Netflix Shifts Billing Policy for Grandfathered Subscribers

Netflix has officially announced a significant alteration to its billing method for longstanding subscribers who originally signed up through Apple’s iTunes platform. This decision mandates these subscribers to transition to direct billing with Netflix, utilizing credit or debit cards for payment.

End of an Era for Apple Billing

After years of enjoying the convenience of iTunes billing, subscribers must now adapt to the new payment system enforced by Netflix. This shift marks the conclusion of an era where subscribers could maintain their subscriptions through Apple’s payment infrastructure.

The transition necessitates action from all members currently utilizing the basic plan and relying on iTunes billing. Netflix’s spokesperson, Momo Zhao, clarifies that this change applies universally to all such subscribers, not limited to specific regions.

Implications for Subscribers

For subscribers accustomed to the legacy pricing offered through iTunes billing, this shift signifies the end of an era. Many subscribers have enjoyed prolonged access to Netflix services at historical rates. However, with this transition, they confront a crucial decision regarding their subscription plans.

Some subscribers may face a substantial price increase as they shift away from iTunes billing and opt for direct payment to Netflix. This change may prompt a reevaluation of their streaming service expenses amidst a landscape of continually rising prices.

Evolution of Netflix’s Relationship with Apple

The recent billing alteration underscores the evolutionary trajectory of Netflix’s relationship with Apple’s payment ecosystem. Despite initially integrating in-app subscription options in 2010, Netflix deferred its adoption until 2015 due to disagreements over Apple’s commission structure.

By late 2018, Netflix made a decisive move to entirely discontinue iTunes billing, reflecting its reluctance to adhere to Apple’s revenue-sharing model. This strategic decision positioned Netflix to chart its billing course independently, severing ties with Apple’s payment platform indefinitely.