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Photo by Sara Kurfeß on Unsplash |
Youtube TV is an online TV streaming service which lets you stream popular TV channels in the US, Youtube TV costs $50 per month which if you pay through the AppStore, Apple will take 30% of the payment in the first year and 15% from the following years, to stop this reduction from Apple, Spotify and Netflix decided to use their separate payment methods so that they will receive full subscription amount from the Customer.
Spotify even goes on to accuse Apple publicly on its website saying that "If we pay this tax (30% tax), it would force us to artificially inflate the price of our Premium membership well above the price of Apple Music. And to keep our price competitive for our customers, that isn’t something we can do."
Netflix also uses its own payment method for Apple users. Youtube TV starting from March 13th will also use its own payment method to avoid the additional tax from Apple, as reported by CNET, a YouTube spokeswoman said in a statement "YouTube TV no longer supports in-app purchases on iOS, Apple continues to be an important partner for YouTube, and our users can still enjoy their favorite content across iOS devices."
YouTube TV will cancel your membership if you continue to use the same Apple payment method, you need to change your payment method right away if you wish to continue using YouTube TV, YouTube TV sent emails to its customers informing about the new change in the payment system and also warned that their accounts will be automatically removed after the first payment is initiated with the old Apple payment method after March 13th.
Apple receives mosts of its revenue from AppStore in its services category, Google also charges a 30% fee for in-app purchases, this fee was charged for promoting apps in the store, but subscription fee is the main source for any service provider, so companies don't wanna lose their revenue to other companies, that resulted in adopting their own payment methods for monthly or annual subscriptions.