Netflix has never made a dime on the streaming service and is under increasing investor pressure to turn a profit. This at a time when they no longer have the market to themselves. The move is one to increase revenue.
Netflix has never made a dime on the streaming service and is under increasing investor pressure to turn a profit. This at a time when they no longer have the market to themselves. The move is one to increase revenue.
Netflix has never made a dime on the streaming service and is under increasing investor pressure to turn a profit. This at a time when they no longer have the market to themselves. The move is one to increase revenue.
Apple should start charging companies like Netflix, that charge customers but give nothing back to Apple, for making their services available through the AppStore.
This may be an early move is desperation due to Apples coming service.
I hope Apples service dominates like everything else Apple does. Couldn't care if Netflix became the next Nokia.
So you want Netflix to fail because they don’t want to give Apple 30/15% cut? How is that good for anybody?
Yes I do.
Do you think Walmart does not deserve a cut of everything they offer?
If I were Apple I'd kick them off my platform.
There would be a full on revolt against Apple if they kicked Netflix off. It would be the worst PR move in Apples history. Lucky we don’t have to worry about that.
Of course, but that's just the Steve Jobs in me thinking out loud.
Nokia failed because the French military refused to let them use GPS in their phones, and their cost to repay their spectrum purchase loans made their business model untenable.
Makes sense. Especially now that Apple will become a competitior. And anyone who says Apple deserves a cut of Netflix subscriptions then must also believe Apple deserves a cut of every Uber and Lyft ride.
Wow, I reached the dumbest post of the thread pretty quickly.
Aside from your Uber/Lyft comparison being completely nonsensical, let me ask you a couple of questions. Do you have a problem with Amazon or eBay getting a cut out of people using their marketplace? No? Then whey shouldn't Apple getting a cut out of their own marketplace? If Netflix doesn't want to pay the cut, why should they be allowed to distribute their iOS to ATV apps?
Love how people make up different rules for Apple as they go along.
But how does it make sense for Apple to allow any app on it’s store for free?
There are hard costs associated with running their servers. I must be missing something...
This is really the only point that matters. Apple deserves to profit from its marketplace just like ANY OTHER COMPANY deserves to profit from theirs. Not sure why there are always two sets of rules...you'll never hear these concerns when it comes to Amazon, Walmart, or even the Google Play store.
Makes sense. Especially now that Apple will become a competitior. And anyone who says Apple deserves a cut of Netflix subscriptions then must also believe Apple deserves a cut of every Uber and Lyft ride.
The most obvious difference is that Uber and Lyft process the payments themselves through their app. That means that they also foot the bill for the infrastructure and credit processing charges.
So by not taking a cut of the subscription , what you’re actually saying is that Apple should pay Netflix’s credit card processing bill. Credit card processing charges can be as much as 3% of the transaction plus a a flat fee on top.
Makes sense. Especially now that Apple will become a competitior. And anyone who says Apple deserves a cut of Netflix subscriptions then must also believe Apple deserves a cut of every Uber and Lyft ride.
Or if Apple Music is on Alexa ( which it is) that Amazon deserves a cut. ( which they don't)
I doubt if Netflix is going away. If the Apple service is good I will pay for both, and drop either Amazon, or Spotify ( I assume there will be bundling options so I can get Apple Music).
Apple should start charging companies like Netflix, that charge customers but give nothing back to Apple, for making their services available through the AppStore.
That’s crazy. Apple is a HARDWARE company. Services and the App Store are gravy, neither of which exist if people aren’t buying the hardware. Companies like Netflix are giving Apple customers services to enjoy. No services and those customers buy someone else’s hardware. I’d get rid of AppleTV without a second thought if Netflix wasn’t available.
Most of the posters here would support Apple to its death, which would be guaranteed if the many services that people used stopped working on iOS. Apple's position is strong but not that strong.
Sure it can charge google to be the search engine but it has to have a level playing field for apps.
This may be an early move is desperation due to Apples coming service.
I hope Apples service dominates like everything else Apple does. Couldn't care if Netflix became the next Nokia.
