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Customers Paying for Netflix Through Apple Could Lose Access to Their Accounts
February 27, 2024
Netflix customers who pay through Apple’s App Store could soon be directed to change their payment method to prevent losing access to their account on the platform, reports CNN.
The streaming service aims to stop Apple payment options for its members. According to a Netflix spokesperson, if members fail to add another payment method by the monthly subscription renewal date, they won’t be able to access their Netflix accounts until a new payment method is provided.
The spokesperson added that this shift in policy will impact Netflix members who are on the basic plan in countries such as the U.S. and Canada.
The reason this decision is coming into place is that Apple has experienced many years of resistance from apps in its iOS App Store for collecting a 30% cut of all in-app purchases. However, Apple has said it takes only 15% in some cases.
The streaming giant stopped processing Apple payments for new and returning customers in 2018, however, the shift in policy means existing customers who had been brought into purchasing a subscription through Apple will have to find an alternative payment method.
In the past, Apple stopped a lot of iOS apps from avoiding the 30% charge by accepting payments from other systems. However, in 2021, Apple eased its restrictions for major streaming platforms like Netflix and Spotify. Consequently, these apps were permitted to include external links for users to set up or manage their accounts outside of Apple’s App Store ecosystem.
For many years, Apple’s in-app purchase fees have been criticized by app developers. Last month, dealing a blow to Apple, the U.S. Supreme Court chose not to review a lower court’s ruling mandating that Apple permit all developers to include buttons or links directing customers to purchase in-app content through other payment systems.
The ruling was linked with a lawsuit filed against Apple in 2020 by Epic Games, the maker of the well-known video game Fortnite. The lawsuit alleged that Apple engaged in an antitrust breach through its practices of collecting fees for in-app purchases.
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