It’s the end of an era for grandfathered Netflix subscribers! After ending new subscriptions through the App Store in 2018, Netflix is now targeting legacy users who were still paying for their service through Apple. This ruling, effective from February 27, 2024, spells the death knell for a practice that has allowed some to benefit from favorable rates for years.
Understanding Netflix’s motivations
Netflix’s decision to cut ties with Apple for existing subscriptions is not insignificant. The video streaming platform is looking to maximize its profits and get rid of the commissions Apple charges for in-app transactions (between 15 and 30%). By forcing users to pay directly through its website, Netflix recoups the entire subscription amount.
Consequences for Subscribers
For affected users, the end of grandfathered subscriptions through the App Store includes several changes:
- Loss of prime rate: Subscribers who paid a discounted price through Apple will now have to pay the standard Netflix price, ie €15.99/month for the ‘Premium’ package.
- Change in payment method: Users will have to switch to instant payment by credit or debit card on the Netflix website.
- More ads: the cheapest packages (Essential and Basic) include ads, which was not the case with some “grandfathered” plans.
Significant economic impact
grandfather Subscriptions through the App Store will result in a significant increase in their monthly bill. This is especially true for Basic subscribers who paid €7.99/month through Apple and who will now have to pay €9.99/month.
A controversial decision
Netflix’s decision to end “grandfathered” subscriptions through the App Store was met with some suspicion by users. Some see this as a way for Netflix to artificially inflate its profits, while others fear that this is just the beginning of a series of price hikes.
Towards uniform pricing?
The end of “grandfathered” subscriptions through the App Store could be a harbinger of a future unified pricing for Netflix. Indeed, the video streaming platform seems to want to simplify its offering and offer a single price for all its users, regardless of the platform used.
In conclusion, Netflix’s decision to end grandfathered subscriptions through the App Store is a major development that will have a significant financial impact for some users. The move also raises questions about the future of Netflix’s pricing and the platform’s desire to maximize profits.