Netflix has officially cut Apple’s iTunes Store out of its business.
“We no longer support iTunes as a method of payment for new members,” a Netflix spokesperson told MCN in an email. “Existing members who currently use iTunes as a method of payment can continue to do so. Apple is a valued partner with whom we work closely to deliver great entertainment to members around the world across a range of devices including the iPhone and Apple TV.
Apple recoups 15% - 30% of all subscription revenue, current and moving forward, when a user signs up for a service through its iTunes App Store and uses its billing system.
Last summer, Netflix began testing a scheme whereby new users had to sign up directly on the streaming service’s website, thus bypassing iTunes. Last week, Venture Beat reported that Netflix had gone ahead with the plan.
For both Netflix and Apple, the revenue consequences are significant.
According to Sensor Tower, which tracks the app business, the Netflix app was the No. 1 grossing app in the U.S. for Apple’s App Store in November. The Netflix app generated $243.7 million in the third quarter, a 90% year over year increase.
Netflix has collected an estimated $1.4 billion through app marketplaces on Apple and Google to date.
Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!
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