Apple enjoys theApp Store‘s rules and regulations, because it brings in a lot of money for the company. So when a huge company likeNetflixbalks at the idea of playing by those rules anymore, Apple might try a bit harder to keep them around.
As noted today by9to5Mac, several higher-ups at Apple were talking about the topic in an email chain. Those included are: Eric Gray, Product Manager, Commerce & Pricing for Apple Services; Peter Stern, VP of Services; Matt Fischer, VP of App Store; Pete Distad, VP of Product Marketing; Sheryline Chapman, App Store Business Management; Christopher Campbell, Apple Hardware Engineer; and Carson Oliver, Director of App Store Business Management.
Oliver kicks things off:
Outside of the voluntary churn issue, Netflix is concerned with understanding the incremental value of offering subscription via IAP on iOS. To measure this, they proposed a test that would remove the ability to purchase the subscription via in-app purchase in a select number of markets for a two-month period (see list of markets below). They would like to run the test in May and June, and estimate this test would impact 1.9% of annual in-app signups. We expressed our concern that running this test would create a bad customer experience for app users in those markets and limit co-marketing opportunities, including on-store featuring.
Netflix disputed that claim, though.
Punitive measures on Apple’s part were considered. And executives at the company lined up several different meetings with Netflix to try and get the steamer to stop its plans to skip IAP sign-ups. Even Eddy Cue wanted to meet with Netflix’s CEO, Reed Hastings, face-to-face:
Eddy has asked that before we agree to the A/B test (i.e., if Matt, Pete & I fail with Greg Peters and Bill Holmes), he wants to meet with Reed. I’ve let Eddy know how they feel, but he rightly points out that if we can’t get it done, then we have less to lose.
It didn’t stop there
Apple pulled out all the stops and presented a slide show. Yes, a slide show. How could Netflix say no to that, right? Apple only went to those lengths because Netflix had officially started the A/B testing to skip IAP for new sign-ups. Apple’s goal with the slide show was to show Netflix that its commission was justified (basically, the same thing Apple is doing now with Epic Games, but on a much larger scale).
Apple showed how it was supporting Netflix in general, including more featured elements in the App Store, download rates, and the download numbers from the App Store. Apple even showed how Netflix could keep working with Apple in new ways:
Spotify can’t tell the customer where theycanupgrade to Premium, either, which is another store point for many of these companies.
