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Home / Technology / Internal emails reveal how serious Apple wants to keep Netflix with in-app purchases

Internal emails reveal how serious Apple wants to keep Netflix with in-app purchases



Internal emails disclosed in the Epic Games v. Apple lawsuit indicate that Apple employees are considering giving Netflix special treatment to persuade the streaming service not to give up in-app purchases. In Netflix’s preparations to cancel its subscription service to avoid Apple charging fees, a speech circulated within Apple suggested advertising Netflix in its retail stores, using part of its App Store commission fees to pay for search ads, and even bundling Netflix with others. Use with Apple services.

E-mail found 9to5Mac, First is an explanation of a test that Netflix hopes to conduct to study the impact of disabling in-app purchases on iOS. As Carson Oliver, Director of App Store Business Management, wrote, Netflix’s main focus is on the “voluntary churn” of subscribers through the App Store. The exact amount has been removed, but this seems to indicate that Netflix subscribers in the App Store have cancelled this service compared to subscribers who joined from other means (such as through Netflix̵

7;s website).

Carson Oliver’s summary of the Netflix in-app purchase test.

Since Apple cut its subscription fee by 30%, which is part of its App Store policy, Netflix may also consider not using IAP for financial reasons. Netflix can keep more subscriptions each month without cutting Apple’s expenses.

In Apple’s first internal response to the Netflix plan, Oliver asked whether the company should continue testing to consider penalizing Netflix. There was a months-long gap between the initial thread of the email and Apple’s subsequent Netflix discussion, but once Netflix committed to the removal of A/B testing in-app purchases, that tone seemed to have changed.

An email in July 2018 showed that an Apple employee had created a presentation to support in-app purchases. It reminds people of what Apple has done for Netflix, and has reached new deals, such as offering subscriber discounts (Apple will eventually launch a similar service in 2020), and let Netflix determine which Apple movies and movies Netflix displays on the Apple Store.

Apple also highlighted all its promotions for Netflix in the editorial section of the App Store. In particular, Apple also pointed out that compared with other partners, Netflix has more features, and content related to streaming services has increased its downloads by 6% to 7%.

But in the same speech, Apple believed that it brought more benefits to Netflix, some of which went beyond the benefits that the company publicly provided to other developers, although the e-mail emphasized that the “we can do” part included pies. Complete ideas, but these ideas have not yet been approved. “

The content of the presentation included an email campaign dedicated to promoting the Netflix application, deduction of a portion of the advertising subscription fee in the App Store, and the possibility of bundling Netflix with other Apple services, which predates Apple’s launch of Apple TV Plus or Apple One bundles .

Any discussion between the two companies eventually happened, but removing in-app purchases from the Netflix app is still feasible, and the company does not seem to be harmed by it in the long run-Netflix in January 2021 The number of subscribers has exceeded 200 million.

The entire e-mail legend illustrates that there seems to be an exception to Apple’s policy on developers. The details were not elaborated in the presentation, but Apple did provide Netflix with a “video partner program discount,” which sounds similar to the deal it made with Amazon for Prime Video. These e-mails can prove that Apple seems willing to make concessions to powerful and profitable partners.


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