Netflix no longer allows users to pay for their subscriptions or renew them on iPhone or iPod. Also, it will no longer allow customers to subscribe throught iTunes as a way of an in-app purchase on the iOS platform.
Users already paying by the medium of of iTunes can continue to do so but new sign ups or renewals will require to bill their subscription on the Netflix website and then login into the iOS app.
Netflix has gained immense popularity this year and it would be only fair if the company wanted to keep larger shares of profits for themselves. Previously, a whooping 30% cut was taken by Apple for every in-app subscription, which is now cut down to 15%, which is still a major part of the revenue.
This decision taken by Netflix might not incur any substantial loss for the company since customers are not going to stop using the app just because they can’t choose the medium of payment. The company will still continue to gain profits without giving up a large part of it’s revenue.