So you want Netflix to fail because they don’t want to give Apple 30/15% cut? How is that good for anybody?
Totally agree with rogifan_new. There is a thing called "competition", monopoly so far only served the monopoly owner, never consumers. And though I like the enthusiasm, being an Apple fan myself, but given the recent product diversity and general market conditions I see too major issues with the movie service in particular and the charging of fees in general :
1. The level of bugs have significantly increased for a while, Apple is losing focus on doing things right. Siri, HomePod, iOS sync between devices, and generally looking more into peoples day-to-day life and the ways they use software to remove a lot of the small little obstacles particularly iOS and macOS, are just some examples. Also it took them many years from iDIsk to iCloud Drive to get something remotely competitive to Dropbox running. It does not make me confident them approaching another line of service, as much as I would like to see it, don't get me wrong on this!
2. Why should any company accept a 30% cut? To me iTunes becomes more and more a service like any other payment service. Yes, iTunes itself may get credit card charges which they have to path through, but I think they should just do it as for Apple Pay, i.e. a small cut of the payment fee, that seems fair and I doubt that the service providers would have a problem with that.
So overall, greed is never a good adviser when you want to keep both suppliers AND customers stay on board, best is to find a balance everybody can live with. All the recent quality issues (e.g. the bending problem of the new iPad Pro) and excessive fees may hurt Apple badly going forward. And I am personally considering a single developer who spent days and nights on getting the result on the App Store (and already pays for the Apple Developer program); a 30% cut is just outrageous and this community might be grateful that some biggies pave the way for a change (even for solely selfish reasons ;-) ... but like I said, this is just my personal opinion.
I have no issue with a “finders fee” so to speak. But in year two and beyond if someone is still subscribed to Netflix does Apple really deserve a cut of that revenue (outside of whatever the costs are for credit card transactions)? I would argue at that point Apple is no longer playing a role in customer acquisition. And the fact that Apple reduced its cut after the first year to 15% means they know it too. But even 15% is too high. And in the case of Netflix and Spotify why pay a fee to Apple when Apple is a competitior and doesn’t have to pay the same fee?
I can totally understand Netflix doing this - if you were them, would you give up 15% of your income if you didn't have to? I would do the exact same thing if I were them.
Netflix is available on a ton of different devices (TVs, DVD players, etc.) Do they pay royalties at all on those? (Serious question) Another consideration is what percentage of the content is viewed on AppleTV vs laptops, desktops, phones, etc. Should Netflix payOn one hand Apple does have both development and ongoing support costs for AppleTV, but one can also argue that services like Netflix increase the value of AppleTV and help sales.
They probably pay to be a button on the remotes, I suppose.
Any smart TV that is produced without Netflix is non-viable at the moment. Apple's TV service won't change that as it will be restricted to iOS only, I assume. For me, although I signed up to Netflix on the phone initially, there would be no issue with signing up on any other device. At the moment Netflix is available on the TV, the internet TV service I have, Apple TV, the iPhone and on my Mac. Its easy enough to sign up on any of these, if I needed to now. The Mac would be probably be the easiest though, given the keyboard and guess what - thats not through Apple but through the website.
I want all my subscriptions for apps I get through the Apple App Store to be managed through the App Store. That’s why I buy them.
Reasons:
1) Convenience—Just one place to check what my subscriptions are and when they are due
2) Reliability— Apple let’s me know in advance that a subscription comes due. I can then easily go into ITunes and cancel if I desire.
And I know if I cancel it will be cancelled. I’ve done too many cancellations BS when a company doesn’t cancel my subscription as requested on time. Means long fight with a service where I cannot talk with a human or have to let my credit card company fight it out.
3) Security— Trust my payment, name, address, phone, email, credit card are safe and secure with Apple. I cannot trust that with another company whose security may be minimal —too many hacks out there. Security is part of the Apple App Store service for me.
