Netflix’s iOS app now has a sign-up button that will redirect you to its website so you can subscribe to one of its plans with the company that doesn’t pay App Store fees. The change comes after Apple said in March that “reader” apps — those that provide digital content like books and videos — could offer an external link to its website to create an account.
The new sign-up screen, first spotted by 9to5Mac, shows a button that will take you to netflix.com/join. But before you’re redirected to the page, the app displays a warning screen letting you know that you’re no longer transacting using Apple’s system and that all related processes are handled by Netflix. This new button is rolling out to users worldwide.
“Any account or purchases made outside of this app will be managed by the developer ‘Netflix’. Your App Store account, stored payment methods, and related features, such as subscription management and refund requests, will not be available. Apple is not responsible for the privacy or security of transactions made with this developer,” the modal warning reads.
Apple has asked developers in South Korea and the Netherlands (dating apps only) to use similar modalities to use alternative payment systems for in-app purchases.
Apple takes a 30% fee (or 15% for small developers) from apps for selling subscriptions through the App Store payment system. While Netflix has historically allowed you to sign up for the service on your iPhone, it dropped iTunes billing in 2018 to avoid paying a commission. Instead, Netflix’s iOS app just provided a sign-up option with no in-app process or link to its website to create your account. The streaming giant will be hoping that the new signup button on iOS will bring more new users to the platform.
In comparison, on Android, Netflix lets you create an account by providing your email ID, and later sends you an email with information to purchase a plan to start using the app and watching content.
Epic Games CEO Tim Sweeney commented on this new development, complaining that games still aren’t allowed to do so. That’s not surprising given that the company’s key argument in its lawsuit against Apple was that the App Store doesn’t allow developers to use third-party payment methods for in-app purchases.
Now Netflix is sending iOS users to payment methods outside of Apple’s 30% app tax. Games are not allowed to do that. Can Roblox do this? Is that a bizarre courtroom exchange about Roblox moving from a “game” to an “experience” at the end? https://t.co/CpT09mRkXO
— Tim Sweeney (@TimSweeneyEpic) July 25, 2022
A Sensor Tower report released earlier this month suggested that revenue from non-game apps on the US App Store surpassed gaming revenue for the first time in May and June. If the trend continues, Apple could improve its rules for apps that connect to purchase subscriptions, avoiding App Store fees.
The new signup button on iOS development comes days after Netflix reported its Q2 2022 earnings with a loss of 970,000 subscribers; lost 200,00 subscribers in the last quarter. With the company’s stock down over 60 percent this year, it desperately needs to attract more people to its platform. The company has already discussed measures such as adding additional password-sharing fees for members outside the household and an ad-supported plan to launch next year.
Updated with Netflix’s comments on the global rollout
