Several emails and documents related to the Apple case have been revealed, showing the tech giant's efforts to convince Netflix to continue using in-app payments in the App Store.
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In 2018, Netflix discontinued the ability for users to sign up for new subscriptions to the service through the iOS app. While Netflix didn't explain why, it's likely a decision made because of Apple's 30% commission on in-app purchases.
Once Apple learned of Netflix's plan to stop offering in-app subscriptions, it began an internal dialogue and tried to convince Netflix to change its decision, according to emails and documents first published by 9to5Mac
See also: Netflix: New subscriber signups are declining
In 2018, for example, Netflix conducted a test to understand the value of removing in-app subscriptions in certain markets.
Carson Oliver, Apple's director of App Store Business Management, said at the time that Apple "expressed concern that running the test would create a poor experience for app users in these markets and limit co-marketing opportunities."
Oliver also made a reference to a “churn issue” among subscribers on iOS. In other words, more users who signed up for Netflix from an iPhone or iPad stopped using the product compared to users who signed up elsewhere.
Additionally, Oliver asked other participants in the email chain whether Apple should take “punitive measures” in response to the test. He also questioned how those measures could be communicated to Netflix.
Other messages in the thread indicate that Apple executives held several meetings with Netflix to discuss the trial. Some of the meetings included discussions about reaching a “middle ground” — a solution that was apparently never reached.
One of Apple’s attempts to convince Netflix to stick with IAP included a detailed presentation that justified the App Store and offered a variety of supposed benefits to keeping in-app subscriptions. In the presentation, Apple tried to convince Netflix by highlighting the various ways it drove subscribers to the service.
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Additionally, the presentation offered a variety of solutions that Apple and Netflix could work on together, such as an Apple TV bundle and an option to join a “video partner program.” Other ideas included in the presentation revolved around deeper partnerships, such as marketing Netflix in Apple retail locations or sending out email campaigns that would promote the streaming service.
Apple's efforts to convince Netflix ultimately proved fruitless. However, just a year later, the giant launched its Apple TV+ service, putting the company in direct competition with Netflix.
Information source: appleinsider.com
