Netflix Ends Apple Billing for Existing Subscribers: All You Need to Know

In a move that is sure to impact millions of users, Netflix is ending Apple billing for some subscribers. This change applies specifically to users on the basic plan who originally subscribed through Apple and were using an iTunes billing method. These users will now need to switch to a direct payment method, such as a credit card or debit card, to continue their Netflix subscription.

In Short:

• Netflix is ending Apple billing for some subscribers.
• This change applies to users who subscribed through Apple on the basic plan.
• Users will now have to pay directly to Netflix, which may result in a price increase.

What is Netflix?

Netflix is a subscription-based streaming service that allows members to watch a wide variety of TV shows, movies, anime, documentaries, and more on internet-connected devices. Depending on the plan, users can also download content to their iOS, Android, or Windows 10 devices and watch without an internet connection. Netflix’s content varies by region and changes over time, and the service is known for its award-winning Netflix originals.

Why is Netflix Ending Apple Billing?

There are a few reasons why Netflix is making this change. First, Netflix has long been resistant to Apple’s 30% commission fee on in-app purchases. By ending Apple billing, Netflix can avoid paying this fee, which could potentially save the company millions of dollars. Additionally, Netflix may be looking to gain more control over the customer relationship. When users pay through Apple, Netflix does not have access to their contact information or billing details. By moving users to direct billing, Netflix will be able to collect this information and use it for marketing and customer service purposes.

What is Apple Billing?

Apple Billing is a secure payment service offered by Apple Inc. that allows users to make purchases and payments using their Apple devices. It’s used for buying apps, movies, music, books, subscriptions, and in-app purchases. When you sign up for a subscription service from Apple, you agree to a recurring monthly or annual charge, billed through the payment method tied to your Apple ID. This service provides a seamless and streamlined way to pay for various goods and services.

Why is Netflix Ending Apple Billing?

There are a few reasons why Netflix is making this change. First, Netflix has long been resistant to Apple’s 30% commission fee on in-app purchases. By ending Apple billing, Netflix can avoid paying this fee, which could potentially save the company millions of dollars. Additionally, Netflix may be looking to gain more control over the customer relationship. When users pay through Apple, Netflix does not have access to their contact information or billing details. By moving users to direct billing, Netflix will be able to collect this information and use it for marketing and customer service purposes.

Apple Billing Alternatives

Here are some alternatives to Apple Billing:

1. Google Pay: A secure payment processing solution from Google.
2. Amazon Pay: A payment and fraud protection service for e-commerce merchants.
3. Stripe Payments: A payment gateway software solution supporting a range of payment-related needs.
4. 2Checkout from Verifone: Addresses the complexity of online commerce, subscription billing, and global payments.
5. Authorize.net: A payment gateway software solution offered by Visa.
6. Direct Payment: Members on the basic plan who were using an iTunes method of payment will now have to pay Netflix directly using a credit or a debit card.

These alternatives provide various features and integrations, offering users flexibility in choosing their preferred payment method.

Impact on Subscribers

For users who are affected by this change, there are a few things to keep in mind. First, you will need to switch to a direct payment method, such as a credit card or debit card, to continue your Netflix subscription. Second, you may see a price increase. This is because Netflix is no longer subject to Apple’s in-app purchase pricing rules, which means they can set their prices. In some cases, this may result in a higher price for users who were previously grandfathered in at a lower rate.

Netflix New Pricing Plans

The ad-supported option now costs $7 a month, while the Premium tier that comes with support for four devices and Ultra HD now costs subscribers $23. Customers who used to pay through iTunes will now have to pay these prices.

How to Change Your Billing Choices

Here’s how you can update your billing preferences:

On a computer:

Step 1: Click on the Profile icon located at the top right corner of the screen.

Step 2: Choose “Account” and then select “Manage payment method.”

Step 3: Enter the required card details to add the new payment method.

On a phone:

Step 1: Open the app and tap on the three horizontal lines (≡) at the upper right corner.

Step 2: Select “Account” and then go to “Membership & Billing.”

Step 3: Input your card number to update your payment information.

If you’re unsure whether your Netflix account is billed through Apple, navigate to the Membership & Billing section within your Account page. Alternatively, you can seek assistance from Apple support for any billing-related inquiries.

Note that Netflix gift cards cannot be used to reactivate your Netflix subscription.

Conclusion

The decision by Netflix to end Apple billing for some subscribers is a significant change that will impact millions of users. While there are some potential benefits for Netflix, such as avoiding Apple’s commission fee and gaining more control over the customer relationship, there are also potential drawbacks for users, such as price increases and the need to switch to a new payment method. Ultimately, it is up to each user to decide whether or not they are happy with the changes and whether or not they want to continue their Netflix subscription.

FAQs

What is the new payment method for Netflix?

Subscribers will now have to pay Netflix directly using a credit or debit card.

What happens if I don’t switch to a direct payment method?

If you do not switch to a direct payment method by the deadline, your Netflix subscription will be canceled.

Can I keep my current plan and price if I switch to direct billing?

You may be able to keep your current plan and price if you switch to direct billing. However, Netflix is not guaranteeing this, and you may see a price increase.