I want all my apps —Purchases, subscriptions and updates to go through one place—the App Store. If a developer wants to go DIY, take it off the App Store, with its free advertising to Apple client base. Advertise and let me come to you if I desire your service. I’m sure Appleinsider and others will welcome DIY developer ad dollars...
I’m not buying apps that don’t go through the App Store anymore. Had to do this with 1 Password, had issues, only an email exchange customer service to help. But my passwords were at stake. So I went with their subscription offline and hate it.
To start on Apple services then take them away is to me bait-and-switch...
Bait and switch ? Nothing that Netflix is offering as a service is changing. It’s just how your payment is being taken and processed?
Also I am not sure what subscriptions you have through iTunes, but personally I receive emails for receipts that my subscription payment was taken. I have never received an email from Apple reminding me of anything ?
I had had to make this change with YouTube Red. She likes it for the no commercials and tons of audiobooks for work. Initially I was paying through ITunes and then realized after a while that Thye were passing the 30% that Apple gets on to the customer. $12.99 through iTunes monthly and $9.99 if you sign up through Google online.
So there is the alternative..... developers and companies can directly pass the Apple tax to us because they don’t want to pay it, or we can subscribe outside of iTunes/Apple and pay the intended price. Netflix is trying to not pass the extra cost on to subscribers in this case it seems. They have raised their prices enough in the last couple of years that I don’t think that would go over well either.
I use paypal for anything recurring outside of iTunes. It’s really no that difficult to manage in my opinion.
Netflix has never made a dime on the streaming service and is under increasing investor pressure to turn a profit. This at a time when they no longer have the market to themselves. The move is one to increase revenue.
Last Q
"Netflix said it gained almost seven million new users worldwide, to bring its total membership to more than 137 million.
Profit in the quarter more than tripled from a year ago to $403 million while revenues grew 34 percent to $4 billion."
That kind of growth is not to be sniffed at. They are probably heading towards revenue of close to $20B this year, and are in profit. Its also something they are good at, it's in their DNA so to speak. I wish the Apple TV service well, and Netflix well.
But how does it make sense for Apple to allow any app on it’s store for free?
There are hard costs associated with running their servers. I must be missing something...
This is really the only point that matters. Apple deserves to profit from its marketplace just like ANY OTHER COMPANY deserves to profit from theirs. Not sure why there are always two sets of rules...you'll never hear these concerns when it comes to Amazon, Walmart, or even the Google Play store.
you do. Fortnite wasn't released on the Google Play store.
The entire industry has spoken: Apple's in-app purchase fees are not acceptable when used to buy content not produced or hosted by Apple. Apple's customers will have to suffer the inconvenience of using Safari to make the purchase. As a subscriber of on demand video services, I would rather that money pay for 30% more content than go to Apple for the convenience of using their in-app purchase.
Fun Fact: I finally found how much 2018 Netflix revenue came via iOS (the App Store's top-grossing non-game app by the way): About $850M,meaning Netflix was probably paying around $200M give or take as Apple's cut. No wonder they would choose to go it alone.
"Before the change, Netflix on iOS was grossing an average of $2.4 million per day in 2018 — meaning Apple was making around $700,000 by doing nothing other than allowing Netflix to offer subscriptions in its app." Thats' probably on the high side since after year one the percentage drops to 15%
Apple should start charging companies like Netflix, that charge customers but give nothing back to Apple, for making their services available through the AppStore.
That’s crazy. Apple is a HARDWARE company. Services and the App Store are gravy, neither of which exist if people aren’t buying the hardware. Companies like Netflix are giving Apple customers services to enjoy. No services and those customers buy someone else’s hardware. I’d get rid of AppleTV without a second thought if Netflix wasn’t available.
On the contrary, the software and services are selling the hardware. That's why Apple makes 90% of the profits with 20% of the sales. If the Netflix services are so great, Netflix should make their own hardware like Amazon and Roku do and see how far they get. Once they have their own hardware, they can have their own store too but not get very far.
Why do you think Google pays billions to Apple to provide Apple with search services? It's the ecosystem, not just the hardware.
