In a recent move by Netflix, users on basic plans who pay through Apple's iTunes or app store are urged to update their payment method to avoid losing access to their accounts.
This change marks the discontinuation of iTunes billing for Netflix, impacting long-time users who have been grandfathered into this payment method. Users risk losing access to the streaming service if they fail to update their payment method before their next billing cycle. In a recent move by Netflix, users on basic plans who pay through Apple's iTunes or app store are urged to update their payment method to avoid losing access to their accounts. This change marks the discontinuation of iTunes billing for Netflix, impacting long-time users who have been grandfathered into this payment method. Users risk losing access to the streaming service if they fail to update their payment method before their next billing cycle.
In this illustration photo taken on July 19, 2022 the Netflix logo is seen on a TV remote in Los Angeles. - Netflix reported losing subscribers for the second quarter in a row Tuesday as the streaming giant battles fierce competition and viewer belt tightening, but the company assured investors of better days ahead.
Netflix Billing Change
The decision to discontinue iTunes billing for Netflix comes amidst ongoing tensions between streaming services and platforms like Apple, which take a significant cut of in-app purchases.
While Netflix has not provided the exact reason for this change, it aligns with a broader trend of companies seeking alternative payment methods to bypass platform fees.
Speaking with USA Today, MoMo Zhou, a spokesperson for Netflix, confirmed that regions like the United States and Canada are among those affected by this billing change. However, it remains unclear how many other countries will be impacted. Users are advised to check their account settings and update their payment method to ensure uninterrupted access to Netflix.
Read Also: Yahoo! Mail Devising Plan to Resurrect App: Here's a Quick Fix You Can Do for Now
Potential Price Hikes
This billing update also involves speculation of potential price hikes for Netflix memberships. Analysts predict that Netflix may increase subscription fees to drive up average revenue per membership, potentially by 5%. With Netflix's Standard and Premium plans already priced at $15.49 and $22.99, respectively, in the US, any additional increase could impact subscribers.
John Hodulik, a telecom and cable analyst at UBS, tells Fox Business that despite potential price increases, Netflix still has significant growth potential. He anticipates a 15% revenue growth for Netflix this year, driven by converting users to paid subscriptions and attracting new cohorts.
Netflix's Co-CEO, Greg Peters, hinted at the possibility of resumed price increases after a temporary pause. Peters stated that the company would continue to monitor other countries and assess when to implement price changes based on added entertainment value.
While Netflix justifies price increases as investments in service improvements, users may pay more for their favorite streaming content. This trend of subscription price hikes is not unique to Netflix, as other streaming platforms like Disney+ and Apple TV+ have also increased their subscription costs.
What's in the News
Netflix users on basic plans who currently pay through Apple's iTunes or app store are advised to update their payment method to avoid service disruptions. This billing change reflects broader tensions between streaming services and platform providers regarding payment methods and fees.
Stay posted here at Tech Times.
Related Article: Did Apple Rebrand 'iOS in the Car' to CarPlay? Here's a Preview About This Infotainment Feature
