AppleInsider Staff
Google's YouTube unit this week informed YouTube TV customers of a change in policy that will see a discontinuation of subscriptions purchased through Apple's in-app payments mechanism, forcing users to subscribe elsewhere or cancel the service.
According to a letter sent to YouTube TV customers, the company will stop accepting payments for subscriptions through Apple's in-app system on March 13.
As noted by MacRumors, current members of the service can continue to watch YouTube TV content on Apple devices, meaning the service itself is not being pulled from the App Store.
"You'll be billed for one final month of service and then your in-app purchase subscription will be canceled automatically on your billing date after March, 13, 2020," the letter reads.
YouTube failed to clarify the change in policy, but Apple's traditional 30% cut of all in-app payments likely played a role in the decision. In a bid to encourage adoption of subscription payment models, Apple lowers its take of App Store fees to 15% for users who hold a monthly subscription for over a year.
To compensate, YouTube TV customers who pay in-app on Apple devices are charged $54.99 a month, higher than the typical $49.99 fee applied to all other customers. YouTube put a halt to new subscriptions made via in-app purchases on iPhone and iPad months ago, but has until now allowed existing users to continue to use Apple's mechanism to process monthly payments.
The change in YouTube TV's terms comes amid rumors that the company is mulling an expansion of its service that allows users to sign up and subscribe to premium third-party streaming services. Apple currently offers a similar product in Apple TV Channels.
William Gallagher
Christine McKee
Chip Loder
Malcolm Owen
22 Comments
Not at all surprising since YouTube TV is seeing good success with paid subscriptions. Based on how AI has worded it I would expect those who are impacted can simply subscribe directly and as a bonus eliminate the $5 premium charge they were paying simply because it was through Apple. I doubt this will affect too many AI members if any since there haven't been new signups offered via in-app purchase for some time.
Apple should drop the YouTube app from the App Store. It’s hot garbage.
This is likely linked to the recent YouTube changes in terms that we got a chance to read this week. I actually skimmed thru them. Looks like YouTube has been turned into a separate LLC, now controlled by Alphabet. As such they are likely looking at ways to be self-funding instead of sucking at Google's teat, and part of that is maximizing subscription profit. As such they want to cast off Apple's 30% fee for purchases thru the Apple App Store. It's annoying to Apple product users, but straightforward from a business perspective.
This sounds like what Netflix did, except Netflix was eating the Apple Tax rather than customers (if I remember correctly).
Eventually it will only be the little devs and micro-payments going through Apple.
I wonder if Apple is ever going to do something to reverse this trend, or if they care...
Would making it 5% bring everyone back on board, and have the transactions go through Apple? There must be a number...