Apple’s middling services don’t sell iPhones. I don’t think there’s a person out there who bought an iPhone just so he or she could use iCloud.
When it comes to software, you have a point. A thriving App Store certainly makes the iOS platform more appealing. The number of apps available for PCs versus Macs back on the day was a key factor in the PC’s overall success.
But, in the end, Apple is a hardware company. They make the vast majority of their revenue from hardware sales. Why should Netflix make a box? That’s ridiculous. Should every TV channel make their own TV? Apple needs apps and services to support its platform as much as those services need Apple, maybe more. We don’t want to return to the 90s when virtually no one supported Apple products. Apple isn’t a software or a services company. They are a hardware company. If no one buys the hardware, the App Store means nothing.
So you’re right that a big piece of the puzzle is software, but it’s not Apple software. It’s third party software supporting Apple’s platform. Lose those apps and services and Apple is in big trouble.
As for Google, that’s something different. Google needs data to monetize. Paying to be the default search engine is a smart investment given their business model.
You couldn't be more wrong. Plenty of people bought iPods and then upgraded to iPhone because of iTunes. Many android switchers move to iPhone because of the App Store and Apple Music will bring in more people.
Netflix should make a box and App Store since apparently it's so easy for Apple to do.
"So you’re right that a big piece of the puzzle is software, but it’s not Apple software."
Yeah not like Apple develops it's own OS and stores.
Apple is more than a hardware company, just like they're more than a computer company.
Apple should start charging companies like Netflix, that charge customers but give nothing back to Apple, for making their services available through the AppStore.
They do "give back" to Apple since they offer a service that Apple users want. How is it so different from Apple hosting other "free apps" that users find valuable, stuff like Dropbox or Adobe Reader or Lastpass, that help keep Apple users happy in the ecosystem?
Pretty sure you wouldn't want Netflix mobile as an Android exclusive. it wouldn't reflect well on the platform would it?
And if Netflix should be giving a cut to Apple then surely Uber and Lyft should too. Heck Eddy Cue even said Uber wouldn’t exist if not for the iPhone. I don’t think the same can be said for Netflix. I watch Netflix on my smart TV which has nothing to do with Apple.
You’re right. Apple should be charging Uber and Lyft.
Apple won’t exist if it wasn’t for developers like Uber.
Apple existed before Uber.
One-post troll, please leave.
Apple won’t exist unless Microsoft bailed them out in the late 90’s.
Here we see a troll moving the goalposts. A cliche pattern used by trolls when they're proven wrong.
The Roku was actually supposed to be just a Netflix box at first but the company was split off to assure other services made apps for the streamer. They do have their own 'app' store and one can buy TV shows/movies from Roku.
I can totally understand Netflix doing this - if you were them, would you give up 15% of your income if you didn't have to? I would do the exact same thing if I were them.
Netflix is available on a ton of different devices (TVs, DVD players, etc.) Do they pay royalties at all on those? (Serious question) Another consideration is what percentage of the content is viewed on AppleTV vs laptops, desktops, phones, etc. Should Netflix payOn one hand Apple does have both development and ongoing support costs for AppleTV, but one can also argue that services like Netflix increase the value of AppleTV and help sales.
The fee is based on where the transaction happens. If the billing is via iTunes then the fee goes to Apple and no other product. If the billing is via Google Play, the fee goes to Google (Netflix removed this option too).
People can say that Apple doesn't deserve this amount or any amount but the same can be said about any digital purchase, they are intangible goods. But Apple accommodates 0.5 billion App Store users per week. That takes resources in the form of data centers, which cost about $1b each to setup and likely hundreds of millions to run.
People can say to not charge a fee to certain types of apps, just now the fee doesn't apply to tangible goods like retail stores, hotels, taxis etc. But if they don't charge media streaming apps why should they charge dating apps? Why should they charge a game that has a subscription? But if they don't charge game subscriptions, why should they charge for IAPs?
