A few months ago Netflix was keen on finding a solution to remove in-app subscriptions on iOS devices. They made that true for each and every subscriber by the end of 2018. Now, if you want to buy a subscription you will no longer do that in the app, but via a web browser. This option was removed by Netflix in May.
Google and Apple received 30% of all in-app subscription revenue for the first year of those. After that, it falls down to 15%.
Netflix knows what they did that because they want to save more money and minimize their expenses on long-term.
Savings – how much of that can Netflix do?
No changes will be seen by the existing subscribers in their billing methods, and that is important. Through the Apple App Store, $853 million were paid by Netflix subscribers based on the data from Sensor Tower.
No negative impact will be seen by Apple if all of those subscribers will keep their subscription this year too. However, it happens that subscribers change from Android to iOS (and the other way around) or cancel their subscriptions.
What we know is that the gross sales through the App Store have been rising since 2016 from $295 million to $343 million in 2017 and probably more in 2018.
In 2019 Netflix would need to share a bigger part of their revenue with Apple if only they did not change the sign-ups from subscribing in-app. Millions of dollars saved come from this smart tactic.
Netflix’s revenue is more significant thanks to the iOS devices as less Android users subscribed to the app. However, our Friday night date, Netflix, knew what to do to put an end to the competition between the two platforms and to make some savings too.
Emmy Skylar started working for Debate Report in 2017. Emmy grew up in a small town in northern Manitoba. But moved to Ontario for university. Before joining Debate Report, Emmy briefly worked as a freelance journalist for CBC News. She covers politics and the economy.