Android users will soon be able to subscribe to Netflix from within the company’s app, and use their existing payment relationship with Googles’ Play store to pay for their monthly fees.
More than that, Netflix enabled in-app billing for iOS users in September 2015.
What`s more, Netflix isn’t charging consumers extra for subscriptions billed through Google or Apple, which means the company’s revenue per user signed up through in-app billing is lower than it would be if the same user had signed up through Netflix’s website.
Still, the new payment option has a bigger upside for Netflix, not only does it take away friction from signing up for the service, but it also allows the company to target consumers that don’t have access to any of Netflix’s current payment methods. In the US, consumers can buy Google Play credits in retail stores, taking away the need for a credit card.
In addition, Netflix is relying heavily on international credit cards, which are not available to many potential customers in the company’s new markets around the world. Partnering with companies like Apple and Google to handle billing could greatly improve Netflix’s reach in those markets.
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