It's an arbitrary choice to say media apps shouldn't be charged a fee on the billing. They benefit hugely from the simplicity and security of the payments system that allows users to conveniently manage their subscriptions to multiple services instead of managing the process themselves.
Some might say that having a fee is ok but 15% is too high. 15% of the $7.99/month Netflix fee is $1.20/month. Netflix is the one deciding on $7.99, why not $9.99 or $19.99? If they charge $9.40, they get the fee they want.
No matter what percentage Apple chose, companies with shareholders want the margins to be as good as possible and this means zero fees where possible. Apple has shareholders too and want to see growth in services revenue.
It's up to the companies to charge what they feel is right for their services. If Netflix wants to charge $7.99, that's up to them. If Apple wants 15% for billing, that's up to them. Only those companies know how best to manage their services to create a successful business and what their expenditure roadmap is going forward and what revenue will be sustainable.
The entire industry has spoken: Apple's in-app purchase fees are not acceptable when used to buy content not produced or hosted by Apple. Apple's customers will have to suffer the inconvenience of using Safari to make the purchase. As a subscriber of on demand video services, I would rather that money pay for 30% more content than go to Apple for the convenience of using their in-app purchase.
Apple should start charging companies like Netflix, that charge customers but give nothing back to Apple, for making their services available through the AppStore.
That’s crazy. Apple is a HARDWARE company. Services and the App Store are gravy, neither of which exist if people aren’t buying the hardware. Companies like Netflix are giving Apple customers services to enjoy. No services and those customers buy someone else’s hardware. I’d get rid of AppleTV without a second thought if Netflix wasn’t available.
On the contrary, the software and services are selling the hardware. That's why Apple makes 90% of the profits with 20% of the sales. If the Netflix services are so great, Netflix should make their own hardware like Amazon and Roku do and see how far they get. Once they have their own hardware, they can have their own store too but not get very far.
Why do you think Google pays billions to Apple to provide Apple with search services? It's the ecosystem, not just the hardware.
Apple’s middling services don’t sell iPhones. I don’t think there’s a person out there who bought an iPhone just so he or she could use iCloud.
When it comes to software, you have a point. A thriving App Store certainly makes the iOS platform more appealing. The number of apps available for PCs versus Macs back on the day was a key factor in the PC’s overall success.
But, in the end, Apple is a hardware company. They make the vast majority of their revenue from hardware sales. Why should Netflix make a box? That’s ridiculous. Should every TV channel make their own TV? Apple needs apps and services to support its platform as much as those services need Apple, maybe more. We don’t want to return to the 90s when virtually no one supported Apple products. Apple isn’t a software or a services company. They are a hardware company. If no one buys the hardware, the App Store means nothing.
So you’re right that a big piece of the puzzle is software, but it’s not Apple software. It’s third party software supporting Apple’s platform. Lose those apps and services and Apple is in big trouble.
As for Google, that’s something different. Google needs data to monetize. Paying to be the default search engine is a smart investment given their business model.
You couldn't be more wrong. Plenty of people bought iPods and then upgraded to iPhone because of iTunes. Many android switchers move to iPhone because of the App Store and Apple Music will bring in more people.
Netflix should make a box and App Store since apparently it's so easy for Apple to do.
"So you’re right that a big piece of the puzzle is software, but it’s not Apple software."
Yeah not like Apple develops it's own OS and stores.
Apple is more than a hardware company, just like they're more than a computer company.
Apple should start charging companies like Netflix, that charge customers but give nothing back to Apple, for making their services available through the AppStore.
They do "give back" to Apple since they offer a service that Apple users want. How is it so different from Apple hosting other "free apps" that users find valuable, stuff like Dropbox or Adobe Reader or Lastpass, that help keep Apple users happy in the ecosystem?
Pretty sure you wouldn't want Netflix mobile as an Android exclusive. it wouldn't reflect well on the platform would it?
And if Netflix should be giving a cut to Apple then surely Uber and Lyft should too. Heck Eddy Cue even said Uber wouldn’t exist if not for the iPhone. I don’t think the same can be said for Netflix. I watch Netflix on my smart TV which has nothing to do with Apple.
