Netflix Ends Era of Grandfathered iTunes Billing, Requiring Direct Payment

February 27, 2024 By Monica Green

(Image Credit Google)

For years, Netflix users who signed up through Apple's iTunes have had an exclusive benefit: grandfathered pricing. This meant they were able to lock in the price they agreed upon, even when Netflix's standard subscription costs increased. However, these happy days are officially over. All Netflix users who signed up through iTunes are now being billed directly. This implies that users will no longer be billed via their Apple accounts and will instead need to update their Netflix payment details using a credit or debit card. According to a Netflix official, this change applies to all "members on the basic plan who used an iTunes method of payment." Although the precise cause of the move was not made public, it is not surprising given Netflix and Apple's long-running dispute over in-app purchases. Netflix

This is the end of an era for some people. One customer claimed that by using iTunes to subscribe, they were able to enjoy the previous $9.99 price tag for years. However, they, along with all other impacted subscribers, now face the following options:

Accept Netflix's current price, which is much higher than the grandfathered cost. This entails paying extra for the same fundamental plan that they have been using for many years.
Switch to the ad-supported tier, which costs $3 less than their existing plan. This comes with the inclusion of advertising throughout their viewing experience.
Consider their subscriptions to streaming services. This move acts as a reminder of the ever-increasing expense of streaming services, leading some consumers to reconsider their requirements and options.

This move marks the end of a long-running conflict between Netflix and Apple. Netflix didn't launch in-app subscription choices until 2015, citing their disapproval of Apple's 30% share, even though Apple had introduced them in 2010. In the end, Netflix chose to completely abandon in-app purchases in late 2018, cutting its connection to Apple's invoicing infrastructure. They are now including all subscribers in their direct billing scheme.

By Monica Green

I am specialised in latest tech and tech discoveries.

Netflix Ends Era of Grandfathered iTunes Billing, Requiring Direct Payment

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