftly adapted to these new guidelines, Netflix has adopted a more cautious approach. Eunice Kim, Netflix’s Chief Product Officer, stated:
> We’re monitoring that situation very closely, and we don’t have anything more to share at this time. But we’ll just continue to abide by the App Store policies until we hear more about how to best implement any changes going forward.
This measured response indicates Netflix’s intent to thoroughly assess the implications of Apple’s policy changes before making further adjustments to its payment processes.
Implications for Subscribers
For Netflix subscribers, these developments underscore the importance of staying informed about payment methods and potential changes. Users who previously enjoyed the convenience of in-app subscriptions have had to transition to direct billing through Netflix. While this shift may require additional steps for account management, it also ensures that subscribers’ payments go entirely to Netflix, potentially supporting the platform’s content development and service enhancements.
Broader Industry Context
Netflix’s evolving payment strategies highlight a broader trend among digital content providers seeking to optimize revenue by minimizing intermediary fees. The company’s decisions reflect a balancing act between providing user convenience and maintaining financial autonomy. As the digital marketplace continues to evolve, such strategic shifts are likely to become more common among content providers navigating platform policies and revenue considerations.
Conclusion
Netflix’s journey from adopting in-app subscriptions to fully disengaging from Apple’s billing system illustrates the complexities of operating within app ecosystems governed by major tech companies. By prioritizing direct relationships with subscribers and carefully considering policy changes, Netflix aims to maintain its competitive edge in the ever-changing streaming landscape.