You’re right. Apple should be charging Uber and Lyft.
Apple won’t exist if it wasn’t for developers like Uber.
Apple existed before Uber.
One-post troll, please leave.
Apple won’t exist unless Microsoft bailed them out in the late 90’s.
Here we see a troll moving the goalposts. A cliche pattern used by trolls when they're proven wrong.
The Roku was actually supposed to be just a Netflix box at first but the company was split off to assure other services made apps for the streamer. They do have their own 'app' store and one can buy TV shows/movies from Roku.
Yes, I remember this. Not sure how it relates to the quoted post though?
I want all my subscriptions for apps I get through the Apple App Store to be managed through the App Store. That’s why I buy them.
Reasons:
1) Convenience—Just one place to check what my subscriptions are and when they are due
2) Reliability— Apple let’s me know in advance that a subscription comes due. I can then easily go into ITunes and cancel if I desire.
And I know if I cancel it will be cancelled. I’ve done too many cancellations BS when a company doesn’t cancel my subscription as requested on time. Means long fight with a service where I cannot talk with a human or have to let my credit card company fight it out.
3) Security— Trust my payment, name, address, phone, email, credit card are safe and secure with Apple. I cannot trust that with another company whose security may be minimal —too many hacks out there. Security is part of the Apple App Store service for me.
I want all my apps —Purchases, subscriptions and updates to go through one place—the App Store. If a developer wants to go DIY, take it off the App Store, with its free advertising to Apple client base. Advertise and let me come to you if I desire your service. I’m sure Appleinsider and others will welcome DIY developer ad dollars...
I’m not buying apps that don’t go through the App Store anymore. Had to do this with 1 Password, had issues, only an email exchange customer service to help. But my passwords were at stake. So I went with their subscription offline and hate it.
To start on Apple services then take them away is to me bait-and-switch...
Bait and switch ? Nothing that Netflix is offering as a service is changing. It’s just how your payment is being taken and processed?
Also I am not sure what subscriptions you have through iTunes, but personally I receive emails for receipts that my subscription payment was taken. I have never received an email from Apple reminding me of anything ?
I had had to make this change with YouTube Red. She likes it for the no commercials and tons of audiobooks for work. Initially I was paying through ITunes and then realized after a while that Thye were passing the 30% that Apple gets on to the customer. $12.99 through iTunes monthly and $9.99 if you sign up through Google online.
So there is the alternative..... developers and companies can directly pass the Apple tax to us because they don’t want to pay it, or we can subscribe outside of iTunes/Apple and pay the intended price. Netflix is trying to not pass the extra cost on to subscribers in this case it seems. They have raised their prices enough in the last couple of years that I don’t think that would go over well either.
I use paypal for anything recurring outside of iTunes. It’s really no that difficult to manage in my opinion.
Netflix was already set in their prices while Apple took a cut, so no, they didn't and weren't planing to pass the charge to Apple users.
They just got greedy and wanna use Apples platform for free.
Comments
The move is one to increase revenue.
I thought they had been profitable at least once?
Obviously, your app developing experiences with Apple are different than flydog's.
Tell 'em how you do it.
https://www.marketwatch.com/story/netflix-is-growing-even-faster-and-streaming-to-record-profit-totals-2018-04-16
https://www.cnbc.com/2018/10/16/netflix-q3-2018-earnings-and-revenue.html
Aside from your Uber/Lyft comparison being completely nonsensical, let me ask you a couple of questions. Do you have a problem with Amazon or eBay getting a cut out of people using their marketplace? No? Then whey shouldn't Apple getting a cut out of their own marketplace? If Netflix doesn't want to pay the cut, why should they be allowed to distribute their iOS to ATV apps?
Love how people make up different rules for Apple as they go along.
The most obvious difference is that Uber and Lyft process the payments themselves through their app. That means that they also foot the bill for the infrastructure and credit processing charges.
