This is how Apple tried to hold Netflix back from its payment system

While thebataillelegal dispute between Epic, the developer of the game Fortnite, and Apple, is still in progress, the revelations follow one another. Indeed, the trial makes public numerous internal documents from the Cupertino company. For example, thanks to documents used during the trial, we know that in 2011, an Apple executive had alreadysuggestedthat the firm reduces the App Store commission on transactions between users and developers. Another document, also revealed as part of this trial, gives us an idea of ​​the importance of the Netflix application for Apple, as well as the Cupertino company's attempts to keep this app on its payment system.

Like many developers, Netflix used the App Store's integrated payment system, which allowed Apple to take its 30% commission from subscriber payments. But in 2018, Netflix decided to no longer use this payment system. Today, it is no longer possible to create a new Netflix subscription on the iOS application. This subscription must be made on the company's website, where Apple does not charge a commission.

According to a series of emails from Apple executives published by the site 9to5Mac, when the Cupertino company learned of Netflix's plan to no longer go through the App Store payment system, it almost tried everything to retain this partner.

Initially, while Netflix was planning to test this change, Carson Oliver, one of the managers of the App Store, even asked his colleagues in an email if Apple should take punitive measures if Netflix launches this test. Apple also reportedly indicated to Netflix that these tests could limit“co-marketing opportunities, including in-store features. »

And when Netflix launched its tests, Apple also created a presentation for the company, in order to convince it not to abandon the payment system integrated into the App Store. According to 9to5Mac, this presentation would highlight what Apple has already done to support Netflix, in order to justify its 30% commission.

In addition to this, the Cupertino company would have been willing to support Netflix further, in particular by promoting SVOD. Apple would even have been ready to combine the Netflix subscription with some of its services.

But as you know, today Netflix has completely abandoned Apple's payment system. And for its part, the Cupertino company created Apple TV+, a competitor to Netflix.

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By : Keleops AG