How will Apple cope with Netflix stopping in-app subscriptions?

How will Apple cope with Netflix stopping in-app subscriptions? Apple’s feeling the heat in 2019. With Netflix stopping customers from subscribing through iTunes, Apple faces the prospect of losing a significant chunk of revenue, as it also comes to terms with dwindling iPhone sales. What will Apple do? This question is our main highlight in this week’s subscription roundup as Spotify has also gone the Netflix way and stopped listeners from subscribing via iTunes. Are the bears back in Wall Street for Apple? Netflix though, seems to be making all the right moves with its new interactive show and plans to set up a production hub in Canada. We also look at a new app which helps you to manage subscriptions. And finally, we identify five trends that will shape the subscription market in 2019.

What will Apple lose with Netflix bypassing iTunes for subscriptions?

Last week, Netflix stopped offering subscriptions via iTunes to get around the 30% commission charged by Apple. The Cupertino giant is likely to lose out on a lot of revenue following this move as Netflix was the number one subscription app on the App Store. Apple made over $2 billion in subscription revenue alone from third party apps last year. The potential loss of incremental revenue for Apple is predictedto be around $200 million in 2020, which could impact the company’s bottom line. Recently, the US Supreme Court also allowed an antitrust lawsuit to move forward against Apple which may require it to stop charging the 30% transaction fee altogether.
 
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Spotify follows Netflix, stops listeners from subscribingthrough iTunes

Looks like more subscription companies are headed the Netflix way. In a bid to save the 30% transaction fee that is taken away byApple, music streaming giant Spotify has also stopped accepting new subscribers via iTunes, though existing customers can continue theirsubscriptions by this method. Apple does have the optionto remove Spotify and Netflix from the App Store as it requires paid apps to offer a payment option through Apple’s billing system. But would it risk alienating a huge set of users who subscribe to both these services?

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Netflix’s interactive show gets rave reviews, company also plans production hub in Toronto

SVOD giant Netflix recently launched its interactive show Black Mirror:Bandersnatch to some rave reviews. Subscribers were waiting eagerly for the interactive show, ever since it was announced by the company. Bandersnatch is the first interactive show on Netflix aimed at adults,and allows viewers to choose their own storyline. These kinds of interesting content offerings will help Netflix differentiate from new entrants such as Disney and also help combat the rise in subscription fatigue. In addition, the streaming service is also interested in launching a new production hub in Toronto, opening up the market even wider for Netflix.

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An app to manage your subscriptions – Truebill

Subscriptions are forming an integral part of monthly expenses these days. Recognising the shift in the market, Truebill has created a new app that allows users to manage and track their subscriptions in one place. With more subscription services coming into the market, the financial management app ensures that your subscription dollars are spent the right way.
 
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Top Five Subscription Business Trends for 2019

The subscription industry really came into its own in 2018, and it looks like it’s going to reach further heights this year. We have identified some key trends that are expected to shape the industry moving forward in 2019.

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Also read: Roku to launch subscription streaming service
 
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