So by not taking a cut of the subscription , what you’re actually saying is that Apple should pay Netflix’s credit card processing bill. Credit card processing charges can be as much as 3% of the transaction plus a a flat fee on top.
I doubt if Netflix is going away. If the Apple service is good I will pay for both, and drop either Amazon, or Spotify ( I assume there will be bundling options so I can get Apple Music).
Sure it can charge google to be the search engine but it has to have a level playing field for apps.
Any smart TV that is produced without Netflix is non-viable at the moment. Apple's TV service won't change that as it will be restricted to iOS only, I assume. For me, although I signed up to Netflix on the phone initially, there would be no issue with signing up on any other device. At the moment Netflix is available on the TV, the internet TV service I have, Apple TV, the iPhone and on my Mac. Its easy enough to sign up on any of these, if I needed to now. The Mac would be probably be the easiest though, given the keyboard and guess what - thats not through Apple but through the website.
Also I am not sure what subscriptions you have through iTunes, but personally I receive emails for receipts that my subscription payment was taken. I have never received an email from Apple reminding me of anything ?
I had had to make this change with YouTube Red. She likes it for the no commercials and tons of audiobooks for work. Initially I was paying through ITunes and then realized after a while that Thye were passing the 30% that Apple gets on to the customer. $12.99 through iTunes monthly and $9.99 if you sign up through Google online.
So there is the alternative..... developers and companies can directly pass the Apple tax to us because they don’t want to pay it, or we can subscribe outside of iTunes/Apple and pay the intended price. Netflix is trying to not pass the extra cost on to subscribers in this case it seems. They have raised their prices enough in the last couple of years that I don’t think that would go over well either.
I use paypal for anything recurring outside of iTunes. It’s really no that difficult to manage in my opinion.
Last Q
"Netflix said it gained almost seven million new users worldwide, to bring its total membership to more than 137 million.
Profit in the quarter more than tripled from a year ago to $403 million while revenues grew 34 percent to $4 billion."
That kind of growth is not to be sniffed at. They are probably heading towards revenue of close to $20B this year, and are in profit. Its also something they are good at, it's in their DNA so to speak. I wish the Apple TV service well, and Netflix well.
"Before the change, Netflix on iOS was grossing an average of $2.4 million per day in 2018 — meaning Apple was making around $700,000 by doing nothing other than allowing Netflix to offer subscriptions in its app."
Thats' probably on the high side since after year one the percentage drops to 15%
People can say that Apple doesn't deserve this amount or any amount but the same can be said about any digital purchase, they are intangible goods. But Apple accommodates 0.5 billion App Store users per week. That takes resources in the form of data centers, which cost about $1b each to setup and likely hundreds of millions to run.
People can say to not charge a fee to certain types of apps, just now the fee doesn't apply to tangible goods like retail stores, hotels, taxis etc. But if they don't charge media streaming apps why should they charge dating apps? Why should they charge a game that has a subscription? But if they don't charge game subscriptions, why should they charge for IAPs?
It's an arbitrary choice to say media apps shouldn't be charged a fee on the billing. They benefit hugely from the simplicity and security of the payments system that allows users to conveniently manage their subscriptions to multiple services instead of managing the process themselves.
Some might say that having a fee is ok but 15% is too high. 15% of the $7.99/month Netflix fee is $1.20/month. Netflix is the one deciding on $7.99, why not $9.99 or $19.99? If they charge $9.40, they get the fee they want.
No matter what percentage Apple chose, companies with shareholders want the margins to be as good as possible and this means zero fees where possible. Apple has shareholders too and want to see growth in services revenue.
It's up to the companies to charge what they feel is right for their services. If Netflix wants to charge $7.99, that's up to them. If Apple wants 15% for billing, that's up to them. Only those companies know how best to manage their services to create a successful business and what their expenditure roadmap is going forward and what revenue will be sustainable.
Yes, I remember this. Not sure how it relates to the quoted post though?
Netflix was already set in their prices while Apple took a cut, so no, they didn't and weren't planing to pass the charge to Apple users.
They just got greedy and wanna use Apples platform for free.